Chapter 4 - Section 5 - Compensation

Question 1

Extinguishment to the concurrent amount of the debts - creditors and debtors of each other.

Answer 1

Compensation

Question 2

(Compensation) Requisites:

Answer 2

Principal Creditor and Principal Debtor of each other
Consist in a sum of money, or if the things due are consumable, they be of the same kind, and same quality
Two debts be due
Liquidated and demandable
No retention or controversy by third person

Question 3

Two debts are of the same amount.

Answer 3

Total Compensation

Question 4

Debts are of different amounts

Answer 4

Partial Compensation

Question 5

Are valid until they are judicially rescinded or avoided. Prior or annulment the debts may be compensated against each other.

Answer 5

RESCISSIBLE AND VOIDABLE OBLIGATIONS

Question 6

The conversion of an amount of money or currency of one country into an equivalent amount of money or currency of another.

Answer 6

Foreign Exchange

Question 7

The price of one currency expressed in relation to another currency.

Answer 7

Exchange Rate

Question 8

A deposit is constituted from the moment a person receives a thing belonging to another with the obligation of safely keeping it and of returning the same.

Answer 8

Depositum

Question 9

A gratuitous contract whereby one of the parties delivers to another something not consumable so that the latter may use the same for a certain time and return it.

Answer 9

Commodatum

Question 10

“support” comprises everything that is indispensable for sustenance in keeping with the financial capacity of the family.

Answer 10

Claim for support due by gratuitous title

Question 11

“If one of the debts consists in civil liability arising from a criminal offense, compensation would be improper and inadvisable because the satisfaction of such obligation is imperative”

Answer 11

Civil liability arising from a penal offense