Practice question
A owes B ₱90,000 and B owes A ₱35,000. Both are principal money debts in their own right, due, liquidated, and demandable, with no third-party retention or controversy and no statutory exclusion. What remains after legal compensation?
- B owes A ₱125,000.
- Both debts disappear in full despite unequal amounts.
- A owes B ₱90,000 plus B’s full debt remains.
- B owes A ₱55,000.
- A owes B ₱55,000.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 1278–1290.
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