Practice question
Gio must return money held as a depositary for Hana. Hana separately owes Gio a matured ordinary loan of the same amount. Gio retains the deposit and invokes legal compensation, stipulating every ordinary monetary requisite except the nature of the depositary duty. Which rule governs?
- Equal amounts always override the nature of the debts.
- A depositary’s retention automatically becomes a sale.
- Article 1287 excludes compensation when one debt arises from depositum or the obligations of a depositary.
- The deposit is extinguished by the mere fact that Gio demands setoff.
- Only the parties’ ages matter.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 1278–1290.
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