Practice question
A bank owes Alice an ordinary deposit debt. Only Bob, a different person, owes the bank a loan, and Alice has not assumed or guaranteed it. The bank invokes legal compensation solely because Alice and Bob are friends. Which is correct?
- The stipulated debts lack the required reciprocal own-right debtor-creditor relation.
- Friendship automatically transfers the loan
- Every customer owes every borrower’s debt
- A deposit automatically guarantees all third parties
- The bank may choose any unrelated account as legal compensation
Legal references
- Civil Code, Articles 1278-1279, 1290, 1953 and 1980: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
- Areza v. Express Savings Bank, G.R. No. 176697, September 10, 2014, main decision: https://lawphil.net/judjuris/juri2014/sep2014/gr_176697_2014.html
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