IS Date:. Tesued Whether or nat the application of the respondents’ $4,22 by the petitioner Ean kk by way of eampensation i3 valid ? Ruling yes. the application by the honk of: $4,220 From the respadents’ Sayings acasmt against the latters loans is valid. The Court held that agreements far compensaficn of debts or any obligations when the parties ave motvally creditecs and debtors: of eath other ave allowed undey Article 1282 ef the Ciuil Cade even trash not] all of the egal requisites for legal com pensation are present. Velunt~ ry br convenkional compensation is net limited 4 eligarions which ave nd yell due. .The enly vequitement.s for anventina! compensation o¥€- ©0) That Cath of the parties can dispose of fre credit he seeks Yo compensate, & C2)| that they agree tothe exching vichment of their mofva) credits . Conbequently no envor was cominitied by the trial cart in holding tht petitioner validly applied by “ay of conpensafio the $4,220 tele- graphic transfer remitted by foreign clients af the respondents by v ual of the, pehhioner