Art. 1287.

Compensation shall not be proper when one

of the debts arises from a depositum or from the obligations
of a depositary or of a bailee in commodatum.

Depositum In civil law, depositum means a naked bailment,

without reward, of goods to be kept for the bailor, by one who is
usually called a depositary.

Bailee An individual who temporarily gains possession, but not

ownership, of a good or other property under a bailment

Commodatum is 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.

Art. 1287. Compensation shall not be proper when one

of the debts arises from a depositum or from the obligations
of a depositary or of a bailee in commodatum.

B entrusted A 100 thousand pesos. A borrowed B a sum of 50

thousand pesos. When B wanted to claim his 100 thousand pesos
he entrusted to A, A only returned 50 thousand to B because he
subtract the other 50 thousand loan of B to him.

A cannot refuse to return the 100 thousand which B deposited.

What one deposited as depositum cannot be compensated

Art. 1287. Compensation shall not be proper when one

of the debts arises from a depositum or from the obligations
of a depositary or of a bailee in commodatum.
Neither can compensation be set up against a creditor who
has a claim for support due by gratuitous title, without
prejudice to the provisions of paragraph 2 of Article 301.
(1200a)

Gratuitous title a title given to you without giving anything

in return

Support comprises everything that is indispensable for

sustenance, dwelling, clothing, medical attendance,
education and transportation, in keeping with the financial
capacity of the family

Art. 1288.

Neither shall there be compensation if one

of the debts consists in civil liability arising from a penal
offense. (n)

Civil liability potential responsibility for payment of

damages or other court-enforcement in a lawsuit. It is a legal
obligation

The prohibition in Article 1288 pertains only to the accused but not
to the victim of the crime.

Art. 1289.

If a person should have against him several

debts which are susceptible of compensation, the rules on
the application of payments shall apply to the order of the
compensation. (1201)

Art. 1290.

When all the requisites mentioned in Article

1279 are present, compensation takes effect by operation
of law, and extinguishes both debts to the concurrent
amount, even though the creditors and debtors are not
aware of the compensation. (1202a)