2.)That both debts consist in a sum of money, or if the things due areconsumable, they be of the samekind, and also of the same quality if the latter has been stated3.)That the two debts are due4.)That they be liquidated anddemandable5.)That over neither of them there beany retention or controversy,commenced by third persons andcommunicated in due time to thedebtor.Reason: There is a sort of rightacquired by the third parties thatwould obstruct compensation byconverting the debtor into a judicialdepository of the thing due, therebypreventing him from delivering thething to the creditor.6.)That compensation if the debt be notprohibited by lawObligations that are prohibited by lawfrom being compensated:a.)When the obligations arises froma depositum or from anobligation of a depository or abailee in commodatumb.)Obligations that arises fromfuture support due by gratuitoustitle but support in appears maybe compensatedc.)If the obligations consist I civilliability arising from a penaloffense-satisfaction of suchobligations is imperatived.)If the obligations consist indamages caused to thepartnership they are notcompensable with the guiltypartner’s share in the profits.7.)That compensation is not waived.Article 1281Compensation may be total or partial,when the two debts are of the sameamount, there is a totalcompensation.Article 1282 The parties may agree upon thecompensation of debts which are not yet due.Voluntary Compensation-arises from the mere agreement of the parties-not only obligations which are notdue but all obligations which lack therequisites of legal compensation maybe compensated by agreement of theparties.Reason: to eliminate the obstacles tolegal compensation which prevent theextinguishment ipso jure of theobligationRequisites:1.)Each of the parties can dispose of the credit be seeks tocompensate2.)Parties agree to mutuallyextinguish the creditsArticle 1283If one of the parties to a suit over anobligation has a claim for damages against theother, theFormer may set it off by proving hisright to said damages and amount thereof. Judicial Compensation-there can be compensation of amounts not yet liquidated since the amount of damages may beProved and ascertained in the verycase where the set off is pleaded.-other requisites must be presentArticle 1284When one or both debts arerescissible or voidable,they may becompensated against each otherbefore they are judicially rescinded oravoided.Compensation of rescissible or voidable debts-valid unless the same is rescinded orannulled by the court-Reason: before judicial rescission orannulment, the debts can be compensated butthe same iscancelled the moment the courtdecrees the rescission or annulmentsince the effect of the court’s decreeis retroactive.Article 1285The debtor who has consentedto the assignment of rights made by acreditor in favor of a third person,cannot set up against the assignedthe compensation which would pertainto him against the assignor, unlessthe assignor was notified by thedebtor at the time he gave hisconsent, that he reserved his right tothe compensation.If the creditor communicatedthe cessions to him but the debtor didnot consent thereto, The latter may set up thecompensation of the debts previous tothe cession but not of subsequentdues.If the assignment is madewithout knowledge of the debtor, hemay set up the compensation of allthe credits prior to the same and alsolater ones until he had knowledge of the assignment.Effect of the assignment:1.)Where the assignment wasconsented to by the debtor2.)Where the debtor does notconsent to the assignment3.)Where assignment is madewithout the knowledge of thedebtorArticle 1286Compensation takes place byoperation of law, even though thedebts may be payable a differentplaces, but there shall be anindemnity for expenses of exchangeor transportation to the place of payment.