Louisiana Civil Code

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SECTION 4 - REMISSION OF DEBT

Art. 1888. A remission of debt by an obligee extinguishes the obligation. That remission may be express or tacit. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1889. An obligee's voluntary surrender to the obligor of the instrument evidencing the obligation gives rise to a presumption that the obligee intended to remit the debt. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1890. A remission of debt is effective when the obligor receives the communication from the obligee. Acceptance of a remission is always presumed unless the obligor rejects the remission within a reasonable time. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1891. Release of a real security given for performance of the obligation does not give rise to a presumption of remission of debt. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1892. Remission of debt granted to the principal obligor releases the sureties.

Remission of debt granted to the sureties does not release the principal obligor.

Remission of debt granted to one surety releases the other sureties only to the extent of the contribution the other sureties might have recovered from the surety to whom the remission was granted.

If the obligee grants a remission of debt to a surety in return for an advantage, that advantage will be imputed to the debt, unless the surety and the obligee agree otherwise. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SECTION 5 - COMPENSATION

Art. 1893. Compensation takes place by operation of law when two persons owe to each other sums of money or quantities of fungible things identical in kind, and these sums or quantities are liquidated and presently due.

In such a case, compensation extinguishes both obligations to the extent of the lesser amount.

Delays of grace do not prevent compensation. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1894. Compensation takes place regardless of the sources of the obligations.

Compensation does not take place, however, if one of the obligations is to return a thing of which the owner has been unjustly dispossessed, or is to return a thing given in deposit or loan for use, or if the object of one of the obligations is exempt from seizure. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1895. Compensation takes place even though the obligations are not to be performed at the same place, but allowance must be made in that case for the expenses of remittance. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1896. If an obligor owes more than one obligation subject to compensation, the rules of imputation of payment must be applied. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1897. Compensation between obligee and principal obligor extinguishes the obligation of a surety.

Compensation between obligee and surety does not extinguish the obligation of the principal obligor. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1898. Compensation between the obligee and one solidary obligor extinguishes the obligation of the other solidary obligors only for the portion of that obligor.

Compensation between one solidary obligee and the obligor extinguishes the obligation only for the portion of that obligee.

The compensation provided in this Article does not operate in favor of a liability insurer. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1899. Compensation can neither take place nor may it be renounced to the prejudice of rights previously acquired by third parties. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1900. An obligor who has consented to an assignment of the credit by the obligee to a third party may not claim against the latter any compensation that otherwise he could have claimed against the former.

An obligor who has been given notice of an assignment to which he did not consent may not claim compensation against the assignee for an obligation of the assignor arising after that notice. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1901. Compensation of obligations may take place also by agreement of the parties even though the requirements for compensation by operation of law are not met. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1902. Although the obligation claimed in compensation is unliquidated, the court can declare compensation as to that part of the obligation that is susceptible of prompt and easy liquidation. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SECTION 6 - CONFUSION

Art. 1903. When the qualities of obligee and obligor are united in the same person, the obligation is extinguished by confusion. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1904. Confusion of the qualities of obligee and obligor in the person of the principal obligor extinguishes the obligation of the surety.

Confusion of the qualities of obligee and obligor in the person of the surety does not extinguish the obligation of the principal obligor. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1905. If a solidary obligor becomes an obligee, confusion extinguishes the obligation only for the portion of that obligor.

If a solidary obligee becomes an obligor, confusion extinguishes the obligation only for the portion of that obligee. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]