Louisiana Revised Statutes & Codes

La. Civ. Code Ann. art. § 1893 (2026)

 COMPENSATION

✓ current as of May 2026
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SECTION 5.  COMPENSATION

Art. 1893.  Compensation extinguishes obligations

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.