Article 1283. If one of the parties to a suit over an obligation has a claim for damages against the other, the former may set it off by proving his right to said damages and the amount thereof.
Artikulo 1283. Kung ang isa sa ang mga partido sa isang suit sa isang obligasyong ay may karapatan para sa mga pinsala laban sa isa, ang nauna ay maaaring ipawalang bisa ito sa pamamagitan ng pagpapatunay ng kanyang karapatan sa nasabing mga pinsala at ang halaga hinggil doon.
Compensation may also take place when so declared by a final judgment of a court in a suit. A party may set off his claim for damages against his obligation to the other party by proving his right to said damages and the amount thereof.
ILLUSTRATION
Naruto owes Sasuke Php 10, 00. When Sasuke demanded payment, Naruto failed to pay. In anger, Sasuke damaged the property of Naruto to the extent of Php 9, 000.
Naruto can set off the obligation of Sasuke to pay him damages in the amount of Php 9, 000 against his debt of Php 10, 000.
OBLIGATIONS AND CONTRACTS 