---
urn: "urn:us-la:civcode:art:1893"
article_number: "1893"
status: active
heading: "Compensation extinguishes obligations"
breadcrumb: "Book III › Title III › Chapter 6 › Section 5"
source_url: "https://legis.la.gov/legis/Law.aspx?d=109138"
acts_citations_raw: "Acts 1984, No. 331, §1, eff. Jan. 1, 1985."
acts_citations:
  - act_year: 1984
    act_number: 331
    section: 1
    effective_date: 1985-01-01
    role: enactment
schema_version: "1.0.0"
---

# 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.