The Exception for the Non-Performance of Contracts and the Exception for the Compensation of Claims and Related Liabilities

The compensation of claims and related liabilities is an institution consecrated by the French jurisprudence and it can operate without having met all the conditions set by the law for the legal compensation. This form of connection encountered in the field of obligation relationships in business law is admitted on the idea of a connection between certain claims and liabilities, being circumscribed, at first, to the obligational relationships arising from the same synallagmatic contract. In this study, we analyze this legal mechanism in comparison with the exception for the non-performance of the contract, which also functions as a warranty for the creditor which did not fulfill its contractual obligations.