CONDONATION/REMISSION OF THE DEBT gratuitous abandonment of debt;

right to claim; donation; rules of donation applies; express or implied

CONFUSION OR MERGER OF RIGHTS character of debtor & creditor is merged
in same person with respect to same obligation
The definition of compensation is something of value given in exchange for
something else.
a. The money a company pays to its employee to do work is an example
ofcompensation.
b. When a person gets into a car accident and injures someone, the
money he pays to the injured victim for his losses is an example of
compensation.

NOVATION-agreement of parties to a contract to substitute a new contract for the

old one. It extinguishes (cancels) the old agreement.
Annulment- an official or legal cancelation
Rescission -the right to have a contract set aside if it has been entered into
mistakenly