ObligationsandContractsReviewer

Section4.JointandSolidaryObligation
Concept
JointObligation(obligacinmancomunada)

Anobligationwherethereisaconcurrenceofseveral
creditors,orofseveraldebtors,orseveralcreditorsand
debtors,byvirtueofwhicheachcreditorshasarightto
demand,andeachofthedebtorsisboundtorender
compliancewithhisproportionatepartoftheprestation

EachCreditorhasarighttodemandthepaymentofonly
aproportionatepartofthecredit

Eachofdebtorsisliableforthepaymentofonlya
proportionatepartofthedebt
SolidaryObligation(obligacinsolidaria)
Eachofcreditorsisentitledtodemandthepaymentofthe
entirecredit,whileeachofthedebtorsisliableforthepayment
oftheentiredebt.
ComparativeJurisprudence

Examples:Obligationsarisingfromcriminaloffencesand
torts.
Art.1208.Iffromthelaw,orthenatureofthewordingoftheobligations
towhichtheprecedingarticlerefersthecontrarydoesnotappear,the
creditordebtshallbepresumedtobedividedintoasmanyequalshares
astherearecreditorsordebtors,thecreditsordebtsbeingconsidered
distinctfromoneanother,subjecttotheRulesofCourtgoverningthe
multiplicityofsuits.
JointDivisibleObligations

CaseinPoint:JaucianvsQuerol
Art1207.Concurrenceoftwoormorecreditorsoroftwoormore
debtorsinoneandthesameobligationdoesnotimplythateachoneof
thecreditorshasarighttodemandandeachoneofthedebtorsisbound
torender,entirecompliancewiththeprestation.
Thereissolidaryliabilityonlywhentheobligationexpresslysostates,or
whenthelaworthenatureoftheobligationrequiressolidarity.

NatureofCollectiveObligationinGeneral
GeneralRule:Iftheobligationissilentpresumptionistheobligationis
jointandnotsolidary
Notes:

Case:
A,BandChadexecutedapromissorynotebindingthemselvestopayto
X,YandZtopayPhp9,000.00.Itispresumedthattheobligationisjoint
obligationsincetheobligationissilent.
IfXproceedstocollectagainstA,Xcanonlycollect1,000.00fromA.

Exceptions
Threecaseswherecollectiveobligationsaresolidaryandnotjoint
1.

ThemostfundamentalEffectofJointDivisibleObligations
o
CREDITOR:creditorcanonlydemandforthe
paymentofhisproportionateshareofthecredit
o
DEBTOR:debtorcanbeheldliableonlyforthe
paymentofhisproportionateshareofthedebt
Thecreditordebtintheabsenceofanylaworstipulationto
thecontrary,shallbepresumedtobedividedintoasmany
sharesastherearecreditorsanddebtors
Thecreditsordebtsconsidereddistinctfromoneanother
SubjecttotheRulesofCourt
GeneralRule:jointcreditorcannotactinrepresentationofthe
others;neithercanajointdebtorbecompelledtoanswerfor
theliabilityofothers.
InCaseofBreach:
o
Faultofonedebtor:damagesduetoitsbreachmust
bebornebyhimalone
IncaseofDefense:debtoralonecanavailhimselfofsuch
defense
Paymentoracknowledgementbyoneofthejointdebtorswill
notstoptherunningoftheperiodofprescriptionastoothers
theinterruptionofprescriptionbytheclaimofacreditor
addressedtoasingledebtororbyanacknowledgementmade
byoneofthedebtorsinfavorofoneormoreofthecreditorsis
nottobeunderstoodasprejudicialtoorinfavoroftheother
debtorsorcreditors.

Whentheobligationexpresslystatethatthereissolidarity
WordstoexpressorthatindicatesSolidaryObligation
1.
2.
3.

AggregateValue
JointlyandSeverally
Individuallyandcollectively

Note:SolidaryObligationthechoiceislefttothesolidarycreditorto
determineagainstwhomhewillenforcecollection
CaseinPoint:InciongJr.vC.A
2.

Whenthelawrequiressolidarity
Examples:thoseprovidedforinArt927,1824,1911,1915,
2146,2157and2194oftheCCP

3.

Whenthenatureoftheobligationrequiressolidarity

Ifthereisajointdivisibleobligationandoneofthedebtors
becomesinsolvent,theotherdebtorscannotbeheldliableto
shoulderthedebtoftheinsolventdebtor,sincetheobligation
ofeachisconsidereddistinctfromeachother
Ifoneofthecreditordemandfromoneofthedebtorfroman
obligationabouttoprescribe,onlythatdebtorwhoreceivesthe
demandwillbeaffectedbystoppingtheprescriptiveperiod,
butforotherdebtors,theprescriptiveperiodcontinuestorun.

Art1209.Ifthedivisionisimpossible,therightofcreditorsmaybe
prejudicedonlybytheircollectiveacts,andonlyproceedingagainstall
thedebtorscanenforcethedebt.Ifoneofthedebtorsshouldbeinsolvent,
theothersshallbotbeheldliableforhisshare.
JointIndivisibleObligations

Midwaybetweenjointandsolidaryobligation

FundamentalCharacteristics
1.
2.

Nocreditorcanactinrepresentationofothers
Nodebtorcanbecompelledtoanswerfortheliabilityofthe
others
OtherCharacteristics
1. Ifthereare2ormoredebtors,thefulfillmentorcompliance
requiresconcurrenceofallthedebtors
a. Example:3debtorsareobligatedtodeliverahorse

2.

Ifthereare2ormorecreditor,theconcurrenceorcollectiveact
ofallthecreditors

damagesbecauseof
breach,indivisibility
oftheobligationis
terminated

breach,thesolidarity
amongdebtors
remains

EffectofBreachinJointIndivisible

JointIndivisibleobligationcanonlybeenforcedbyproceeding
againstallofthedebtors
Ifoneofthedebtorsfailedtocomply,theobligationcanno
longerbefulfilledorperformed
o
Remedy:obligationisconvertedintooneof
indemnityfordamages
o
Note:thedebtorswhoarereadytofulfillshallnot
contributetotheindemnitybeyondthe
correspondingportionofthepriceofthethingorof
thevalueoftheserviceinwhichtheobligation
consists.

Art.1211.Solidaritymayexistalthoughthecreditorsandthedebtors
maynotbeboundinthesamemannerandbythesameperiodand
conditions.
KindsofSolidarity
1.

EffectofInsolvencyofaDebtor
Ifoneofthejointdebtorsshouldbeinsolvent,theothersshall
notbeliableforhisshare.
Illustration:A,BandCobligatedthemselvesjointlytodeliverahorseto
X.IfAbecomesinsolvent,obligationofAwillbeconvertedto
indemnity,liablefortheamountofhissharetotheobligationplus
damages,BandCwillonlybeliablefortheamountoftheirsharetothe
obligation.

2THEORIESONHOWTOLOOKTHEEFFECTOFINTERRUPTION
OFPERIODOFPRESCRIPTION
Theactofjointcreditorwhich
wouldordinarilyinterruptthe
periodofprescriptionwouldnotbe
valid
Theindivisiblecharacterofthe
obligationrequirescollective
actionofthecreditorstobe
effective

Art.1210.Theindivisibilityofanobligationdoesnotnecessarilygive
risetosolidarity.Nordoessolidarityofitselfimplyindivisibility.
IndivisibilityandSolidarity
IndivisibilityandSolidarityarenotidentical
Differences

AstoNature

Astorequisites
Astoeffectofbreach

Indivisibility
Referstothe
prestationwhich
constitutestheobject
oftheobligation
Pluralityisnot
required
Whentheobligation
ofconvertedintoone
ofindemnityfor

3.

EffectofActiveSolidarityingeneral

InterruptionofPeriodofPrescription

ART1209merelyprovidesthat
therightofthecreditorsmaybe
prejudicedonlybytheircollective
acts
Theactofajointcreditor
beneficialtoothersasforinstance
theinterruptionoftheperiodof
prescription,theactofonewould
besufficient

2.

Active(amongcreditors)
a. Definition:atieexistingamongseveralcreditorsof
oneandthesameobligationbyvirtueofwhicheach
ofthem,possessesthecharacterofcreditoronly
withrespecttohisshareintheobligation,butin
relationtothecommondebtorordebtors,represents
alloftheothercreditors
Passive(amongdebtors)
a. Definition:atieexistingamongseveraldebtorsof
oneandthesameobligation,inrelationtohisco
debtors,possessesthecharacterofdebtoronlywith
respecttohissharetotheobligation,butinrelation
tothecommoncreditororcreditors,representsallof
theotherdebtors.
Mixed(amongcreditorsanddebtors)

Solidarity
Referstothelegaltie
orvinculum,and
consequently,tothe
subjectsorpartiesof
theobligation
Pluralityis
indispensable
Whenthereisliability
onthepartofthe
debtorsbecauseof

Creationofarelationshipofmutualagencyamongsolidary
creditors
Creditorisempoweredtoexerciseagainstthedebtorordebtors
notonlyforhisrightsbutalsotherightswhichcorrespondto
othercreditors
Consequence:Obligationoftheonecreditortorenderan
accountingofhisactstosuchcreditors

EffectofPassiveSolidaryingeneral

Liabilityofdebtorforthepaymentoftheentireobligation,
withconsequentrighttodemandreimbursementfromthe
othersfortheircorrespondingsharesoncepaymenthasbeen
made.
Reason:Debtorinrespecttothecreditoristhedebtorofthe
entireamountofobligation,butinrespecttocodebtors,the
debtorisonlyliabletohisshareintheobligation

Distinguishedfromsuretyship
SolidaryGuarantor(fiadorinsolidum):isapersonwhobinds
himselfsolidarilywiththeprincipaldebtor
SolidaryDebtor
Liablenotonlyforthepaymentof
thedebtofanother,butalsoforthe
paymentofadebtwhichis
properlyhisown
Ifsolidarydebtorpaystheentire
amountofobligation,hehasthe
righttoreimbursetheamount
whichcorrespondstotheshareof
hiscodebtors

SolidaryGuaranty

Ifasuretypaystheentireamount
ofobligationhehasarightto
demandreimbursementfromthe
principaldebtoroftheentire
amountthathehaspaid

Rightsaremorelimited
(extensionoftimegrantedtoone
ofthedebtorswithouttheconsent
oftheotherswouldnoteffectof
releasingtheotherdebtorsfrom
theirobligation)
Hasnootherrightsthanthose
bestoweduponhiminSec4
Chapter3ofthiscode.

MoreRights(anextensiongranted
totheprincipaldebtorwould
releasethesuretyfromthe
obligation)

Whatistheeffectoftheextensionoftimeforpaymentgrantedbythe
creditortothethreeofthedebtors?

Outsideoftheliabilityheassumes
topaythedebtbeforetheproperty
oftheprincipaldebtorhasbeen
exhausted,retainsallrights,
actionsandbenefitswhichpertains
tohimbyreasonofthefiansa

Art.1212.Eachonofthesolidarycreditorsmaydowhatevermaybe
usefultotheothers,butnotanythingwhichmaybeprejudicialtothe
latter.

Effectofvariedconditionsorperiods

Thevinculumorbondinsolidaryobligationsmaybeeither
uniformorvaried
Therelationshipofsolidarityisnotdestroyedbythefactthat
theobligationofonedebtorisconditional,theobligationof
anotheriswithatermorperiod,andtheobligationofathird
ispure
Thecharacterofsolidaryisnotdestroyedifthedebtorsare
boundbydifferentconditionsorbydifferentperiods.

Illustration:
A,BandCborrowed60,000fromXbindingthemselvesjointlyand
severally,andstipulatedthatincaseAshallbedemandableonJune15,
1972,incaseofBJune15,1974andincaseofCJune151976.X
proceedsagainstAdespiterepeateddemands.
Xcancollect20,000fromAhissharefromtheobligation,andthenwait
untiltheperiodisreach.
CaseinPoint:Inchausti&Co.vsYulo
QuickFacts:

Defendants6brothersandsistersexecutedaninstrument
admittingtheirsolidaryindebtednesstotheplaintifffor
253,446.42at10%interestperannumpayablein5annual
installmentsthefirstpayableonJune13,1910
TheDefendantsdefaulted>plaintiffbroughtanactionagainst
GregorioYulofortheentireindebtednessplusinterestin
accordanceintheaccelerationclause
3debtors(Francisco,Manuel,Carmen)enteredintoagreement
reducingtheobligationto225,000at6%intperannum
payablein8yrsfirstinstallmentonJun301912

CantheplaintiffsueGregorioYuloaloneconsideringthatthereare
otherdebtors?
Answer:thedebtors,havingobligedthemselvesinsolidum,thecreditor
canbringitsactionintotoagainstanyoneofthem.Thenewagreement
withthe3otherdebtorsdonotchangethenatureoftheobligation,as
wellsettled,solidaritymayexisteventhoughthedebtorsarenotbound
inthesamemannerandforthesameperiodsandunderthesame
conditions.
Whatistheeffectofthepartialremissionofthedebtmadebythecreditor
infavorifthe3debtors?
Answer:theeffectofthepartialremissionmadebythecreditorinfavor
ofoneormoreofthesolidarydebtorsnecessarilybenefittheothers,
thereforethedefendanthastherighttoenjoythebenefitsofthepartial
remissionofthedebtgrantedbythecreditor.

Answer:Gregoriocannotallegeasadefensetotheactionthatitis
premature.Whentheyhavedefaultedintheirveryfirstinstallment,the
wholeobligationhavealreadybeenmatured.

EffectofBeneficialandPrejudicialAct

Asconsequenceofmutualagency,eachoneofthecreditors
maydowhatevermaybeusefulorbeneficialtotheothersbut
notanythingwhichmaybeprejudicialtothelatter
Asfarasdebtorordebtorsareconcerned,aprejudicialact
performedbyasolidarycreditorshallbevalidandbinding
becauseoftheprinciplemutualrepresentation
Asfarasthecreditorsareconcerned,thecreditorwho
performedtheactshallincurtheobligationofindemnifying
theothersdamages

Art.1213.Asolidarycreditorcannotassignhisrightswithouttheconsent
oftheothers.
EffectofAssignmentofRights

Asolidarycreditorcannotassignhisrightswithouttheconsent
oftheothers.
o
Reason:
Iftheassignmentismadetoanyoneoftheothersolidary
creditors,thereisnoviolationofthepreceptinArt.1213
Iftheassignmentismadetoathirdpersonthereisaclear
violation

Art.1214.Thedebtormaypayanyoneofthesolidarycreditors;butif
anydemand,judicialorextrajudicial,hasbeenmadebyoneofthem,
paymentshouldbemadetohim.
EffectofDemandbyaCreditor

Anysolidarycreditormaydemandthepaymentor
performanceoftheobligationfromone,someorallofthe
debtors
Demandmaybejudicialorextrajudicial
Paymentshallonlybemadetothecreditorwhomadethe
demand
Intheabsenceofdemand(judicialorextrajudicial)payment
maybemadebythedebtortoanyoneofthesolidarycreditors

Art1215.Novation,compensation,confusionorremissionofthedebt,
madebyanyofthesolidarycreditorsorwithanyofthesolidarydebtors,
shallextinguishtheobligation,withoutprejudicetotheprovisionsofArt
1219.
Thecreditorwhomayhaveexecutedanyoftheseacts,aswellashewho
collectsthedebt,shallbeliabletotheothersfortheshareinthe
obligationcorrespondingtothem.
EffectofNovation

Definition:isthechangeorsubstitutionofanobligationby
another,resultinginitsextinguishmentormodification,
Methods:
o
Eitherbychangingitsobjectorprincipalcondition,
o
Orbysubstitutinganotherinplaceofthedebtor,

Orbysubrogatingathirdpersonintherightsofthe
creditor.

Itmayextinguishtheobligation,butitcreatesanewonein
lieuoftheoldobligation.
WaysofNovation:
1. IfNovationiseffectedbychangingitsobjectorprincipal
condition
a. Thenewobligationmaybeprejudicialor
beneficialtotheothersolidarycreditors
i. Prejudicial:thesolidarycreditorwho
affectedthenovationshallreimbursethe
othersfordamagesincurredbythem
ii. Beneficialandcreditorwhoaffected
novationabletoperform:suchcreditor
shallbeliabletotheothersfortheshare
whichcorrespondstothem
2. IfNovationiseffectedbySubstitutinganotherpersoninplace
ofthedebtor
a. Thesolidarycreditorwhoaffectedthenovationis
liablefortheactsofthenewdebtorincasethereis
deficiencyinperformance.
3. Ifthenovationiseffectedbysubrogatingathirdpersonin
therightsofthesolidarycreditor
a. Theobligationofthedebtororcreditorsisnotin
realityextinguished
b. Therelationshipoftheothercreditorsandthedebtor
ordebtorsismaintained
c. Note:Ifthenovationiseffectedbysubrogatinga
thirdpersonintherightsofallsolidarycreditors,
thecreditorresponsibleforsuchnovationisliableto
theothercreditorsforthesharewhichcorresponds
tothemintheobligation.

GeneralRule:extensionoftimeforthepaymentofthe
obligationisgivenbythecreditortoasolidarydebtordoesnot
constituteanovation
o
Reason:inorderthatanobligationmaybe
extinguishedbyanother,whichsubstitutesit,itis
necessarythatitshouldbesoexpresslydeclaredor
thattheoldandnewobligationareincompatible
witheachotheroneverypoint.

InSuretyship:anextensionoftimegrantedtotheprincipal
debtorbythecreditorwithouttheconsentofthesurety
extinguishesthelattersliability
o
Exception:whenasuretyisliablefordifferent
payments,anextensionoftimeastooneormore
willnotaffecttheliabilityofthesuretyforthe
others.
EffectofCompensationandConfusion

AstotheCreditor:thecreditorcausingthe
confusionorcompensationisobligedto
reimbursetoothercreditors
AstoDebtor:thedebtorsbenefitedbythe
extinguishmentoftheobligationbeingobliged
toreimbursethedebtorwhomadethe
confusionorcompensationpossible

EffectofRemission
Definition:isanactofpureliberality,thecreditorwithoutreceivingany
compensationorequivalent,renounceshisrighttoenforcetheobligation,
therebyextinguishingtheobligationeitherinitsentiretyorinthepartor
aspectthereof.
2KindsofRemissionorCondonation
1.
2.

Total
Partial

EffectastoCreditor:givesrisetoaliabilityonthepartofthecreditoror
creditorsresponsiblefortheremissiontoreimbursetheotherfortheshare
intheobligationcorrespondingthem.
EffectastotheDebtor:
1. IfremissioncoversentireObli:obligationistotally
extinguishedandentirejuridicalrelationamongdebtorsisalso
terminated.Noreimbursement.Ifthewholeobligationis
condonedthroughtheeffortsofasolidarydebtororforhis
benefit,heisnotentitledtoanyreimbursementfromhisco
debtor.
2. Iftheremissionisforthebenefitofoneofthedebtorsandit
covershisentireshareintheobligation,heiscompletely
releasedfromthecreditororcreditors,butheisstillboundto
hiscodebtors.IFONEOFTHEDEBTORISINSOLVENT:
thedebtorwhoseobliiscondonedisboundfortheshareofthe
debtorwhoisinsolvent
3. Iftheremissionisforthebenefitofoneofthedebtorsandit
coversonlyapartofhisshare:thecharacterofthedebtoris
notaffected.IFCREDITORPROCEEDTOANYONEOF
THEDEBTORFORTHEPAYMENTOFWHOLE
OBLIGATION:suchdebtorcanavailadefenseofpartial
remission.
EXCEPTIONS:iscasethedebthadalreadybeentotallypaidbyanyone
ofthesolidarydebtorsbeforetheremissionwasaffected,ABOVE
RULESISNOTAPPLICABLE
EffectofPaymenttoaCreditor

DEFINITION

IFPARTIAL

IFTOTAL

COMPENSATION
CONFUSION
Isafigurative
Referstothemerger
operationofweighing ofthequalitiesof
twoobligations
creditoranddebtorin
simultaneouslyin
oneandthesame
ordertoextinguish
personwithrespectto
themtotheextentthat oneandthesame
theamountofoneis
obligation.
coveredbythe
amountoftheother
Theremaybesomedoubtastothepartofthe
obligationtowhichtheconfusionor
compensationshallbeapplied.
Remedy:applytherulesregardingthepayment
ofthiscode
Theobligationisextinguishedaltogetherand
whatisleftistheensuingofliabilityfor
reimbursementwithineachgroup.

ifoneofcreditorisabletocollecttheentireobligationfrom
someofallofthedebtors,theobligationistotally
extinguished.Givesrisetoanobligationofthecreditorto
renderanaccounttohiscocreditors.

Art.1216.Thecreditormayproceedagainstanyoneofthesolidary
debtorsorsomeorallofthemsimultaneously.Thedemandmadeagainst
oneofthemshallnotbeanobstacletothosewhichmaysubsequentlybe
directedagainsttheothers,solongasthedebthasnotbeenfully
collected.
EffectofDemanduponaDebtor
Anyoneofthedebtorcanbeheldliableforthepaymentofthe
entireobligation,thecreditormayproceedagainstanyoneor
someorallofthedebtorsimultaneously.

Thedemandagainstoneofthemshallnotbeanobstacleto
thosewhichmaysubsequentlybedirectedagainsttheothersso
longasthedebthasnotbeenfullycollected
Thedebtorcannotandshouldnotcomplainthatthecreditor
shouldthereafterproceedagainsthimtocollecthiscredit.
Thefactthatanactionhasbeenbroughtorthatpaymenthas
beenenforcedagainstthemnotbeingabartheretosolingas
thereremainsabalancetocollect.
Thefailureorcreditortoincludethesolidaryguarantoror
suretyasadefendantinthefirstsuitdoesnotimpliesawaiver
ofrightofactionagainstsuchsurety
o
Acreditorsrighttoproceedagainstthesuretyexists
independentlyofhisrighttoproceedagainstthe
principal
Theobligationofthesuretyisthesameastheprincipal:as
soonastheprincipalisindefaultsoasthesurety
Art1217.Paymentmadebyoneofthesolidarydebtorsextinguishesthe
obligation.Iftwoormoresolidarydebtorsoffertopay,thecreditormy
choosewhichoffertoaccept.
Hewhomadethepaymentmayclaimfromhicodebtorsonlytheshare
whichcorrespondstoeach,withtheinterestforthepaymentalready
made.Ifthepaymentismadebeforethedebtisdue,nointerestforthe
interveningperiodmaybedemanded.
Whenoneofthesolidarydebtorscannot,becauseofhisinsolvency,
reimbursehissharetothedebtorpayingtheobligation,suchshareshall
bebornebyallhiscodebtors,inproportiontothedebtofeach
Art1218.Paymentbyasolidarydebtorshallnotentitlehimto
reimbursementfromhiscodebtorsifsuchpaymentismadeafterthe
obligationhasprescribedorbecomeillegal.
EffectofPaymentbyaDebtor

Theeffectiseitherthetotalorpartialextinguishmentofthe
obligation
Whenoneofthesolidarydebtorspaidthewholeorentire
obligationimmediatelygivesrisetoarighttoclaimfromhis
codebtorsthesharewhichcorrespondstothem
o
NOTAPPLICABLE:whenthedebtormakesthe
paymentaftertheobligationhasprescribedorhas
becomeillegal
GeneralRuleonComputationofInterest:shallbecomputed
fromthetimepaymentwasmade.
Exception:ifthepaymentwasmadebeforethedebtbecame
due,nointerestmaybedemanded

NatureofRightofDebtor

Therightofsolidarydebtorwhomadethepaymenttodemand
reimbursementfromhiscodebtorismerelycontingentand
conditional
Oncepaymentismade,obligationfromcreditoris
extinguished,givesrisetoanewobligationbythecodebtorin
favorofthedebtorwhomadethepayment
Thereisnorealcaseofsubrogation

Issue:WONMcCoybesubstitutedasPlaintifftocompelotherdebtorsto
reimbursetohertheirproportionateshare
Held:McCoynecessarilyacquiredtherighttoprosecutetheactionfor
contributionagainsthercodefendants.Itwasapropercaseof
substitutionofpartiesresultingfromthesubrogationofoneofthe
defendantstotherightoftheplaintiff.
Wilsonvs.Berkenkotter
QuickFacts:

Berkenkotter,WilsonandGulickexecutedpromissorynote
solidarilytopaytheirindebtednessof90,000totheChratered
BankofIndia,AustraliaandChinawithinterest.

BerkenkotterpaidonNov1944

Berkenkotterdemandedreimbursement

Wilsontendered625.51inaccordancewiththeBallantyne
Schedule,Berkenkotterrefusetoaccept

WilsondepositedtheamounttoCFIofManila
Issue:WONBallantyneScheduleisapplicable
Held:BallantyneScheduleisapplicabletoobligationscontractedduring
theJapaneseoccupation.IftheobligationiscreatedduringtheJapanese
occupationthenitsapplicable,butifitwascreatedbeforethewar,then
itsnotapplicable.Whenappellantpaidtheentireloanplusinterestthe
wholeobligationwasextinguished,thedebtorswerenolongerliablewith
thebankinsteadanewobligationwascreatedinfavoroftheappellant
Art1219.Theremissionmadebythecreditoroftheshare,whichaffects
oneofthesolidarydebtors,doesnotreleasethelatterfromhis
responsibilitytowardsthecodebtors,incasethedebthadbeentotally
paidbyanyoneofthembeforetheremissionwasaffected.
Art1220.Theremissionofthewholeobligation,obtainedbyoneofthe
solidarydebtors,doesnotentitlehimtoreimbursementfromhico
debtors.
Art1221.Ifthethinghasbeenlostoriftheprestationhasbecome
imposiblewithoutthefaultofthesolidarydebtors,theobligationshallbe
extinguished.
Iftherewasfaultonthepartofanyoneofthem,allshallberesponsible
tothecreditor,forthepriceandthepaymentofdamagesandinterest,
withoutprejudicetotheiractionagainsttheguiltyornegligentdebtor.
Ifthroughafortuitousevent,thethingislostortheperformancehas
becomeimpossibleafteroneofthesolidarydebtorshasincurredindelay
throughthejudicialorextrajudicialdemanduponhimbythecreditor,
theprovisionsoftheprecedingparagraphshallapply.
EffectoftheLossorImpossibilityofPerformance
1.
2.

CaseinPoint:
BankoftheP.Ivs.McCoy
52Phil831
QuickFacts:

BankinstitutedanactionagainstMcCoyand6othersolidary
debtorsofthepaymentofindebtednessofP16,000.

McCoyenteredintoacompromisewithBankandpaid12,000
beforethehearing

3.

Ifthelossorimpossibilityofthethingisnotduetothefaultof
thesolidarydebtors,theobligationisextinguished.
Ifthelossorimpissbilityisduetothefaultofonesolidary
debtor,theobligationisconvertedtoaindemnity,butthe
solidaritycharacterofobligationremains.
a. Remedy:thecreditorcanstillproceedagainstone,
orsomeorallofthedebtorswithdamages,andthe
debtorwhopaidshallhavetherighttoreimburse
againsttheguiltyornegligentdebtor.
Ifthelossorimpossibilityisduetoafortuitouseventafterone
ofthedebtorshadalreadyincurreddelay,theobligationis
convertedintoindemnity.(SAMERULE)

Art1222.Asolidarydebtormay,inactionsfiledbythecreditor,avail
himselfofalldefenses,whicharederivedfromthenatureofthe

obligationandofthose,whicharepersonaltohim,orpertaintohisown
share.Withrespecttothose,whichpersonallybelongtotheothers,he
mayavailhimselfthereofonlyasregardsthatpartofthedebtforwhich
thelatterareresponsible.

2.
3.

DefensesAvailabletoaSolidaryDebtor

Asolidarydebtormayinterposeagainsttheclaimofthe
creditororcreditorsanyofthefollowingdefenses:
1. Defensesderivedfromtheverynatureofthe
obligation
a. Example:rejudicata,prescription,those
whichwillinvalidatethecontract
2. Defensespersonaltohimorpertainingtohisown
share
a. Example:minority,insanityandother
defensespurelypersonaltothedebtor
3. Defensespersonaltoothers,butonlyasregardsthat
partofthedebtforwhichthelatterareresponsible
a. Merelyapartialdefense

Section5DivisibleandIndivisibleObligations
Concept

Art.1225.Forthepurposesoftheprecedingarticles,obligationstogive
definitethingsandthose,whicharenotsusceptibleofpartial
performance,shallbedeemedtobeindivisible.
Whentheobligationhasforitsobjecttheexecutionofacertainnumber
ofdaysofwork,theaccomplishmentofworkbymetricalunits,or
analogousthingswhichbytheirnaturearesusceptibleofpartial
performance,itshallbedivisible.
However,eventhoughtheobjectorservicemaybephysicallydivisible,
anobligationisindivisibleifsoprovidedbylaworintendedbythe
parties.
Inobligationsnottodo,divisibilityorindivisibilityshallbedetermined
bythecharacteroftheprestationineachparticularcase.
DeterminationofDivisibilityorIndivisibility

DivisibleObligations:those,whichhaveastheirobjectaprestation,
whichissusceptibleofpartialperformancewithoutchangingtheessence
oftheobligation.
Ifseparatedintoparts,itsessenceisnotchangedoritsvalueisnot
decreaseddisproportionatelybecauseeachofthepartsintowhichitis
dividedarehomogenousandanalogoustoeachother.
3KindsofDivision
1. Quantitativewhenthethingcanbemateriallydividedinto
partsandsuchpartsarehomogenoustoeachother
2. Qualitativecanbemateriallydivided,butthepartsarebit
exactlyhomogenous,suchinthepartitionofaninheritance
1. IdealorIntellectualthethingcanonlybeseparatedinto
idealorundividedparts,notmaterialparts,asinthecase
ofcoownership

Whenthedifferentprestationsconstitutingtheobjectsof
theobligationaresubjecttodifferenttermsand
conditions
Whentheobligationisinpartliquidatedandinpart
unliquidated

Iftheobjectissusceptibleofpartialperformance,the
obligationisdivisible
Iftheobjectisnot,theobligationisindivisible
Thepurposeoftheobligationisthecontrollingcircumstance

Inobligationstogive

Iftheobligationistogivewhichisdefiniteorbyitsvery
natureisindivisible,andisnotsusceptibleofpartial
complianceitshallbedeemedtobeindivisible
Iftheobligationtogivesomethingwhichbyitsnatureis
divisible,andsusceptibleforpartialperformance,itshallbe
deemedasdivisible.

InObligationstodo
IndivisibleObligations:arethose,whichhaveastheirobjectaprestation
whichisnotsusceptibleofpartialperformance,otherwise,theessenceof
theobligationwillbechanged.
Ifseparatedintoparts,itsessenceischangedoritsvalueisdecreased
disproportionately
Art.1223.Thedivisibilityorindivisibilityofthethingsthataretheobject
oftheobligationsinwhichthereisonlyonedebtorandonlyonecreditor
doesnotalterormodifytheprovisionsofChapter2ofthisTitle.
Art1224.AJointindivisibleobligationgivesrisetoindemnityfor
damagesfromthetimeanyoneofthedebtorsdoesnotcomplywithhis
undertaking.Thedebtorswhomayhavebeenreadytofulfilltheir
promisesshallnotcontributetotheindemnitybeyondthecorresponding
portionofthepriceofthethingorofthevalueoftheserviceinwhich
theobligationconsists.
EffectofDivisibleorIndivisibleObligations

Whenthereisonlyonecreditorandonedebtorthedivisibility
orindivisibilityisoflittlesignificance
GeneralRule:Thecreditorcannotbecompelledpartiallyto
receivetheprestationneitherthedebtorberequiredtomake
partialpayments.
Exceptions
1. Whentheobligationexpresslystipulatesthecontrary

Iftheobligationistoperformsomeprestationorservicewhich
byitsverynatureisnotsusceptibleofpartialperformance,it
shallbedeemedasindivisible(absoluterule)

Iftheobligationtoperformsomeprestationorservicewhich
byitsverynatureissusceptibleofpartialperformance,general
ruleisitisdivisible.
TestofDivisibility
1.

2.

Purpose
a.
b.
c.

Theexecutionofacertainnumberofdaysorwork
Accomplishmentofworkbymetricalunits
Accomplishmentofanalogousthingswhichbytheir
verynaturearesusceptibleofpartialperformance
Isitexpresslystipulatedotherwise

Obligationsnottodo

Determinationshalldependuponthediscretionofthecourt

Section6ObligationswithaPenalClause
Concept
Definition:onetowhichanaccessoryundertakingisattachedforthe
purposeofinsuringitsperformancebyvirtueofwhichtheobligoris

boundtopayastipulatedindemnityorperformastipulatedprestationin
caseofbreach
Itisanaccessoryobligationattachedtoprincipalobligation.
PurposeofPenalty
1.
2.
3.

Funcincoercitivaodegarantiatoinsuretheperformanceof
theobligation
Funcinliquidatoriatoliquidatetheamountofdamagestobe
awardedtotheinjuredpartyincaseofbreachoftheprincipal
obligation
Funcinestrictamentepenalincertainexceptionalcases,to
punishtheobligorincaseofbreachoftheprincipalobligation

KindsofPenalty
1.

Astoorigin
a. Legalwhenitisconstitutedbylaw
b. Conventionalwhenitisconstitutedbyagreement
oftheparties
2. Astopurpose
a. Compensatorywhenitisestablishedforthe
purposeofindemnifyingthedamagessufferedby
theobligeorcreditorincaseofbreach
b. Punitiveestablishedforthepurposeofpunishing
theobligorincaseofbreach
3. Astoeffect
a. Solidary
b. Joint
Art.1226.Inobligationswithapenalclause,thepenaltyshallsubstitute
theindemnityfordamagesandthepaymentofinterestincaseof

noncompliance,ifthereisnostipulationtothecontrary.Nevertheless,
damagesshallbepaidiftheobligorrefusestopaythepenaltyorisguilty
offraudinthefulfillmentoftheobligation.
Thepenaltymaybeenforcedonlywhenitisdemandableinaccordance
withtheprovisionsofthiscode.
EffectofPenalty,GeneralRule

Penaltymaybeconsideredasreparationorsubstitutefor
damages
Iftheinjuredpartydesirestorecoverthedamagesactually
sufferedbyhiminadditiontothepenalty,hemustprovesuch
damages
Thepenaltyisfixedbythecontractingpartiesasa
compensationorsubstitutefordamages

Exceptions
3Exceptionstotherulethatthepenaltyshallsubstitutetheindemnityfor
damagesandthepaymentofinterestincaseofnoncompliance
1.
2.
3.

Whenthereisastipulationtothecontrary
Whentheobligorissuedforrefusaltopaytheagreedpenalty
Whentheobligorisguiltyoffraud

EnforceabilityofPenalty

Maybeenforcedonlywhenitisdemandable
o Demandable:uponbreachornonfulfillmentofthe
principalobligationbytheobligorordebtor