MODULE VI

JOINT AND SOLIDARY OBLIGATIONS

(Arts. 1207 – 1222)

JOINT AND SOLIDARY OBLIGATIONS, CONCEPT

In a joint or solidary obligation, three is a concurrence of two or more debtors and

/or two or more creditors in one and the same obligation.

In a joint obligation, each debtor is liable only for a proportionate part of the
debt, and each creditor is entitled only to a proportionate part of the credit.

Examples:

1. A and B are indebted to X for P10,000.00, A is liable only for P5,000; B is

liable only for P5,000.

2. A owes X and Y P8,000.00, X can collect only P4,000.00; Y can collect only
P4,000.00.

In a solidary obligation, each debtor is liable for the whole obligation, and each
creditor is entitled to demand payment of the whole obligation. (Please see succeeding
topics for examples.)

KINDS OF SOLIDARY OBLIGATION

1. Passive solidarity - This is solidarity on the part of the debtors.

Example: A and B, solidary debtors, are indebtedness to X for P10,000.00. X can

demand payment of P10,000.00 from either A and B. If A pays X P10,000.00, the
obligation is extinguished. A can demand reimbursement of P5,000.00 from B
representing the latter’s share in the debt.

2. Active solidarity- This is solidarity on the part of the creditors.

Example: A owes X and Y, solidary creditors, P8,000.00. Either X and Y may

demand payment of P8,000.00 from A. If A pays X P8,000.00, the obligation is
extinguished. X must give P4,000.00 to Y representing the latter’s share in the credit.
 3. Mixed solidarity - solidarity on the part of both debtors and creditors.

Example: A and B, solidary debtors, owe X and Y, solidary creditors, P12,000.00. X

or Y may collect from A or B the total sum of P12,000.00. If A pays X P12,000.00, the
obligation is extinguished. B must reimburse A P6,000.00. On the other hand, X must
give P6,000.00 to Y.

OTHER TERMS FOR SOLIDARY OBLIGATIONS

1. Joint and severally

2. Individually and collectively
3. In solidum
4. Mancomunada solidaria
5. Juntos o Separamendente

OTHER TERMS FOR JOINT OBLIGATIONS

1. Proportionately
2. Pro rata
3. Mancomunada
4. Mancomunada Simple

RULE IF THERE IS CONCURRENCE OF TWO OR MORE DEBTORS AND / OR TWO

OR MORE CREDITORS IN ONE AND THE SAME OBLIGATION

As a general rule, the obligation is presumed to be joint when there is a concurrence

of two or more debtors and/or two or more creditors in one and the same obligation.
There is solidary liability only in the following cases:

1. When the obligation expressly so states.

2. When the law requires solidarity.

Examples:

a. When two or more persons have appointed an agent for a common transaction
or undertaking, they shall be solidary liable for the consequences of the agency
(Art.1915).
b. Where the instruments containing the word “I promise to pay” is signed by two or
more persons, they are deemed to be jointly and severally liable thereon.
c. The responsibility of two or more persons who are liable for a quasi-delict is
solidary (Art. 2194).

Illustrative case:

Ruks Konsult and Construction vs. Adworld Sign and Advertising Corp.,
G.R. No. 204866, January 21, 2015

Facts: Transworld contracted the services of Ruks for the construction of

the billboard structure of the former. Both Transworld and Ruks knew that the
billboard had a weak and poor foundation, and yet they allowed the construction
to push through. Later, the billboard structure collapsed causing damage to the
adjacent billboard structure owned by Adworld. Adworld now demand the
payment of damages for the impaired billboard and loss of rental income.

Issues: (a) Are Transworld and Ruks guilty of negligence? (b) May
Adworld hold either Transworld or Ruks liable for the obligation to pay damages
and loss of rental?

Held: (a) Yes Transworld and Ruks are guilty of negligence in the
construction of the collapsed billboard as they knew that the foundation
supporting the same was weak and would cause danger to the safety of the
motorists and the adjacent properties, such as that of Adworld’s billboard, and
yet they did not do anything to remedy the situation. Both are negligent because
of their “failure to observe for the protection of the interests of another person
that degree of care, precaution and vigilance which the circumstances justly
demanded, whereby such others persons suffer injury.” (b) Yes, since the liability
of two or more persons who are guilty of quasi-delict is solidary.

3. When the nature of the obligation requires solidarity

Examples:

SG, a security guard of AB partnership, was killed by criminal elements in

line of duty. The heirs of the SG demanded compensation under Workmen’s
Compensation Law (WCL) for the whole amount from A, partner. A claimed that he
should be liable only for one half shared, the other half to be shouldered by B, his
partner, since their liability is only joint as law was silent to the nature of liability. The
court ruled that the partners liability is solidary since the nature of their obligation
requires solidarity, the evident intention of the WCL is to give full protection to
workers. This purpose would be defeated if the employers’ liability were only joint.
A, B and C, joint debtors, are obliged to give X, Y and Z, solidary creditors,
P18,000.00. How much may X collect and from whom?

Answer: X, being a solidary creditor, may collect the sum of P18,000.00.

However, since the debtors are joint debtors, he may collect only P6,000.00 from each
of them. After collecting the sum of P18,000.00, X must give Y and Z’s share of
P6,000.00 each.

A, B and C, solidary debtors, are obliged to give X, and Y and Z, joint creditors,
P18,000.00. How much may A be held liable?

Answer: A, being a solidary debtor, may be held liable for P18,000.00. However,
since the creditors are joint creditors, each of them may collect only P6,000.00 from A. If
A pays the whole amount of P18,000.00 to the creditors, A can demand reimbursement
of P6,000.00 each from B and C.

A, B and C, solidary debtors, are obliged to give X, Y and Z, solidary creditors,

P18,000.00. How much may Z collect and from whom?

Answer: Z may collect P18,000.00 from any of the solidary debtors each of whom
may be held liable for the entre obligation. If Z collects P18,000.00 from A, Z must give
X and Y P6,000.00 each. A, on the other hand, can demand reimbursement from B and
C at P6,000.00 each.

A and B are solidary debtors of X and Y, solidary creditors, in the amount of

P20,000.00.

1. If X renounces or remits the whole obligation without the consent of Y, will the
obligation be extinguished?
Answer: Yes, because the remission made by any solidary creditor
extinguishes the whole obligation (Art.1215). However, X has to give Y’s share of
P10,000.00 since a solidary may not do anything prejudicial to his solidary
creditors (Art. 1212). A solidary creditor who has caused the extinguishment of
the obligation by remission, compensation or confusion, or has collected the
 debt, shall be liable to the others for the shares corresponding to them
(Art.1215).

2. Supposed the remission of the whole obligation was shared by A, may A demand
reimbursement from B?
Answer: No, because the remission of the whole obligation obtained by
one of the solidary debtors does not entitle him to reimbursement from his co-
debtors (Art.1220), remission being the gratuitous abandonment by the creditors
of their right to the obligation.

3. Suppose that X renounces or remits A’s share amounting to P10,000.00.

However, it turned out that B had already paid P20,000.00 to Y two days before.
May B still collect P10,000.00 from A representing A’s share?
Answer; Yes, B may still collect from A P10,000.00. The remission made
by the creditor of the share which affect one of the solidary debtors does not
release the latter from responsibility to his co-debtors, in case the debt has been
totally paid by anyone of them before the remission was affected (Art. 1219). A’s
remedy will be after X or Y to collect the sum he paid to B.

PAYMENT TO ANY OF THE SOLIDARY CREDITORS (Art. 1214)

The rule is that the debtor may pay any one of the solidary creditors. But when a
demand, judicial or extrajudicial, has been made by one of them, payment should be
made to him; otherwise, the obligation will not be extinguished except insofar as the
creditor-payee’s share is concerned.

Example: A is indebted to X, Y and Z, solidary creditors, for P24,000.00.

Suppose X makes a demand against A, to whom shall A pay?

Answer: A must pay to X. If A pays to another solidary creditor, say Y, the sum
of P24,000.00, the payment, as a rule, is valid only with respect to Y’s share of
P8,000.00. Thus, if X and Z do not receive their respective share from Y, A can still be
held for P16,000.00.

RIGHT OF CREDITOR TO PROCEED AGAINST ANY SOLIDARY DEBTOR (Art.

1216)

The creditor may proceed against any of the solidary debtors or some or some
or all of them simultaneously. The demand made against one of them, shall not be an
obstacle to those which may subsequently be directed against the others, so long as the
debt has not been fully collected.

EFFECTS OF PAYMENT BY A SOLIDARY DEBTOR (Art. 1217)

Payment made by one of the solidary debtors extinguishes the obligation. If two
or more solidary debtors offers to pay, the creditor may choose which offer to accept.

He who made the payment may claim from his co-debtors only the share which
corresponds to each, with the interest for the payment already made. If the payment is
made before the debt is due, no interest for the intervening period may be demanded.

When one of the solidary debtors cannot, because of his insolvency, reimburse
his share to the debtor paying the obligation, such share shall be borne by all his co-
debtors, in proportion to the debt of each.

Example:

A, B, and C are jointly and severally liable to D and E in the amount of P3,000
due on January 5.

If both A and B offer to pay D on January 5, the latter may choose which offer to
accept. If A pays the entire amount of P3,000 on January 5, the obligation is
extinguished.

The payment by A gives him the right to demand reimbursement from B and C
P1,000 each with interest from the date of payment. But A is not entitled to
reimbursement nor to interest for any payment made before January 5. The obligation
of B and C to reimburse him with interest will arise only from January 5.

If C is insolvent, both A and B shall bear his insolvency in proportion to their

shares. Hence, A can still ask B to pay an additional sum of P500. A and B can later
recover from C should the latter’s finances improve.

EFFECT OF PAYMENT AFTER OBLIGATION HAS PRESCRIBED OR BECOME

ILLEGAL (Art. 1218)

Payment by a solidary debtor shall not entitle him to reimbursement from his co-
debtors if such payment is made after the obligation has prescribed or become illegal.

Examples:
 1. A and B are solidarily indebted to C in the amount of P1,000. The debt
prescribed.

If A, nevertheless, paid the debt, he cannot collect from B the share

corresponding to the latter. Neither can A recover from C.

2. A and B are solidarily bound to deliver 10 carabaos to C for slaughter

purposes. Later, the lawmaking body passed law which prohibits the
slaughter of carabaos.

If, nevertheless, A delivered the carabaos knowing that the slaughter of

carabaos is already prohibited by law, he cannot get any reimbursement from
B because payment was made after the obligation has become illegal.

RULES IN CASE THING HAS BEEN LOST OR PRESTATION HAS BECOME

IMPOSSIBLE (Art. 1221)

A, B C and D are solidary liable to X for the delivery of a specific ring valued at
P20,000.00. What is the rule if the ring is lost:

1. Through a fortuitous event

Answer: the obligation shall be extinguished. This is in accordance with
the rule that no person shall be responsible for a fortuitous event.

2. Through the fault of D

Answer: The solidary debtors shall be liable for the payment of the price
of the ring plus damages and interest. However, the solidary debtors making the
payment can recover what he has paid from the guilty debtor. Thus, if X goes
after A and A pays the price of the ring, and the damages and interest, A can
demand reimbursement of P20,000.00 plus damages and interest from D the
guilty or negligent debtor.

EXISTENCE OF SOLIDARITY DESPITE DIFFERENT PERIODS AND CONDITIONS

(Art. 1211)

Solidarity exists although the creditors and the debtors may not be bound by the
same periods and conditions.
 Example: A, B and C are solidarily liable to X for P9,000.00, The parties
stipulated that the share of A is payable on demand, the share of B on the Christmas
day next year, and the share C, if X passes the Bar Examination.

X may demand payment of the share of A of P3,000.00 anytime from either A, B

or C. On Christmas day next year, X may demand payment of the share of B of
P3,000.00 from either A, B or C, when X passes the Bar Examination, he may demand
payment of the share of C of P3,000.00 from either A, B or C.

EFFECT OF UNAUTHORIZED ASSIGNMENT OF CREDITOR’S RIGHT (Art. 1213)

The solidary creditors are bound by mutual trust and confidence. Hence, a
solidary creditor cannot assign his right to a third person without the consent of the
other solidary creditors because the assignee may not enjoy the trust and confidence of
the non-assigning creditors.

If the assignment is without the consent of the co-creditors, the assignment is not
valid as to them. Accordingly, they can recover their respective shares from the
assigning creditor in case the assignee who collected the debt fails to give them their
shares.

DEFENSE AVAILABLE TO SOLIDARY DEBTORS (Art. 1222)

1. Those derived from the nature of the obligation (such as prescription of the
obligation, illegality of cause)

Example: A and B are solidarily liable to C in the amount of P4,000. The entire
debt of A and B was paid by D. In an action by C against A, the latter can raise
the defense of payment by virtue of which the obligation was extinguished.

2. Those personal to the debtors being sued, or those that pertain to his own share
(such as incapacity of the debtor or non-fulfillment of a suspensive condition as
to his share)

Example: If the action by C is against B, and B was insane at the time the
obligation was contracted, B can put up the defense of insanity with respect to
the entire obligation. This defense is personal to B alone. It is complete
defense. Other examples are incapacity, mistake, violence, minority, etc.
 Assume now that the potion of the obligation affecting B is subject to a
suspensive condition which has not yet happened. In this case, the non-
fulfillment of the condition is a partial defense as it can be set up by B only with
respect to his share. C can demand from B the portion of the obligation
pertaining to A because B is solidarily liable.

3. Those personal to the other debtors with respect to their own share (such as
incapacity of another debtor or non-fulfillment of a suspensive condition with
respect to the other debtors’ shares)

Example: in the two preceding examples, the defense of insanity or non-

fulfillment of the suspensive condition is not available to A as to release hm from
his liability for his share in the obligation. In other words, A may avail himself
thereof only as regards that part of the debt for which B is liable. Hence, having
only a partial defense, A is still liable for P2,000, his share in the obligation.

JOINT INDIVISIBLE OBLIGATION, CONCEPT AND CHARACTERISTICS (Art. 1209)

A joint invisible obligation is an obligation where the debtors and creditors are
jointly bound but the prestation or object is invisible. It has the following characteristics:

1. The creditors must act collectively, meaning, all of them must take the demand
unless one is specifically authorized to act for the others. A demand made by one
or some but not all the creditors will not be effective;
2. The demand must be made against all the debtors since compliance is possible
only if they act together;
3. The right of the creditors may be prejudiced only by their collective acts. Thus, a
renunciation made by a joint creditor extinguishing only his own share. The
obligation, however, is converted into an obligation to pay the value of the thing.
If all joint creditors make the renunciation, the obligation is extinguished;
4. If one of the debtors does not comply with his undertaking, the obligation is
converted into a monetary obligation to pay damages. The debtors who may
have been ready to comply shall not contribute to the indemnity beyond the
corresponding price of the thing or the value of the service in which the obligation
consists; and
5. If one of the debtors is insolvent, the other shall not be liable for his share.

Illustration:
 A, B and C are jointly indebted to deliver a specific car valued at P900,000.00 to
X, Y and Z.

1. X, Y and Z must make a demand against A, B and C for the delivery of the car.
2. If A is not ready to comply his undertaking, the obligation to deliver the car is
converted to an obligation to pay its value (monetary obligation) plus damages. B
and C shall be obliged to pay P300,000.00 each. A, defaulting debtor, shall be
liable for P300,000.00 plus damages.
3. If A is insolvent, B and C shall be liable only for their respective shares of
P300,000.00 each.
4. If X renounces his right to the obligation without the consent of Y and Z, then only
his proportionate share is extinguished. The obligation, however, is converted
into an obligation to pay P600,0000.00 which must be given to Y at P300,000.00
and Z at P300,000.00by A, B and C who will give P200,000.00 each.

INDIVISIBILITY AND SOLIDARITY, CONCEPT AND DISTINCTIONS (Art. 1210)

The indivisibility of an obligation refers to the subject matter or object being

susceptible of partial performance, solidarity, on the other hand, refers to tie between
parties. One therefore does not imply, or give rise, to the other. Thus, there may be the
following obligations:

1. Joint divisible obligation

Example: A and B are jointly obliged to give P10,000 to C.

2. Joint indivisible obligation

Example: A and B are jointly obliged to give a specific horse to C.

3. Solidary divisible obligation

Example: A and B are solidarily liable to pay C P10,000.00 in two equal
installments.

4. Solidary indivisible obligation

Example: A and B are solidarily liable to give a specific horse to C.