Joint Obligation

Download as pdf or txt
Download as pdf or txt
You are on page 1of 3

Joint obligation

-An obligation where the whole obligation is to be paid or fulfilled proportionately by the
different debtors and/or is to be demanded proportionately by the different creditors.

Words used to indicate joint liability:


Mancomunada; mancomunadamente; pro rata; proportionately; separately; "we promise
to pay" signed by two or more persons
RULES:
1. Insolvency of one debtor does not make the others liable for his share
2. Vitiated consent on the part of one debtor does not affect consent of the others

Solidary obligation
- An obligation where each one of the debtors is bound to render, and/or each one of the
creditors has a right to demand from any of the debtors, entire compliance with the
prestation.

Words used to indicate solidary liability:


Solidaria; in solidium,; mancomunada solidaria; together and/ or separately;
individually and/or collectively; jointly and severally; " I promise to pay" signed by two or more
persons

General rule: Obligation is presumed to be joint if there is concurrence of two or more debtors
and/or two or more creditors in the same obligation.
Exceptions: There is solidarity only when:
1. the stipulation of the parties expressly so states;
2. the law requires solidarity;
3. the nature of the obligation requires solidarity

Kinds of Solidarity:
1. Active - creditors
2. Passive - debtors
3. Mixed - creditors and debtors

RELATED RULE:
1. The insolvency of one of the debtors will obligate the others to shoulder his share
in proportion to their respective obligations.
2. A solidary debtor paying the entire obligation shall be entitled to reimbursement
plus interest computes as follows:
a. if paid at or after maturity, interest shall run from the date of payment until
reimbursement is made.
b. if paid before maturity, interest shall run from the date of maturity until
reimbursement is made
2. Remission or condonation of the share of one of the creditors will not affect his liability
as a solidary debtor.
3. Remission of the entire obligation in favor of one of the creditors shall NOT give rise to
the right to demand reimbursement from the other debtors.
4. Remission that will take place after payment was made by one of the debtors will not bar
the debtor who made the payment from demanding reimbursement.
5. Payment made by one of the debtors after the prescription of the obligation shall NOT
give rise to the right to demand reimbursement.

Divisible obligation
- An obligation where the object in its delivery or performance, is capable of partial
fulfillment.

Indivisible obligation
- An obligation where the object in its delivery or performance, is not capable of partial
fulfillment.
TEST: The purpose of the obligation or the intention of the parties.
Joint divisible obligation - where the parties are merely proportionately liable but
the object or subject matter theorof is not physically divisible in different
parts.

INDIVISIBILITY SOLIDARITY
1. it refers to the prestation or object of the 1. it refers to the vinculum or tie existing
contract between the subjects or parties to the
obligation
2. it does not require plurality of subjects or 2. it requires plurality of subjects or parties
parties
3. it is converted into one of indemnity for 3. when there is breach of the obligation , the
damages. As a result, indivisibility of the liability of the solidary debtors although
obligation is terminated and so each debtor is converted into one of indemnity for damages
liable only for his part of the indemnity. shall remain solidary
4. the heirs of the debtor remain bound to 4. the debt of the solidary debtor terminates
perform the same prestation the solidary tie or vinculum being
intransmissible to the heirs

Obligation with a penal clause


-An obligation which contains an accessory undertaking to pay a previously stipulated
indemnity in case of breach.

GENERAL RULE: The penalty fixed by the parties is compensation or substitute for damages
in case of breach of obligation.
EXCEPTIONS: (obligee can recover penalty plus damages)
1. stipulation to the contrary;
2. obligor is sued for refusal to pay the agreed penalty;
3. obligor is guilty of fraud.
When penalty may be reduced:
a. if the principal obligation has been partly complied with;
b. if the principal obligation has been irregularly complied with;
c. if the penalty is iniquitous or unconscionable even if there has been no performance.

You might also like