Concept

ARTICLE 1215 Summary Example

Novation refers to the substitution of an obligation by
another, leading to its extinguishment or modification.
This can occur through changing the object or
condition of the obligation, substituting the debtor, or Scenario: A owes B $1000. C agrees to
Effect of Novation subrogating a third party in the creditor's rights. pay B $1000 on behalf of A.
Result: A's obligation to B is
extinguished, and a new obligation is
- Novation extinguishes the old obligation and creates created between C and B. If C fails to
a new one, with liability determined by the nature of pay, A may not be liable unless
the new obligation. otherwise agreed.
- Liability of solidary creditors depends on the
character of the new obligation.
- Various scenarios determine the liability of the
solidary creditor in case of novation, including changes
in object or condition.
Extending the time for payment to one solidary debtor Scenario: A, B, and C are solidary
doesn't typically constitute novation for others unless debtors owing $3000 collectively. B is
expressly declared or incompatible with the old granted an extension of 1 month for
Extension of Time obligation. payment by the creditor.
Result: B's extension does not affect A
and C's obligation. However, if the
creditor demands payment from A and
C before the end of the extension
Solidary debtors without extension can use it as a period, B can invoke the extension as a
partial defense against the creditor seeking payment. partial defense.
In suretyship, an extension to the principal debtor may
extinguish the surety's liability unless the surety is
liable for various payments.
Compensation involves extinguishing two obligations Scenario: A owes B $1000, while B
by offsetting them. Confusion merges the roles of owes A $800. Both debts become due
Effect of Compensation creditor and debtor in one person for one obligation. on the same day.
Partial compensation/confusion follow payment Result: Compensation applies, and A
application rules, with affected creditors having only needs to pay B the difference
reimbursement rights. Total compensation/confusion ($1000 - $800 = $200). Both debts are
extinguish the obligation, with reimbursement extinguished to the extent of the lesser
obligations among parties. amount.
Scenario: A, B, and C are solidary
debtors owing $3000. B, as the
Remission is the creditor's voluntary abandonment of creditor's friend, forgives his share of
Effect of Remission enforcing the obligation, either fully or partially. $1000.
Result: B's remission extinguishes his
$1000 share, leaving A and C still owing
$2000 collectively. B cannot demand
- Remission, whether total or partial, extinguishes the reimbursement from A and C for the
obligation to the extent indicated. remitted amount.
- Remission may affect the liability of solidary debtors
differently based on the extent of remission and
beneficiaries.
If one solidary creditor collects the entire debt from
one or more solidary debtors, the obligation is Scenario: A collects the full $3000 debt
Payment to a Creditor extinguished, but accountability to co-creditors arises. from B, leaving C with no obligation.
Result: The obligation is extinguished,
The collecting creditor may be liable to other creditors but A may be liable to reimburse C for
for their corresponding share in the obligation. their share of the debt.

C. Joint Indivisible Obligation

 1. Concept

Art 1209: The tie is joint, but the performance is indivisible. One in which the object of the object
of prestation is indivisible, not susceptible of division; while the tie between the parties is joint,
that liable only to a proportionate share.

Aspect Summary
Definition Joint Indivisible Obligations combine features of joint and solidary obligations.
Debtor's
Responsibility All debtors must collectively fulfill their share of the obligation.
Creditor's
Requirement Creditors must act together for enforcement.
Insolvency If one debtor is insolvent, others are not liable for their share.
Breach converts the obligation into indemnity for damages. Contributing debtors are
Breach Consequences limited to their portion.

i. distinguished from Joint Obligation

ii. distinguished from Solidary Obligations

Aspect Joint Indivisible Obligation Joint Obligation Solidary Obligation

No creditor can act for others; No creditor can act for others; Any creditor can act for all
Representation of each creditor must act each creditor must act others in enforcing the
Creditors individually. individually. obligation.
Each debtor must fulfill their Each debtor must fulfill their Any debtor can be
Liability of share, but all debtors must act share, but all debtors must act compelled to fulfill the
Debtors collectively for enforcement. collectively for enforcement. entire obligation.
If one joint debtor breaches, If one joint debtor breaches, If one debtor breaches, any
the obligation can't be fulfilled; the obligation can't be fulfilled; other debtor can be held
converted into indemnity for converted into indemnity for responsible for the full
Effect of Breach damages. damages. obligation.
Other debtors may be held
Effect of Others not liable for insolvent Others not liable for insolvent responsible for insolvent
Insolvency debtor's share. debtor's share. debtor's share.

2. Indivisibility distinguished from solidarity – Art 1210

Art. 1210. The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does solidarity
of itself imply indivisibility.

Aspect Indivisibility Solidarity

Refers to the legal tie or vinculum and the
Nature Refers to the prestation (object) of the obligation. parties involved in the obligation.
Requisites Plurality of subjects is not required. Plurality of subjects is indispensable.
Effect of Breach may convert the obligation into one of Breach does not affect the solidarity among
Breach indemnity for damages, terminating indivisibility. debtors; solidarity remains intact.

3. Effects – Art 1209

Aspect Joint Indivisible Obligation Joint Obligation Solidary Obligation

Representation of No creditor can act for others; No creditor can act for others; Any creditor can act for all
 Aspect Joint Indivisible Obligation Joint Obligation Solidary Obligation
each creditor must act each creditor must act others in enforcing the
Creditors individually. individually. obligation.
Each debtor must fulfill their Each debtor must fulfill their Any debtor can be
Liability of share, but all debtors must act share, but all debtors must act compelled to fulfill the
Debtors collectively for enforcement. collectively for enforcement. entire obligation.
If one joint debtor breaches, If one joint debtor breaches, If one debtor breaches, any
the obligation can't be fulfilled; the obligation can't be fulfilled; other debtor can be held
converted into indemnity for converted into indemnity for responsible for the full
Effect of Breach damages. damages. obligation.
Other debtors may be held
Effect of Others not liable for insolvent Others not liable for insolvent responsible for insolvent
Insolvency debtor's share. debtor's share. debtor's share.

a. Liability for damages in case of breach – Art 1224 (gives rise to indeminity for damages from the
time anyone of the debtor does not comply with his performance)
Example: In joint indivisible obligations, such as the delivery of a horse or an automobile, the
obligation can be enforced only by proceeding against all of the debtors

Aspect Description
Enforcement against
Debtors Legal action can only proceed against all debtors involved.
Conversion to
Indemnity for Breach by any debtor converts the obligation into one of indemnity for damages (Art.
Damages 1224).
. However, the debtors who may have been ready to comply with what is incumbent upon
Contribution to them shall not contribute to the indemnity beyond the corresponding portion of the price of
Indemnity the thing or of the value of the service in which the obligation consists
Defaulting debtor bears the burden of paying all damages suffered by the creditor(s) due
Liability for Damages to non-fulfillment.
Recovery of Other debtors can recover damages from the debtor at fault if they suffered losses due to
Damages the breach.

V. Divisible & Indivisible Obligations

 Aspect Divisibility of Obligation Divisibility of Things
Pertains to responsibilities or duties that can be Relates to physical or tangible items that can
Nature divided or shared among multiple parties. be divided into smaller parts or units.
Involves the distribution or sharing of duties, Involves the ability to physically split or divide
Concept liabilities, or obligations among individuals or entities. an object or asset into smaller portions.
- Dividing a cake into slices. - Distributing
Examples - shares of a company among shareholders.