OBLICON Cont. of Diff Kinds of Obli 2

JOINT AND SOLIDARY OBLIGATIONS
Joint and solidary obligations, concept

In a joint or solidary obligation, there 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 P5,000.00.
(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.
Kinds of solidary obligation
1. Passive solidarity - This is solidarity on the part of the debtors.
Example: A and B, solidary debtors, are indebted to X for P10,000.00. X can demand payment
of P10,000.00 from either A or 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 or 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 or solidarity on the part of both debtors and creditors
Example:
A and B solidary debtors, owe X and y, solidary creditors, PI2,000.00. 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.
Rule if there is a 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:
1. When two or more persons have appointed an agent for a common transaction or undertaking,
they shall be solidarily liable for the consequences of the agency. (Art. 1915)
2. Where the instrument containing the words "I promise to pay" is signed by two or more
persons,
they are deemed to be jointly and severally liable thereon. (Sec. 17, Negotiable Instruments
Law.)
3. The responsibility of two or more persons who are liable for a quasi-delict is solidary.
JOINT INDIVISIBLE OBLIGATION, concept, and characteristics
A joint indivisible obligation is an obligation where the debtors or creditors are jointly bound but the
prestation or object is indivisible. It has the following characteristics:
1. The creditors must act collectively, meaning, all of them must make the demand unless one is
specifically authorized to act for the others. (Art. 1209) A demand made by one or some but not all of 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. (Art. 1209)
3. The right of the creditors may be prejudiced only by their collective acts. Thus, a renunciation made
by a joint creditor extinguishes 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. (Art. 1209)
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. (Art. 1224)
5. If one of the debtors is insolvent, the others shall not be liable for his share. (Art. 1209)
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 with his undertaking, the obligation to deliver the car is
converted into an obligation to pay its value plus damages. B and C shall be obliged
to pay P300,000.00 each. A, the 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 a
monetary obligation to pay P600,000.00 which must be given to Y at P300,000.00
and Z at P300,000.00 by A, B, and C who will give P200,000.00 each.
DIVISIBLE AND INDIVISIBLE
ONLIGATIONS
A divisible obligation is one capable of partial performance (such as the
obligation to deliver 10 sacks of rice). The following obligations are deemed
divisible (Art. 1225):
1. When the obligation has for its object the execution of a certain number of
days of work (such as an obligation to work for 1 week).
2. When the obligation has for its object the accomplishment of work by
metrical units (such as the obligation to construct a pavement that is 10
meters long and 2 meters wide).
3. Analogous things which by their nature are susceptible of partial
performance.
An indivisible obligation is one not capable of partial performance (such as the
obligation to deliver a specific car). The following obligations are deemed
indivisible (Art. 1225):
1. Obligations to give definite things (such as the obligation to give a specific
horse).
2. Those not susceptible to partial performance (such as the obligation of a singer
to sing one song in a program).
3. Those where the object or service is physically divisible but it is indivisible by
provision of law (such as where the obligation is to pay a sum of money but the
law provides that the sum must be paid in full as in the case of certain taxes).
4. Those where the object or service is physically divisible but is indivisible by
the intention of the parties. (such as where the obligation is to pay a sum of
money but the parties agreed that the sum must be paid in full).
OBLIGATIONS WITH A PENAL CLAUSE
An obligation with a penal clause is one which provides for a greater liability on
the part of the debtor in case of non-compliance. The accessory undertaking on the
part of the debtor is called the penal clause.
The penal clause is generally undertaken to ensure performance and works as either,
or both, punishment and reparation.
The existence of the penal clause is dependent upon the principal obligation which
must be valid.
Example: D is obliged to construct a commercial building for C within a period of
three months. The parties agreed that should D fail to finish the construction of the
building within the said period, D shall pay to C P1,000.00 for every day of delay as
a penalty.
The function of penal clause
A penal clause is attached to an obligation to ensure performance and has a double function:
1. To provide for liquidated damages, and
2. To strengthen the coercive force of the obligation by a threat of greater responsibility in
the
event of a breach.
The rule in case obligation has a penal clause:

General rule: The penalty takes the place of the damages and interest in case of non-
compliance.
Exceptions: (aside from the penalty, damages, and interest may also be demanded)
1. When there is a stipulation to that effect.
2. When the debtor refuses to pay the penalty.
3. When the debtor is guilty of fraud in the performance of the obligation. (Art. 1226)
Effect of nullity of principal obligation, penal clause
1. The nullity of the principal obligation carries with it the nullity of
the penal clause. This is so because the penal clause, being just an
accessory undertaking, cannot stand by itself.
2. The nullity of the penal clause does not carry with it that of the
principal obligation. This is so because the principal obligation can
stand by itself.

OBLICON Cont. of Diff Kinds of Obli 2

Uploaded by

Copyright:

Available Formats

OBLICON Cont. of Diff Kinds of Obli 2

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

OBLICON Cont. of Diff Kinds of Obli 2

Uploaded by

Copyright:

Available Formats

JOINT AND SOLIDARY OBLIGATIONS

Joint and solidary obligations, concept

The rule in case obligation has a penal clause:

You might also like