LAW OF OBLIGATION AND CONTRACTS

Chapter 3

Section 4 - Joint and Solidary Obligations

Article 1207 - when there are multiple creditors or debtors for the same obligation, it
does not automatically mean that each creditor can demand the full amount from any
debtor, or that each debtor must pay the entire amount. Solidarity (where one party
can demand full payment from another) only exists if it is clearly stated in the
agreement or required by law. Otherwise, each creditor and debtor is responsible only
for their share of the obligation.

Article 1208 - if there are multiple creditors or debtors in an obligation and it doesn't
specify otherwise, the obligation is considered joint. This means each debtor is only
responsible for their share of the debt, and each creditor can only claim their portion.
For example, if two debtors owe a total of 10,000 pesos, each debtor is liable for 5,000
pesos, and each creditor can only demand their respective share

Types
1. Individual obli - one obligor & obligee
2. Collective obli - 2 or more
● Joint obli - own portion
= mancomunada, mancomunadamente, pro rata, proportionately, “we
promise to pay"
● Solidary - can be paid by one person or creditor can demand from any
debtors
= jointly, severally, solidaria, in solidum, juntos o separadamente, “i
promise to pay"
KINDS:
1. Passive solidarity - anyone can fulfill the entire obli
2. Active - anyone can demand for the entire obli
3. Mixed - both
4. Conventional - solidarity is stated sa contract
5. Legal Solidarity - imposed by law
Example: In a partnership, all partners are legally solidarily liable
for debts incurred by the business. If the partnership owes
$10,000, any partner can be pursued for the full amount by
creditors, regardless of their individual share in the business.
6. Real Solidarity - imposed by nature
 Example: If multiple heirs inherit a property, they may be jointly
liable for taxes on that property. Each heir can be held
responsible for the entire tax amount, reflecting the shared
nature of their obligation due to the inheritance.

Article 1209 - This article applies to indivisible obligations, where the thing or act
cannot be divided into parts.
1. For creditors: All the creditors must act together to enforce the obligation. One
creditor cannot act alone.
2. For debtors: All debtors must fulfill the obligation together.
If one debtor cannot pay because they are insolvent (unable to pay), the others are not
responsible for their share.
Joint divisible obligation - each debtors are liable to their portion but the compliance
can't be divided.

Article 1210 - sinasabi na hindi porket indivisible ay considered as solidarity nor,

solidarity imply indivisibility
★ indivisibility = prestation, solidarity = legal tie
★ if one debtor is guilty of breach, in solidarity, other debtors are not liable for
damages while in solidarity, all are liable
★ if one is insolvent, in indivisibility, not liable. solidarity, others are liable
★ indivisibility can exist even if only 1 debtor or creditor, while solidarity it should
be 2 or more

Article 1211 - solidarity can still exist even if the terms or conditions for each creditor
and debtors are not the same
KINDS:
1. Uniform - same stipulations
2. Non-uniform - not same

Article 1212 - for the fairness of solidarity creditors. one can act for the benefit of
everyone but not something that would harm others.

Article 1213 - a creditor cannot assign his right sa third person without the consent of
other creditors. This rule exists because each creditor represents the others, and the
new creditor might not have the same trust or confidence from them. If a creditor
tries to assign their rights without consent, that assignment is considered invalid,
meaning any payment made to the new creditor does not fulfill the original obligation.
Article 1214 - if there are multiple solidary creditors, the debtor can pay any one of
them. However, if one of the creditors has already made a demand for payment, the
debtor must pay that creditor. This means that while the debtor has the option to
choose which creditor to pay, they must respect any requests made by the creditors
for payment.

Article 1215 - Actions like novation (changing the obligation), compensation (offsetting
debts), confusion (when the debtor and creditor become the same person), or remission
(forgiving the debt) by any one solidary creditor or with any one solidary debtor will
cancel the entire obligation.
If a solidary creditor cancels or collects the debt, he is liable to the share of other
creditors.
● if the action of one creditor doesn't extinguished the obligation, yung share lang
ni creditor na yon ang mawawala while the si debtor ay still liable sa ibang
creditors

Article 1216 - states that a creditor can demand payment from any debtors or from
several of them at the same time. If the creditor asks one debtor for payment, that
does not prevent them from asking the others later, as long as the debt hasn't been
fully paid. For example, if three people owe money, the creditor can collect from any
one of them or from multiple debtors without needing to ask everyone at once.

Article 1217 - If any solidary debtor pays the entire debt, the obligation is completely
settled. If multiple debtors want to pay, the creditor can decide whose payment to
accept
The debtor who paid the full amount can ask the other co-debtors to repay their
shares (with interest if the payment was due). However, if the debt was paid early, the
paying debtor cannot ask for interest for the time before it was due.
If one debtor cannot pay their share due to insolvency, the loss is shared equally among
the remaining debtors, based on their respective shares.

Article 1218 - a debtors who pays the obligation cannot ask co-debtors for the payment
of their shares and cannot recovered from creditor if the obligation is not legally
enforceable or illegal na.
Prescriptive periods of actions

Article 1219 - If a creditor forgives one solidary debtor’s share, it doesn’t release that
debtor from their duty to reimburse the other co-debtors if one of them paid the full
debt.
 ● even if creditor forgive the debt of one debtor, that debtor is still liable to his
co-debtors if other debtor paid the full obligation
Example:
A, B, and C are solidary debtors who owe ₱90,000 to D (the creditor).
D forgives B’s share of ₱30,000.
If A pays the full ₱90,000 to D, A can still demand B’s ₱30,000 share, even though D
forgave B’s debt.

➢ Effects of remission of share after payment

● if nauna si payment before ang waiver, then the waiver is no effect.
● Mag aarise si solutio indebiti or payment by mistake and pwede nya parin
singilin si co-debtors for the payment of his share.

Article 1220 - if the creditor said the remission of the entire obligation for the sake
of one debtor. yung debtor na yon has no right to demand or maningil sa co-debtors nya
since wala naman syang binayaran.

Article 1221
● pag nawala ang prestation and no debtor is at fault, the obligation is
extinguished
● if atleast one of them is at fault then all debtors must compensate the creditor
for the price of the things plus payment for damages and interest.
● if due to fortuitous event, they are still liable if the demand was made before
the event actually occur.
❖ the liability depends whether or not there is a fault or delay

Article 1222 - talks about the defenses that debtor may avail incase the creditor file a
case.
1. defenses derived from nature of obli - complete kasi napapawalang bisa yung
obligation
ex: fraud, remission
2. personal defenses - if ever you can't fulfill the obligation because of mistake,
insanity, etc. you have the right to defend yourself
3. defenses personal to other debtors - yung defense na meron ang isa ay hindi mo
pwedeng gamitin yon and u're still liable but only to your share in the obligation.

Section 5: Divisible and Indivisible Obligation

Article 1223 - talks about divisibility and indivisibility of things
 ● hindi ibig sabihin na divisible ang thing e kailangan partial na rin ang pagfulfill. if
sabi sa law or may agreement na one time full payment, then the obligation would
be indivisible
● but an indivisible thing will always stay indivisible
Kinds of Division
1. Qualitative - based on quality like sayo house and lot akin sports car
2. Quantitative - based on quantity, ex: naghati sila sa lupa
3. Ideal or Intellectual - nasa utak lang yung hatian ex: share sa kotse pero nasa
mind lang nila na hati sila and no one can actually own the part of the car
Kinds of Indivisibility
1. Legal - imposed by law ex: tax
2. Conventional -napagkasunduan
3. Natural - the nature of the thing says so ex: car

Article 1224 - in joint indivisible obligation, once any of the debtors can't comply
magkakaroon ng indemnity/payment for damages but the one who can fulfill the
obligation is not liable for the damages. The thing ay macoconvert na into monetary
obligation para hindi madamay si isang debtor sa pagiging incapacity ni other debtor
● bawal mag ask si creditor ng ibang kapalit

Article 1225
● the obli to give specific things that can't be partially fulfilled is deemed to be
indivisible
● divisible are those obligation that are based on number of days worked, number
of metric units which can be partially fulfilled
● a divisible can be indivisible if provided by law or agreement
● in personal obli, nakadepende sa character ng prestation kung divisible or
Indivisible

Section 6: Obligation with a Penal Clause

Article 1226 - in obligation with a penal clause or may napagkasunduang penalty incase
of non-fulfillment, that penalty substitutes the indemnity for damages. However, if the
debtor refuses to pay the penalty or acts fraudulently, they must still compensate for
damages. The penalty can only be enforced according to legal provisions, ensuring it
serves as both a motivator for compliance and a punishment for breach of obligation.

Article 1227
● hindi pwedeng maging exemption ang pagbayad nlng ng penalty para hindi
magfulfill sa obligation. unless nasa agreement
 ● Di rin pwede magdemand si creditor ng fulfillment of obli and the penalty ng
sabay, unless nasa agreement
● if the can't be fulfilled without the creditor's fault, pwede parin si penalty

1. either fulfillment only or penalty only,

● if can't fulfill magbabayad penalty
2. pwedeng both if may fraud sa part ni debtor

Article 1228 - hindi na kailangan ng evidence ni creditor to prove na may nasuffer syang
damages para magbayad si debtor. Even without evidence, penalty is still demandable.
● can recover damages addition to penalty applies only if the the penalty
substitutes the indemnity for damages. And creditor must prove na he suffer
dahil sa breach of contract ni debtor

Article 1229 - talks about reducing the penalty

The court can reduce the penalty if:
1. partial or nakapagperform pero hindi nacomplete yung entire obligation. or
naperform but hindi ayon sa gusto ni creditor
2. unreasonable yung penalty na indicated or hinihingi ni creditor

Article 1230
1. If the principal obligation is void, penalty is also void
because the penalty cannot stand alone without the principal oblie
2. If penalty is void, the principal obli is still valid
because the penalty clause does not affect the validity of the obligation