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1 Financial Accounting Theory
1 Financial Accounting Theory
Thing is Divisible – when, if separated into parts, its essence is not changed or its value
is not decreased disproportionately. (4 Sanchez Roman 93-94)
Thing is Indivisible – when, if separated into parts, its essence is changed or its value is
decreased disproportionately.
Kinds of Division –
1) Qualitative – division based on quality
2) Quantitative – division based on quantity
3) Ideal or Intellectual – one which exists only in the minds of the parties
Kinds of Indivisibility –
1) Legal –law declares as indivisible obligations which are divisible
2) Conventional – will of the parties declares as indivisible divisible obligations
Basic Rules –
1) If thing which constitutes the object of an obligation to give is by its very nature
divisible, then, it is divisible.
Exceptions – 1) law 2) intention of the parties
3) An obligation is presumed indivisible where there is only one creditor and one
debtor.
4) When there is only one creditor and one debtor, the debtor has to perform the
obligation in its totality, whether or not the prestation is divisible (Art. 1225, 1st par.)
Sources: The Law on Obligations and Contracts – Hector S. De Leon, 2011 ed.
Obligations and Contracts – Desiderio Jurado, 2012 edition
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“As much as he reasonably deserves”
A. Villegas