Kinds of Obligation According to Plurality of Subjects

Art. 1207
1. Single or Individual Obligation- one debtor/obligor, 1 creditor/oblige
2. Collective Obligation- 2 or more debtor/obligor, 2 or more creditor/oblige
- Joint Obligation- To each his own/ partial
- Solidary- one for all, all for one n

Joint Obligation

Example:

1. A and B are joint debtors to C to an amount of 1 million pesos

- C can demand only 500 thousand from A and 500 thousand to B
2. A and B are joint debtors of C, D, E, and F, who are joint creditors to an amount of 1 million pesos.
- C- May demand 125,000 pesos from A, and 125,000 from B
- D, E, and F have the same right as C

Solidary Obligations

Example:

1. A and B are solidary debtors of C to an amount of 1M pesos

- Beauty can demand the whole amount of 1M pesos either to A or B
If A delivered the whole 1M to C, the former may ask for reimbursement to B in an amount of
500K, which is the amount of the latter’s share
2. A and B are solidary debtors of C, D, E, and F, who are solidary creditors to an amount of 1M pesos
- C, D, E, and F may demand the whole obligation to either A or B
- The creditor who would receive the whole amount of 1M pesos to give other creditors the amount
of their share
- The debtor who delivered the whole amount of the obligation may demand to other debtor the
amount of the latter’s share.

Art. 1207 General Provision

ART. 1207. The concurrence of two or more creditors or of two or more debtors in one and the same
obligation does not imply that each one of the former has a right to demand, or that each one of the
latter is bound to render, entire compliance with the prestations. There is a solidary liability only when
the obligation expressly so states, or when the law or the nature of the obligation requires solidarity.
(1137a)
General rule is joint obligation except

1. When the obligation expressly states or

2. When the law 3. or the nature of the obligation requires solidarity

Joint Debtors, Solidary Creditors. ( vice versa)

Example:

1. A and B are JOINT debtors of C, D, E, and F, who are SOLIDARY creditors to the amount of 1K pesos
 - Any of the creditors may demand the whole amount of the debtors’ partial share
- C may demand 500 pesos to A to an amount of 500 pesos only, which is the amount of the latter’s
share
2. A and B are SOLIDARY debtors of C, D, E, and D, and F, who are JOINT creditors to the amount of 1K
pesos.
- Any of the creditors may collect only the amount of its whole share which is 250 pesos to ANY of
the debtor

Words used to indicate JOINT LIABILITY:

Mancum, mancomunada, mancomunadamente, pro rata, proportionately, jointly, conjoint

Words to indicate SOLIDARY LIABILITY:

1. Each one of the debtors can be compelled to pay the entire obligation
2. Each one of the debtors can be proceeded against for the full amount of the obligation
3. Demand maybe against any one of them

Art. 1208. Presume that obligation is joint

ART. 1208. If from the law, or the nature or the wording of the obligations to which the preceding article
refers the contrary does not appear, the credit or debt shall be presumed to be divided into as many
equal shares as there are creditors or debtors, the credits or debts being considered distinct from one
another, subject to the Rules of Court governing the multiplicity of suits. (1138a)
Credits and debt are distinct from one another

Subject to the rules of court governing the multiplicity of suits means it would be necessary to sue all parties
involved at the same

Some consequences of joint liability

1. Vitiated consent on the part of one debtor do not affect the others
2. Insolvency of one debtor does not make others responsible for his share
3. Demand by the creditor on one joint debtor puts him in default, but not the others since the debt is distinct

Art. 1209
ART. 1209. If the division is impossible, the right of the creditors may be prejudiced only by their
collective acts, and the debt can be enforced only by proceeding against all the debtors. If one of the
latter should be insolvent, the others shall not be liable for his share. (1139)
Joint Indivisible Obligation

Example:

1. A and B are jointly liable to give C a car valued at 1M pesos

- A and B should be willing to perform at the same time since the car cannot be divided physically.

Characteristics of JOINT INDIVISIBLE OBLIGATIONS.

The obligation is joint but since the OBJECT IS INDIVISIBLE, the creditor must proceed against ALL the joint
debtors, for compliance is possible ONLY if the joint debtors would act together.
Demand must therefore be made on ALL the joint debtors

If there be joint creditors, delivery must be made to all and not merely to one, unless, that one be specially
authorized by the others.

Example:

A, B, and C are JOINTLY liable to give a particular car worth 1.2M in favor of D, E, F, and G, who are
SOLIDARY creditors

A is insolvent, and the debtors therefore cannot purchase the car to give to the creditors. D and E renounce their
rights and the debtors are not in default. How much can each of the creditors get from each of the debtors?

Answer. Since one of the debtors became insolvent, the obligation can be converted into indemnity. Any of the
creditor may demand indemnity to the amount of the share of each debtor. Hence, A, B, C have the obligation to
give D, E, F, and G the amount of 100k each. Not 400k because they are joint debtors

D and E will get nothing since they renounced their right. F and G will get 100K from A and B. Suppose that the
obligation is solidary, Any of the debtor may have the right of the creditor against the insolvent debtor which is
A.t5e

Art. 1210

ART. 1210. The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does
solidarity of itself imply indivisibility. (n)
Example:

Joint Indivisible Obligation

1. A and B are jointly liable to deliver C a particular car.

Solidary Indivisible Obligation

2. A and B obliged themselves solidarily to give the car to C.

Solidary Divisible Obligation

3. A and B promised in solidum to pay C 10K pesos.

Joint Divisible Obligation

4. A and B are jointly liable to pay C 10k pesos.

Kinds of Solidarity

1. Passive- part of the debtors. Any one of them can be made liable to the fulfillment of the obligation
2. Active-part of the creditors. Any one of them can demand fulfillment of the entire obligation
3. Mixed- each one of the debtors may render the obligation and each one of the creditors may demand
fulfillment of the obligation

According to source:

1. Conventional Solidarity- agreed upon by the parties

 2. Legal Solidarity- imposed by law

Art.1211
ART. 1211. Solidarity may exist although the creditors and the debtors may not be bound in the same
manner and by the same periods and conditions. (1140)
Example:

Solidarity may bound even the creditors and debtors may not be bound in the same manner or same period
or condition.

1. A and B are SOLIDARILY bound themselves to pay 1M to C, D, E, and F, subject to the following terms
and conditions:
1. C’s term is payable on demand
2. D’s share will due on dec. 25, 2020
3. E will only get her share if she passes the bar exam
4. F will get her share only if she paints the house of G

Art.1212
ART. 1212. Each one of the solidary creditors may do whatever may be useful to the others, but not
anything which may be prejudicial to the latter. (1141a)
Example:

One creditor may demand in behalf of other creditors but the former cannot waive the latter’s right.

If one of the creditor’s waved right, the obligation will be extinguished but the other creditors will have the right to
demand reimbursement from the former.

Pag sinabi ng isang creditor sa debtor na wag ng gawin yung obligation, maeextinguish ito at magkakaoon ng
obligation na bayaran ang share ng isang creditor.

Art.1213
ART. 1213. A solidary creditor cannot assign his rights without the consent of the others. (n)
Solidary creditor cannot assign except when other creditors consent

Example:

A is obliged to give solidary creditors B, C, and D on Dec. 25

If on Dec. 20,2020, B assign her right to E, E cannot collect the obligation on due date because the assignment is
invalid. However, C may assign her right to D and that is valid since they are co creditors.

If A paid D, the former may recover the amount paid since the assignment of E is not valid. Under the rule of solutio
indebiti
Art.1214
ART. 1214. The debtor may pay any one of the solidary creditors; but if any demand, judicial or
extrajudicial, has been made by one of them, payment should be made to him. (1142a)
Example:

A, B, and C are solidary debtors to D and E who are solidary creditors, for 30K. D made a demand to A, whom
should A pay?

Ans. To A because she is the one who demand

Art.1215
ART. 1215. Novation, compensation, confusion or remission of the debt, made by any of the solidary
creditors or with any of the solidary debtors, shall extinguish the obligation, without prejudice to the
provisions of Article 1219. The creditor who may have executed any of these acts, as well as he who
collects the debt, shall be liable to the others for the share in the obligation corresponding to them.
(1143)

The creditor who may have executed any of these acts, as well as he who collects the debt, shall be
liable to the others for the share in the obligation corresponding to them. (1143)
Novation- A and B are solidarily liable to C and D, solidary creditors for the payment of 1M

Later the parties agreed that instead of paying 1M they will just deliver A’s car.

If only A and B agreed the novation, C is not bound to comply.

B have the right to proceed to C

Compensation- Parties are debtors and creditors of each other, thus, the obligation will be extinguished

If the debt is partial, partial compensation will exist

Confusion- A and B solidary debtor of C for an amount of 10k through a promissory note. C indorsed promi note to
D, and D indorsed it to E, and E indorsed it to A again. The obligation is extinguished

Remission- condonation. Obligation is extinguished

Art.1216
ART. 1216. The creditor may proceed against any one of the solidary debtors or some or all of them
simultaneously. The demand made against one of them shall not be an obstacle to those which may
subsequently be directed against the others, so long as the debt has not been fully collected. (1144a)
Against whom may creditor proceed for payment?

Ans. Against any or all of the solidary debtor

Example:
 A and B, solidary debtors of C to an amount of 1M

C may demand full amount to either A or B, OR the former may demand 500K to A and same to B

Art.1217
ART. 1217. Payment made by one of the solidary debtors extinguishes the obligation. If two or more
solidary debtors offer to pay, the creditor may choose which offer to accept.

He who made the payment may claim from his co-debtors only the share which corresponds to each,
with the interest for Art. 1217 DIFFERENT KINDS OF OBLIGATIONS Joint and Solidary Obligations 234
OBLIGATIONS the payment already made. If the payment is made before the debt is due, no interest for
the intervening period may be demanded.

When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor
paying the obligation, such share shall be borne by all his co-debtors, in proportion to the debt of each.
(1145)

1ST statement Example:

A and B, solidary debtors of C to an amount of 1M

C may choose as to which offer she will accept.

2nd statement:

If A paid on due date, the former may ask reimbursement to B without interest. If B only paid after one year
from the date A paid the obligation, B needs to pay an interest.

Last statement:

Example:

A, B, C are solidary debtor of D for an amount of 1M. A paid D the whole amount of 1M

A’s payment of the whole amount of 1M gives her the right to demand reimbursement from B and C, with interest
only if they pay upon or beyond the maturity of the obligation. However, if B become insolvent, A and C may
shoulder the part of B. Then they will have the right to demand B for reimbursement.

Art.1218
ART. 1218. Payment by a solidary debtor shall not entitle him to reimbursement from his co-debtors if
such payment is made after the obligation has prescribed or become illegal. (n)
When a solidary debtor pays the obligation, he is entitled to reimbursement from his co debtors.

The solidary debtor who paid the whole mount cannot get reimbursement if;

The obligation is prescribed

The obligation became illegal

Example:

A and B solidarily bound themselves to give C drugs worth 1M. Later, a law was passed prohibiting the transactions
of said drugs, and declares the drug to be outside commerce of man. Knowing this, Pogi still voluntarily delivers the
drugs to beauty.

Art.1219
ART. 1219. The remission made by the creditor of the share which affects one of the solidary debtors
does not release the latter from his responsibility towards the co-debtors, in case the debt had been
totally paid by anyone of them before the remission was effected. (1146a)
Effect of remission of share after payment

Nagbayad muna bago ang remission or waive. The waiver is of no effect because the obligation has been made.

Except. The remission is made before the payment, it is a case of solutio indebiti or unjust enrichment.

This article is designed to prevent fraud and to give justice to the paying debtor

Example:

A and B solidarily bound themselves to pay C 1M.

A paid the whole amount of 1M, but later, C, after the payment waive the share of B.

This doesn’t mean that B is released from the obligation. A will have the right to demand reimbursement to B.

Under solutio indebiti

Art.1220
ART. 1220. The remission of the whole obligation, obtained by one of the solidary debtors, does not
entitle him to reimbursement from his co-debtors. (n)
No right to reimbursement in case of remission if the remission applies to the whole amount.

Art.1221
ART. 1221. If the thing has been lost or if the prestation has become impossible without the fault of the
solidary debtors, the obligation shall be extinguished. If there was fault on the part of any one of them,
all shall be responsible to the creditor, for the price and the payment of damages and interest, without
prejudice to their action against the guilty or negligent debtor. If through a fortuitous event, the thing is
lost or the performance has become impossible after one of the solidary debtors has incurred in delay
through the judicial or extra-judicial demand upon him by the creditor, the provisions of the preceding
paragraph shall apply. (1147a)
Talk about the effect of loss or impossibility.

If the loss or impossibility is without the fault of the debtor, there is no liability

If the loss or impossibility is with the fault of the debtor, there is liability plus damages and interest

If the loss is because of fortuitous event after default, there is liability because the default exist bfore the fortuitous
event.

Example:

1. A and B are solidarily obliged to give C this particular car. The car was lost by a fortuitous event, and
without any fault on the part of the debtors. Wat happened to the obligation?

1st paragraph will apply

2. Supposed that the car was lost through the fault of A, and C makes a demand later upon B, is B liable?
2nd paragraph will apply
3. Supposed A and B are solidarily obliged to give C this particular car. Later, C makes an extrajudicial
demand upon A, but after the demand, the car was lost through a fortuitous event, is the obligation
extinguished?
Last paragraph will apply
2nd paragraph is also applicable

Art.1222
ART. 1222. A solidary debtor may, in actions filed by the creditor, avail himself of all defenses which are
derived from the nature of the obligation and of those which are personal to him, or pertain to his own
share. With respect to those which personally belong to the others, he may avail himself thereof only as
regards that part of the debt for which the latter are responsible. (1148a)
Effect of remission of share after payment

Possible Defenses of debtor

1. Derived from the nature of the obligation – complete defense, ex. Fraud, prescription, illegality
2. Personal to the debtor- nonfulfillment to condition
3. Partial defense

Example:

1. A and B are solidarily indebted to C for 1M. But A’s consent was obtained through intimidation.
If C files an action against A, C will not get anything from A because his consent was obtained through
force or intimidation
If C files action against B, B will be liable to pay her share of 500k since it is only partial defense
 Art.1223
ART. 1223. The divisibility or indivisibility of the things that are the object of obligations in which there is
only one debtor and only one creditor does not alter or modify the provisions of Chapter 2 of this Title.
(1149)
Talk about divisibility and indivisibility of an obligation

Kinds of indivisibility

a. Legal- by law
b. Conventional- agreement of parties
c. Natural or absolute. Ex. To give a particular car

Kinds of Division

a. Quantitative- depends on the quantity

b. Qualitative- by qualitative ex. Pamana
c. Intellectual or moral- exist only in the minds of the parties- EX. Pamana ng sasakyan kay A and B

Example:

1. A agreed to pay B 1k in four equal monthly installments- divisible

2. A agreed to pay B 1k on dec. 25 - indivisible
3.
4.

Art.1224
ART. 1224. A joint indivisible obligation gives rise to indemnity for damages from the time anyone of the
debtors does not comply with his undertaking. The debtors who may have been ready to fulfill their
promises shall not contribute to the indemnity beyond the corresponding portion of the price of the
thing or of the value of the service in which the obligation consists. (1150)

Meaning, hindi pananagutan ng ibang debtors ang pagiging insolvent in isang detor. Ang bbayaran lamang nila ya
angamoung ng share nila sa obligation. Except ang OBLIGATION IS SOLIDARY. If so, All debtor should comply
even iisa ang nagging insolvent, then, other debtor who fulfill their obligation will have the right of the creditor
against the insolvent debtor.

Discuss the effect of non-compliance by a debtor in a joint indivisible obligation

Already discussed on art. 1209

Art.1225 Rule to determine divisibility or Indivisibility

ART. 1225. For the purposes of the preceding articles, obligations to give definite things and those which
are not susceptible of partial performance shall be deemed to be indivisible.

When the obligation has for its object the execution of a certain number of days of work, the
accomplishment of work by metrical units, or analogous things which by their nature are susceptible of
partial performance, it shall be divisible.

However, even though the object or service may be physically divisible, an obligation is indivisible if so
provided by law or intended by the parties.

In obligations not to do, divisibility or indivisibility shall be determined by the character of the prestation
in each particular case. (1151a)
If the obligation is to be performed by more than one participant, it will become divisible as far as the participants
are concerned.

3rd paragraph,

1. Object or service may be physically divisible, it will be indivisible if

a. Provided by law- ex. Tax
b. Intended by parties to be indivisible- ex. Obligation to give money on a certain date

Supposed there are 2 debtors, the obligation will be divisible in the part of the former remains indivisible in the part
of the creditor.

2nd paragraph, discuss obligation which are deemed divisible

Ex.

1. When a laborer is hired to work for 10 days

2. When a construction worker was hired to construct a fence 20 meters wide
3. Pagbabayad ng utang in an installment basis

--- Divisible and indivisible obligation have nothing to do with the object of the prestation

Last paragraph.