ANTONETTE GWYN A.

IFE GROUP # 9 AC 1102 TTH (3:00pm -4:30pm)

1. Distinguish divisible and indivisible obligations.

- Divisible obligations are obligations in which the delivery or performance, is
capable of partial fulfillment. On the other hand, Indivisible obligations are
obligations in which the delivery or performance, is NOT capable of partial
fulfillment.

2. A and B bind themselves to pay C their loan of P10,000 on a certain date.  Is
the obligation divisible or indivisible?  Explain your answer.

- The obligation is an indivisible obligation because, even though P10,000 is

physically divisible, the agreement is that A and B shall pay C on a certain
date, therefore the obligation must be fulfilled at one time as a whole.

3. Define obligation with a penal clause.

- Obligation with a penal clause is an obligation which contains an accessory

undertaking to pay a previously stipulated indemnity in case of breach of
the principal prestation, intended primarily to induce it’s fullfilment. (Article
1226)

4. What are the purposes of incorporating a penal clause to an obligation?

- The purpose of incorporating a penal clause to an obligation are (1) to

ensure their performance by creating an effective deterrent against breach,
making the consequences of such breach a onerousas it may be possible;
and (2) to subsitute a penalty the indemnity for damages and the payment
of interest in case of non-compliance; or to punish the debtor for the non-
fullfilment or violation of his obligation. (Article 1226)

5. X promise to deliver to Y a specific horse.  Their contract contains a penal

clause that in case of non-fulfillment, X shall pay a penalty of P10,000.   X wants to
just pay the penalty instead of delivering the horse.  Has Y the right to refuse to
accept the penalty in lieu of the horse?  Explain your answer.

- Yes, Y has the right to refuse to accept the penalty in lieu of the horse
because the debtor cannot just pay the penalty as a substitute for non-
compliance of the principal obligation, paying the penalty will not exempt X
from the performance of the obligation. Article 1227 clearly says that the
action made by X is prohibited. Moreover, penalty is a type of accessory
obligation which comes with the principal obligation, it cannot stand
alone.

6. Define payment.

- Payment may consist of not only in the delivery of money but also the
performance in any other manner of an obligation such as giving of a thing (other
than money), the doing of an act, or not doing of an act.

7.  D owes C P10,000 with G, as guarantor.  On the due date of the obligation, T,
a third person, offered to pay the obligation of D.  Can C legally refuse to accept the
payment?  Explain.  How about an offer of payment from G?  Explain your answer
briefly.

- Yes, C may legally refuse to accept payment from T because Article 1236
provides that the creditor is not bound to accept payment or performance by a third
person who has no interest in the fullfilment of the obligation, unless there is a
stipulation to the contrary.

- No C cannot refuse an offer of payment by G, because the creditor is bound to

accept payment from G since G is the guarantor and a guarantor is included in the
persons from whom the creditor must accept payment.