ART. 1200.

Hindi pwedeng piliin ni obligor yung mga

The right of choice belongs to the
debtor, unless it has been expressly
granted to the creditor.
Kay debtor lagi yung choice unless
pinayagan ni creditor
The debtor shall have no right to choose
those prestations which are impossible,
un lawful or which could not have been
the object of the obligation. (1132)
Hindi pwedeng piliin ni debtor yung
prestation na imposible, bawal sa batas
or hindi naman sya yung object ng
obligation.
Right of choice, as a rule, given to
debtor.
Laging kay debtor yung Karapatan para
pumili ng prestations
Exception: pwede naman kay creditor
yung rights sa prestations pero kung
expressly granted to him lang
Pwede rin sa third person if pumayag si
creditor at debtor.
Ex. Insurance of house- X (creditor), Y
(debtor)
Incase masira or mawasak- (damage or
loss, reinstate, rebuild the house)
Kahit silent, si debtor yung may
Karapatan pumili ng prestation.
Right of choice of debtor not absolute.
May limitations lang yung right ni obligor
sa prestations
prestations na; (void)
(a) impossible,
(b) unlawful, or
(c) which could not have been the object
of the obligation.
Kahit wala tong mga to, may iba pa
naman kasing choices yung debtor kaya
hindi nila iniivalidate yung obligation
Kapag isa nalang yung natitirang
obligation na pwedeng piliin, wala na
syang right nagiging simple obligation
nalang.
Hindi nalang limitation, pero nawawala
na yung right of choice nya na pumili.
Hindi napapasa kay creditor yung right.
1. Impossible- Imposibleng magawa na
prestation
Ex. Delivering of pencils, a laptop and a
moon
 Delivering of moon is impossible
ART. 1201
The choice shall produce no effect
except from the time it has been
communicated. (1133)
Yung choice dapat lagging mag tetake
effect lang the moment na sinabe na kay
creditor ni debtor.
Orally or writing 1. Effect of notice
Hanggat hindi nasasabe ni debtor yung
gusto nyang prestation, alternative pa
din yung obligation, dalawa or tatlo pa
din yung prestation
Once nasabe na kay creditor, nagiging
simple nalang yung obligation kasi
nakapili na ng prestation.
Once na makapili na ng prestation, and
nasabe na kay creditor hindi na pwede
bawiin nang walang consent ng other
party
Walang Karapatan pumili si creditor
Kapag nasabe na kay creditor yung
choice na prestation, nagiging legal na
yung effect. 2. Proof and form of notice
Yung debtor yung magpo prove na may
communication sa kanila ni creditor kasi
sya yung may choice sap restations.
Walang sinabe yung batas na gumawa
ng formal form
Orally or writing pwede
Ex. Lara obliged himself to deliver Otis
his tv, or his refregirator. Lara choose
the tv and informed Otis
Nagiging simple obligation kasi nakapili
na
Hindi na mababago yung prestation na
napili hanggat walang consent ng other
prty
After makapili ng prestation, pwede na
nila idemand yung right nila parehas.
ART. 1202
The debtor shall lose the right of choice
when among the prestations where by
he is alternatively bound, only one is
prac ticable. (1134)
Kapag isa nalang yung practicable
prestation, nawawalan na sya ng choice
na pumili.
Dito, isa lang yung natira sap restations
pero kung 1 or 2 yung natira 1200 shall
apply.
Magiging simple obligation nalang
ART 1203
If through the creditor's acts. the debtor
cannot make a choice according to the
terms of the obligation, the latter may
the latter may rescind the contract with
damages.
If kasalanan ni creditor kaya hindi
makapili si debtor sap restations,
pwedeng bawiin ni debtor yung contract
plus damages
When debtor may rescind the contract
Rescission- Magsosolian, with their
fruits, price and interest
Hindi kasi makakapili si debtor sap
restations if kasalanan ni creditor e diba
lagging si debtor dapat mamimili.
Ex. Yana borrowed 10k to Leah. Nag
agree sila na imbis 10k,yana can deliver
item 1, 2 or 3.
If fault ni Leah kaya nasira yung isang
item, pwedeng bawiin ni yana yung
contract kung gusto nya.
If nangyare na yung recission, dapat
ibalik ni yana yung 10k with interest,
tapos si Leah dapat bayaran nya yung
isang item na nasira plus damages
If hindi rescission pinili ng debtor, pwede Effects of loss of objects of obligation
syang mamili sa natitirang item plus
-Sa article 1203, kasalanan ni creditor,
yung value ng item na nasira plus
dito sa article 1204 kasalanan ni debtor
damages.
parehas kay debtor yung choice.
Pero kapag pumili si yana ng isang item
na hindi sira, wala ng obligation at hndi -Sa article 1205, yung creditor yung may
na liable si Leah sa sirang item kasi iba Karapatan pumili.
naman yung pinili nya.]
1. Some of the objects
Article 1204
-Kahit na kasalanan ni debtor, kung
The creditor shall have a right to yung ibang object/prestation is Nawala
indemnity for damages when, through or
the fault of the debtor, all the things
imposibleng magawa, hindi liable si
which are alternatively the object of the
debtor kasi may iba pa naman syang
obligation have been lost, or the
option.
compliance of the obligation has
become impossible. -Exception to sa article 1170 –
negligence
-Kapag naman fault ni debtor, lahat ng
prestations Nawala, or hindi na 2. All of the objects
pwedeng
Kapag naman lahat ng object Nawala,
gawin yung obligation may Karapatan si or hindi na magagawa kasi kasalanan ni
creditor na magdemand ng damages. debtor liable sya sa damages kay
creditor kasi wala ng natira sa mga
The indemnity shall be fixed taking as a
prestations. If may fortuitous event,
basis the value of the last thing which
extinguished yung obligations
disappeared, or that of the service which
Basis of indemnity
last became impossible.
Yung basis ng indemnity yung price,
-Yung value ng indemnity is yung last
naka depende lag isa last thing na
thing na Nawala, kapag sa service
Nawala or if service, sa last thing na
naman yung last option na hndi na
hndi magagawa.
pwedeng magawa.
Kaya sa 3 naka depende kasi yun yung
Damages other than the value of the last
last option
thing or service may also be awarded.
Kahit kasalanan nya na Nawala yung
(1135a)
item 1 and 2 tapos sa 3 hindi na nya
-Yung value ng last thing or service mag kasalanan, extinguished na yung
bebase ng indemnity plus damages obligation
Liable sya kapag fortuitous events kaya
Nawala yung 1 and 2 tapos kasalanan
nya bakit Nawala yung 3, liable sya sa
damages
When the choice has been expressly
given to the creditor, the obligation
shall cease to be alternative from the
day when the selection has been
communicated to the debtor.
Kapag nasabe n ani debtor yung choice
nya hndi na sya nagiging alternative
nagtetake effect lang to sa araw na
nasabe na ni debtor kay creditor.
Until then the responsibility of the debtor
shall be governed by the following rules:
(1) If one of the things is lost through
a fortuitous event, he shall perform
the obligation by delivering that
which the creditor should choose
from among the remainder, or that
which remains if only one subsists;
Kapag Nawala yung bagay na yun thru
fortuitous event, dapat ibigay ni debtor
yung bagay na napili ni creditor sa natira
(2) If the loss of one of the things
occurs through the fault of the
debtor, the
creditor may claim any of those
subsisting, or the price of that which,
through the
fault of the former, has disappeared,
with a right to damages;
- Kapag naman fault ni debtor, Nawala
yung isa sa mga prestation, pwedeng
mamili si
creditor sa natira or price ng nawala plus
damages
(3) If all the things are lost through
the fault of the debtor, the choice by
the
creditor shall fall upon the price
of any one of them, also with
indemnity for
damages.
- Kapag lahat Nawala sa fault ni debtor,
pwedeng mamili si creditor ng price ng
kahit
ano sa item na Nawala plus damages
The same rules shall be applied to
obligations to do or not to do in case
one,
some or all of the prestations should
become impossible. (1136a)
-Sa service, same rules
When right of choice belongs to
creditor
-Kapag binigyan ni debtor ng right si
creditor
-Dito, si creditor naman mamimili
Rules in case of loss before creditor has
made a choice
1. When a thing is lost through a
fortuitous events
-Kapag nasira yung item 1, may
karapatan pa mamili si creditor sa mga
natitirang item
2. When a thing is lost through
debtor’s fault
-Kapag Nawala yung item, na kasalanan
ni debtor pwede mamili si creditor ng iba
pa tapos
babayaran yung damages, or price nung
Nawala plus damages.
3. When all things are lost through
debtor’s fault
-Kapag lahat Nawala tas kasalanan ni
debtor, si creditor pwede sya mag
demand ng price ng kahit
anong item na Nawala plus damages
4. When all the things are lost
through fortuitous event
-Obligation shall extinguished (Article
1174 applied)
Rules applicable to personal obligation
Same rules lang kung kasalanan nya ba
or hindi ni debtor
When only one prestation has been
agreed upon, but the obligor may
render another in substitution, the
obligation is called facultative.
Facultative tawag kapag isa lang yung
prestation pero may substitution
The loss or deterioration of the thing
intended as a substitute, through the
negligence of the obligor, does not
render him liable. But once the
substitution has been made, the
obligor is liable for the loss of the
substitute on account of his delay,
negligence or fraud.
Yung loss or deterioration ng substitute
sa prestation kahit kasalanan ni debtor,
hind sya liable kasi hindi pa nsasabe na
may substitute.
Pero kapag nasabe na na may
substitute tapos nagkaron ng loss or
deterioration, liable na si debtor; delay,
negligence or fault.
Meaning of facultative obligation
1 prestation agreed upon, may render
another substitution
Ex. Bibigyan kita ng laptop pero bibigay
ko den cellphone pang substitute if ever
dko mabigay laptop.
Effect of loss
1. Before substitution
Kapag Nawala yung principal thing dahil
sa fortuitous event, nawawal yung
obligation. Kapag naman kasalanan ni
debtor liable sya sa damages.
Sa substitute naman kapag Nawala tas
kasalanan ni debtor or hndi, hndi sya
liable.
Hindi pa kasi due yung substitute.
 2. After substitution
Kapag principal thing Nawala, hndi liable
si debtor kasi may choice pa sya
Kapag Nawala yung substitute depende
kung liable ba sya or hndi kapag sya ba
may kasalanan or hndi
Kapag nakapili na nagiging;
Simple one
Nagiging effected lang once na nasabe
na kay creditor
Alternative vs. Facultative
Number of prestations
Alternative- 2 or more due pero kahit isa
lang dun gawin
Facultative- 1 prestation lang, pero may
karapatan si debtor mag bigay ng
substitute
Right of choice
Alternative- Laging si debtor, pero
pwede kay creditor if debtor only
napagusapan sa contract and 3rd party
if inallowed ng both parties
Facultative- debtor only
Loss through a fortuitous events
Alternative- loss of one or more
alternative, does not loss of the thing
due, extinguishes the obligation
Section 4. Joint and Solidary
Obligations
“Joint Obligation is the general
rule while solidarity is the
exception.”
ARTICLE 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
PRESTATION. THERE IS A debtor is liable of 5,000.
SOLIDARY LIABILITY ONLY WHEN
THE OBLIGATION EXPRESSLY SO
STATES, OR WHEN THE LAW OR THE
NATURE OF THE OBLIGATION
REQUIRES SOLIDARITY
- This article talks about joint and
solidary obligations. The concurrence of
two or more debtors or creditors. Means
there is plurality of both parties.
Maraming debtors and creditors yung
involve sa iisang obligations. Pero kung
anong klase yung pinag usapan nila,
dun lang sila may karapatan or rights na
magdemand. Kapag silent yung
obligation, joint obligation yun. Yung
solidarity is always expressly stated.
 kinds of obligations according to
the number of parties
1. Individual obligation – one where
there is only one(1) obligor or one(1)
Obligee.
2. Collective obligation – one where
there are two or more debtors and/or
two or more creditors. It may be joint or
solidary.
- Joint obligation; to each his own.
Dto sa joint obligation, kung ano lang
yung utang ni debtor or kung ano lang
yung karapatan na magdemand ni
creditor, yun lang ang pwdeng
mafulfilled and mademand na
obligations.
Example; (debtor is two or more)
Sarah and joyce are joint liable to pay
khim an amount of 10,000. Each of
Sa example na to, si creditor is may
right to demand na 5,000 each. Pero
hindi nya pwedeng singilin yung total na
10,000 sa iisang debtor. 5, lang yung
pwde nyang singilin dahil joint
obligations nga. Ibigsabihin,
proportionately fulfilled and demanded.
Note: kapag yung isang debtor is naging
insolvency, hinding pwdeng bayaran or
ifulfill ng isang debtor yung utang nya.
and walang Karapatan si creditor na
singilin sa isang debtor yung utang ng
insolvent debtor.
- Solidary obligation; one for all, all
for one.
- an obligation is solidary if the whole
obligation can be performed by either of
the obligors. The obligation can demand
by either the creditors.
- there are two or more debtor and
creditors na pwdeng magfulfilled or
magdemand sa obligation
- dito sa solidary obligation, kahit sino sa
debtor ay pwdeng singilin o magbayad
ng pagkakautang. Kahit sino sa creditor
ay may right to demand to each of
debtor.
 Kinds of solidarity
1. According to the parties bound
A. Passive solidarity – from the word
passive, means debtor or obligor.
Solidarity on the part of the debtors,
where any of them can be made liable
for the fulfillment of the entire obligation.
Example; (two debtors)
Sarah and joyce are solidary debtors to
khim in amount of 10,000. Here, khim
may demand 10,000 to sarah and joyce,
pero hanggang 10,000 lang yung pwde
nyang masingil. If nakapagabayad na si
sarah ng 10,000 kay khim, khim no
longer have the rights to demand from
joyce ng another 10,000. After the
payment of sarah to khim, the obligation
will be extinguished. But since sarah pay
the entire amount, sarah may claim to
joyce the corresponding amount of
5,000 or amount in their contracts.
B. Active solidarity – from the word
active, means creditor or obligee.
Solidarity on the part of the creditors,
where any one of them can demand the
fulfillment of the entire obligation.
Example; (two creditors)
Khim is liable to pay sarah and joyce a
total amount of 10,000. Khim may pay
either sarah or joyce an amount of
10,000. But the amount cannot exceed
in
10,000. Sarah and joyce can demand to
the fulfillment from khim. If the payment
is made between khim and sarah the
obligation of khim is extinguished, but
joyce may claim the corresponding
amount to sarah.
C. Mixed solidarity – two or more
debtors and creditors are involve.
Solidarity on the part of debtors and
creditors. Where each one of the
debtors is liable to render and each of
the creditors has a right to demand,
entire compliance with the obligation.
Example;
Sarah and khim are solidarily liable to
joyce and kyla in the amount of 50,000.
Sarah (khim) can pay the 50,000./ joyce
(kyla) can demand the 50,000 in the
debtors. If the 50,000 is already paid
by sarah (khim), the obligation is
extinguished. If the 50,000 is already
collected by joyce(kyla) the obligation is
extingushed.
Note: if sarah pays the entire amount,
she has the right to demand to khim the
latter amount agreed between them. If
joyce collected the entire 50,000, kyla
has the right to ask her latter amount
agreed upon between them.
2. According to source
A. Conventional solidarity – where
solidarity is agreed upon by the parties.
If nothing is mentioned in the contract
relating to solidarity, the obligation is
only joint. Note: solidary obligation is
always expressly stated.
B. Legal solidarity – where solidarity is
imposed by the law.
C. Real solidarity – where solidarity is
imposed by the nature of the obligation.
Article 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 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. This article is just
to support the 1207. Presumption lang
to about sa joint obligation. Bsta kapag
two or more debtors, or two ormore
creditor, assume that is joint unless
solidarity is stated
ARTICLE 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.
This article is all about the joint indivisile
obligation – means parties are merely
proportionately liable.
 Joint indivisible obligation – kapag
yung isa sa debtor is unwilling to fulfill,
hndi magagawa yung obligation. Kapag
isa naman sa creditor is not willing to the
deliver of the object, hndi magagawa
yung obligation. Dapat “they will act
together AND AGREED TOGETHER”
- JOINT – THE TIE OF THE
OBLIGATION
- INDIVISBILE – NAGREREFFER SA
OBJECT
Example; sarah and khim jointly liable to
give a brandnew
Cellphone valued 50,000 to joyce. But
sarah is not willing to give. Dto hndi
magagawa yung obligation to give kasi
hindi willing si sarah na magbigay.
The brandnew cellphone will convert
into money, tapos proportionately sila
magbabayad since joint yung tie nila - only the debtor who commits breach of
dto. obligation is liable to the damages.
ARTICLE 1210. - can exist althrough there is only one
debtor and creditor
The indivisibility of an obligation does
not necessarily give rise to solidarity. The other debtors are not liable to
Nor does solidarity of itself imply insolvency of other debtor.
indivisibility.
Examples;
Maaring habulin ng kreditor ang sino
1. Joint indivisible obligtaion – sarah
man sa mga solidary debtors, ilang sa
and khim jointly liable to give the
kanila or kahit lahat sila ng sabay sabay.
rolex watch to joyce.
Ang paghabol sa isa ay hindi hadlang sa
paghabol sa iba hanggat hindi (the obligation is joint and the
nasasakatuparan ang lahat ng prestation is indivisible)
obligasyon.
2. Solidary indivisible obligation –
The first sentence means the liability in sarah and khim solidary liable to give
an indivisible obligation may be either a brandnew cellphone to joyce. (the
joint or solidary. obligation is solidary and prestation is
indivisible)
The second sentence means that in a
solidary obligation, the subject matter 3. Joint divisible obligation – sarah and
may be divisible or indivisible. khim jointly liable to joyce, amount of
10,000. (the obligation is joint and the
Difference between solidary and
prestation is divisible)
indivisibility.
4. Solidary divisible obligation –
Solidary – the juridical tie or binds
sarah and khim solidary liable to
between parties.
joyce, amount of 10,000. (the
- if one debtors commits a breach of obligation is solidary and the
obligation, all debtors are liable. prestation is divisible)
- there must be two or more debtors or Article 1211.
creditors
solidarity may exist although the
- the insolvency of one debtor, the other creditors and the debtors may not be
debtors are liable to pay the part of the bound in the same manner and by the
insolvent debtor. same periods and conditions.
Indivisibility – prestation (to give, to do Ang pagkakaisa ay umiiral
or not to do) bagamat ang pinagkakautangan at ang
nagkakautang ay maaring hindi nakatali
sa parehong paraan at sa parehong
panahon at kondisyon.
DTO SA ARTICLE NA TO, diba YUNG
SOLIDARY OBLIGATION IS ABOUT
THE FULFILLMENT OF ENTIRE
OBLIGATION. ETONG ARTICLE NA
TO DEFINE NA PWDENG MAG EXIST
YUNG SOLIDARY OBLIGATION KAHIT
HNDI PAREHAS YUNG OBLIGATION
NG MGA DEBTORS.
FORMS OF SOLIDARY OBLIGATION
ACCORDING TO THE LEGAL TIE
1. Uniform Solidarity – when the
debtors are bound by the same
terms and conditions or stipulations
Non- uniform or Varied Solidarity – when
the debtors while bound under the same
obligation (like a loan) are not subject to
the same terms and conditions of
payment but to different secondary
stipulation or clauses.
ARTICLE 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.
Bawat isa sa magkakasamang nag
papautang ay puweding gumawa ng
mga paki-pakinabang na hakbang para
sa kapya at kasama niyang nag
papautang maliban nalang sa mga
hakbang na makaka pinsala sa kanila.
Yung solidary creditor may act what is
useful for them but not anything
prejudiced or iksasama (ikakapahamak
ng ibang creidtors).
The general rule is that a solidary
creditor may do any act which may be
useful to the other solidary creditors
such as:
1.) making of judicial or extra judicial
demands to the debtor;
2.) filing of complaint so that the
obligation may bear legal interest.
But not anything which may be
prejudicial to the latter such as the acts
of novation, compensation, confusion or
merger of rights, remission or
condonation.
Example; Sarah is liable to pay khim
and joyce which is solidary creditors
amount of 1,000,000. Under the law,
khim may file a judicial demands to have
the interest, in this case both creditors
will be benefited.
Article 1213:
A solidary creditor cannot assign his
right without the consent of the others.
- General rule hindi pwedeng i-assign ng
isang creditor ang right niya without the
consent of other creditor and if mag
consent naman is walang problema
kapag hindi nag consent walang
magagawa. So dito ang isang
nagpapautang or creditor is hindi siyang
pwedeng magtalaga ng third person
para gawin yung dapat na gawin niya or
yung right niya as a creditor kapag
walang consent ng other creditor. 
Example: Si ju is may utang kay sab at
shai. So sab is hindi siya pwedeng mag
assign ng third person na singilin si ju
without the consent of shai. Kasi ang
may karapatan lang na magdemand ng
payment kay ju is either si sab at shai
lang wala ng iba pa.
And if kunyare si sab nag assign na sya
ng third person na walang pahintulot kay
shai at nagbayad naman dun si ju yung
obligation is hindi na fulfill kasi nga ang
may right lang ng demand sa payment is
yung creditor lang. Pero ayun nga kapag
ang naningil is kahit sino sa isang
creditor okay yun kahit walang
pahintulot ng other creditor.
Article 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.
Payment to any of the solidary creditors.
So if ikaw si debtor pwede kang
magbayad sa kahit na sinong solidary
creditors pero kapag may nagdemand
sayo judicially or sa court, extrajudicial
or nag send ng demand letter yun yung
prepared mo na dapat bayaran para
maayos or smooth lang yung
transaction niyo or para na ding
evidence yun na nagbayad ka talaga.
Example:
Si karl is liable siya to pay reign and
pau sila yung solidary creditors
amounting to 30,000. So si karl pwede
siyang magbayad in any demand like
judicial or extrajudicial, Assume na si
pau nag demand judicially so si karl ung
payment should be made to pau.
Pero kunyari si pau yung nagdemand
tapos si karl kay reign siya nagbayad, so
assume na hindi binigay or tinakbo ni
reign yung para kay pau dun sa binayad
ni karl, ang mangyayare si karl is liable
pa din siya kay pau kahit nagbayad na
siya kay reign.
And if kapag yung dalawang creditor is
nagdemand ng same time yung debtor
is kailangan niyang bayaran yung
dalawang yun kahit na same time.
Lastly, kapag dalawa na yung debtor at
nagdemand ng payment yung isang
creditor pwedeng kahit sino sa kanila
yung magbayad sa creditor at dun lang
dapat nila ibayad sa nagdemand.
ARTICLE 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.
-If nagkaroon ng apat nayan kahit sa
debtor or obligor ung obligation is ma
eextinguish. And ang nagpapautang na
maaaring nagpatupad ng anuman sa
mga kilos na ito, pati na rin siya na
nangongolekta ng utang, ay mananagot
sa iba para sa bahagi sa obligasyong
naaayon sa kanila. So in short yung
apat nayun ayun ung modes of
extinguishment so if ever na yung
solidary creditor is ginawa yung isa dyan
sa apat ibig sabihin matatapos na or ma
eestinguised na yung obligation.
Pero kung sinong creditor man ang mag
commit ng any of the acts ibig sabihin
magiging liable sya sa co-creditor nya.
LIABILTY OF SOLIDARY CREDITOR IN
CASE OF NOVATION ETC.
-Ito nga yung sinasabi ko kanina na
kunyare siya lang or yung isang creditor
lang nag wave or nag grant or nag
accept ng kulang na bayad ng solidary
debtor so that magiging liable siya sa
kapwa niya creditor.
Four (4) Modes of extinguishment of
obligations.
1. Novation – binago yung obligation
2. Compensation- may utang sa isat isa.
3. Confusion – iisang tao lang a creditor
at debtor.
4. Remission or Condonation
pagpapatawad ng nag kautang
Example:
Si hazel ay may utang so sya yung
debtor and shai, ju at ced ung solidary
creditors in the amount of 60,000. If si
shai is kinunsinti niya na ang bayaran
nalang ni hazel is 45,000 imbis na
60,000 so may kulang . at ang ginawa
ni shai nay un is hindi beneficial sa
ibang creditors so si shai is liable sya sa
kulang ni hazel na 15,000, so dapat
diba tig 20,000 silang tatlo naging tig
15,000 nalang. So yung 15,000 na
kulang is liable si shai dun so need nya
ireimburse or bayaran yung dalawa
nyang kasama na creditor.
At if si shai is naka collect ulit ng 15,000
kay hazel ayun is hahatiin niya sa
kanilang tatlo equally na.
EFFECT OF EXTENSION OF TIME
GIVEN BY CREDITOR TO A
SOLIDARY DEBTOR
-In case na yung isang creditor is grinant
nya ng extension of time payment yung
isa sa solidary debtor ang mangyayari is
sasaluhin netong co-debtor yung
natitirang utang.
EXAMPLE:
Jen and ken is a solidary debtor kay rain
na solidary creditor amounting 500k,
and yung solidary creditor is grinant
niya lang na bigyan niya ng extension of
time payment si jen amounting 250k,
So yung other debtor is siya yung sasalo
–
ng natitirang amount which is 250k.
Parang yung sa kanya na muna yung
ibabayad.
And kapag naman nag elapsed na yung
extension of time yung solidary creditor
isa can demand na sa payment na
kulang from kahit na sino sa dalawang
solidary debtor, kahit yung nagbayad na
pwede pa ding na siya yung singilin
depende sa kung sino yung gusto ni
creditor na singilin.
EFFECT NG NOVATION ETC. WHERE
OBLIGATION IS JOINT
-So yung joint obligation kapag na
commit yung isa sa apat na modes of
extinguishment walang effect sa
obligation kasi nga diba sa joint kanya
kanya naman yun kung sino yung may
utang siya lang yung dapat na singilin.
While diba sa solidarity obligation kapag
na commit naman yung isa sa apat
nayun ma eextinguish na yung
obligation.
Article 1216:
The creditor may proceed against
anyone 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
Ang creditor or nagpautang is pwedeng
magdemand sa kahit na sino sa solidary
debtor or sa kahit na sino sa kanilang
may obligation hanggat hindi pa na na
kokolekta ng buo yung obligation. And
hindi to applicable sa joint obligation and
the creditor is pwedeng mamili sa kung
kanino niya gustong singilin.
RIGHT OF CREDITOR TO PROCEED
AGAINST ANY SOLIDARY DEBTOR
(1) Since the liability is solidary, the
other, solidary debtors are not
indispensable parties in a suit filed by
the creditor. (De Castro vs. Court of
Appeals, 384 SCRA 607 [2002].)
In case na hindi makapag bayad yung
isang solidary debtor yung solidary
creditor is pwede siyang mag sampan
ng kaso sa kahit na sinong solidary
debtor. So kung pwede siyang maningil
sa kung sino sa solidary debtor so that
pwede din siyang magsampa ng kaso
sa kahit na sino sa solidary debtor.
(2) The bringing of an action against a
solidary debtor to enforce the payment
of the obligation is not inconsistent with
and does not preclude the bringing of
another to compel the others to fulfill
their obligations. (see Phil. National
Bank vs. Confessor and Diaz, [CA] 37
0.G. 2395-)
so kahit na nakapagsampa na ng kaso
si solidary creditor pwede pa din siyang
magdemand ng payment sa solidary
creditor
(3) In case of death of one of the
solidary debtors, the creditor may
proceed against the estate of the
deceased solidary debtor alone or
against any or all of the surviving
solidary debtors whose liability is
independent of and separate from the
deceased debtor, instead of instituting a
proceeding for the settlement of the
estate of the deceased debtor wherein
his claim could be filed. (Imperial
Insurance, Inc. vs. David, 133 SCRA
317 [1984].)
In case na may namatay na solidary
debtor yung solidary creditor is pwede
siyang magdemand ng payment dun sa
mga natitira o nabubuhay pang solidary
debtors. So ang mangyayare ang
nabubuhay pa na solidary debtors sila
yung sasagot o sasalo sa shares ng
namatay na co debtor nila. Kasi solidary
obligation kapag utang ng isa utang ng
lahat.
(4) The choice is left to the solidary
creditor to determine against whom he
will enforce collection. (Phil. National
Bank vs. Independent Planters Assoc.,
Inc., 122 SCRA 113 [1983]; Dimayuga
vs. Phil. Commercial and Industrial
Bank, 200 SCRA 143 [1991].)
Si creditor may right sya kung sino
yung pagbabayarin nya ng utang.
Example:
Sila David, Jomari, migz is may utang
kay lance ng 6,000. So si lance is
pwede siyang mag collect kahit sino sa
tatlong debtor, pwedeng magsabay sa
dalawa at pwede ding silang tatlong
sisingilin sabay sabay.
Pero kapag ang demand is ginawa lang
kay david si david is hindi niya pwedeng
idamay pa si jomari or si migz kasi nga
sya yung tinalaga ng creditor na gawin
yung obligation. Pero si creditor is kapag
nagkaroon ng kasuhan sa court may
choice si solidary creditor kung sino
yung party defendants niya.
ARTICLE 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 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 solidary debtors cannot,
because of his insolvency, reimburse his
share to the debtor paying his obligation,
such share shall be borne by all his co-
debtors, proportion to the debt of each.
It is refers to the effects of payment by a
solidary debtor
1. Between the solidary debtors and
creditors- Ang pagbabayad ng full
payment ng isang nagutang ay maaring
tatapos sa obligasyon nila. Kung ang isa
o higit pang solidary debtors ang mag
alok ng bayad yung creditor is mamimili
sa kung sino sa kanila yung
tatanggapin.
2. Among the solidary debtors- And kung
sino man yung nagbayad para sa utang
nilang lahat maari niyang singilin yung
mga kapwa niya may utang sa kung
magkano yung para sa kanila na
babayaran kasama na din yung interest
ng utang nila pero kapag nagbayad siya
ng maaga wlaang interes na babayaran
so wala siyang dapat singilin sa kapwa
niya may utang. So if yung isa sa may
utang is hindi niya mababayaran yung
dapat na bahagi niya sa utang ang
mangyayari is babayaran yun ng mga
natitirang kapwa niya may utang at
hahatiin yun sa kanila equally.
3. Among the solidary creditors- so
yung nag collect na solidary creditor you
have the responsibility to deliver
proportionate yung para sa mga kapwa
mo creditors.
Example:
Si Cams, trisha at kyle is jointly and
severally liable or solidary liable kay
diane at dyosa sa halagang 6,000 due
on October 9.
So if both nag offer si cams at trisha na
bayaran si diane sa oct 9 so pipili yung
creditor sa kung kaninong offer pipiliin
niya. And if si cams is binayaran nya full
payment yung 6,000 so yung obligation
nila is tapos na.
And yung pagbayad ni cams is may right
sya sa reimbursement kay trisha at kyle
na tig 2k each at may interest kapag
nagbayad sya ng exactly oct 9. Pero
kapag si cams is nagbayad siya before
oct 9 wala syang karaptan na maningil
ng reimbursement at interest sa dalawa
kasi wag dapat bida bida. Kasi ung
reimbursement with interest isa only
arise from oct 9
So if kunyare si kyle na insolvent na
yung dalawa na other debtor is need
ishoulder yung dapat na share ni kyle.
So bali 2k yung paghahatiin nila si cams
is mag aask sya kay trisha na mag add
ng another 1k para paghatian yung
dapat na kay kyle. So bali tig 3k na yung
babayaran nila pero kapag nag improve
naman na yung finances ni kyle
pwedeng mag collect sa kanya yung
dalawa na tig 1k.
Last yung nag collect na creditor is may
responsibility siya na ideliver yung dapat
na sa kapwa niya creditor kahit sa kanya
binayad ng debtor.
ARTICLE 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
-Ang pagbayad ng isang solidaryong
debtor o may utang ng buo sa may
creditor ay hindi magbibigay sa kaniya
ng karapatang makuha muli ang
binayad mula sa kaniyang mga
kasamang solidary debtors kung ang
pagbabayad ay ginawa pagkatapos
matapos ang takdang oras ng pagbayad
o ang obligasyon ay naging hindi legal.
- so ditto yung obligation is nag elapsed
na at illegal na pero one of the solidary
debtor is still nag fulfill ng obligation or
still paid the amount ng kanilang utang
so:
Paying the debtor has no right to
reimbursements-
1. If na prescribed na - means wala
siyang karapatan na mag collect sa
kapwa niya solidary debtor para
maibalik yung binayad niya kasi nag
elapsed na at illegal na. Dito papasok
yung prescription na may karapatan
magcollect yung creditor pero may time
limit.
Kagaya sa written contract hanggang 10
yrs. Pag oral 6 yrs, to exercise their
rights as a creditor and it is provided by
law so kapag nag elapsed na yung time
wala ng karapatan magcollect yung
creditor.
Example:
John and mark solidary indebted to fil in
the amount of 20,000. But the dept is
prescribed and still nagbayad pa din si
john so that si john is wala syang
karapatan na singilin si mark para sa
reimbursement kasi wala na e nag
elapsed na yung time baket mo kasi
binayaran diba. Kahit na sabihin na
nakokonsensya ka kaya binayaran mo
wala kappa din karapatan na singilian
for reimbursement yung mga kapwa mo
debtor.
2. If become illegal- kapag napatunayan
na yung transaction is illegal tapos may
bida bida pa ding nagbayad it cannot be
reimburse.
Article 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 affected. (1146a)
(Kapag ang cancellation daw ng
obligation ay galing sa creditor na
nakakapekto sa isang solidary debtors
lamang hindi ito magapply sa
responsibility ng isa pang co debtors na
magbayad in case na nabayad na ng
isang debtor ng buo lalo kung bago ang
pagdeclare ng cancelation ng payment
na sabi ni creditor)
Effects of remission of share after
payment
- If the payment is made first, the
remission has no effect.
(Kung nauna yung bayad kaysa sa
cancelation, yung cancelation ay wala
ng epekto sa obligation)
-Kung nagbayad man ng buo yung isang
solidary debtor at ang cancelation ay
after nyang magbayad walang effect yun
kay nagbayad (solidary debtor who
pays) na magdemand sa co-debtors nya
to pay. So liable parin ang co-debtors to
pay dun sa nagbayad ng buo.
Example:
(1) Apple and Boy owe Catty a
P100,000, then Boy has more income
than Apple so he insists to pay 100k to
Catty. (after remission) But then Catty
decided to remit (cancel) of share of
Boy. Boy can demand return of 50k from
Catty and;
(before remission) if there is no return of
payment Apple is still liable now to pay
Boy 50k because the remission has no
effect for the reason of the obligation
have been extinguished already by the
payment. (Sinasabi lang dyan na wala
ng effect yung pagcancel kasi yung
obligation na nangyare ay naterminate
na dahil dun sa pagbayad ng isang
debtor)
(2) Insolvent debtor – kapag wala ng
kakayahan na magbayad ang isang
debtor kailangan itong paghatian ng
natirang debtor to fulfill the obligation.
Article 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) (kapag ang
creditor nagdeclare na wag na nilang
lahat bayaran yung kani kanilang share
dahil sa
impluwensya ng isang solidary debtor,
hindi sya pwede magdemand ng bayad
sa iba nyang co-debtor dahil sa kanyang
impluwaensya or ambag kung bakit
hindi na sila dapat magbayad.)
No right to reimbursement in case of
remission
-(same explanation sa taas)
- Remission is essentially gratuitous. It is
really a donation.
Example:
Me (creditor) I lend money to my BFF
Jessica, Julia and Jac (sol debtor), since
Jek mas may impluwensya sa akin kasi
bff ko sabi ko sa kanya wag na nila
bayaran kasi parang libre ko na lang
yun sa kanila. Jessica is not allowed to
demand payment from Julia and Jac
because of her influence on not paying
sakin.
Article 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.
(kapag yung bagay ay nawala or yung
napagusapan ay hindi na magagawa, at
walang kasalanan ang solidary debtors
yung obligation eh mateterminate)
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.
(kapag may kasalanan ang isa sa
kanila, lahat sila ay may reponsibilidad
sa creditor sa price, sa
payment ng mga damages at interest)
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 extrajudicial demand upon
him by the creditor, the provisions of the
preceding paragraph shall apply.
(1147a)
(kung dahil sa isang fort event dun
nawala at nag karoon pa ng delay (after)
pwede magdemand si creditor dun sa
mga debtor)
Rules in case thing has been lost or
prestation has become impossible
Loss is without fault and before delay
- kapag walang fault ang debtor at bago
yung delay yung obligation dapat ay
materminate or ma extinguished.
Example:
Si angelica at kendrick nagpromise sila
na idedeliver nila sa akin yung isang set
ng plates para daw sa bago kong bahay.
Pinaship pa kasi galing Pampangga sabi
nya otw na kaya nagaantay na ako pero
nung ilang araw na wala pa din kaya
chinat ko na at sabi nya nakarating na
daw pero wala akong natanggap. Dito
mateterminate na yung obligation namin
ksi wala naman kaslanan si debtor kasi
hindi naman sya mismo ang may
kasalanan bat nawala.
Loss is due to fault on the part of a
solidary debtor
- kapag ang may kasalanan ay isa lang
sa mga sol debtor lahat sila responsible
for the damages at dun sa nawalang
thing.
Example:
Same example, pero dito sila angelica at
Kendrick namali ng address na nailagay
si Kendrick dahil siguro nalito sa
address without confirming it to me. So
liable sila for the price of the product
and also for the damages.
Loss is without fault and before delay
- kapag walang fault ang debtor at
pagtapos ng demand yung delay yung
obligation or bago mangyare yung fort
events may delay na talaga liable pa din
si debtor.
Example:
Same example, kapag si debtor
talagang nagkaroon na ng delay talaga
sabihin na natin di napick up yung
product delay yung pagdeliver at after
ng delay nagkaroon pa ng fort events
liable pa din si debtor dun sa product na
idedeliver kay creditor.
Article 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)
(Dito kung sakali mang gumawa ng
aksyon si creditor laban sa kanila na
mga sol debtor, pwede nilang idepensa
yung kanilang rights.)
Defenses available to a solidary debtor
1. Defenses derived from the nature of
the obligation –
2. Defenses personal to, or which
pertain to share of debtor sued
3. Defenses personal to other solidarity
debtors
Article 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)
(Ang pagkakahati o ‘di pagkakahati
ng bagay na sa isang obligasyon
kung saan may isa lamang na
nangutang at isa lamang na nagpautang
ay hindi binabago ang probisyon ng
Chapter 2 ng titulong ito.)
Meaning of divisible and indivisible
1. Divisible Obligation – the delivery or
performance of the object is capable of
partial fulfillment. (yung pagdeliver or
maggawa nung obligation or ng
object ay pwedeng installment or
partial)
- is the susceptibility of an obligation to
be performed partially
[ex. Obligation to deliver 100 pcs
watches of a particular brand and
quality, money]
Example:
D agreed to pay C P2,000.00 in four
equal monthly installments. The
obligation of D is divisible because it is
capable of partial performance. But if the
agreement is that D will pay C on a
certain date the full amount of
P2,000.00, the obligation is indivisible
although money is physically divisible
because the intention of the parties is
that the obligation must be fulfilled at
one time and as a whole (not partially).
The divisibility of an obligation should
not, therefore, be confused with the
divisibility of the thing which is the object
thereof.
2. Indivisible Obligation - the
delivery or performance of the object
is not capable of partial fulfillment.
(yung pagdeliver or maggawa nung
obligation or ng object ay hindi pwedeng
installment or partial)
- is the non-susceptibility of an obligation
for partial performance realizing the
purpose of which the obligation seeks to
obtain.
[ex. Obligation to deliver a particular car,
book, cellphone,]
Example:
S obliged himself to deliver to B a
specific car on November 15. This
obligation is indivisible because it is not
capable of partial performance. The car
must be delivered at one time and as a
whole.
Distinctions
Classification of Divisibility
1.Qualitative Division – divisibility
depends on the quality of the thing; not
homogenous
(not on the same kind) (e.g., Inheritance
– real & personal property)
Example: David’s heirs are Kervin and
JD, Kervin inherited the house and lot
while JD inherited the cars.
2.Quantitative Division – divisibility
depends on the numbers of the things;
homogeneous (e.g., 1000 hectares of
land can divide into how many parts)
3.Ideal / Intellectual Division – non-
material divisibility; only mental &
intellectual (e.g., Corporation).
Kinds of Indivisibility
1. Legal Indivisibility – indivisibility
provided by law
2. Conventional Indivisibility –
indivisibility will or agreed upon by both
parties
3. Natural Indivisibility– indivisibility by
reason of the nature of the object or
subject matter of the obligation.
Indivisibility (1) vs Solidarity
(2)
1.(1) Indivisibility is the Nature of the
obligation; (2) Solidarity is the “vinculum”
or juridical tie existing between the
parties
2.(1) one debtor & creditor involved in
the obligations (2) there must be at least
be two debtors or creditor
3.In indivisibility, does not consider the
fault of one party as the fault of others;
in solidarity the fault of one is
considered the fault of the other
4.(1) The death of the debtor does not
extinguish the prestation bec. the heirs
are bound to perform by the unfulfilled
prestation. (2) the debt of the debtor is
not transferred to heirs, therefore,
terminates the solidarity.
Article 1224
A joint indivisible obligation gives the
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.
(kapag hindi nakacomply ang isang
debtor dun sa joint indivisible
obligation or ito yung magkaibang
bayad yung mga sol debtor tas
indivisible yung bagay which is hindi
partial yung pagdedeliver ng object,
ang obligation na lang nila ay
macoconvert sa isang payment of
damages.)
Example:
Mila and Ligaya promised jointly
to give a specific car worth
P2,400,000 to Jose. In the
meantime, the car is with Honda Motors
Co. Mila’s share is, therefore,
P1,200,000. If Mila, because of
gambling, does not have the money, but
Ligaya has P1,200,000 it is clear that
they cannot get the car from Honda
Motors Co. So, they also cannot comply
with their obligation of delivering the
car to Jose. Here, the obligation to give
the car is converted to a monetary
obligation to give P2,400,000 to Jose.
Ligaya is not responsible for Mila’s
insolvency, so she is duty bound to give
only P1, 200,000. Mila will be indebted
to Jose for her share of P1,200,000.
Example:
Kristia, Ryan and Johannes owe a
particular sports car to Ann, on or before
November 1. Three days after
November 1 Ann demands but
Johannes is not ready because of his
incarceration. Kristia and Ryan must
each contribute their share in the value
of the sports car and deliver the amount
to Ann. Indivisible object becomes a
money obligation. Johannes who is
unable to comply will later on settle his
obligation to Ann or Ann may sue
Johannes for 1/3 the value of the van,
which is actually Johannes share, plus
interest, plus damages.
Article 1225
Indivisible – Isahang bigay, gawa
Divisible- partial fulfillment ng delivery
or performance
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
- Kapag definite things, at performance
pinaguusapan indivisible dapat or
isahang gawin dapat hindi sya pwedeng
gawin partially.
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
- Kapag may number of days of work,
metrical units, or yung nature ng
obligation nila ay partial ginagawa,
divisible. (Partial)
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.
- Kahit na physically divisible yung
object or service meaning pwede naman
ibigay partially, kapag yung obligation
indivisible kapag provided ng law or ng
parties itself
In obligations not to do, divisibility or
indivisibility shall be determined by the
character of the prestation in each
particular case
Obligations deemed indivisible
(isahang gawa)
1. Obligations to give definite things
-Kapag definite things kasi, hindi sya WHAT IF? YUNG 5K DALAWA PALA
kayang ibigay ng partial fulfillment, so MAY UTANG KAY DEREMY, SI KARL
isahang bagay dapat palagi kapag AT CED?
definite things
-It becomes divisible kasi by parts yung
Ex. Cellphone utang, pero since si karl lang may utang
kay deremy babayaran yung 5k as a
2. Obligations which are not
whole ng isahan
susceptible of partial performance
Ex. Tailoring of uniform- Inutos ni Julia
-Kapag performance naman, hindi
kay Sabel
pwedeng partial lang din
-Yung tailoring of uniform yung
Ex. Hosting in wedding event, hindi
indivisibility. Walang Karapatan mag
naman pwedeng mag host ka lang
demand si Sabel ng pera kay julia as
kapag kainan na sa venue.
long as dpa tapos ni sabel yung uniform
WARNING: WHAT IF MORE THAN
Obligations deemed divisible
ONE PARTICIPANT?
(pwedeng partially yung fulfillment)
-Divisible na sya kasi yung gagawa ng
1. Obligations which have for their
performance by part na sila
object the execution of a certain
3. Obligations provided by law to be number of days or work
indivisible even if thing or service is
Ex. Painting (portrait)
physically divisible
2. Obligations which have for their
-Kapag provided ng law, divisible yun
object the accomplishment of work
kahit pwede naming ibigay na divisible
by metrical units
by nature.
Ex. Paggawa ng table na may meter
Ex. Sahod ng teachers, kahit pwedeng
(sinusukat)
partial lang ibigay, sa law natin dapat pa
swelduhin ng buo yung mga teachers. 3. Obligations which by their nature
are susceptible of partial
4. Obligations intended by the parties
performance
to be indivisible even if thing or
service is physically divisible Ex. The obligation to teach in one year,
Installment
-Kapag naman intended ng parties na
maging indivisible yung obligation, kahit Divisibility or indivisibility in
na pwede namang divisible stick sa obligations not to do (wag gawin)
napagkasunduan
1. Indivisible obligations (tuloy tuloy)
Ex. Karl obliged himself to pay Deremy
-Ex. Wag ka magcutting for 3 months
5,000 pesos in October 21 as a whole.
-Dapat continuously sa 3 months hindi
sya makapag cutting
2. Divisible obligations (partial)
-Tuwing sabado dapat hindi
magcutting
Article1226
In obligations with a penal clause, the
penalty shall be substitute the indemnity
for damages and the payment of
interests in case of non- compliance, if
there is no stipulation to the contrary.
-Sa obligations with a penal clause,
yung penalty pwede syang ipalit sa
damages and interest if there is no
stipulation bet. The parties.
Nevertheless, damages shall be paid if
the obligor refuses to pay the penalty or
is guilty or fraud in the fulfillment of the
obligation.
-If ayaw bayaran yung penalty, yung
damages nalang babayaran nya or if
guilty sya sa fraud or pagtakas sa
fulfillment ng obligation.
The penalty may be enforced only when
it is demandable in accordance with the
provisions of this code
1. Principal obligation
-Can stand itself
-Hindi naka depende sa iba pang
obligation
2. Accessory Obligation
-Eto naman yung naka attached sa
principal obligation
-Cannot stand alone
Penal clause – accessory na naka
attached sa obligation. Para tumaas
yung babayaran nung debtor if ever may
breach of contract, or hindi nya sya
nakakapag complied regularly.
ka
-May accessory
-Demandable kapag hindi nagawa
obligation
Condition
-Walang accessory
-Never demandable
Legal obligations- by law
-By agreement of parties
Obligation with a penal clause
-If na breach yung principal obligation,
yung accessory obligation yung
babayaran
Unilateral Obligations- one party is
bound to fulfill the obligation
x. Debt
Bilateral obligations- both parties are
bound to perform an obligation
Ex. Contract of sale
Purposes of penal cause
(1) to insure their performance by
creating an effective deterrent against
breach, making the consequences of
such breach as onerous as it may be
possible. (Yulo vs. Chan Pe, 101 Phil.
134.)
This is the general purpose of a penal
clause; and
- para maensure na magagawa talaga
yung obligation. Para mas maging
mabigat yung parusa sa lalabag sa
contract
- Reparation
(2) to substitute a penalty for the
indemnity for damages and the payment
of interests in case of non compliance
(Art. 1226.); or to punish the debtor for
the non fulfillment or violation of his
obligation.
- Substitue sa damages and interest. Or
para parusahan yung debtor.
- punishment
Kinds of penal clause
1. As to origin
a. Legal penal clause- provided by law
b. Conventional penal clause- stipulation
of parties
2. As its purpose
a. Compensatory penal clause- penalty
takes place of damages
b. Punitive penal clause- penalty is just
a punishment for breaching of contract
3. As to its demandability or effect
a. Subsidiary or alternative penal
clause- when only penalty can be
enforced
b. Joint or cumulative penal clause- both
principal obligation and penal clause
enforced
Penal Substitutes for damages and
interests
-General rule in obligation with penal
clause: yung penalty nalang yung
pumapalit sa damages and interest if
ever hindi magawa yung obligation.
-Hindi porket may proof si creditor ng
damages, hindi necessary na penalty
kagad.
When creditor may recover damages
1. When so stipulated by the parties
-Base sa contract
2. When the obligor refuses to pay the
penalty in which case the creditor may
recover legal interest thereon; or
-Kapag ayaw bayaran yung penalty,
pwedeng interest nalang bayaran
3. When the obligor is guilty of fraud in
the fulfillment of the obligation, in which
case the creditor may recover damages
caused by such fraud
-Kapag fraud, pwedeng pabayaram
yung damages nung fraud na yun
Ex. Construction of house – X (debtor)
to Y (creditor)
-May penal clause na 100k If hindi ma
construct yung bahay
-If ever 40k lang yung damages kay Y
obligado pa rin si X magbayad ng 100k
as a whole
-Yung penalty na 100k pinalitan nya na
yung 40k na damages unless stipulated
sa usapan nila.
Pwede ring both damages and penalty
-If ayaw bayaran ni debtor yung penalty,
may interest na mag aarise. Yung
interest nay un, bagong damages yun
sa hindi pagbayad ng penalty
-If fraud naman ginawa ni X liable sya sa
damages
-Dapat may proof na fraud yung ginawa
ni debtor para liable na makuha ni
creditor yung penalty na ibibgay kay
debtor
When penalty may be enforced
-Breach of obligation
-Not contrary to the law, morals, good
customs, public order, or public policy
ART. 1227.
The debtor cannot exempt himself
from the performance of the
obligation by paying the penalty,
save in the case where this right has
been expressly reserved for him.
-Hindi maeexempt ni debtor sarili nya sa
obligation if penalty lang babayaran nya,
pero if ever granted naman sa kanya,
pwede.
Neither can the creditor demand the
fulfillment of the obligation and the
satisfaction of the penalty at the
same time, unless this right has been
clearly granted him.
-Hindi makakapag demand si creditor ng
fulfillment ng obligation and penalty ng
sabay, unless malinaw na nakalagay na
may Karapatan syang gawin yun.
However, if after the creditor has
decided to require the fulfillment of
the obligation, the performance
thereof should become impossible
without his fault, the penalty may be
enforced. (1153a)
-Kapag nag demand na si creditor ng
fulfillment ng obligation, tapos wala
naman fault si creditor, pwede na sya
mag demand sa penalty.
Penalty not substitutes for
performance
-Hindi pwedeng piliin nalang ni debtor
yung penalty over performance kasi
yung penalty, sinesecure nya lang na
magagawa ni debtor yung obligation.
-Nagiging alternative kasi kapag may
choice sya.
Penal clause presumed subsidiary
-Hindi pwede idemand ni creditor yung
obligation and penalty at the same time.
-Purpose ng penalty para hikayatin si
debtor na gawin yung main obligations
1. When there is performance
-Kapaag nagawa yung performance,
walang penalty.
-EXCEPTION: unless clearly stated na
granted
Ex. Nadelay ng deliver si sarah kay ana.
-Once na tinanggap ni ana kahit delay,
hindi na sya makaka demand sa
penalty. Unless stipulated
sa contract nila.
2. Where there is no performance
-Penalty or Performance
-Alternative
-Magkaka penalty lang kapag may
breach of contract
-Kapag may fraud sa part ni debtor,
pwedeng penalty at damages.
Ex. If hindi nakapag deliver si sarah
pwedeng mamili si ana sa mga to
1. Fulfillment, hindi na sya makakapag
demand sa penalty unless hindi pa rin
magawa yung fulfillment ng walang fault
si ana.
2. Kapag naman penalty pinili nya, hindi
na sya pwede mamili ng fulfillment. If
hindi naman
mabayaran yung penalty, pwede nya
piliin yung fulfillment
3. If fraud both yung fulfillment at
penalty.
With penal clause joint
-May Karapatan si debtor bayaran yung
penalty kesa gawin yung performance
only kapag binigay sa kanya yung right
na to.
-If granted kay debtor yan kay creditor
naman, pwede sya mag demand ng
penalty and performance kapag clearly
granted din sa kanya.
-Kapag walang proof na na breach yug
contract, only damages lang, walang
penalty.
-Kapag hindi binayaran yung penalty
may Karapatan si creditor mag demand
sa principal obligation and penalty with
legal interest
ART. 1228.
Proof of actual damages suffered by
the creditor is not necessary in order
that the penalty may be demanded.
-Kahit may proof ng actual damages,
hindi necessary na penalty agad yung
idemand.
Penalty demandable without proof of
actual damages
-Sa obligation with a penal clause, dapat
ma prove ni creditor na na violate ni
debtor yung obligation para liable sa
penalty
-Hindi porket may damages or losses,
penalty na kaagad.
-Para maiwasan yung kagahaman
-Pwede I enforce yung penalty may
damages man or wala, pero dapat yung
amount sa penalty lang na
napagusapan bawal lumagpas.
Damages recoverable in addition to
penalty must be proved
-Yung penalty pwede I substitute sa
damages
-Dapat kung ano yung amount nung
penalty, stick lang dun and pwede
idagdag yung damages basta hindi
lalagpas sa penalty
ART. 1229.
The judge shall equitably re duce the
penalty when the principal obligation has
been partly or irregularly complied with
by the debtor. Even if there has been no
performance, the penalty may also be
reduced by the courts if it is iniquitous or
unconscionable. (1154a)
-Babawasan ng court yung amount
kapag partly or irregularly naming
ginawa. Kahit walang performance, if
sobra sobra yung amount irereduced din
ni court
When penalty may be reduced by the
courts;
1. When there is partial (fulfillment) or
irregular (manner) performance
-Ma babawasan penalty kapag may -Penal clause is disregarded
partial fulfillment naman na binibigay
-Only indemnity for damages yung
Ex. Building of house within 4 months, applicable if null yung penal clause
may usapan sila na kapag may breach
Ex. Sol will deliver a laptop to Mon.
of contract, may penalty na 100k.
provided in their contract that if sol
Natapos nya after 4 months delays, sol will deliver a
-Babawasan ng court yung delay kasi illegal drugs.
nag benefit naman si creditor sa ibang
Valid- Delivering of laptop
tapos na na part ng bahay.
Void (penal clause) – deliver of illegal
2. When the penalty agreed upon is
drugs
iniquitous or unconscionable
Effect of nullity of the principal
-Kahit walang performance si obligor
obligation
irereduce ng court kasi sobra yung
amount or hindi maka tao -Kapag null yung principal obligation null
na din yung penal clause.
Ex. Same example pero 5k per day of
delay -Penal Clause cannot stand alone
-Babawasan ng court kasi sobra sobra -Pero kapag kasalanan ni debtor kung
naman yung amount bakit null yung obligation, due to bad
faith and nag suffer si
ART. 1230.
creditor, pwedeng ienforce yung penalty
The nullity of the penal clause does
not carry with it that of the principal Ex. S will deliver to b a illegal drugs. In
obligation. case of non compliance, s will pay 10k
-Kapag null yung penal clause, valid -parehas void
yung principal obligation kasi yung penal
clause is just an accessories
The nullity of the principal obligation
carries with it that of the penal
clause.
-Kapag null yung obligation null na din
yung penal clause.
Effect of nullity of the penal cause
-Accessory follow the principal
-Penal clause is void, principal obligation
is valid and demandable