LAW ON OBLIGATIONS AND CONTRACT 1ST SEM, MID TERM

Chapter 3: DIFFERENT KINDS OF OBLIGATIONS

(Articles 1179 - 1230)
As to EFFECT IS Empowers the Invalidates the
Section 2 – Obligations with a Period LEFT TO THE court to fix the Obligation
WILL OF THE duration
DEBTOR
Art. 1193. Obligations for whose fulfillment a day certain has
As to Unless agreed, Happening of the
been fixed, shall be demandable only when that day comes.
RETRORACTIVIT arrival of the condition has a
Obligations with a resolutory period take effect at once, but Y period has no retroactive effect
terminate upon arrival of the day certain. retroactive effect.
A day certain is understood to be that which must necessarily As To EFFECT If impossible to If impossible to
come, although it may not be known when. OF ITS happen, the happen, the
If the uncertainty consists in whether the day will come or not, IMPOSSIBILITY obligation is void. obligation is void..
the obligation is conditional, and it shall be regulated by the
rules of the preceding Section. Kinds of Period
EFFECT:
PERIOD / TERM – consists in a space or length of time upon SUSPENSIVE (ex die) – obligation begins only from a day
the arrival of which, the demandability or the extinguishment certain upon the arrival of the period
of an obligation is determined; it may be definite (exact date RESOLUTORY (in diem) – valid only up to the day certain and
or time is known) or indefinite (arrival of date is unknown but terminates upon arrival of the period
sure to come). SOURCE
- Future + Certain event LEGAL - law
Conventional or Voluntary – agreed
GENERAL CLASSIFICATIONS: Judicial – Court
a) EX DIE / SUSPENSIVE PERIOD (OBLIGATION WITH A DEFINITENESS
PERIOD OR TERM) DEFINITE – Know when it will happen (par 3
- From a day certain give rise to the obligation; suspensive art 1193)
effect. INDEFINITE – court fixes it (Art 1197)
- OBLIGATION WHOSE FULFILLMENT A DAY CERTAIN HAS REQUISITES:
BEEN FIXED, SHALL BE DEMANDABLE ONLY WHEN THE 1. Future
DAY COMES. 2. Certain, sure to come
b) IN DIEM / RESOLUTORY PERIOD (OBLIGATION WITH A 3. Physically or legally possible
RESOLUTORY PERIOD)
– Arrival of a term certain terminated the obligation; Art. 1194. In case of loss, deterioration or improvement of the
resolutory effect. thing before the arrival of the day certain, the rules in Article
– Takes effect at once, but terminates upon the arrival of day 1189 shall be observed.
certain.
Art. 1195. Anything paid or delivered before the arrival of the
Term or A day certain – length of time sure to come. One period, the obligor being unaware of the period or believing
which necessarily come and you know exactly when (like that the obligation has become due and demandable, may be
Christmas or New Year) or it may not be known exactly when. recovered, with the fruits and interests.
Condition – fact or event uncertain to come. IF UNCERTAINTY
IS WHETHER THE DAY WILL COME – it is a CONDITION The payment or delivery is done before the arrival of
the period.
Basis Period/Term Condition CONSEQUENCES:
As to TIME Always refers to Refers to the future 1. If he was not aware of the period or he believes
FUTURE and past events that the obligation has become due and demandable
unknown – he can recover what he paid or delivered including
As to Sure to happen at May or may not fruits and interests;
FULFILLMENT an exact date or happen or 2. If he was aware and he paid voluntarily – he
indefinite. Certain UNCERTAIN
cannot recover the delivery made; it is deemed a
event which must EVENT
happen or later at a waiver of the benefit of the term and the obligation is
date known considered already matured.
beforehand or at  The presumption is that the debtor knew that the
time which cannot debt was not yet due. He has the burden of proving
be determined that he was unaware of the period.
As to Merely fixes: May cause the
INFLUENCE on -The time for the arising or
Art. 1196. Whenever in an obligation a period is designated, it
the obligation demandability or cessation of the
performance of obligation. is presumed to have been established for the benefit of both
obligation. the creditor and the debtor, unless from the tenor of the same
-Time of effectively or other circumstances it should appear that the period has
or extinguishment been established in favor of one or of the other.
of the obligation
• PRESUMPTION: Obligation with a period is for the benefit of
both the creditor and debtor.
Disputable presumption only – The creditor cannot
force the debtor to pay early, nor the debtor force the
creditor to receive payment early
Example: if creditor lends debtor money to pay on June 12 at
12% interest. Creditor will lose the right to interest if allowed to
receive payment first and debtor will lose time for the use of money
• EXCEPTION: when it appears that the period is for the
benefit of one or the other
• This cannot apply when the court was authorized
by the parties to fix a reasonable term.
• The benefit of the term may be the subject of
stipulation of the parties.
1. Term is for the benefit of the debtor alone – he cannot be
compelled to pay prematurely, but he can if he desires to do
so.
Example:
A obliges himself to pay B within 5 years. A cannot be
compelled to pay prematurely, but he can pay anytime within 5
years (A will benefit because he can pay anytime he wants as long
as it is within 5 years; B will not benefit from the interests if A
decides to pay early).
2. Term is for the benefit of the creditor – He may demand
fulfillment even before the arrival of the term but the debtor
cannot require him to accept payment before the expiration of
the stipulated period.
Example:
A borrows money from B and is obliged to make the payment on
December 5. B may compel A to make the payment before
December 5, but A may not compel B to receive the payment
before December 5 (B will benefit from the interests that will
accrue before December 5).
• The creditor may have reasons other than the maturity of
interest, that’s why, unless the creditor consents, the debtor
has no right to accelerate the time of payment even if the
premature tender includes an offer to pay the principal and
interest in full.
Computation of the period:
Legal period
• Year = 12 calendar months
• Month = 30 days unless it refers to a specific
calendar month in which it can be computed
according to the number of days
• Day = 24 hours
• Night = sunset to sunrise
Art. 1197. If the obligation does not fix a period, but from its
nature and the circumstances it can be inferred that a period
was intended, the courts may fix the duration thereof.
The courts shall also fix the duration of the period
when it depends upon the will of the debtor.
In every case, the courts shall determine such period
as may under the circumstances have been probably
contemplated by the parties. Once fixed by the courts, the
period cannot be changed by them.
JUDICIAL PERIOD – period designated by the court.
CONTRACTUAL PERIOD – period fixed by the parties in their
contract.
When can the court fix the period
• If the obligation does not fix the period but a period
was intended by the parties (If the obligation does
not state and intend a period, the court is not
authorized to fix period)
• When no period is mentioned, but it is inferable from
the nature and circumstances of the obligation that a
period was intended by the parties
• When the debtor pays if his means will permit him to
do so
• If the duration of the period depends upon the will of
the debtor
- The court must fix the duration of the period to
prevent the possibility that the obligation may
never be fulfilled or to cure a defect in a contract
whereby it is made to depend solely upon the
will of one of the parties.
Court cannot fix the period:
• If there is a period agreed upon by the parties and it
has already lapsed or expired.
• From the very moment the parties give their
acceptance and consent to the period fixed by the
court, it becomes a law governing their contract.
Other examples:
• D agreed to construct the house (no fixed date to end).
• B bought a lumber from S on credit but the period for
payment on the invoice is blank.
• S sold a parcel of land to B with the right of repurchase.
No term specified.
Art. 1198. The debtor shall lose every right to make use of the
period:
(1) When after the obligation has been contracted, he
becomes insolvent, unless he gives a guaranty or security for
the debt;
(2) When he does not furnish to the creditor the
guaranties or securities which he has promised;
(3) When by his own acts he has impaired said
guaranties or securities after their establishment, and when
through a fortuitous event they disappear, unless he
immediately gives new ones equally satisfactory;
(4) When the debtor violates any undertaking, in
consideration of which the creditor agreed to the period;
(5) When the debtor attempts to abscond.
WHEN DEBTOR LOSES THE RIGHT TO THE PERIOD
Supposedly obligation is not demandable until the arrival of
the period but in some cases, debtor shall lose every right to
the period and the obligations become PURE and therefore
IMMEDIATELY DEMANDABLE [IGIVA]
[I] When debtor becomes insolvent;
The insolvency need not be judicially declared. It is sufficient
that debtor could not pay his debts due to lack of money or
funds
1. Insolvency unless he gives guaranty or security.
- If due date is December but becomes insolvent
on September
[G] When the debtor does not furnish guaranties or securities;
2. He failed to provide the security or guaranties he
promised.
- Failed to deliver the car as mortgage
[I] When guaranties or securities given have been impaired or
have disappeared;
If security was lost through debtor’s fault - impairment
If security was lost through fortuitous event - disappearance
3. By own act impaired the guaranties or securities
after establishment, and when a FE disappears
unless he immediately given one satisfactorily.
- If car was destroyed through the debtor’s fault
unless he furnishes a new one
[V] When debtor violates an undertaking;
If such undertaking is the reason for the creditor to agree with
such period.
4. Debtor violates any undertakings in
consideration of which the creditor agrees with
the period.
- Promises to sugat dul ong but failed to do it.
[A] When debtor attempts to abscond (escape).
Mere attempt to abscond is sufficient. It is an indication of
bad faith.
5. Debtor attempts to abscond.
- Migrated to another place or country.
Section 3 – Alternative Obligations
KINDS OF OBLIGATION ACCORDING TO OBJECT:
1. SIMPLE - when there is only one prestation
2. COMPOUND – two or more prestations
a. CONJUNCTIVE – where there are several
prestation and all of them are due; or
b. DISTRIBUTIVE – where only TWO or MORE of
the prestations are due. It may be:
➢ ALTERNATIVE OBLIGATIONS (1199 to
1205) – one where several prestations
are due but one is sufficient
➢ FACULTATIVE OBLIGATION (1206)
– one where only one prestation is due
but the debtor may substitute one.
Art. 1199. A person alternatively bound by different
prestations shall completely perform one of them.  NOT BINDING.
The creditor cannot be compelled to receive part of
one and part of the other undertaking.
OBLIGATIONS WITH PLURAL PRESTATIONS:
1. CONJUNCTIVE/COMPOUND OBLIGATION - an obligation
where the debtor has to
perform ALL the several prestations in the contract to
extinguish the obligation.
2. ALTERNATIVE OBLIGATION – an obligation where the
debtor is required to fulfill ONLY
ONE of the several prestations to extinguish the obligation.
• More than one object or prestation
• FULFILLMENT OF ONE PRESTATION IS SUFFICIENT
• DETERMINED BY THE CHOICE OF THE DEBTOR
WHO HAS THE RIGHT OF ELECTION.
• RIGHT OF ELECTION IS EXTINGUISHED:
➢ When party who may exercise that option
CATEGORICALLY and UNEQUIVOCALLY
makes his choice known
➢ The Creditor must receive NOTICE
• Example:
• Either CAR, HOUSE, or 1 MILLION (choose
only one) & Not half of the house and cash
3. FACULTATIVE OBLIGATION – an obligation where the
debtor is bound to perform ONLY
ONE prestation, with a reserved right to choose another
prestation as SUBSTITUTE for
the principal.
Art. 1200. The right of choice belongs to the debtor, unless it
has been expressly granted to the creditor.
The debtor shall have no right to choose those
prestations which are impossible, unlawful or which could not
have been the object of the obligation.
RIGHT OF CHOICE WITH THE DEBTOR, EXCEPTION:
➢ By the creditor if expressly granted (A1205)
➢ 3rd Person if by common agreement (A1306)
EXAMPLES OF INVALID or VOID PRESTATIONS:
➢ Impossible – Watch, rice, or sand from Azgard
➢ Unlawful – drugs
➢ Could not have been the object of the Obligation – 2
out of 3 prestation got lost
Implied grant to the creditor is not allowed. If it does not
appear on the agreement as to whom among them has the
right to choose, it is the debtor who can choose.
Art. 1201. The choice shall produce no effect except from the
time it has been communicated.
1. The choice shall not produce any legal effect until it has
been duly communicated to the other party.
2. It can be done in writing, verbally, impliedly, or any
unequivocal means.
3. Once the choice has been communicated to the other party:
A.) The obligation is now LIMITED only to the
PRESTATION CHOSEN, with all the natural
consequences flowing therefrom;
B.) The choice is IRREVOCABLE.
1. The performance of prestation without
announcing the choice to the creditor is
2. The consent of the other party is NOT
REQUIRED in making the choice – that will
in effect frustrate the clear intention of the
law and the nature of the alternative
obligation.
3. If there is delay in the making of choice –
punish the one who is supposed to exercise
the right of choice for the delay he caused –
court may order the debtor to make a
choice, or creditor to make the choice within
certain period, or court makes the choice.
No specific form of communicating choice to creditor – In
writing or orally
Upon communication, the ALTERNATIVE OBLIGATION
becomes a SIMPLE OBLIGATION.
Art. 1202. The debtor shall lose the right of choice when
among the prestations whereby he is alternatively bound,
only one is practicable.
• There being but one prestation available, this
prestation becomes a simple obligation.
Art. 1203. If through the creditor's acts the debtor cannot
make a choice according to the terms of the obligation, the
latter may rescind the contract with damages.
(1) If the debtor could not make a choice due to the
creditor’s act of making the prestations impossible,
debtor may RESCIND the contract with damages -
rescission takes place at the initiative of the debtor.
(2) If the debtor is being prevented to choose only a
particular prestation, and there are others available,
he is free to choose from them, after notifying the
creditor of his decision.
Art. 1204. The creditor shall have a right to indemnity for
damages when, through the fault of the debtor, all the things
which are alternatively the object of the obligation have been
lost, or the compliance of the obligation has become
impossible.
The indemnity shall be fixed taking as a basis the
value of the last thing which disappeared, or that of the
service which last became impossible.
Damages other than the value of the last thing or
service may also be awarded.
First Paragraph
Applicability of Article 1204:
1. The same as Article 1203, the right of choice is with
the debtor.
2. That before the debtor can make a choice, the
prestation got loss or becomes impossible.
EFFECTS OF LOSS OF OBJECTS OF PRESTATION
• IF SOME OF THE OBJECTS GOT LOST
➢ Even with the fault of the debtor – not liable
since the right of choice is with him.
(exception to Art 1170 as to rule on
negligence)
• IF ALL THE OBJECTS
GOT LOST or IF COMPLIANCE BECOMES
IMPOSSIBLE (Obligations to do)
➢ Creditors have
the right to indemnity for damages since the
obligation can no longer be complied with.
➢ If FE – been expressly granted to the creditor
extinguished
Second Paragraph
INDEMNITY or DAMAGES
• The amount of Damages is the value of the last thing
that DISAPPEARED or Value of the Service that has
HAS BECOME IMPOSSIBLE.
Third Paragraph
• The court may add or award Damages in addition to
the value of the last thing disappeared.
Example:
➢ Car, Laptop, Book (last disappeared)
➢ Car, Motorcycle, Tricycle (last
disappeared)
● If the impossibility of all the objects of the alternative
obligation is caused by the debtor, the creditor is entitled to
damages.
● If such impossibility is caused by a fortuitous event, the
obligation is extinguished and the debtor is released from
responsibility, unless the contrary is stipulated by the parties.
● The creditor cannot claim for damages if the debtor can still
perform the remaining prestations.
● The damages that may be recovered is based on the last
thing which disappeared or the service which became
impossible. This last one is converted into a simple
obligation.
Art. 1205. When the choice has been expressly given to the
creditor, the obligation shall cease to be alternative[simple]
from the day when the selection has been communicated to
the debtor.
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;
[Only one thing lost – fortuitous event – creditor chooses
from the remainder – debtor delivers the choice to creditor;]
(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;
[Only one remains – debtor delivers the same to the creditor;
or Only one thing lost – fault of the debtor
1. creditor may choose any one of the remainders;
2. creditor may choose the price or value of the one
which was lost;
3. may choose 1 or 2 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.
[All things lost – fault of the debtor – creditor may choose the
price of ANYONE of the things, with damages if warranted.]
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.
 This article applies only when the right of choice has
Art. 1206. When only one prestation has been agreed upon,
but the obligor may render another in substitution, the
obligation is called facultative.
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.
 If loss or deterioration happened before substitution
is made, obligor is not liable after substitution is
communicated, he is liable for loss (through delay,
negligence, and fraud)
SIMPLE ALTERNATIVE FACULTATIVE
OBLIGATION OBLIGATION OBLIGATION
Only one Several Prestation One Prestation is
presentation is are agreed upon agreed upon but
agreed upod. but the fulfillment the debtor may
of one prestation is render another
sufficient prestation as a
substitute
 The DEBTOR has Only the DEBTOR - Full payment made by anyone of the solidary debtors
the right of choice, can choose extinguishes the obligation. The one who paid can
unless the same is whether to give the
claim reimbursement from his co-debtors as regards
expressively given prestation agreed
by CREDITOR upon or substitute their corresponding shares in the obligation.
Communication of Communication by
the choice of the debtor of his A, B, & C are solidary debtors of D in the sum of P900.
prestation coverts choice of giving the D can demand payment of the entire obligation when it becomes
the alternative into prestation agreed
due, from any one of the debtors or from all of them at the same
simple obligation upon or the
substitute convert time.
the facultative If C paid the whole P900 to D, he may claim reimbursement from A
obligation into and B.
simple obligation
2. ACTIVE
SECTION 4: JOINT and SOLIDARY OBLIGATIONS - Solidarity on the part of the creditor when one of
them can demand fulfillment of the entire obligation
KINDS OF OBLIGATION ACCORDING TO NUMBER OF - Full payment to any of the creditors extinguishes the
PARTIES: obligation. The creditor who received the entire
1. INDIVIDUAL- when there is only one obligor (debtor) amount will be liable to pay the corresponding
(passive) or one obligee (creditor) (active). shares of his co-creditors in accordance with their
2. COLLECTIVE – One where there are two or more internal agreement.
debtors and/creditors. It may be joint or solidary
Garfield owes the sum of P40,000 to Mickey, Minnie, Donald, and
KINDS OF COLLECTIVE OBLIGATIONS: Pluto, who are solidary creditors. Garfield can pay anyone of them.
If Mickey received the P40,000, he is liable to pay the
1. JOINT (Article 1208) – Entire obligation is to be paid or
corresponding shares of his co-creditors.
performed proportionately by the Debtors. Each debtor
pays his share of the obligation or each creditor has the
3. Mixed
right to collect his share of the obligation. (proportionate,
- Solidarity on the part of both the creditors and
pro – rata, mancomunada, mancomunada simple, we
debtors. Each can debtor can be required to pay the
promise to pay, and to each his own)
whole obligation and each creditor can demand
• When the obligation is ambiguous, it must be
payment of the whole obligation.
considered as joint obligation.
a. Solidary Debtors, Joint Creditors
• P9,000.00 – total deb
2. SOLIDARY (Article 1207)- Each one of the debtors are
obliged to pay the entire obligation, each one of the Debtors (Solidary) Creditors (Joint)
creditors has the right to demand from any of the Aida pays P4,500.00 John = P 4,500.00
debtors, the fulfillment of the entire obligation. One in Lorna pays P4,500.00 Marsha P 4,500.00
which each debtor can pay the whole obligation or each
Fe
creditor can pay the whole obligation. (jointly and
severally, individually and collectively, in solidum,
b. Joint Debtors, Solidary Creditors
mancomunada solidaria, I promise to pay, one for all, all
• P 9,000.00 – total debt
for one)
A. Passive Solidarity – solidarity on the part of Debtors (Joint) Creditors (Solidary)
the DEBTORS Aida (P 3,000.00) John (can claim from
B. Active Solidarity – solidarity on the part of the debtors)
CREDITORS.
Lorna (P 3,000.00) Marsha (-same-)
• SOLIDARITY SHOULD BE EXPRESSED – law,
stipulation, nature of obligation. Fe (P 3,000.00)

Art. 1207. The concurrence of two or more creditors or of two

or more debtors in one and the same obligation does not B. According to SOURCE
imply that each one of the former has a right to demand, or 1. CONVENTIONAL SOLIDARITY
that each one of the latter is bound to render, entire - Solidarity agreed upon by the parties. (Article 1306).
compliance with the prestation. There is a solidary liability If no mention in the contract as to solidarity, it is
only when the obligation expressly so states, or when the law JOINT.
or the nature of the obligation requires solidarity. 2. LEGAL SOLIDARITY
- Solidarity imposed upon by law. (Quasi – delict, in
KINDS OF SOLIDARY OBLIGATIONS: crime as to principal, accomplices, and accessories,
A. According to Parties Bound agent exceeded his authority)
1. Passive 3. REAL
- Solidarity on the part of the debtor when one of them - Solidarity imposed upon by the nature of the
can be made liable for the entire obligation (Mutual obligation.
Guaranty)
Art. 1208. If from the law, or the nature or the wording of the proportionate share of the entire debt. The debtor can be
obligations to which the preceding article refers the contrary obligation; the debtor is liable for made liable for the entire debt.
a proportionate share of the
does not appear, the credit or debt shall be presumed to be
obligation.
divided into as many shares as there are creditors or debtors, The right of the creditor and the The right of the creditor and the
the credits or debts being considered distinct from one liability of the debtor are only liability of the debtor are solidary
another, subject to the Rules of Court governing the joint, unless the law, stipulation, if the law, stipulation, or nature of
multiplicity of suits. or nature of obligation indicates the obligation indicates solidarity.
solidarity.
If the prestation is indivisible, the The obligation may be enforced
● This provision speaks of JOINT DIVISIBLE OBLIGATION. demand should be made on all or by a demand on one, some or all
● When there is a concurrence of several creditors or of the joint debtors collectively and of the solidary debtors.
several debtors in one and in the same obligation, there is a enforce the obligation.
presumption that the obligation is joint. The joint debtors are not liable for The solidary debtors are liable for
the share of the insolvent co – the share of the insolvent co –
● Each of the creditors shall be entitled to demand only the
debtors. debtors.
payment of his proportionate share of the credit.
● Each of the debtors may be compelled to pay only his ILLUSTRATIONS:
proportionate share of the debt. JOINT Creditor and JOINT Debtors
● The credits or debts shall be considered distinct from one • ABC - - DEF (P 9,000.00)
another. • A, B, or C can collect P 3,000 only from either D E or F
SOLIDARY Creditors and SOLIDARY Debtors
• ABC - - DEF (P 9,000.00)
IN JOINT OBLIGATIONS:
• EITHER A, B, or C can collect either from DEF the whole P
PRESUMPTION THAT OBLIGATION IS JOINT
9,000.00
• In the absence of proof that obligation is SOLIDARY - - it JOINT Creditors and SOLIDARY Debtors
is considered as JOINT. • ABC - - DEF (P 9,000.00)
Reason: • A,B, or C can collect only P 3,000.00 from either D, E, or F
• SOLIDARITY IS BURDENSOME FOR THEY CREATE • Either D, E, or F may pay the whole P 9,000.00 (or P 3,000.00
UNUSUAL RIGHTS and OBLIGATIONS. each to ABC)
• It FAVORS THE DEBTORS. SOLIDARY Creditors and JOINT Debtors
• ABC - - DEF (P 9,000.00)
CONSEQUENCES OF JOINT OBLIGATION: • Either A,B, C may collect the whole P 9,000 .00
1. Each debtor – liable for a proportionate part of the entire • D, E, and F should only pay their corresponding share to P
debt; 3,000.00
Thales, Socrates, Plato, & Aristotle owe P100 to Bruce Lee
= 4 debts and 1 credit Art. 1209.  If the division is impossible, the right of the
Each of them owes Bruce Lee P25 creditors may be prejudiced only by their collective acts, and
Bruce Lee cannot collect the entire P100 from any one of them. the debt can be enforced only by proceeding against all the
2. Each creditor – entitled to a proportionate part of the credit; debtors. If one of the latter should be insolvent, the others
Piggy owes P100 to Froggy and Fishy shall not be liable for his share.
= 1 debt and 2 credits
Froggy can only collect 50 from Piggy, Same with Fishy JOINT INDIVISIBLE OBLIGATION – an obligation where
3. Demand made by one creditor upon one debtor produces solidarity is not provided and the prestation or object is not
the effects of default only as between them, but not with susceptible of division; its fulfillment requires the
respect to the others; concurrence of all debtors, while doing each one’s parts.
Bubbles demanded payment from Buttercup; Buttercup was in default.
This does not mean that the others are in default too because Bubbles Batman and Robin jointly obliged themselves to deliver a brand new
did not demand from them. Toyota Fortuner worth P1,500,000.00 to Superman. The object, a
4. The interruption of prescription caused by the demand vehicle, is indivisible. They must deliver the thing jointly. In case of
made by one creditor upon one debtor will not benefit the co- breach, the obligation is converted into monetary obligation for
creditors; indemnity for damages. Batman and Robin will be liable only for P
Wittgenstein extended the period in which Tarski should have paid his 750,000.00 each.
debt to him. This does not mean that the same extension applies to
Tarski's debt to Davidson. A, B, and C are jointly liable to D, E, and F a Honda Civic worth P
5. The insolvency of one debtor will not increase the liability 600,000.00. A became insolvent and D renounces his right.
of his co-debtors, nor will it allow a creditor to demand What are the rights of E and F (creditors) against B and C
anything from the co-creditors. (debtors)?
If Husserl and Merleau-Ponty are debtors of Sartre for P1,000,000.00 ✓ The obligation needs to be converted into one which is
and Husserl becomes insolvent, the liability of Merleau-Ponty will only monetary.
be P500,000.00 representing his proportional share of ½ in the whole ✓ supposedly the debt of A, B, and C amounted to P
obligation. 200,000.00 each.
✓ F & E can collect P 50,000.00 from A, B, and C.
COMPARISION BETWEEN JOINT and SOLIDARY OBLIGATIONS
JOINTS OBLIGATION SOLIDARY OBLIGATION RESULT OF A’s insolvency and D’s renunciation?
There are as many debts/shares There is only one debt. ✓ D having renounced the obligation gets nothing.
as there are creditors and ✓ E , F, and G can get P 50,000.00 from B and P 50,000.00 from
debtors. C.
The creditor can demand a The creditor can demand the
✓ E, F, and G has the rights of a creditor against the insolvent
A.
● The act of one is not binding (others must concur)
IN JOINT INDIVISIBLE OBLIGATION:
• Joint as to obligation but indivisible as to object
(example: CAR)
CHARACTERISTIC OF JOINT INDIVISIBLE OBLIGATION:
1. Demand must be made to ALL joint debtors.
2. Creditors must proceed to ALL joint debtors.
3. Joint creditor is allowed to renounce his proportionate
credit.
4. Delivery must be made to all joint creditors unless one of
them has authorized by the others to receive payment in
their behalf.
5. If one of the joint debtor’s become insolvent, the others
should not be liable.
6. If one of the debtors cannot comply with the
proportionate obligation, the obligation is converted into
a monetary consideration. The debtor who cannot
comply will pay his share plus damages when his
financial conditions improve.
Art. 1210. The indivisibility of an obligation does not
necessarily give rise to solidarity. Nor does solidarity of itself
imply indivisibility.
Essence of solidarity - Right of creditor to enforce and liability
on the part of the debtor to answer liabilities.
Example
• A, B, C, and D are solidary debtors obliged to pay E P
40,000.00 to be payable as follows:
• ABCD to pay P 10,000.00 Jan(A) Feb (B) Mar
(C)Apr (D)
• E can collect the 10,000 of A on Jan from either
A,B,C,D but cannot collect that of B yet for it is
due on Feb
• Sad Face, Happy, and Fanny got a loan of P150 from
Smiley. They signed a promissory note solidarily binding
themselves to pay Smiley under the following terms:
• Sad Face will pay P50 with 3% on December 30,
2006
• Happy will pay P50 with 4% on December 30,
2007
• Fanny will pay P50 with 5% on December 30,
2008
On December 31, 2006, Smiley can collect his P50 with
3% from any one of the debtors, but not the whole P150
because it is not yet entirely due. The maturity of the
other amounts should still be awaited. If maturity comes,
Smiley can collect from any of the debtors, because they
are expressly solidary in liabilities, and not affected by
the secondary stipulations.

● Solidarity is expressed in the stipulations of the party, law ● The solidarity of the debtors is not affected even if different
governing the obligation, or the nature of the obligation. terms and conditions are made applicable to them.
● Enforcement of the terms and conditions may be made at
INDIVISIBLE OBLIGATION – an obligation where the different times. The obligations which have matured can be
prestation or object to be delivered cannot be performed by enforced while those still undue will have to be awaited.
parts without altering its essence or substance. Enforcement can be made against any one of the solidary
debtors although it can happen that a particular obligation
BASIS INDIVISIBILITY SOLIDARITY chargeable to a particular debtor is not yet due. He will be
1. NATURE Refers to the Refers to the tie answerable for all the prestations which fall due although
prestation of existing between
chargeable to the other co-debtors.
the contract parties of the
obligation (who is
liable) Art. 1212. Each one of the solidary creditors may do whatever
2. NUMBER OF Does not require Requires plurality may be useful to the others, but not anything which may be
SUBJECTS/ plurality of of parties prejudicial to the latter.
PARTIES parties
3. EFFECTS OF Obligation is The liability, even USEFUL and PREJUDICIAL ACT - If the relationship among
BREACH OF converted into if converted into
creditors is solidary, they are MUTUAL AGENTS of one
OBLIGATION monetary indemnity for
obligation for damages, remains another. Under Article 1212, a solidary creditor may do a
indemnity for solidary. useful but not a prejudicial act.
damages – each Example: Giving of Demand Letter (useful)
debtor is liable Condonation or Remission of Debt (Prejudicial) 
only for his part in
the indemnity. ● Every solidary creditor is benefited by the useful acts of any
one of them.
• The Indivisibility of an obligation does not necessarily
● If a solidary creditor performs an act which is not fair to his
give rise to solidarity nor does solidarity imply
co-creditors, the act may have valid legal effects or the
indivisibility.
obligation of the debtor due to them may be extinguished, but
• Indivisibility refers to OBJECT while Solidarity refers to
the performing creditor shall be liable to his co-creditors.
tie between parties.
• Liability in an indivisible obligation may either be joint or
* Question: May solidary creditors perform an act that is
solidary; In solidary obligation, the subject matter may be
beneficial to others?
divisible or indivisible.
Article 1213. A solidary creditor cannot assign his rights
Art. 1211. Solidarity may exist although the creditors and the
without the consent of the others.
debtors may not be bound in the same manner and by the
same periods and conditions.
Assign – transfer of right
 ● The assignee does not become a solidary creditor, and
any payment made upon him by the debtor does not
extinguish the obligation. He is considered a STRANGER,
and his acts are not binding to the solidarity.
DOCTRINE OF MUTUAL AGENCY - In solidary obligations, the
act of one is act of the others.
Exceptions to the doctrine:
1. Art. 1212 – a creditor may not perform an act prejudicial to
other creditors
2. Art. 1213 – a creditor cannot transfer his right without
consent
Assignment of Rights
• Mutual Agency in Solidarity
• Based on Trust and Confidence
• In assigning the rights to other, consent is needed because it
is possible that the other parties is not confident or has no
trust on the assignee.
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.
● The debtor can pay any one of the solidary creditors. Such
payment when accepted by any of the solidary creditors will
extinguish the obligation.
● To avoid confusion on the payment of the obligation, the
debtor is required to ay only to the demanding creditor and
that payment is sufficient to effect the extinguishment of the
obligation.
● In case two or more demands made by the other creditors,
the first demand must be given priority.
• Liable to them up to the extent of their respective shares in
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.
NOVATION (1291) – extinguishment of the obligation by
substitution or change of the obligation by a Subsequent
ones which Extinguishes or modifies either by
1. Changing the object or principal condition
2. Substituting another in place of the debtor; and
3. Subrogating (placing) a third person in the rights of the
creditor [Art. 1291, CC]
COMPENSATION (1278) – offsetting; both are creditor and
debtor of each other. Takes place when two persons, in their
own right, become creditors and debtors of each other
− The amount of one is covered by the amount of the other
Erap borrowed P100 from Fernando.
Fernando borrowed P75 from Erap.
Erap’s obligation to Fernando is now P25 only, because the
original obligation was offset by Fernando’s supposed-to-be
obligation to Erap.
CONFUSION (1275) – takes place when the characters of
creditor and debtor are merged in the same person/ into one.
Tito pays his debt to Vic with a check payable to “cash”.
Vic paid his debt to Joey with the same check.
Joey paid his debt to Tito, with the same check Tito issued to Vic.
Tito becomes paid by his own check. He becomes the debtor and
the creditor of himself at the same time.
REMISSION or CONDONATION OF DEBT (1270 ) – the
gratuitous abandonment by the creditor of his right;
acceptance of the obligor is necessary. Renounces the
obligation
Example
• A debtor to BCD are solidary creditors in the amount of P
30,000.00
• If B condones the debt of P 18,000 that leaves 12.000
• A will pay 12,000 to either BCD (P 4,000 each)
• B will reimburse CD the 6,0000 condoned amount (P 18,000
divided by 3)
● These 4 modes of extinguishing obligations are acts
prejudicial to the other solidary cocreditors because these
have the effect of extinguishing the debt or obligation which
is due to all of them.
● The only recourse of the co-creditors is to let the one who
executed any of those acts be liable for the shares
corresponding to all his co-creditors (in their internal
agreement).
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 effected. (1146a)
LIABILITY OF THE SOLIDARY CREDITOR. WHO CAUSES THE
NOVATION, COMPENSATION, CONFUSION, REMISSION OF
DEBT TO HIS CO – CREDITORS:
the obligation.
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. 
When there is passive solidarity, the creditor can proceed
against:
• Any of the solidary debtors;
• Some of the solidary debtors;
• All of the solidary debtors, simultaneously.
Extrajudicial demands - first demand shall not prevent
subsequent demands on the other codebtors,
if co-debtor first to have been required to fulfill obligation did
not act on it.
ABC are solidary liable to D for P 30,000.00
Options of D:
1. He can collect the whole P 30,000.00 from any among A,
B, or C.
2. He can collect a portion of the whole P 30,000.00 from
A,B, or C. (example: A – P 10,000.00; B – P 8,000.00; C – P
12,000.00)
 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 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.
Payment – consists in the delivery of the thing or the
rendition (rendering) of the service which is the object of the
obligation. Mode of extinguishing an obligation through
delivery of money or performance of the obligation.
PAYMENT BY A SOLIDARY DEBTOR
1. BETWEEN SOLIDARY DEBTORS and CREDITOR or
CREDITORS – Payment by one of the solidary debtors
extinguished an obligation. The creditor/s may choose as to
whose payment he want to accept.
2. AMONG SOLIDARY DEBTORS – the paying solidary debtor
may demand reimbursement from his co-debtors for their
PROPORTIONATE SHARES. Legal Interest shall apply from
time of payment.
A, B, C are solidary debtors of D for P 600,000.00. The debt is
payable on October 30, 2020. If A paid D on the due date:
1. A can immediately collect from B and C P 200,000.00
each.
2. If B and C paid B one year after, A is entitled to the
interest for one year.
3. If A paid D earlier, say October 15, 2020, and if B
and C paid one year after the due date or October 30,
2021; A is not entitled to collect interest from Oct. 15
to Oct 30, 2020.
(Insolvency)
A, B, C are solidary debtors of D for P 600,000.00. The debt is
payable on October 30, 2020. A is payable for P 300,000.00; B
is liable for P 200,000.00; and C for P 100,000.00. D
Demanded payment from A.
1. A can immediately collect from B P 200,000.00 and C
P 100,000.00 each.
2. If B becomes INSOLVENT – A and C will be liable to
pay D the share of B which is P 200,000.00 according to
their proportionate share:
A – (300,000/400,000) x P 200,000 = P 150,000
B – (100,000/400,000) x P 200,000 = P 50,000.00
Interest – compensation for the use of borrowed money
Partial payment – the solidary debtor who made the partial
payment is entitles to be reimbursed only for such amount of
money which he had paid and which exceeds his own share
in the obligation.
If one of the debtors is insolvent and could not pay his share
in the obligation, all solidary debtors including the paying
debtor shall share proportionately in the settlement of the
corresponding share of the insolvent debtor. [In short, his co-
debtors will save his ass.]
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. 
No reimbursement under the following cases: (NO MORE
OBLIGATION THAT NEEDS TO BE COMPLIED)
1. Obligation PRESCRIBES
- The creditor did not make any demand for more
than 10 years.
2. Obligation becomes ILLEGAL
- Law has been passed, making such prestation
illegal.
Rights and Obligations are lost by prescription:
 Prescriptive Period
➢ 10 years from date
cause of action accrues (written contract, obligation
created by law, judgment)
➢ 6 years (oral contract and quasi contract)
➢ 4 years (injury to rights of the plaintiff and quasi – delict)
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.
● Atty De Chavez: Ito ay provision sa tanga... (siyempre, 'pag
nagbayad na, wala nang obligation, wala na ding ire-remit...)
● Any belated (delayed) remission by the creditor of the share
of any of the debtor has no effect on the internal relationship
of the co-debtors.
If payment before REMISSION
✓ A,B, and C owed D, E, and F 6M (MIXED SOLIDARITY)
✓ If A pays D 6M
✓ E remits the obligation of B after payment by A
✓ B should still pay his share of 2M to A and C
✓ B collect the 2M from E who remitted the share
If payment after REMISSION
✓ A,B, and C owed D, E, and F 6M (MIXED SOLIDARITY)
✓ If E remits the share of B
✓ C pays F the amount of 6M after
✓ B does not have the obligation to reimburse C the 2M
✓ Remedy of C is to recover it from F who received the
payment
✓ F should not give E the 2M who condones it
● After the prior payment of the entire obligation, there is
nothing to remit because the obligation had been
extinguished.
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. 
● There is nothing to be reimbursed because he did not spend
any money, the remission being a gratuitous act.
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
extrajudicial demand upon him by the creditor, the provisions
of the preceding paragraph shall apply.

EFFECTS OF THE LOSS OF THE THING or IMPOSSIBILITY OF

THE PRESTATION:
1. NO FAULT – solidary debtors – obligation is extinguished
If the loss or impossibility is without the fault of any
of the solidary debtors, the obligation shall be
extinguished.
2. FAULT of any one of them – all are liable because of their
mutual agency
If the loss or impossibility is with the fault of any of
the solidary debtors, ALL SHALL BE RESPONSIBLE
to the creditors for the Price of the thing and
payment of damages and interest. However,
innocent debtor may file an action against the guilty
or negligent debtor for damages and the interest paid
to the creditor.
3. FORTUITOUS EVENT – delay on the part of the debtors – all
will be liable
If the loss or impossibility is due to a fortuitous event
after one of the solidary debtors incurs delay due to
a demand by the credit, apply Rule No. 2

● If the thing due was not lost, but there is merely a delay,
fraud or negligence on the part of one of the solidary debtors,
all (including the innocent) debtors will share in the payment
of the PRINCIPAL prestation. The damages and interest
imposed will be borne by the guilty debtor.
● Obligation to deliver is converted into an obligation to pay
indemnity when there us loss or impossibility of performance.

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.

Solidary Debtor may avail himself of the following defenses if

an action filed by the creditor:
1. Defenses derived from the nature of the obligation.
Payment, prescription, remission, statute of frauds,
presence of vices of consent, etc
2. Defenses personal to the solidary debtor himself or
personal to his share. Minority, insanity and others purely
personal to him.
3. Defenses personal to other solidary debtors as regards
that part of debt for which the other creditors are liable.