Different kinds of Obligations

Primary classification under the Civil code

•Pure Obligation
•Conditional Obligation
•Obligation with a Period
•Alternative Obligation
•Facultative Obligation
•Joint Obligation
Coverage of Discussion
•Solidary Obligation
•Divisible Obligation
•Indivisible Obligation
•Obligation with Penal Clause
Joint and Solidary Obligations
 Concept: there is concurrence of two or more
debtors and/or two/or more creditors in one and the
same obligation
◦ JOINT OBLIGATION – Each debtor is liable only for a
proportionate part of the debt, and each creditor is entitled
only to a proportionate part of the credit.
 Example: (1) A and B are indebted to X for 10,000. A is liable
only for 5,000; B is liable only for 5,000, (2) A owes X and Y
8,000. X can collect only 4,000; Y can collect only 4,000.
◦ SOLIDARY OBLIGATION – each debtor is liable
for the whole obligation, and each creditor is
entitled to demand payment of the whole obligation.
 Kinds of solidary obligation
Passive Solidarity– this is solidarity on the part of the debtors
◦ A and B, solidary debtors, are indebted to X for 10,000. X can demand payment
of 10,000 from either A or B. If A pays X10,000, the obligation is extinguished. A
can demand reimbursement of 5,000 from B representing the latter’s share in the
debt
Active Solidarity – this is solidarity on the part of the creditors
◦ A owes X and Y, solidary creditors. 8,000. Either X or Y may demand payment of
8,000 from A. If A pays X 8,000, the obligation is extinguished. X must give
4,000 to Y representing the latter’s share in the credit
Mixed Solidarity or solidarity on the part of both debtors and
creditors
◦ A and B, solidary debtors, owe X and Y, solidary creditors, 12,000. X and Y may
collect from A or B the total sum of 12,000. If A pays X 12,000, the obligtaion is
extinguished. B must reimburse A 6,000. On the other hand, X must give 6,000 to
Y.
Other terms for solidary obligation
◦ Jointly and severally
◦ Individually and collectively
◦ In solidum
◦ Mancomunada solidaria
◦ Juntos o separadamente
Other terms for joint obligation
◦ Proportionately
◦ Pro rata
◦ Moncomunada
◦ Mancomunada simple
 Rule if there is a concurrence of two or more
debtors and/or two or more creditors in one and the
same obligation
General rule: obligation is presumed to be joint when there
is concurrence of two or more debtors and/or two or more
creditors in one and the same obligation,
Exemptions:
◦ When the obligations expressly so states
◦ When the law requires solidarity
 When two or more persons have appointed an agent for a common
transactions or undertaking, they shall be solidarily liable for the
consequences of the agency.
 Where the instrument containing the words “I promised to pay” is signed by
two or more persons, they are deemed to be jointly and severally liable
theron.
 The responsibility of two or more persons who are liable for a quasi-delict is
solidary
◦ When the nature of the obligation requires solidarity
 Related Rules:
 The insolvency of one of the debtors will obligate the others to shoulder
his share in proportion to their respective obligations
 A solidary debtor paying the entire obligation shall be entitled to
reimbursement plus interest computed as follows:
◦ If paid at or after maturity, interest shall run from the date of payment until reimbursement is
made
◦ If paid before maturity, interest shall run from the date of maturity until reimbursement is
made
 Remission or condonation of the share of one of the creditors will not
affect his liability as a solidary debtor
 Remission of the entire obligation in favor of one of the creditors shall
NOT give rise to the right to demnad reimbursement from the other
debtors
 Remission that will take place after payment was made by one of the
debtors will not bar the debtor who made the payment from demanding
reimbursement
 Payment made by one of the debtors after the prescription of the
obligation shall NOT give rise to the right to demand reimbursement
DRILLS!
 A, B and C are obliged to give X, Y and Z 27,000.
How many distinct debts are there in the obligation?
 A, B and C, joint debtors, are obliged to give X, Y and
Z solidary creditors, 18,000. How much may X may
collect and from whom?
 A, B and C, solidary debtors, are obliged to give X, Y
and Z, joint creditors, 18,000. How much may A be
held liable?
 A, B and C, solidary debtors, are obliged to give X, Y
and Z, solidary creditors, 18,000. How much may Z
collect and from whom?
Unequal Sharing
A and B owe X and Y 10,000. The share of A in
the debt is 40%, while that of B is 60%. The share
of X in the credit is 70%, while that of Y is 30%.
Case 1: Joint debtors and joint creditors
• How much may collect X from A? from B?
• How much may Y collect from A? from B?
Case II: Joint debtors and solidary creditors (active solidarity)
◦ How much may X collect from A? from B?
◦ How much may Y collect from A? from B?
Case III: Solidary debtors and joint creditors (passive solidarity)
◦ How much may A be held liable and by whom?
◦ How much may B be held liable and by whom?
Case IV: Mixed Solidarity
 Other special cases:
 A and B are solidary debtors of X and Y, solidary creditors, in the amount of 20,000.
◦ If X renounces or remits the whole obligation without the consent of Y, will the obligation be
extinguished?
◦ Suppose the remission of the whole obligation was obtained by A, may A demand reimbursement
from B?
◦ Suppose that X renounces or remits A’s share amounting to 10,000. However, it turned out that B
had already paid 20,000 to Y two days before. May B still collect 10,0000 from A representing A’s
share?
 A is indebted to X, Y and Z, solidary creditors, for 24,000. Suppose X makes a demand against A, to
whom shall A pay?
 A, B and C, solidary debtors, borrowed 30,000 from X. The obligations is evidence by a promissory
note signed by the debtors.
◦ X demand payment from A. However, A pays only 12,000. May X still go after B and/or C?
◦ If A pays X 30,000, what are the rights of A?
◦ A pays X 30,000. However, C has become insolvent. How much may A demand from B as
reimbursement?
◦ If A pays X 30,000 more than 10 years after the note had become due, can he still demand
reimbursement from B and C?
 A, B, C and D are solidary liable to x for the delivery of a specific ring valued 20,000. What is the rule
if the ring is lost:
◦ Through fortuitous event?
◦ Through the fault of D?
Existence of solidarity despite different
periods and conditions
Solidarity exists although the creditors and the
debtors may not be bound by the same periods and
conditions
◦ A, B and C are solidarily liable to X for 9,000. The parties
stipulated that the share of A is payable on demand; the
share of B on Christmas day next year; and the share of C,
if X passes the Bar Examination. X may demand payment
of the share of A of 3,000 anytime from either A, B or C.
On Christmas day next year, X may demand payment of
the share of B of 3,000 from either A, B and C. When X
passes the Bar Examination, he may demand payment of
the share of C of 3,000 from either A, B or C.
Defenses available to solidary debtors
Those derived from the nature of the obligation
(such as prescription of the obligation, illegality
of cause)
Those personal to the debtor being sued, or
those that pertain to his own share (such as
incapacity of the debtor or non-fulfillment of a
suspensive condition as to his share
Those personal to the other debtors with respect
to their own share (such as incapacity of another
debtor or non-fulfillment of a suspensive
condition with respect to the debtor’s shares)
Joint indivisible obligation
Concept: An obligation where the debtors
or creditors are jointly bound out the
prestation or object is indivisible.
◦ The creditors must act collectively, all of them must make the demand unless one is
specifically authorized to act for the others
◦ The demand must be made against all the debtors since compliance is possible only if
they act together
◦ The right of the creditors may be prejudiced only by their collective acts.
◦ If one of the debtors does not comply with his undertaking, the obligation is converted
into a monetary obligation to pay damages.
◦ If one of the debtors is insolvent, the others shall not be liable for his share
Illustration:
A, B and C are jointly indebted to deliver a specific car valued at
900,000 to X, Y and Z.
Indivisibility and solidary
Concept: Refers to the subject matter or object
not being susceptible of partial performance.
◦ Joint divisible obligation
 A and B are jointly obliged to C to construct a pavement 2
meters wide and 10 meters long
◦ Joint indivisible obligation
 A and B are jointly obliged to give a specific horse to C
◦ Solidary divisible obligation
 A and B are solidarily liable to pay C 10,000 in two equal
installments
◦ Solidary indivisible obligation
 A and B are solidarily liable to give a specific horse