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Obligation and Contracts Part 4

The document discusses different types of obligations including joint indivisible obligations where debtors or creditors are jointly bound but the object is indivisible, and divisible obligations which are capable of partial performance. It also discusses penal clauses which provide greater liability for non-compliance to insure performance of obligations.

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16 views

Obligation and Contracts Part 4

The document discusses different types of obligations including joint indivisible obligations where debtors or creditors are jointly bound but the object is indivisible, and divisible obligations which are capable of partial performance. It also discusses penal clauses which provide greater liability for non-compliance to insure performance of obligations.

Uploaded by

Aki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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NOTES- Obligation and Contracts

Source: Fidelito Soriano books

Joint indivisible obligation. Debtors or creditors are jointly bound bound but the prestation or object is
indivisible :

1. Creditors must act collectively: all of them must make the demand unless one is authorized to
act for the others.
2. The demand must be made against all the debtors since compliance is possible only if debtors
act together.
3. A renunciation made by a joint creditor extinguishes only his own share. In such case, the
obligation is converted into a monetary obligation to pay the value of the thing
4. If one of the debtors does not comply with his undertaking, he has to pay damages.
5. If one of the debtors is insolvent, the others shall not be liable for his share.

Indivisibility of an obligation refers to subject matter or object not capable of partial performance.
Examples:

1. Obligation to give definite things


2. Those personal (to sing one song in a program)
3.

Examples of Divisible obligation (capable of partial performance):

1. Execution of a certain number of days of work.


2. Accomplishment of work by metrical units
3. Provision of law ( full payment of tax)
4. By stipulation of the parties

Penal clause attached to an obligation is an accessory undertaking on the part of the debtor which
provides that in case of non-compliance, debtor assumes a greater liability. This is to insure
performance.

Proof of actual damages is not necessary in order that penalty may be demanded. It is sufficient that
there is breach of contract.

General rule: Penalty takes place of the damages and interest in case of non-compliance

Exceptions:

1. When there is stipulation to that effect


2. The debtor refuses to pay the penalty
3. Debtor is guilty of fraud in the performance of an obligation
NOTES- Obligation and Contracts

Source: Fidelito Soriano books

Creditor cannot demand fulfillment of the obligation and the payment of penalty at the same
time unless the right has been granted to him.

Payment must be made in legal tender in the Philippines. However, parties may stipulate
currency other than Philippine legal tender.

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