Joint and Solidary ObligationsCELIMEN, CHRISTOPHER JOHN

MUSNI, RALPH

ECE70/B11

ENGR. JOSE CARDENAS

SECTION 4. Joint and Solidary Obligations

ART. 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 prestations. There is a solidary liability only when the obligation expressly so states, or when the law or the nature of the obligation requires solidarity. (1137a)

ART. 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 equal 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. (1138a)

Kinds of Obligation According To Number of Parties:1. Individual Obligation – only one obligor or one oblige

2. Collective Obligation – one where there are two or more debtors and/or two or more creditors

a.Joint Obligation – whole obligation to be paid fulfilled proportionately by the different debtors and/or demanded proportionately by different creditors

i. proportionatelyii. we promise to pay

b. Solidary Obligation – (act of one is the act of all) each one of the debtors isbound to render and/or each one of the creditors has a right to demand fromany of the debtors, entire compliance with the prestation

i. Jointly and/or severallyii. Together and/or separatelyiii. Individually and/or collectivelyiv. I promise to pay

Kinds of Solidarity• according to parties bound

passive – part of the debtors

active – part of the creditors

mixed solidarity – both

• according to source

conventional – agreed upon by parties

legal – imposed by law

real – imposed by nature of obligation

Case 1

X, Y, and Z bind themselves to pay W ₱30,000. Only X received the money as per agreement between X, Y, and Z. On the due date of the obligation, has W the right to demand the full payment of ₱30,000 from Z alone?

Obviously this is a collective obligation because it involves two or more individuals that act as the debtors and one creditor which is W. But this kind of collective obligation might be joint or solidary. All we know is that X, Y, and Z are liable to W in the amount of ₱30,000. Now under Art. 1207, there is solidary liability only when: (1) the obligation expressly so states; or (2) the law requires solidarity; or (3) the nature of obligation requires solidary. Assuming they have agreed upon a contract that expressly states that they are bound together to pay or solidary liable to pay ₱30,000 to W then we could say that this Art. 1207 gives the W the right to demand the full amount to either of them regardless on whatever agreement the debtors have. Under Mixed Solidary, agreement between debtors as to the extent of the share of each in the debt has nothing to do with the agreement between the creditor. However, if the contract/ agreement between them doesn’t have any statements regarding solidary then it is presumed to be joint (Art. 1208). Credit or debt is presumed to be divided into equal shares as to there are debtors.

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. (1145a)

- The creditor has the right to accept which mode of payment to accept if more than one of the debtors offers payment.- Debtor who makes payment can collect interest. If payment was made BEFORE the debt is due, interest cannot be demanded from hi co-debtors

Case 2

X, Y, and Z promised to pay W solidarily ₱30,000 on or before September 10 without need of demand. On September 9, X paid the whole ₱30,000 to W.

a. How much can X collect from Y and Z?

According to Article 1217, X can collect from Y and Z only the share which corresponds to them, which is ₱10,000 each.

b. May X collect interest from Y and Z?

X cannot collect interest because payment was made before the debt was due.

c. Suppose Z turns out to be insolvent, how much can X collect from Y?

If Z becomes insolvent, X can collect from Y his share plus half of Z’s share, which is ₱15,000.

Case 3 A owes B and C, solidary creditors, the sum of ₱20,000:

a. Can C condone the debt without the consent of B?

According to Article 1212, C can condone the debt without B’s consent, however, he shall be liable to B and has to reimburse B’s share.

b. Can C assign his rights without the consent of B?

According to Article 1213, C cannot assign his rights to another person without B’s consent. However, if there are 3 creditors, (B, C, and D) C can assign his rights to D even without B’s consent.

(condone - accept and allow to continue/to approve)

Art. 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. (1141a)

Art. 1213. A solidary creditor cannot assign his rights without the consent of the others.

Case 4

A, B, and C are solidarily liable to D. For their failure to pay, D filed a complaint in court but only against C. Has C the right to demand that A and B be also included as party defendants?

According to Article 1216, C has no right to demand from D to include A and B as party defendants because C, as a solidary debtor can be compelled to pay for the entire 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.

Case 5

A, B, and C, co-owners, sold a printing equipment to D. They solidarily bound themselves to deliver the equipment on a certain date. Through the fault of C, the equipment was completely destroyed. Give the rights and obligations of the parties.

According to Article 1221, as far as D is concerned, A, B and C are all liable for the price of the printing equipment as well as

damages. A and B can recover from C since it was through his fault that the object was destroyed. If C paid for the price and damages, he cannot ask for reimbursement from A or B.

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.