30 Questions
In joint and solidary obligations, when is a paying debtor not entitled to reimbursement from co-debtors?
Both a and b
What is the prescriptive period for actions upon a written contract?
10 years
According to Article 1219, what effect does remission have on a solidary debtor?
The debtor remains responsible towards co-debtors
What happens if a debt is totally paid by one co-debtor before remission is effected?
The remaining co-debtors are still liable
What is the prescriptive period for actions based on oral contracts?
6 years
When can a solidary debtor not claim reimbursement from co-debtors according to Article 1218?
When the payment is made after the obligation has prescribed
In which of the following cases shall obligations be deemed indivisible?
Obligation to deliver a specific car
What type of obligation is deemed indivisible by law even if the thing or service is physically divisible?
Obligation to pay taxes within a definite period
Which type of obligation can be considered divisible?
Obligation to sing a song
What determines the divisibility or indivisibility of obligations not to do?
The nature of the prestation in each specific case
When can an obligation be considered indivisible even if the object or service is physically divisible?
When intended by the parties
Which of the following is an example of an obligation intended by the parties to be indivisible?
Obligation of D to give C P1,000 on a certain date
In alternative obligation, how many things are due alternatively even though there is only one obligation?
Two things
Who typically has the election to choose between the alternative obligations in alternative obligation?
Debtor
What happens to the obligation in case of a fortuitous event in a simple obligation with no penal clause?
It remains unchanged
In facultative obligation, how many things are typically due despite the right of substitution?
One thing
What type of penal clause is imposed as a form of compensation for breach of contract?
Compensatory penal clause
In a joint or cumulative penal clause, which aspects of the contract are enforceable?
Both the obligation and the penal clause are enforceable
What is the main difference between a joint and a solidary obligation?
In joint obligations, the prestation due is different for each debtor, while in solidary obligations, the prestation due is the same for all debtors.
What is a characteristic of solidary obligations?
The prestation due is the same for all solidary creditors.
What does the essence of solidary obligations entail?
Each solidary creditor can demand and each debtor must satisfy the same prestation.
What is the basis of solidary obligations according to the text?
Legal fiction of mutual agency among those interested in the same obligation.
When does an obligation become solidary according to the text?
When the law explicitly requires solidarity.
What is a key characteristic of joint liability?
Debtors are not bound to render the entire compliance.
If B proves that the damage suffered is P25,000, how much penalty can he demand according to Article 1227?
P20,000
What is the purpose of a penalty clause in an obligation, as mentioned in Section 6 - Obligations with a Penal Clause?
To secure compliance with the obligation
According to Article 1228, when can the penalty be demanded without proof of actual damages suffered by the creditor?
When partial compliance has occurred
In what scenario can the judge reduce the penalty equitably according to Article 1229?
When principal obligation is partly or irregularly complied with
Under what condition can a debtor exempt himself from the performance of an obligation by paying the penalty as per Article 1227?
When right to exemption is expressly reserved for him
Can a creditor demand both the fulfillment of an obligation and satisfaction of the penalty at the same time according to Article 1227?
No, unless explicitly granted that right
Study Notes
Joint and Solidary Obligations
- A joint obligation is one where the whole obligation is to be paid or fulfilled proportionately by the different debtors or is to be demanded proportionately by the different creditors.
- Examples of words indicating joint liability: pro rata, proportionately, jointly.
Solidary Obligations
- A solidary obligation is one where each of the debtors is bound to render, and/or each one of the creditors has a right to demand the entire compliance with the prestation.
- Characteristics:
- Unity of object and plurality of ties.
- Each creditor can demand, and each debtor must satisfy the entire prestation.
- The resulting duty on the part of the creditor who received payment to pay his co-creditors what belongs to him, and the resulting right on the part of the debtor who made payment to claim from his co-debtors the share which corresponds to each.
- Basis: has something of a legal fiction, i.e., mutual agency among those interested in the same obligation.
When is an Obligation Solidary?
- When the obligation expressly so states.
- When the law requires solidarity.
- When the nature of the obligation requires solidarity.
- Among solidary creditors, the receiving creditor is jointly liable to the others for their corresponding shares.
Payment by a Solidary Debtor
- Payment by a solidary debtor does not entitle him to reimbursement from his co-debtors if such payment is made after the obligation has prescribed or become illegal.
- Situations where the paying debtor is not entitled to reimbursement:
- When the obligation has prescribed.
- When the obligation becomes illegal.
Prescriptive Period of Actions
- 10 years:
- Upon written contract.
- Upon an injury to the rights to the plaintiff.
- Upon an obligation created by law.
- Upon a quasi-delict.
- Upon judgment.
- 6 years:
- Upon oral contracts.
- Upon quasi-contracts.
Remission of Debt after Payment
- Effects of remission of debt after payment:
- If payment was made first, remission or waiver has no effect as there is no more obligation to remit.
Indivisibility of Obligations
- Obligations are deemed indivisible when:
- The object or service is physically indivisible.
- The obligation is not susceptible of partial performance.
- The purpose requires performance of all parts.
- Examples of indivisible obligations:
- Obligation to give definite things (e.g., a specific electric fan, a specific car).
- Obligations which are not susceptible of partial performance (e.g., to sing a song, to dance).
- Obligations provided by law to be indivisible.
- Obligations intended by the parties to be indivisible.
Divisibility of Obligations
- Obligations are deemed divisible when:
- The object or service is physically divisible.
- The obligation is susceptible of partial performance.
- Examples of divisible obligations:
- Obligations which have for their object the execution of a certain number of days of work.
- Alternative obligations (e.g., obligation to give P1,000 or a specific item).
Penal Clause
- A penal clause is a provision that imposes a penalty for non-compliance with the obligation.
- Kinds of penal clauses:
- As to origin: legal penal clause (provided by law) or conventional penal clause (provided by the stipulation of the parties).
- As to purpose: compensatory penal clause (takes the place of penalty) or punitive penal clause (imposed merely as breach).
- As to dependability or effect: subsidiary or alternative penal clause (only the penalty can be enforced) or joint or cumulative penal clause (both the obligation and the penalty are enforceable).
Effects of Penal Clause
- 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.
- 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.
- 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.
- Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be demanded.
- The judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the debtor.
Test your knowledge on the divisibility of obligations as per the preceding articles. Learn about when obligations are deemed indivisible and when they are considered divisible based on their nature and characteristics.
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