Joint and
Solidary
Obligations
Kinds of Obligations According to the
number of parties
1. Individual Obligation
- 1 obligor, 1 obligee
2. Collective Obligation
- 2 or more debtors and creditors
- Either joint or solidary obligations
2
Joint Obligation
Solidary Obligation
(Article 1208)
(Article 1207)
●
The whole obligation is to be paid
or fulfilled proportionately by the
different debtors.
●
Or to be demanded proportionately
by different creditors
●
… The credit or debt shall be
presumed to be divided into as
many equal shares as there are
creditors and debtors.
●
The whole obligation has one or more
several debtors are each liable to pay the
entire amount, or one or more of several
creditors each able to collect the whole.
3
Collective Obligation presumed to be joint
4
Presumption subject to rules on
multiplicity of suits
The presumption in Article 1208 is
made “subject to the Rules
of Court governing the multiplicity of suits”
5
Words used to identify
Joint and Solidary Obligations
Joint Liability
Solidary Liability
✓ Mancomunada
✓ Jointly and/or Severally
✓ Mancommunadamante
✓ Solidaria
✓ Pro rata
✓ In solidum
✓ Proportionately
✓ Together and/or separately
✓ “we promise to pay” signed by two or
more persons
✓ Individually and/or collectively
✓ Juntos o separadamante
✓ “I promise to pay” signed by 2 or more
persons
6
Illustration: Joint Obligation
A and B are joint debtors of C to the amount of
P1,000,000. How much can C demand?
C can demand:
A: P500,000
B: P500,000
7
Illustration: Joint Obligation
A and B are joint debtors of W,X,Y, and Z who are
joint creditors to the amount of P1,000,000. How
much can Y demand?
Creditors Credits:
W: P250,000
X: P250,000
Y: P250,000
Z: P250,000
Y can demand:
A:P125,000
B:P125,000
8
Illustration: Solidary Obligation
A and B are solidary debtors of C to the amount of
P1,000,000. How much can C demand?
C can demand:
A: P1,000,000 OR
B: P1,000,000
9
Illustration: Solidary Obligation
A and B are solidary debtors of W,X,Y, and Z who
are solidary creditors to the amount of P1,000,000.
How much can Y demand from the debtors?
Y can demand:
A:P1,000,000 OR
B:P1,000,000
10
Kinds of Solidarity
1. According to the parties bound:
a) Passive Solidarity
• Solidarity on the part of the debtors
• Any one of them can be made liable for
the fulfillment of the entire obligation
• It is in the nature of mutual guaranty
c) Mixed Solidarity
• Solidarity on the part of debtor and
creditor
• Each one of them is liable to render
• Each on e of the creditors has a
right to demand
b) Active Solidarity
• Solidarity on the part of the creditors
• Any one of them can demand on the
fulfillment of the obligation
• Its essential feature is mutual
representation
11
Kinds of Solidarity
2. According to Source:
a) Conventional Solidarity
• solidarity is agreed upon by the parties. (Art.
1306.)
• If nothing is mentioned in the contract relating
to solidarity, the obligation is only joint.
(According to the presumption)
b) Legal Solidarity
• Solidarity is imposed by the law.
12
Kinds of Solidarity
2. According to Source:
b) Legal Solidarity
• Solidarity is imposed by the law.
Example:
In a felony (crime), the principal, accomplices and
accessories, each within their respective class, shall
be liable severally (in solidum) among themselves for
their quotas, and subsidiarily for those of other
persons liable (Art. 110, Revised Penal Code)
13
Kinds of Solidarity
2. According to Source:
b) Legal Solidarity
• Solidarity is imposed by the law.
Example:
If the engineer or architect supervises the construction
of a building, he shall be solidarily liable with the
contractor for damages for any defect in the
construction.
14
Kinds of Solidarity
2. According to Source:
c) Real Solidarity
• solidarity is imposed by the nature of the obligation.
•
The law does not expressly indicate the cases where
the liability is solidary because of the nature of the
obligation.
15
“ Solidarity is not
presumed
16
Art. 1209
If the division is impossible, the right
of the creditors may be prejudiced only
by their collective acts, and the debt
can be enforced only by proceeding
against all the debtors.
•
Joint Indivisible Obligation
•
The obligation is joint because the
parties are merely proportionately
liable.
•
It is indivisible because the object
or subject matter is not
physically divisible into different
parts. (see Art. 1225, par. 1.)
If one of the latter should be insolvent,
the others shall not be liable for his
share. (1139)
17
Illustration
Situation 1:
A, B, C, obliged themselves to give
W,X,Y, and Z a brand new Mitsubishi
Xpander valued at P1.8 M. On the
date of delivery, A and B are willing to
deliver but C is not.
18
Illustration
Situation 2:
A, B, C, obliged themselves to give W,X,Y, and Z a brand new Mitsubishi
Xpander valued at P1.8 M. A became insolvent. Thus, the debtors were not
able to purchase the car.
19
Art. 1210
The indivisibility of an obligation
does not necessarily give rise to
solidarity. Nor does solidarity of
itself imply indivisibility.
20
Art. 1210: Indivisibility and Solidarity distinguished
Indivisibility
Solidarity
Refers to the prestation
Refers to the juridical tie or legal tie
Only debtor is guilty of break of obligation and is liable for
damages (Art. 1209)
all of the debtors are liable
for the breach of the obligation committed by a codebtor (Art. 1221.)
can exist although there is only one debtor and
one creditor
there must be at least two debtors or
two creditors (Arts. 1207, 1208.)
the others are not liable in case of insolvency of one debtor
the others are proportionately liable. (Art. 1217.)
21
Art. 1211
Solidarity may exist although the
creditors and the debtors may not be
bound in the same manner and by the
same periods and conditions. (1140)
Kinds of solidary obligation according
to the legal tie.
They are:
(1) Uniform. — when the parties are bound by the same
stipulations or clauses
(2) Non-uniform or varied. — when the parties are not subject
to the same stipulations or clauses.
22
Illustration
A, B, C, and D obliged themselves solidarily to
pay E P20,000.00, as follows:
✓
✓
✓
✓
A, to pay by installment at the rate of
P1,000.00 a month, to start in July
B, to pay in September
C, to pay in December
If E passes the Bar examinations.
23
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.
Example:
A owes B and C, solidary creditors, the sum of
P2,000.00. B may make a demand for the payment of
the obligation for this will benefit C.
24
Art. 1213
A solidary creditor cannot assign his rights without
the consent of the others.
Example:
A owes B and C, solidary creditors, the sum of
P2,000.00. B may make a demand for the payment of
the obligation for this will benefit C.
25
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.
26
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, compensation, confusion, and remission
are modes or causes of extinguishment of
obligations. (Art. 1231.)
27
Effect of novation, etc. where obligation
joint.
In a joint obligation, novation, compensation, confusion, remission,
prescription, and any other cause of modify cation or extinction
does not extinguish or modify the obligation
except with respect to the creditor or debtor affected, without extending its
operation to any other part of the debt or of the credit
28
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 intervening period may be demanded.
When one solidary debtors cannot, because of his insolvency,
reimburse his share to the debtor paying the obligatiob, such
share shall be birne by all his co-debtors, in proportion to the
debt of each.
29
Example
A, B, and C are jointly and severally liable to D and E in the amount of
3,000 due on January 5.
✓ If A and B offer to pay D the amount of 3,000, from whom should D
accept payment?
✓ If A pays the entire amount of 3,000, will the obligation be
extinguished?
✓ What is the right of A?
✓ What will happen if C is insolvent?
30
Art. 1218
Payment by 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.
Example no. 1
A and B are solidary indebted to C in the amount of 1,000. The
debt prescribed. (Become invalid)
If A paid the debt, does A still have the right to request
reimbursement to B?
31
Art. 1218
Example no. 2
A and B are solidary bound to deliver 10 carabaos to C for
slaughter purposes. Later, the lawmaking body passed law
which prohibits the slaughter of carabaos.
If A delivered the carabaos knowing that the slaughter of
carabaos is already prohibited by law, does A can get
reimbursement from B?
32
Actions that must be
brought within 10 years
from the time the right
of action accrues:
●
Upon a written contract
●
Upon an obligation
created by law
●
Upon a judgement
Action that must be
commenced within 6
years:
●
Upon an oral contract
●
Upon a quasi contract
Actions that must be
instituted within 4 years:
●
Upon an injury to the
right of the plaintiff
●
Upon a quasi-delict
33
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 codebtors, in case the debt had been totally paid by
anyone of them before the remission was affected.
Example
A and B are liable in solidum to C in the amount of
1,000. C remitted A's share after B has paid the debt
of 1,000.
✓ Is B entitled to get reimbursement from A?
34
Art. 1219
Example
A, B and C is solidary debtor to D, the amount of
3,000. D remiited the share of A. After paying 2,000,
the balance of the credit, B demands reimbursement
from C who became insolvent after the remission.
Is A obliged to contribute to the share of C?
35
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.
Example
A and B are solidary debtors to C and D, a solidary
creditors an amount of 3M. C remitted the whole obligation
in favor of A.
✓ Is A entitled to get reimbursement from B?
✓ Is the obligation extinguished?
✓ What will happen to D?
36
Art. 1221
Example
A, B and C promised solidarily to deliver to D a particular truck
valued at 15,000. The truck was lost through a furtuitous event
without the fault of debtors before they have incurred in delay.
1.) Is the obligation extinguished?
2.) What if the truck was lost throught the fault of C, What will
happen?
3.) If C owns the said truck, and A and B would contribute 100,000
each as their share in obligation, what will happen if B paid a total
amount of 310,000, (300,000 from the price of the truck and
10,000 from the damages)?
-A has the right to get reimbursement of 100,000 each from A and
C.
37
Art. 1221
Example
A, B and C promised solidarily to deliver to D a particular truck
valued at 15,000. The truck was lost through a furtuitous event
without the fault of debtors before they have incurred in delay.
4.) How much is the total lost of C?
410, 000 ( 300,000 from the price of the truck, 10,000 from the
damages, and 100,000 from the reimbursement to B.)
5.) What will happen, If the truck was lost through a fortuitous
event but after a demand was made upon C.
- D can still recover damages from A or B or both.
- the default by C makes all of the solidary debtors responsible.
38
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.
39
Thank You.
40