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Arthrologie (A.T. Still University)
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SECTION 4. – Joint and Solidary Obligations
STUDY GUIDE
I.
Definitions
Define or give the meaning of the following:
1. Joint obligation - where the whole obligation is to be paid or fulfilled
proportionately by the different debtors and demanded proportionately
by the different creditors.
2. Solidary obligation - where each one of the debtors is bound render,
and/or each creditor has the right to demand from any of the debtors,
the entire compliance with the prestation
3. Active solidarity - one of the solidary creditors can demand the payment
or performance of the entire obligation from the debtor or any of the
debtors. (There is mutual representation w/ power to exercise the rights
of others in the same manner as their own rights)
4. Joint indivisible obligation - the debtors are bound only to the extent of
their share in the obligation which can only be performed totally or
completely, not partially
5. Solidary divisible obligation - parties are merely proportionately liable to
the object/subject matter which are physically divisible into different
parts.
.
II.
Discussions
1. If there are two or more debtors in one and the same obligation, is there
liability joint or solidary? Explain.
ARTICLE 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 prestation. There is a
solidary liability only when the obligation expressly so states, or when
the law or the nature of the obligation requires solidarity.
2. In case of active solidarity, to whom shall be debtor or debtors make
payment?
According to Art. 1214, the debtors may choose which creditor
to pay;however, if a creditor makes a demand, then the payment shall be made
to him.
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3. Give the effect of the condonation or remission of a debt by one of
several creditors where:
a) The obligation is joint;
- According to Art. 1215, the condonation will only affect
the share of the certain debtor. The obligation will not be extinguished and
the other co-debtors will still have to comply with their proportionate shares.
b) The obligation is solidary.
- According to Art. 1215, the part of the obligation which is condoned
or remitted shall be extinguished. It is now the responsibility of the creditor
who made the condonation/remission to be liable to his co-creditors for their
corresponding shares
4. In case of remission is made by a creditor of the share of one of the
solidary debtors, is the said debtor released from responsibility to his codebtor/s? Explain.
Article 1217 states that 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 co-debtors, in case the debt had
been totally paid by anyone of them before the remission was effected.
5. Suppose a solidary debtor obtained remission of the whole obligation, is
he entitled to reimbursement from his co-debtor/s? Explain.
According to Art. 1220, the debtor is not entitled to reimbursement
from his co- debtors. The remission of the entire obligation is essentially
gratuitous and he paid nothing, thus, he shall not be reimbursed.
III.
Problems
Explain or state briefly the rule of reason for your answer.
1. X, Y, and Z bind themselves to pay W P30,000. 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 P30,000 from
Z alone?
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
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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.
2. X, Y, and Z promised to pay W solidarily P30,000 on or before Sept. 10
without need of demand. On Sept. 9, X paid the whole P30,000 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 Zs share, which is 15,000
3. A owes B and C, solidary creditors, the sum of P20,000.
a) Can C condone the debt without the consent of B?
According to Article 1212, C can condone the debt without Bs
consent, however, he shall be liable to B and has to reimburse Bs
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 Bs consent. However, if there are 3 creditors, (B, C,
and D) C can assign his rights to D even without Bs 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
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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
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.
SECTION 5. – Divisible and Indivisible obligation
STUDY GUIDE
I.
Definitions
Define or give the meaning of the following:
1. Divisible obligation - is one where the object of which, in its delivery or
performance, is capable of partial fulfillment.
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2. Indivisible obligation - is one where the object of which, in its delivery or
performance, is not capable of partial fulfillment.
3. Legal indivisibility - an indivisible obligation set by law even if the object
is by nature divisible.
II.
Discussions
1. Explain. The divisibility of an obligation is different from the divisibility of
the thing which is the object thereof.
According to Art. 1223, the obligation’s divisibility or indivisibility is not
determined by the divisibility or indivisibility of its object. Even if the
object is divisible but the law or the parties intend the obligation to be
indivisible, then it is indivisible. But if the object is indivisible, the
obligation is always indivisible as well.
2. What obligations are deemed indivisible?
Obligations deemed Indivisible Obligation provided by law to be
indivisible even if thing or service physically divisible
3. What obligations are deemed visible?
Obligations deemed Divisible Obligations which have for their the
execution of a certain number of days of work.
III.
Problems
Explain or state briefly the rule or reason for your answer.
1. A and B bind themselves to pay C their loan of P10,000 on a certain
date. Is the obligation divisible or indivisible?
According to Art. 1225, Indivisible, as stated on the contract that A
and B bind themselves to pay C their loan P10,000 on a certain date.
2. A, B, and C oblige themselves jointly to deliver to D a particulars horse
on a certain date. The agreement among A, B, and C which was made
known to D is that they will contribute the amount in buying the horse.
The horse was not delivered on the due date because of the failure of B
to give his share of the purchase price. State the rights and obligations
of the parties.
According to Art. 1224, The obligation to deliver the horse is
converted into money obligation, meaning, A, B and C will contribute the
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amount in buying the horse. A and C are liable to give their shares. But,
A and C are not liable for the share of B. On the other hand, B is now
indebted to D. Damages may be imposed against “B” the erring debtor if
warranted by the circumstances.
3. D finds himself to pay his loans of P10,000 in four equal monthly
installments. Is the obligation of D divisible or indivisible?
According to Art. 1225, loans to be paid by installments are deemed
divisible obligations. However, each installment of P2,500 is indivisible.
Chapter 4
EXTINGUISHMENT OF OBLIGATION
SECTION 1. – Payment or Performance
STUDY GUIDE
I.
Definition
Define or give the meaning of the following:
1. Payment - Payment means not only the delivery of money but also the
performance, in any other manner, of an obligation.
2. Dation in payment - is the conveyance of ownership of a thing as an
accepted equivalent of performance. An existing debt in money is satisfied,
not by payment of money but by the alienation of property.
3. Application of payment - It is the designation of the debt to which should be
applied the payment made by a debtor who has various debts of the same
kind in favor of one.
4. Payment of cession - is another special form of payment. It is the
assignment or abandonment of all the properties of the debtor for the
benefit of his creditors in order that the latter may sell the same and apply
the proceeds thereof to the satisfaction of their credits.
5. Consignation - is the act of depositing the thing or amount due with the
proper court when the creditor does not desire or cannot receive it, after
complying with the formalities required by law. It is always judicial and it
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generally requires a prior tender of payment which is by its very nature
extrajudicial.
II.
Discussion
1. May an obligor recover although there has been no strict and complete
fulfillment by him or his obligation?
Article 1234. If the obligation has been substantially performed in
good faith, the obligor may recover as though there had been a strict and
complete fulfillment, less damages suffered by the obligee.
2. What must be delivered when the obligation consists of:
a) The delivery of a specific thing?
The very thing or service due. The creditor cannot be
compelled to receive a prestation different from that which is due.
(Art. 1244)
b) The delivery of a generic thing?
The thing must be of the quantity and quality specified.
If no quality is specified, the creditor may not demand a thing of
superior quality, and the debtor may not deliver a thing of inferior
quality. This is “the rule of the medium quality.” (Art. 1246)
3. When is partial performance of an obligation allowed?
As a general rule, the creditor cannot be compelled to accept, and
the debtor cannot be required to make, partial payment or
performance. (Art. 1248, par. 1) The exceptions to this rule are :(a) When
there is an express stipulation or provision of law to that effect. (Art. 1248,
par. 1)(b) When the debt is in part liquidated and in part
unliquidated.(Art. 1248, par. 2)(c) When the different prestations in which
the obligation consists are subject to different periods or conditions which
affect some of them.(e.g., Where D owes C P10,000, and P6,000 of the
debt is due today and P4,000 is due 30 days after; or in case the payment
of P4,000 is subject to the fulfillment of a suspensive condition.)
4. What must a debtor do to be released from his obligation if the creditor
refuses to accept payment without any justifiable reason?
Article 1256. If the creditor to whom tender of payment has been
refused without just cause to accept it, the debtor shall be released from
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responsibility by the consignation of the thing or sum due. The debtor must
show that he has in his possession the thing or money to be delivered at
the time of the offer.
5. Give the requisites of payment by cession. What rights are acquired by the
creditor in this form of payment as distinguished from dation on payment?
a) There must be more than one debt;(b) There must be more than
one creditor;(c) The debtor must be insolvent; (d) The debtor must
abandon all his properties not exempt from execution in favour of the
creditors; and(e) The cession must be accepted by the creditors.
The rights acquired by the creditor are: (a) Unlike in dation in
payment, the creditors do not become the owners of the properties ceded
by the debtor as payment for the debts. The creditors merely become
assignees of the debtor with authority to sell the properties.(b) The debtor
is released from his obligations but only to the extent of the net proceeds
of the sale, unless there is a stipulation to the contrary. The balance,
therefore, remains collectible from the debtor.
III.
Problems
Explain or state briefly the rule or reason for your answer.
1. D (debtor) owes C (creditor) P10,000 with G as guarantor. On the due date
of the obligation, T, a third person, offered to pay the obligation of D. Can C
legally refuse to accept the payment? How about an offer to payment from
G?
-Yes, C can refuse to legally accept the payment. Article 1236. The
creditor is not bound to accept payment or performance by a third person
who has no interest in the fulfillment of the obligation.
-Yes, C can accept the payment from G. As G being the guarantor,
which is a person who has an interest in the obligation.
2. M (maker) issued a promissory note for P10,000 in favor of P (payee) who
lost the note which was found by T who demands payment from M. M did
not know that the note was lost by P. Is M justified in paying T?
-Yes, it is justified. As Artcile 1242 stated that Payment made in good
faith to any person in possession of the credit shall release the debtor.
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3. D owes C P10,000 which was paid by T who demands reimbursement from
D.
a) When is D liable to T?
b) When is D no liable to T?
c) When is D liable for less than P10,000 to T?
d) May D be liable to T for P12,000 if that was the amount paid by him
to C?
4. D owes C P10,000. Without the knowledge of C, D in good faith paid to T
his obligation to C. Is D required by law to prove that the payment has been
received by C in order to be released from liability?
5. D owes C P10,000 in payment for which C accepts a check form D. On the
ground that a check is not legal tender, C later insists that D pay him in
cash. Is D justified in rejecting this demand of C?
SECTION 2. – Loss of the thing Due
STUDY GUIDE
I.
Definitions
Define or give the meaning of the following:
1. Legal impossibility - occurs when the obligation cannot be performed
because it is rendered impossible by provision of law, although physically it
may be possible of performance.
2. Loss of thing - when it perishes, or goes out of commerce or disappears in
such a way that its existence is unknown or it cannot be recovered.
3. Difficulty performance - performance has become so difficult as to be
manifestly beyond the contemplation of both parties.
Discussions
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1. Give two cases when a person may be released from an obligation validly
entered into.
2. Give the cases when loss of specific thing to be delivered will not exempt
the obligor from liability even in the absence of fault or delay.
3. Will partial loss of the specific thing to be delivered extinguish the
obligation? Explain.
II.
Problems
Explain or state briefly the rule or reason for your answer.
1. X obliged himself to deliver to Y a specific carabao to Y on July 31. The
carabao died on July 25. Y has no proof that X was negligent. Is X liable to
Y?
2. X obliged himself to deliver a specific thing to Y on a certain date. The
thing was lost by X without his fault and before he has incured in delay.
Does its mean that X is already exempted from liability?
3. Suppose in the preceding problem, the thing as lost through the fault of Z, a
3rd person. State the effect of the loss as far as X, Y, and Z are concerned.
SECTION 3. – Condonation or Remission of Debt
STUDY GUIDE
I.
Definition
Define or give the meaning of the following:
1. Condonation or remission of debt - is the gratuitous abandonment by the
creditor of his right against the debtor. It is thus a form of donation.
2. Inofficious remission
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Discussions
1. Give the requisites in order that a condonation or remission of debt may be
valid.
·
It must be gratuitous
·
It must be accepted by the obligor
·
The parties must have capacity
·
It must not be inofficious
·
If made expressly, it must comply with the forms of donations
2. When is the condonation or remission of debt considered inofficious? What
is the remedy of the party adversely affected thereby?
II.
Problems
Explain or state briefly the rule or reason for your answer.
1. D (debtor) borrowed money from C (creditor) evidenced by a promissory
note signed by D.
a) What presumption arises if:
1) The promissory note is voluntarily given by C to D?
2) It is found in the possession of D?
b) When will the presumption of remission arise?
2. Suppose in the same problem, the debt of D, aside from being guaranteed
by G, is secured by a pledge of a certificate of shares of stock delivered by
D to C. What presumption arises if:
a) The debt of D is condoned by C?
b) The certificate is later found in the possession of D?
SECTION 4. – Confusion or Merger of Rights
STUDY GUIDE
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I.
Definition
Define or give the meaning of the following:
1. Confusion - Confusion which takes place in the person of any of the latter
does not extinguish the obligation.
2. Merger - Merger which takes place in the person of the principal debtor or
creditor benefits the guarantors.
II.
Discussions
1. What is the rationale behind confusion or merger as a mode of
extinguishing an obligation?
2. Give the effect of merger when it takes place:
a) In the person of the principal debtor or creditor?
b) In the person of the guarantor of the principal obligation.
III.
Problems
Explain or state briefly the rule or reason for your answer.
1. A, B, and C are jointly liable to D in the amount of P15,000. Subsequently,
D assigned his credit to C in consideration for goods sold by C to D. Give
the effect of the assignment.
2. Assuming the obligation of A, B, and C is solidary, distinguish the effect of
the assignment from the first problem.
SECTION 5. – Compensation
STUDY GUIDE
I.
Definition
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Define or give the meaning of the following:
1. Compensation - is the extinguishment to the concurrent amount of the
debts of two persons who, in their own right, are debtors and creditors of
each other.
2. Legal compensation - when it takes place by operation of law even without
the knowledge of the parties
3. Facultative compensation - when it can be set up only by one of the parties
II.
Discussions
1. What is the distinction between confusion and compensation as modes for
extinguishment an obligation?
2. In what way is compensation similar to payment?
3. May there be compensation although the things due are not consumable?
Explain.
4. When may compensation take place when only one of the debts is due?
III.
Problems
Explain or state briefly the rule or reason for your answer.
1. D borrowed P50,000 as character loan (no security) from a bank. Despite
demands for payment after the loan fell due, D did not pay the bank. D has
a savings deposit of P40,000 with the bank. Has the bank the right to apply
the deposit to the payment of D’s debt?
2. D owes C P10,000 payable on Nov. 20 C owes D P10,000 payable on Oct.
20. Can compensation also take place although the debts are not payable
on the same date?
3. Illustrate compensation which can be set up only by one of the parties.
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4. After contracting, a debt in the amount of P10,000 favor of C, D succeeded
through fraudulent means to make C liable to him in the same amount.
Assuming that both obligations are now due, may the two debts be
compensated against each other? What is the effect if the debt of C is later
annulled in court at the instance of D?
SECTION 6. - Novation
STUDY GUIDE
I.
Definition
Define or give the meaning of the following:
1. Novation - is the extinction of an obligation through the creation of a new
one which substitutes it.
2. Mixed novation - when the object and the debtor or the creditor, or both the
parties, are changed. It is a combination of real and personal novations.
3. Expromission - takes place when a third person of his own initiative and
without the knowledge or against the will of the original debtor assumes the
latter’s obligation with the consent of the creditor. It is essential that the old
debtor be released from his obligation, otherwise, there is no expromission.
4. Delegacion - takes place when the creditor accepts a third person to take
place of the debtor at the instance of the latter. All the parties, the old
debtor and the new debtor, and the creditor must agree.
II.
Discussions
1. Give the requisites of novation.
·
A previous valid obligation
·
Capacity and intention of the parties to modify or extinguish the
obligation
·
The modification or extinguishment of the obligation
·
The creation of a new valid obligation
2. When there is subrogation, what rights are acquired by the new creditor?
- Article 1304. A creditor, to whom partial payment has been made, may
exercise his right for the remainder, and he shall be preferred to the person
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who has been subrogated in his place in virtue of the partial payment of the
same credit.
3. In novation, give the effect where:
a) The new obligation is voidable
b) The old obligation is voidable. Explain.
4. In novation are accessory obligations necessarily extinguished? Explain.
III.
Problems
Explain or state briefly the rule or reason for your answer.
1. T (third person) tells C (creditor) that T is will pay the debt of D (debtor). C
agrees. Is D released from his obligation to C?
2. Suppose in the above problem, D proposed to C that T would substitute D
as the new debtor to which C agreed. Is D still liable to C in case of
insolvency of T?
3. T paid C the debt of D a without objection from the latter. What are the
rights of T?
4. Illustrate a mixed novation.
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