SECTION 4: JOINT AND SOLIDARY OBLIGATIONS ARTS. 1207 & 1208: Kinds of obligation according to number of parties: 1.

Individual: there is only one obligor or oblige. 2. Collective: there are two or more debtors and/or two or more creditors. (a) joint: the whole obligation is to be paid or fulfilled proportionately by different debtors and/or to be demanded proportionately by the different creditors. (b) solidary: each one of the debtors is bound to render and/or each one of the creditors has the right to demand from any of the debtors the entire compliance of the prestation. Presumption: Collective obligations are presumed to be joint. Joint collective obligation:

#Each of the debtors have to pay the creditor/s in equal amount or they may specify their shares. # Insolvency of one of the debtors shall not make the others liable.

Solidary collective obligation: (Kinds) 1. according to parties bound: (a) passive solidarity: on the part of the debtor where any one of them can be made liable for the fulfilment of the entire obligation. It is in the nature of mutual guaranty. Example: debtors: A & B creditor: C obligation: 10k A may pay 1ok to C, but she may ask the share of B which is 5k after payment to C. (applicable also if there is two or more creditors.) (b) active solidarity: on the part of the creditors, where any one of them can demand fulfilment of the entire obligation. There is mutual representation of the solidarity creditor, with power to exercise the rights of others like the exercise of his own rights. Example: debtor: A creditors: B & C A may pay to either B or C unless it clearly appears that the intention of the parties is to give A the right to choose whom to pay.

(c) mixed solidarity: on the part of the debtors and creditors , each one of the debtors is liable to render=, and each one of the creditors has the right to demand. Example: debtors: A & B creditors: C & D The agreement as to the share in the debt between C & D has nothing to do with the agreement of A & B as to the share in the credit. 2. according to source: (a) Conventional: the solidarity is agreed upon the parties. If nothing is mentioned relating to solidarity in the contract, the obligation is only joint. (b) Legal: imposed by law. (c) real: imposed by the nature of the obligation. Those cases that the law intends that the obligation be satisfied in full but the law does not expressly require solidarity. Solidarity not presumed: because solidarity obligation is very burdensome for they create unusual rights and liabilities. Increase in the responsibilities of debtor and increase in the rights or creditors. The law tends to favour the debtors.

Art. 1209: Joint indivisible obligation: (two or more debtor, one creditor): It is joint because the parties are merely proportionately liable but indivisible because the object of prestation is not physically divisible into parts. It is joint as to liabilities but indivisible as to compliance. It is a middle ground between joint and solidary obligation. Example: (two or more debtor, one creditor): debtors: A, B, & C creditor: D object: Car with P900,000 value. A, B, and C are collectively liable to deliver the car. In case C refused to comply, D cannot compel him to deliver the car because as a joint debtor C is only liable for a proportionate part which is P300,000. In this case D cannot also proceed against all debtors for the delivery of the car unless they acted together. The liability is converted into one for damages. A, B, and C shall pay P300,00 to D. While C in addition to the P300,000 he shall also be liable for damages to D for having violated the obligation. If A and B also suffered damages because of non-compliance of C, they may recover damages from C. If any one of the debtors be insolvent, the others shall not be liable for their share. The creditor must wait for the insolvent debtor until he can pay. (two or more creditor, one debtor): debtor: A creditors: B and C object: car A may insist that both B and C accept the car together, if either of them refuses to join the other, A may legally refuse to deliver the car or he may deposit the car in court by way of consignation. In case of noncompliance of A to deliver the car, B and C can recover only their respective shares. Art. 1210: Indivisibility does not necessarily give rise to Solidarity, and vice versa. Distinction of Solidarity and Indivisibility: 1. Solidarity: refers to prestation. Indivisibility: refers to juridical tie that binds the parties. 2. Solidarity: all debtors are liable for the breach committed by one of the debtor. Indivisibility: only the debtor guilty of breach is liable for damages. 3. Solidarity: there must be at least two debtors or two creditors. Indivisibility: there may be only one debtor and one creditor. 4. Solidarity: debtors are proportionately liable in case of insolvency. Indivisibility: others not liable in case of insolvency of one debtor. *first sentence: liability in an indivisible obligation may be either joint or solidary. *second sentence: in solidary obligation, the subject matter may be divisible or indivisible. Art. 1211: Kinds of solidary obligation according to legal tie: 1. Uniform: the parties are bound by the same stipulations. 2. Non-uniform or varied: the parties are not subject to the same stipulations. Example of varied: Stipulation: Debtors: A, B, C, and D creditor: E object: P20k Starting January A will pay by instalment at the rate of 1k a month, B to pay in March, C to pay in April, and D if E passes the Bar exams. (a) E can demand 1k from A in January. If A cannot comply, E can demand from B, C, and/or D the 1k. But E cannot yet demand the share of B, C and D which are not yet demandable. (b) in March E can demand 5k from B. In case B will not comply E can demand from the rest of the debtors the 5k and 3k if A did not yet pay the instalments. (c) the same is true in demanding from C and D. (d) if it is agreed that E can demand the entire obligation from B in March, or from C in April or from D if E passed the exam, B, C, or D is liable for the whole P20k. Art. 1213: General rule: solidary creditor cannot assign his rights to some other person. Exception: valid if with the consent of other solidary creditors. Exception to the exception: if the creditor assign his right to the other solidary creditor, no consent needed.

Art. 1214: Debtor may pay any of the solidary creditors, but if any of the solidary creditors demands, the payment should be made to him, otherwise the obligation will not be extinguished insofar as the share of the creditor who demanded is concerned. (B demanded A to pay him the 10k but instead he gave it to C another solidary creditor. In Case C will not give B 5k as his share, A is liable to pay B 5k.) If there are two or more debtors, only the debtor upon whom the demand had been made is bound to make payment to the creditor who made the demand. Art. 1217: Effects of payment by a solidary debtor: 1. Between solidary debtors and creditors: payment by one of solidary debtors extinguishes the obligation. The creditor has the right to choose which offer to accept if two or more solidary debtor offers to pay. 2. Among solidary debtors: the paying solidary debtor can demand reimbursement from his co-debtors for their proportionate shares with interest only from the time of payment. In case of insolvency of any solidary debtors the others assume the share of the insolvent one proportionately. 3. Among solidary creditors: the receiving creditor is solidary liable to others for their corresponding shares. Art. 1218: Effect of payment after obligation has prescribed or become illegal: Payment of solidary debtor shall not entitle him to reimbursement. Prescriptive periods of an action: (may be modified by the parties) 10 years from the time the right of action accrues: a. upon a written contract. b. upon an obligation created by law. c. upon a judgment. After 6 years: a. upon an oral contract. b. upon a quasi-contract. After 4 years: a. upon an injury to the rights of the plaintiff. b. upon quasi-delict. Art. 1221: Rules in case thing has been lost or prestation has become impossible: 1. loss without fault or before delay: obligation is extinguished. 2. loss due to fault on part of a solidary debtor: other solidary debtor not at fault are also liable to the creditor/s, but they can recover from the guilty or negligent co-debtor. 3. loss without fault but with delay: same rule as number 2. Art. 1222: Defenses available to solidary debtor: 1. derived from the nature of the obligation: this is a complete defense because it nullifies the obligation or renders it ineffective. 2. personal defences or which pertain to share of debtor sued: minority, etc. like insanity, mistake, violence, incapacity,