Divisible and Indivisible / Obligation with a Penal Clause Flashcards
What is a divisible obligation? What is an indivisible obligation?
Under Article 1225, an obligation is divisible if its object involves (1) execution of number of days of work, (2) accomplishment of work by metrical unit, or (3) has a prestation that is susceptible to partial performance or can be delivered in parts.
An indivisible obligation is an obligation to give definite things or has a prestation that is not susceptible to partial performance or cannot be delivered in parts.
When can a divisible obligation be an indivisible obligation? And how is the divisibility or indivisibility of an obligation not to do determined?
Under Article 1225, generally, if the object of the obligation is susceptible to partial performance, it is a divisible obligation. Exception to this rule is, when the law specifically requires or it is intended by the two parties, then the obligation will be deemed indivisible.
Under the same Article, the divisibility or indivisibility of an obligation not to do is determined by the character of the prestation.
What is an obligation with a penal clause? What is the purpose of such penal clause, and when it is demandable?
Under Article 1226, an obligation with a penal clause is one that has an undertaking by virtue of which the debtor assumes greater liability in case of breach of the obligation.
The purpose of the penal clause is to strictly enforce performance of the debtor with the principal obligation, and if he fails to do so, the penalty shall substitute the indemnity for damages incurred from such breach.
The penalty is demandable when there is non-performance or later performance of the principal obligation. In other words, in order for the penalty to arise, there must be a breach of the obligation.
What are the limitations of the debtor and the creditor in an obligation with a penal clause?
Under Article 1227, in an obligation with a penal clause, generally, a debtor cannot exempt himself from the performance of the principal obligation and just pay the penalty instead. Exception to this rule is, if there is stipulation between the two parties allowing such act.
In the part of the creditor, generally, a creditor cannot compel the debtor to deliver the principal obligation and penalty simultaneously. Exception to this rule is, if such right is given to him, then he may validly do so.
Is proof of actual damages necessary for the demand of the penalty?
Under Article 1228, it is set forth that a penalty is demandable in case of noncompliance of the obligation, either totally or partially, so proof of actual damages is not necessary to demand the penalty from the debtor.
Can judges reduce the penalty in case of partial or irregular fulfillment? How about if there is no fulfillment?
Under Article 1229, judges can reduce the penalty in case of partial or irregular fulfillment in the part of the debtor. The same goes if the debtor have not fulfilled the obligation at all, but only if the penalty is iniquitous or unconscionable.
What is the effect if the principal obligation is null and void? How about if the penal clause is null and void?
Under Article 1230, if the principal obligation of an obligation with a penal clause becomes null and void, the obligation also becomes void. But if the penal clause becomes null and void, the obligation will still be subsisting.
