Midterm Flashcards
Kinds of Obligation
Obligation that is not subject to any condition and no specific date is mentioned for its fulfillment.
Pure Obligation
Demandable at once, provided there will be no absurdity
Pure Obligation
An obligation whose consequences are subject in one way or another to the fulfilment of a condition.
Conditional Obligation
When the original period or condition had been cancelled by the mutual stipulation of both parties,
obligation becomes pure, hence, demandable at once.
A future and uncertain event, upon the happening of which, the effectivity or extinguishment of an obligation (or right) subject to it depends.
Condition
It is an uncertain event which wields an influence on a legal relationship.
Condition
Characteristics of a condition
- Future and uncertain
- Past but unknown
- It must not be impossible
Two principal kinds of condition
- Suspensive Condition
- Resolutory Condition
the demandability and /or efficacy of the obligation is suspended until the happening of the uncertain event which constitutes the condition.
Suspensive Condition
condition precedent or condition antecedent
Suspensive Condition
happening of the condition gives rise to the obligation (or right*).
Suspensive Condition
condition subsequent
Resolutory Condition
one the happening of the
condition will extinguish an obligation (or right*) already existing.
Resolutory Condition
What happens to an obligation if suspensive/resolutory condition is fulfilled?
Suspensive: Obligation arises
Resolutory: Obligation is extinguished
What happens to the tie of law if suspensive/resolutory condition does not take place?
Suspensive: tie of law does not appear
Resolutory: tie of law is consolidated
What happens to an obligation of suspensive/resolutory condition in term of its effect?
Suspensive: the existence of the obligation is a mere hope
Resolutory: effects flow, but it hovers the possibility oftermination.
What is 1181 all about?
effect upon happening of Condition with respect to acquisition of rights or loss of that right.
If suspensive condition, this act depends upon the happening of the event which constitutes the condition.
If the suspensive condition
does not take place and it is certain that it will not be fulfilled, the parties would stand as if the conditional obligation had never existed.
Acquisition of rights
In obligation subject to a resolutory condition, the
happening of the event which constitute the condition produces the extinguishment or __________________.
Loss of rights already acquired
Other classification of Conditions that influence an obligation
- Condition according to Cause or Origin
- Conditions that are Impossible or Illegal: Divisible and Indivisible
- Conditions that are Positive and Negative
Conditions according to Cause or Origin
- Protestative / Facultative Condition
- Casual Condition
- Mixed Condition
this condition depends upon the sole will of the debtor or the sole will of the creditor
Protestative or Facultative Condition
What happens if the condition is suspensive in Protestative or Facultative Condition? (if sole will of the debtor)
the obligation with the condition is VOID for being illusory
What happens if the condition is resolutory in Protestative or Facultative CONDITION? (if sole will of the debtor)
the obligation with the condition is VALID.
What happens to the obligation condition in Protestative or Facultative CONDITION? (if sole will of the creditor)
Regardless if suspensive or resolutory, the obligation is VALID.
Condition that depends on chance or hazard or the will of a third person (the obligation with this condition are both VALID.)
Casual Condition
Condition that depends partly on the will of one of the parties and partly on chance or the will of a third person (the obligation with these conditions are all VALID.)
Mixed Condition
Conditions that seem illogical
Impossible Condition
prohibited by good customs, public policy, or by law i.e.,
Illegal Condition
What is the effect if such condition is impossible or illegal thing to do?
BOTH the condition and the obligation are VOID
What is the effect if such condition is negative(not to do the impossible)?
disregard the condition but the obligation remains.
What is the effect if such condition is negative (not to do an illegal thing)?
Both the condition and obligation are VALID.
- Condition capable of partial performance.
- If the obligation is divisible, the part thereof not affected by the impossible or illegal condition shall be VALID.
Divisible condition
- Not capable of partial performance because of the nature of the thing or the intention of the parties.
- If the obligation is indivisible, the entire obligation is VOID if both impossible and illegal.
Indivisible condition
- an act is to be performed.
- condition happening of an event at a determinate time.
Positive Condition
An obligation under positive condition is extinguished if:
- as soon as the time expires without the event taking place
- as soon as it becomes indubitable that the event will not take place even if the given time has not expired yet
- something will be omitted.
- an event will not happen at a determinate time.
Negative Condition
An obligation under negative condition is effective and binding if:
- from the moment the time indicated has elapsed without the event taking place
- from the moment it has become evident that the event cannot occur, although the time indicated has not yet elapsed.
When is an obligation demandable at once?
- When it is a pure obligation
- When it has a resolutory condition; and
- When it has a resolutory period
Necessarily must come whether the parties know when it will happen or not (like death, since this is sure.)
Period or Term
Art. 1197 refers to the instances when the court may fix a period, and it includes the following:
- When the duration depends upon the will of the debtor
- When although the obligation does not fix a period, it can be inferred that a period was intended
implies that the condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment.
Doctrine of Constructive fulfillment of suspensive condition
What are the requisites of the Doctrine of Constructive fulfillment of suspensive condition?
- The condition is suspensive
- The debtor actually prevents the fulfillment of the condition
- The debtor acts voluntarily or wilfully.
When an obligation to give with a suspensive condition is agreed upon, the following are the rules observed:
- Happening of the suspensive condition gives rise to the demandability of the obligation.
- The effects of the fulfillment of the suspensive condition is that it retroacts to the day when the obligation was constituted.
- In relation to the fruits and interests, it’s best to note if it is a reciprocal or a unilateral obligation.
- Actions to preserve creditors right (he may take or bring appropriate actions for the preservation of his right as the debtor may render nugatory the obligation upon the happening of the condition.)
- Right of the debtor to recover what he has paid by mistake prior to the happening of the suspensive condition.
- Such right is granted to the debtor because the creditor may or may not be able to fulfill the condition imposed hands is not certain that the obligation will rise.
- a case of solution indebiti.
Correlative Right of the Debtor
The concepts of loss, deterioration, and improvement on the specific things subject matter of an obligation applies only if:
- the suspensive condition is fulfilled
- the object is specific not generic.
A thing is considered ____________ when:
- it perishes (physical loss).
- goes out of commerce (legal loss).
- disappears that its existence is unknown and cannot be recovered (civil loss).
may be lost
A loss that perishes
Physical loss
A loss that goes out of commerce
Legal Loss
A loss that disappears and its existence is unknown and cannot be recovered
Civil Loss
If the object is lost, what is the debtor liable to?
- Without the fault of the debtor: the obligation shall be extinguished
- With the fault of the debtor: he is obliged to pay damages
A decline in value or utility
May deteriorate
If the object deteriorates, what is the debtor liable to?
- Without the fault of the debtor: impairment shall be borne by the creditor
- With the fault of the debtor: creditor may choose between rescission of the obligation or its fulfillment, but with indemnity for damages in either case.
Increase or appreciation of value
May be improved
If the object is improved, what is the right of the creditor/debtor?
- If improved by its nature/time: the improvement shall inure to the benefit of the creditor.
- if improved at the expense of the debtor: he shall have no other right than that granted to usufructuary.
The right to cancel (or resolve) the contract or reciprocal obligations in case of non-fulfillment on the part of them.
Power to rescind
Based on the breach of faith by the defendant, which is violative of the reciprocity between the parties.
Rescission
Obligations where two parties are reciprocally obliged to do something or give something.
The cause must be identical and the obligations should arise simultaneously.
Reciprocal Obligation
(Kind of Obligations) Were the cause must be identical and the obligations should arise simultaneously
Reciprocal obligations
The power to rescind the obligations of the injured party is implied in ___________?
Reciprocal obligation
What are the characteristics of the Right to Rescind or Resolve under Art. 1191?
- It only exists in reciprocal obligation.
- It can be demanded only if the plaintiff is ready, willing and able to comply with his own obligation, and the other is not.
- The right to rescind is not absolute.
thus:
- trivia or slight breaches will not cause rescission
- If there be just cause for fixing the period within which the debtor can comply, court will not decree rescission.
- it’s the property is now in the hands of an innocent third party who is in lawful possession of the same - The right to rescind needs judicial approval in certain cases, and in others, does not need such support.
- The right to rescind is implied (presumed) to exist, therefore, need not be expressly stipulated.
- The right to rescind maybe waived, expressly or impliedly
What is Choice of Action By The Injured Party under Art. 1191 (Power to Rescind)
- The injured party may choose between:
a. Fulfillment plus damages
b. Rescission plus damages - The right is alternative
- The right is not conjunctive, that is, the plaintiff cannot ask for both remedies
- The injured party who has elected fulfillment may, if fulfillment be impossible, still ask for rescission.
- If an action is brought for specific performance, the damages sought must be asked in the same action; otherwise the damages are deemed waived.
Is one whose effects are consequences are subjected in one way or another to the expiration or arrival of said period or term
Obligation with a period
Is defined as a certain length of time which determines the effectivity or the extinguishment of obligations.
Period
It consists in space of time which has an influence on obligations as a result of the juridical act, and either suspends their demandableness, or produces their extinguishment.
Period
It is an uncertain event
Condition
A certain event which must happen sooner or later, at the date known beforehand, or a time which cannot be determined
Period
Between period or term, it always refers to the future
Period
Between period or term, under the law it can refer even to the past
Condition
It can cause an obligation to arise or cease
Period
What are the Requisites for a Valid Period or Term?
a) It must refer to the future.
b) It must be certain (sure to come) but can be extended.
c) It must be physically and legally possible, otherwise the obligation is void.
The Different Kinds of Periods or Terms
- According to effect
- According to source
- According to definiteness
The Different Kinds of Periods or Terms:
According to Effect
- Suspensive period (ex die).
- Resolutory period (in diem).
The obligation begins only from a day certain upon the arrival of the period (Art. 1193, par.1);
Suspensive period (ex die).
The obligation is valid up to a day certain and
terminates upon arrival of the period (Art. 1193, par.2)
Resolutory period (in diem)
The Different Kinds of Periods or Terms:
According to Source
- Legal Period
- Conventional / Voluntary Period
- JUdicial Period
a period granted under the provisions of the law.;
Legal Period
period agreed upon or stipulated by the parties
Conventional or voluntary period.
the period or term fixed by the courts for the performance of an obligation or for its termination. (Art. 1197)
Judicial period.
The Different Kinds of Periods or Terms:
According to Definiteness
- Definite Period
- Indefinite period.
the exact date or time is known and given. (period)
Definite period.
When it is not fixed or it is not known when it will come.
- Where the period is not fixed but a period was intended, the courts are usually empowered by law to fix the same.*
Indefinite Period
understood to be that which must necessarily come, although it may not be known when.” (Par. 3, Art. 1193, Civil Code)
“A Day Certain”
what are the Rules Anent an Obligation with a Period?
- If before the arrival of the day certain, if the specific object suffers loss, deterioration, or
improvement, then the rules laid down in Art. 1189 shall be observed. (Art. 1194) - Anything paid or delivered before the arrival of the period, the obligor unaware of the
period or believing that the obligation has become due and demandable, may be recovered, with the fruits and interests. (undue payment) - Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of both the creditor and the debtor, unless from the tenor of the same or other circumstances, it should appear that the period has been established in favor of one or of the other. (Art. 1196)
General rule whenever a period in an obligation is designated:
Term/Period is for the benefit of the debtor and creditor, which means that the
debtor cannot pay prematurely and the creditor cannot demand prematurely.
In the general rule whenever a period in an obligation is designated, what does it mean “for the benefit of both”?
- When an interest is stipulated.
- When creditor is interested in keeping his money safely invested (making debtor as sort of depository) or when the creditor wants to protect himself from dangers of currency depreciation.
Exemptions to the general rule whenever a period in an obligation is designated:
- Term is for the benefit of the debtor alone.- meaning he is required to pay only at the end, but he may pay even before.
- Term is for the benefit of the creditor alone. – meaning creditor can demand at any time even before the term expires, and he cannot be compelled to accept payment from the debtor prior to the stipulated period.
When a period is designated in an obligation, how does it become For the benefit of the debtor alone?
- When the loan is without interest, generally only for the benefit of debtor.
- When payment is to made “within” a certain period from date of contract.
When a period is designated in an obligation, how does it become for the benefit of creditor alone?
only exists if there is a stipulation to this effect, as when the contract provides that no payment should be made till after a certain given period.
what does the phrase “when the debtor loses right to make use of the period”?
period or term is extinguished or it disappears, and therefore, the obligation is demandable at once.
What is article 1198 all about?
Debtor Lose Right to Make Use of the Period
What are the instances as provided by law when debtor lose the right to use the
period?
- When after the obligation has been contracted, he becomes insolvent, unless he gives guaranty or security for the debt.
- When he does not furnish to the creditor the guaranties or securities which he has promised.
- When by his own acts he has impaired said guaranties or securities after their establishment, and when through a fortuitous event they disappear unless he immediately given new ones equally satisfactory;
- When the debtor violates any undertaking, in consideration of which the creditor
agreed to the period; - When the debtor attempts to abscond.
Classification of obligation according to OBJECT:
- Simple Obligation
- Compount Obligation
A kind of obligation where there is only one (1) prestation.
Simple Obligation
A kind of obligation where there are two or more prestations.
Compound Obligation
Compound Obligation may be:
- Conjunctive obligation.
- Distributive obligation.
Obligation where there are several prestations and all of them are due.
Conjunctive obligation.
Obligation where two or more prestations are due.
Distributive obligation.
Distributive obligation can be:
- Alternative Obligation
- Facultative Obligation
Obligation where various prestations are due but the performance of one of them is sufficient as determined by the choice
which, as a general rule, belongs to the debtor.
Alternative Obligation
Obligation where it becomes imperative that performance by the debtor should be complete since the creditor cannot be compelled to receive part of one and part of the other undertaking. (Art. 1199)
Alternative Obligation
Obligation where only one prestation is due but the debtor may substitute another.
Facultative Obligation
Rules to Observe in Alternative Obligations:
Who has the right of choice?
As a general rule, the right belongs to the debtor. By way of exception, it may
be exercised by the creditor but such right must be expressly granted to him. (Art. 1200
par. 1)
Rules to Observe in Alternative Obligations:
Such right of choice by the debtor is not absolute but subject to the following limitations:
1) cannot choose prestations which are impossible;
2) unlawful; or
3) those which could not have been the object of the obligation. (Par.2, Art. 1200)
Rules to Observe in Alternative Obligations:
When does the choice produce effect?
- The choice shall produce no effect except from the time it has been communicated.
- Since the law requires no specific form, it is believed the choice can be communicated orally or in writing, expressly or impliedly, such as by performance of one of the obligations.
(Art. 1201)
In an alternative obligation and a notice has been made that a choice has been done, the obligation becomes?
a simple obligation to do or deliver the object selected.
Is consent of the creditor required when the debtor manifests his choice?
No. The real purpose of the notice is to inform the creditor that the obligation is now a simple
one, no longer alternative, and if already due, for the creditor to receive the object being
delivered, if tender of the same has been made.
What are the Requisites for the Making of the Choice?
- made properly so that the creditor or his agent will actually know;
- made with full knowledge that a selection is indeed being made;
- made voluntarily and freely (without force, intimidation, coercion or undue influence)
- made in due time, that is, before or upon maturity;
- made to all the proper persons (hence, if there be joint creditors, all of them must be notified.);
- made without conditions unless agreed to by the creditor (otherwise, it can be said that no real choice is being made)
- may be waived, expressly or impliedly (since all rights in general may be waived).
Rules to Observe in Alternative Obligations:
When does debtor lose the right of choice?
He loses it when among the prestations due
whereby he is alternatively bound, only one is practicable. (Art. 1202)
Rules to Observe in Alternative Obligations:
Effect when the debtor cannot choose because of the creditor’s act?
If through the creditor’s acts the debtor cannot make a choice according to the terms of the obligation, the latter may rescind the contract with damages. (Art. 1203)
What is Art. 1204 all about?
Alternative Rights of Creditor When Loss or Impossibility Occurs Before Debtor’s
Choice
Art. 1204 / Alternative Rights of Creditor When Loss or Impossibility Occurs Before Debtor’s
Choice applies when:
- the right to choose belongs to the debtor
- the loss or impossibility happened before selection was made
- loss or impossibility of all things/service which are alternatively the object of debtor’s
obligation
In Art. 1204, what are rules to be observed when:
Some of the objects have been lost or have become impossible
Even through the fault of the debtor, he is not liable since he has the right of choice and the obligation can still be performed.
In Art. 1204, what are rules to be observed when:
All of the objects have been lost or have become impossible
if fault of the debtor:
- the creditor shall have the right to indemnity for damages since the obligation can no longer
be complied with.
if lost due to fortuitous event:
- the obligation is extinguished.
What is the basis of indemnity if all the objects are lost through debtor’s fault?
The basis of the indemnity if all objects are lost will be the value of the last thing that disappeared or that of the service that last
became impossible.
What is Art. 1205 all about?
When Right of Choice Has Been Given to the Creditor
Alternative Obligation
Art. 1205 / When Right of Choice Has Been Given to the Creditor is applicable when:
- right of choice is expressly granted to the creditor;
- loss happened before selection was made.
- loss of one, some or all of the objects
Rules in case of loss before creditor has made the choice:
- When a thing is lost through fortuitous event.
Creditor can still choose from among the
remainder or that which remains if the other items are lost.
Rules in case of loss before creditor has made the choice:
- When a thing is lost through debtor’s fault.
Creditor can still choose from among the
remainder with damages or the price of the item that was lost also with right to damages.
Rules in case of loss before creditor has made the choice:
- When all the thing’s are lost through debtor’s fault.
Creditor can demand the price of any
of the items with a right to indemnity for damages.
Rules in case of loss before creditor has made the choice:
- When all the things are lost through fortuitous event.
Then the obligation of debtor is extinguished applying the provisions of Art. 1174.
Obligation where only one prestation has been agreed upon but the obligor may render another in substitution.
Facultative obligation
In Facultative obligation, who has the right of choice?
Always with the debtor
It cannot be granted to the creditor unlike in an alternative obligation.
Alternative vs Facultative
Various things are due, but the giving
of one is sufficient
Alternative
Alternative vs Facultative
Only one thing is principally due, and
it is that one which generally is given,
but the other (the substitute) may be
given to render payment or fulfilment
easy.
Facultative
Alternative vs Facultative
If one of the prestations is illegal, the
others may be valid and the
obligation remains.
Alternative
Alternative vs Facultative
If the principal obligation is void, and
there is no necessity of giving the
substitute.
Facultative
Alternative vs Facultative
If it is impossible to give all except
one, that last one must still be given.
Alternative
Alternative vs Facultative
If it is impossible to give the principal,
the substitute does not have to be
given; if it is impossible to give the
substitute, the principal must still be
given.
Facultative
Alternative vs Facultative
The right to choose may be given
either to debtor or creditor.
Alternative
Alternative vs Facultative
The right of choice is given only to the
debtor.
Facultative
These are obligations, unlike others, which are characterized by plurality of contracting
parties, either among the passive subjects or among the active subjects, or both.
Joint and Solidary Obligation
It refers to the kind of obligations according to the number of parties.
Individual Obligation & Collective Obligation
Obligation where there is only one (1) obligor or one (1) oblige;
Individual Obligation
Obligation where there are two (2) or more debtors and /or two (2) or more creditors. It may be joint or solidary.
Collective Obligation
Obligation where the whole obligation is to be paid or fulfilled proportionately by the different debtors and/or is to be demanded proportionately by the different creditors. (Art. 1208)
Joint Obligation
Obligation where each one of the debtors is bound to render, and/or each of the creditors has a right to demand from any of the debtors, entire compliance with the prestation. (Art. 1207)
Solidary Obligation
What is the general rule about collective obligation?
It is presumed to be joint.
Under Art. 1207, there is solidarity only when?
- the obligation expressly so states
- the law requires solidarity
- the nature of the obligation requires solidarity
Solidarity liability also exists when it is imposed in a final judgment against several
defendants.
What are the kinds of Solidarity Obligations according to the parties bound?
- Passive Solidarity
- Active Solidarity
- Mixed Solidarity
Solidarity on the part of the debtors, where any one of them can be made liable for the fulfilment of the entire obligation.
Passive Solidarity
Solidarity on the part of the creditors, where any one of them
can demand the fulfillment of the entire obligation.
Active Solidarity
Solidarity that is in the nature of a mutual guarantee.
Passive Solidarity
Its essential feature is that of mutual
representation among the solidary creditors with powers to exercise the rights of others in the same manner as their rights.
Active Solidarity
Solidarity on the part of the debtors and creditors, where each one of the debtors is liable to render, and each one of the creditors has a right to demand, entire compliance with the obligation.
Mixed Solidarity
Why is a collective obligation always presumed to be joint?
- Solidary obligations are very burdensome for they create unusual
rights and liabilities. - Solidarity between debtors increases their responsibility
- Solidarity between creditors increase the right of each creditor.
The law tends to favor the debtors in presuming that they are bound jointly and not solidarily.
What is Art. 1209 all about?
Joint Indivisible Obligation.
What is Joint Indivisible Obligation?
- The obligation is joint because the
parties are merely proportionately liable. - It is indivisible because the subject matter is not physically divisible into different parts.
- Joint as to liabilities of the debtors or
rights of the creditors but indivisible as to compliance.
What is Art. 1210 all about?
Indivisibility Does Not Necessarily Give Rise to Solidarity
Nor does Solidarity
of itself Imply Indivisibility
Indivisibility refers to?
Solidarity refers to?
- Indivisibility refers to the prestation
- Solidarity refers to the juridical or legal tie
that binds the parties
In case of breach of obligation, how do indivisible obligations and solidarity obligations differ?
- In indivisible obligations: only the debtor guilty is liable for damages (Art. 1209, 1224),
- In solidary obligations: all of the debtors are liable for the breach committed by a debtor (Art. 1221.)
How do indivisibility and solidarity exist?
- Indivisibility can exist although there is only one (1) debtor and one (1) creditor
- Solidarity must have at last be two (2) debtors or two (2) creditors. (1207, 1208)
In case of insolvency of 1 debtor, how do indivisible obligations and solidarity obligations differ?
Indivisible: the others are not liable
Solidarity: other debtors are proportionately liable
(1217)
Can a solidary creditor assign his rights without the consent of the others?
No.
What can extinguish a solidary obligation?
Novation, compensation, confusion or remission of the debt, made by any of the
solidary creditors or with any of the solidary debtors.
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 obligations corresponding to
them
Can the creditor may proceed against any one of the solidary debtors or some or all of
them simultaneously?
Yes. 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. (Art. 1216.)
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.
How can he, who made the payment, claim from his co-debtors?
He can claim only the share which
corresponds to each, with the interest for the payment made.
In relation to collection from co-debtors, what happens if the payment was made before the debt is due?
no interest for the intervening period may be demanded.
In relation to collection from co-debtors, what if one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor paying the obligation?
such share shall be borne by all his co-
debtors, in proportion to the debt of each.
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 the thing has been lost or if the prestation has become impossible by one of the solidary debtors*…
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 fortuitous event, the thing is lost or the performance has become impossible after one of the solidary debtors has incurred delay through the judicial or extrajudicial demand upon him by the creditor…
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.
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 those of which are personal
to him, or pertain to his own share.
What defenses can a solidarity debtor claim?
- Defense arising from the nature of the obligation – such as payment, prescription, remission, statute of frauds, presence of vices of consent, etc.
- Defenses that are personal to him or which pertain to his own share alone – such as minority, insanity, and others purely personal to him.
- Defenses personal to the other solidary creditors but only as regards that part of the debt for which the other creditors are liable
Obligation where the object of which, in its delivery or performance, is capable of partial performance
Divisible performance
Obligation where the object of which, in its delivery or performance, is not capable of partial performance
Indivisible Obligation
Solidarity vs Indivisibility
refers to the juridical tie or vinculum
juris between the parties
Solidarity
Solidarity vs Indivisibility
refers to the prestation that is not
capable of partial performance
Indivisibility
Solidarity vs Indivisibility
exists only if there are two or more
debtors or two or more creditors
Solidarity
Solidarity vs Indivisibility
may exist even if there is only one
debtor and only one creditor
Indivisibility
Solidarity vs Indivisibility
each debtor is bound to the fulfilment
or compliance of the entire obligation
and each creditor may demand the
fulfilment or compliance of the entire
obligation
Solidarity
Solidarity vs Indivisibility
each debtor is not bound to fulfil the
obligation more than his share and
each and each creditor cannot demand
fulfilment of the obligation more than
his share
Indivisibility
Solidarity vs Indivisibility
In case of breach of the obligation, the
solidary character of the obligation
remains
Solidarity
Solidarity vs Indivisibility
In case of breach of the obligation, the
indivisible obligation is converted into
indemnity for damages; thus, the
indivisible character of the obligation
is terminated
Indivisibility
Solidarity vs Indivisibility
All the debtors are liable
for damages even if only one of them
is guilty of breach of the obligation
Solidarity
Solidarity vs Indivisibility
only the debtors guilty of breach of the obligation is liable for damages
Indivisibility
Solidarity vs Indivisibility
if one debtor is insolvent, all the other debtors who are solvent are proportionately liable for the share of the former
Solidarity
Solidarity vs Indivisibility
if one debtor is insolvent, the other debtors are not liable for his share
Indivisibility
Classes or Kinds of Indivisibility
- Conventional indivisibility.
- Natural or absolute indivisibility.
- Legal indivisibility
indivisibility by common agreement
Conventional indivisibility.
indivisibility due to the nature of the object of the undertaking
Natural or absolute indivisibility
indivisibility provided by law.
Legal indivisibility
An obligation is presumed indivisible if…
there is only one creditor and only one debtor.
How to determine whether an obligation is divisible or not?
Identify the purpose of the obligation or the intention of the parties.
Hence, even though the object or service may
be physically divisible, an obligation is indivisible if so provided by law or intended by the parties. (Art. 1225, par.3)
the nature of an obligation where several debtors are jointly bound together yet the object is indivisible, still being proportionally liable.
Joint Indivisible Obligation
Incase of non-compliance in a Joint Indivisible Obligation?
the obligation is converted into one for damages
In Joint Indivisible Obligation, why can’t the creditor ask for specific performance or rescission?
because there is no cause of action against the
other debtors who are willing to fulfill their promises.
How will indemnity take effect in a Joint Indivisible Obligation?
- It will be borne by that debtor who does not comply.
- For those who are willing and able CAN only be proportionally liable for the corresponding portion of the price of the thing or of the value of the service in which the obligation consists.
Obligations are deemed Indivisible if…
- Obligations to give definite things.
- Obligations which are not susceptible of partial performance.
- Obligations provided by law to be indivisible even if the service or thing is physically divisible.
- Obligations intended by the parties to be indivisible even if thing or service is
physically divisible.
Obligations are deemed Divisible if…
- Obligations which have for their object the execution of a certain number of days of
work. - Obligations which have for their object the accomplishment of work by metrical
units. - Obligations which by their nature are susceptible of partial performance.
Obligation that can stand by itself and does not depend for its validity and existence upon another obligation.
Principal Obligation
Obligation that is attached to a principal obligation and, therefore, cannot stand alone.
Accessory Obligation
Obligation that contains an accessory undertaking to pay a previously stipulated indemnity in case of breach of the principal prestation, intended primarily to induce its fulfillment.
Obligation with a Penal Clause
an accessory undertaking attached to an obligation to assume greater liability in case of breach.
Penal Clause
Purposes of a Penal Clause
- To insure their performance by creating an effective deterrent as against
breach, making the consequences of such breach as onerous as it may be
possible. (the general purpose of a penal clause.)
Intended for reparation. - To substitute a penalty for the indemnity for damages and the payment of interests in case of non-compliance (Art. 1226);
or
to punish the debtor for the non-fulfillment or violation of the obligation. Intended for punishment.
In an obligation with penal clause, the penalty takes the place of the indemnity for damages and the payment of interests in case of non-compliance,
What are the three (3) instances where the creditor can additionally file an independent action to recover damages?
- When so stipulated by the parties
- When the obligor refuses to pay the penalty, in which case the creditor may recover legal interest thereon.
- When the obligor is guilty of fraud in the fulfillment of the obligation, in which case
the creditor may recover damages caused by the fraud.
When can the penalty be enforced?
- only when it is demandable.
- penalty, as a stipulation in a contract, is demandable only if there is a breach of the obligation and it is not contrary to law, morals, good customs, public order, or public policy.
(penalty) If the obligation cannot be fulfilled due to a fortuitous event?
- the penalty is not demandable
- the penalty may be reduced if it is iniquitous or unconscionable or in case there is partial or irregular fulfillment.
Is penalty substitute for performance?
No. Generally, the debtor cannot just pay the penalty instead of performing the obligation.
If the debtor is allowed to pay the penalty, this would in effect make the obligation an alternative one.
When can the the debtor exempt himself from the non-fulfillment of the obligation?
only when “this right has been expressly reserved for him.”
Why is penalty clause is presumed subsidiary?
General rule, the creditor cannot demand the fulfillment of the obligation and the satisfaction of the penalty at the same time.
What is the effect of the nullity of the Penal Clause?
- If only the penal clause is void, the principal obligation remains valid and demandable.
- The penal clause is just disregarded.
- The injured party may recover indemnity for damages in case of non-performance of the obligation as if no penalty had been stipulated.
What is the effect of the nullity of the Principal Obligation?
- If the principal obligation is void, the penal clause is likewise void. the
clause cannot stand alone without the principal obligation
What if the nullity of the principal obligation is due to the fault of the debtor, who acted in
bad faith, by reason of which the creditor suffered damages, on equitable grounds?
the penalty may be enforced.
