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Joint and Solidary Liability

1207.
Joint Creditors can demand his proportionate share, debtors can only be liable for his share of the
obligation
Solidary Creditors can demand entire payment of obligation, each debtor is bound to comply with the
entire obligation
PRESUMPTION: If obligation is silent, it is presumed to be Joint
If obligation is silent with respect to the nature of the right of the creditor or of liability of
the debtor,
-Creditor is entitled to his proportionate , debtor liable only for his share of the
obligation
Exceptions: Express Stipulation (need not literally say solidary), Required by Law, nature
1208.
PRESUMPTION: If obligation is silent with regards to how much is proportional, then it should be divided
equally with the number as there are creditors and debtors,
Exception: Express Stipulation, Required by Law and Nature of the obligation.
A joint creditor cannot act in representation of others
A joint debotr cannot be compled to answer liability of the others
IF THERE IS BREACH BY ONE OF THE DEBTOR Born by the one responsible ALONE, so as DEFENSE
Acknowledgement of one of the debtors, will not stop running the period of prescription to
others.
1209.
Joint Indivisible Obligation midway between joint and solidary
1. no creditor can act in representation of others
2. no debtor can be compelled to answer liability of others
Difference: joint with respect to the parties, indivisible with respect to the fulfilment
of the obligation
two,

ABC obligated themselves to deliver jointly a car to X, X should compel ABC, not only one or

Collective act of all creditors, is also necessary for the enforcement of the obligation.
demand

ABC Obligated themselves to deliver jointly a car, to X and Y, X and Y shall concur to

BREACH: one debtor fails to comply with his undertaking, obligation can no longer be fulfilled, it is
CONVERTED into one of indemnity for damage
ABC obligated themselves to deliver joint a car to X, X demanded fulfilment, A was not yet
ready to fulfil.
A is liable therefore of not only his share of the obligation but also to damages, B and C only their share.
INSOLVENCY OF DEBTOR: other debtor cannot be held liable for the part of the insolvent debtor

INTERUPTION OF PERIOD OF PRESCRIPTION - 2 views, 186


Rights of Creditors may be prejuduiced by their collective acts, act joint creditor beneficial to
others, act of one would be sufficient
Logical View: act would not be valid because of its indivisible nature, it requires collective action, not
only one. (debtor must pay all)
1210. Indivisibility and Solidarity are not identical
(1) Nature indivisibility
{refers to the prestations which constitutes the object of the
obligation
Solidarity
{refers to the legal tie and consequently , to the subjects or parties of
the obligation
(2) Requisites indivisibility {Plurality of subjects is not required one debtor/creditor (car)
Solidarity {Plurarity of subjects is indispensible
(3) Effects of Breach - indivisibility { converted into indemnity of damages invisibility of the
obligation is terminated
Solidary { liability on the part of debtors, is solidarity among debtor remains.

1211.
Active Solidarity among creditors tie among several creditors of one obligation, creditor only with
respect to his share, but in relation to debtors, represents all creditors.
EFFECTS: creditor, via mutual agency, can collect not only his share of the obligation but to the
entire obligation
With the consequent obligation to render an account of his acts (get only his share, give
the others theirs)

Passive Solidarity among debtors tie among several debtors of one obligation, debtor with respect to
his share of the obligation, but in relation to the creditors, represents all other debtors.
EFFECTS: each debtor in so far as the creditors are concern, is the debtor of the entire amount.
Fundamental effect, liable to pay the entire obligation, with the consequent right to
demand reimbursement.
A solidary guarantor or surety is a person who binds himself solidary with the principal of the debtor.
Similarity: they are both solidary liable to the creditor for the entire obligation.
Solidary Debtor

Liable for debt of another but also which is properly


his own
Right to demand reimbursement from his co-debtors
their corresponding shares (many)
Limited rights, extension to one debtor without
knowledge of other solidary debtors would not have
the effect of releasing the latter from their

Surety does not become a solidary debtor,


assumes to pay debt before properties of the
principal debtor is exhausted.
Liable for debt of another, no original debt
Reimbursement from the principal debtor of the
entire amount that he has paid, only those debtor
who he guaranteed
Extension granted to the principal debtor would
release the surety from his obligation

obligation

EFFECTS OF VARIED CONDITIONS


Uniform or Varied,
Relationship of solidarity is not destroyed by the fact that the obligation of one debtor is conditional, the
obligation of another is with a term, and a third is pure. Nor is it destroyed, if they are bound by different
conditions or by different periods.
Right of the creditors is limited to the recovery of the share owed by the debor whose obligation has
already matured leaving in suspense his right to recover share from those who have not yet matured.

1212. Each one of the solidary creditors may be do whatever may be useful to others, but not
anything which may prejudicial to the latter.
BENEFICIAL solidary creditor may demand performance of the entire obligation, BENEFITS those did not
demand as well.
IF PERFORMED , other creditors have right to demand from creditor their corresponding
shares
PREJUDICIAL first distinguish between the effect of such acts upon the relationship of the solidary
creditors with debtors, and creditors to creditors.
For the debtors the prejudicial act is valid and binding, (mutual representation principle)
For the creditors the creditor responsible for the act shall incur the obligation to indemnify
damages,
1213. Solidary Creditor cannot assign his rights without the consent of the others.
Active solidarity is essentially a mutual agency predicated upon mutual confidence ( personal
qualification )
Assignment of rights to a co-creditor (valid)
Assignment of rights to a third person without consent (invalid) - || co creditors and
debtors may not recognize
1214.
Effect of Demand by a Creditor - payment shall be made only to the creditor who made the
demand and no other.
ABSENT DEMAND payment may be made to anyone of the solidary creditor
1215.
Novation change or substitution of an obligation by another, resulting in its extinguishment or
modification, by either changing the OBJECT or PRINCINPAL condition, by substituting another in place of
the debtor, or by subrogating a third person in the rights of the creditor. (NEW IN LIEU OF THE OLD)
OBLIGATION

Liability of the creditor who effected shall depend upon the CHARACTER OF THE NEW
Changing its object or principal condition it may be prejudicial or beneficial
If prejudicial solidary creditor shall reimburse his co-creditor for damages
If beneficial liable for the new share, as well as benefits.
Changing debtor deficiency of the new debtor, novation creditor is liable.

General rule, extension of payment of obligation given by the creditor to a solidary debtor does not
constitute a novation with respect to the other debtors (page 198)
Compensation - is a figurative operation of weighing two obligations simulatenously in oreder to
extinguish them to the extent that the amount of one is covered by the amount of the other. ( similar value
of utang set off)
Confusion - refers to merger of the qualities of creditor and debtor in one and the same person with
respect to one and the same obligation ( A owes B money, B owes money to C and C owes money to A),.,,
in this case, A executed a voucher payable to B, which b then used as instrument to pay C, and C owing
money to A uses the same cash voucher issued by A. In this case, A is the creditor and the Debtor,
confused in one person,
Remission (condonation) act of pure liberality by virtye of which the creditor, without having receive
any compensation, renounes his right to the obligation, (maybe total or partial) effected by one, some
but not all of the solidary creditors, in favor of one or some or all of the debtors,.
WHETHER TOTAL OR PARITAL, the obligation is extinguished in its entirety or in that part or aspect to which
the remission refers,
Giving liability on the part of the creditor/s responsible to reimburse the others for their share, (not
included creditors who also)
EFFECTS OF REMISSION

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