Law on “Obligations and Contracts”

Section 4: Joint and Solidary Obligations

Art 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.
Art 1208
If from the law, or the nature or the wording of the obligations to which the preceding
article refers, the contrary does not appear, the credit or debt shall be presumed to be divided
into as many equal share as there are creditors or debtors, the credits or debts being
considered distinct from one another, subject to the Rules of court governing the multiplicity of
suits.
Kinds of Obligation:
1. Individual Obligation – only 1 obligor and 1 obligee
2. Collective Obligation – 2 or more debtor and 2 or more creditor, and may be joint or
solidary
Obligation under plurality of parties
 Joint Obligation – paid/fulfilled proportionately by different debtors or demanded
proportionately by different creditors
 Solidary Obligation – entire or whole compliance of one is a compliance to others.
Collective obligation presumed as Joint:
 Joint obligation – mancomunada; mancomunadamente; pro – rata
 Share of each obligation is specified, and the correlative rights are also known.
Requisites of Joint:
 Many debts as debtors
 Many credits as creditors
 Debtor and creditor are proportionate only for their part.
Multiplicity of Suits
 Seek to prevent the filing of two or more suits or complaints for a single cause of action
or the same violation of the legal right of the plaintiff.
Example:
A, B and C borrowed 15k from D. The presumption is that the debtors are jointly liable.
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Here, there are 3 debts and 1 credit. D can demand only 5k each from A, B, and C or total
of 15k.
Since debts are distinct and separated from each other, insolvency of one debtor shall not
make the other debtors liable.
*or it could be otherwise, with the creditors, where there are 1 debt and 3 credits.
Obligation is presumed to be Solidary
 One of the debtors can be compelled to pay the active obligation or can be proceeded
against for the full amount of the obligation.
 Solidaria; in solidum; juntos o separademente
Requisite of Solidary
1. Obligation expressly so states
2. Law requires solidarity
3. Nature of the obligation requires solidarity.
Kinds of Solidarity
According to parties bound:
1) Passive Solidarity
 Solidarity on the part of the debtor
 One of them can be made liable for the fulfillment = it is in the nature of mutual
guaranty
 1 debtor may fulfill the whole obligation and collect or claim with the other its
share.
 Example: A and B are solidary debtors of C in the amount of 20 000
 Only 1 debt and 1 credit
 C may demand the whole oblgiation from either A or B or both of them
simultaneously.
 C cannot collect more than 20 000
 Liability is solidary unless it is clearly stated that the intention of the
parties is that they may pay without right of choice of the creditor.
2) Active Solidarity
 Solidarity on the part of the creditors
 One of them can demand the fulfillment of the whole obligation
 Mutual representation among the solidary creditors with powers to exercise the
rights of others in the same manner as their rights.
 Example: A is liable for 20 000 in favor of B and C who are solidary creditors
 A may pay either B or C
 B and C may demand payment from A as long as debt is not yet paid.
 Unless it clearly appears that the intention of the parties is to give to A the
right to choose whom to pay.
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 If either of the solidary creditors received the payment, either is liable for
the share of the other according to the agreement.

3) Mixed Solidarity
 Solidarity on the part of debtor and creditor
 Payment or collection of one = reimbursement from other parties.
According to source:
1) Conventional Solidarity
 Solidarity is based upon the agreement of the parties
 No contract to solidarity = only joint
2) Legal Solidarity
 Solidarity is imposed by the law
3) Real Solidarity
 Solidarity is imposed by the nature of obligation
 Law does not interfere or does not expressly indicate where obligations are
solidarity in nature
Solidarity not Presumed
 Presumption: two or more persons in the same obligation is that it is joint.
 Reason: solidary obligations are very burdensome for they create unusual rights and
liabilities. Solidarity b/w debtors increases their responsibility while solidarity b/w
between creditors increases the right of each creditor.
Art 1209
If the division is impossible, the right of the creditors may be prejudiced only by their
collective acts, and the debt can be enforced only by proceeding against all the debtors. If one of
the latter should be insolvent, the others shall not be liable for this share. (1139)
Jointly Indivisible Obligation
- Obligation is joint since the parties are merely proportionately liable.
- It is indivisible because the subject matter is not physically divisible into different parts.
Example:
A, B and C are jointly liable to give D a car worth 150 000. On the date of delivery, C is
not willing to comply
 Joint as to liabilities (damages of 50k each) but indivisible as to compliance.
 Unwilling debtor is liable for damages
 If A and B suffered damages, they may recover it from C
 If one debtor is insolvent, other debtors is not liable for its share, the creditor must wait
until the debtor can pay.
 If there are 2 or more creditors – if one creditor refuses to accept, debtor may legally
refuse to deliver the car and deposit the car in court by way of consignation.
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Art 1210
The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does
solidarity of itself imply indivisibility.
Solidarity vs Indivisibility
Indivisibility Solidarity
Refers to prestation Refers to legal tie
Only debtor guilty of breach is liable for All debtors are liable for breach committed by
damages one of them
1 debtor and 1 creditor At least 2 debtor and 2 creditors
Others are not liable in case of insolvency of Debtors are liable proportionately
one debtor

Art 1211
Solidarity may exist although the creditors and the debtors may not be bound in the same
manner and by the same periods and conditions.
 Solidarity with different periods, condition, or manner
Kinds of Solidary Obligation (According to Legal Tie)
1. Uniform – parties are bound by the same stipulations.
2. Non-Uniform or Varied – parties are not subject to the same stipulations.
RULES:
1. Solidarity is not affected by diverse stipulation.
2. There may be a solidary obligation although parties may not be bound in the same
manner.
3. Upon the expiration of term or fulfillment of condition, the creditor will have the right to
demand the remainder of the payment (or whole if agreed upon)
 Any solidary debtor already bound may be made liable for the entire obligation.
Example:
A,B,C and D obliged themselves solidarily to pay E 20,000 as follows:
A, to pay by installment at the rate of 1,000 per month starting in July; B, to pay in
September; C, to pay in December; and D, if E passes to the CPA Examination.
Remember:
 Can only demand when already bound.
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 Could collect from any of the solidary debtors but only to the extent of the amount due,
or the remainder of the amount already due.
 Cannot recover the amount of the others that are not yet due, or demandable.

Situations: (to the following example)

a) In July, E can only demand 1,000 from A and could also demand from the other creditors
but only to the extend of A’s share which is 1,000. But E cannot recover yet the shares of
others which are not yet due nor demandable.
b) In September, E is entitled to collect from any of the solidary debtors the share
corresponding to B which is 5,000 (1/4 of 20,000) and A, 1,000 or 3,000, if A had not yet
paid any installment. The shares of C and D are not yet recoverable.
c) In December, E can collect from any of the solidary debtors the share corresponding to C
plus the share of A and B that are not yet been paid. The share of D will mature only
when E passes the CPA Examination.
d) As soon as D passes the CPA examination, the obligation of D to pay E 5,000 arises. This
amount can be demanded from any of the solidary debtors. And, E is also entitled with
the other amounts due and demandable, or even the unpaid which pertains to the shares of
A, B, and C.
e) If the agreement is that E may demand the entire obligation from B, C, and D as their
obligation arises, then they are entitled to pay the entire amount less the amount, if any,
already paid.
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.
 Act of the Solidary Creditor useful / prejudicial to others but it cannot be beneficial to
them.
- If performed and results to an extinguishment of obligation, he shall be
responsible to the others for damages.
- This rule is based on the Theory of Mutual Agency (i.e. right of one to act for and
in the name of the others.)
Example:
A owes B and C, Solidary Creditors, the sum of 10,000. B may make a demand for the
payment of the obligation for this will benefit C. Under the law, the prescription of action is
interrupted when they are filed before the court. (Art. 1155) So also, if B collects from A, C will
be benefitted.
In case of remission or condonation effected by B, the obligation will be extinguished but
since C cannot be prejudiced by the remission, B has to reimburse C for the latter’s share.
Art. 1213
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A solidary creditor cannot assign his rights without the consent of the others.
 Assignment by Solidary Creditor of his rights.
 General Rule: A solidary creditor cannot assign his rights to a third person.
Reason: it is because each creditor represents the others, and the assignee may not have the
confidence of the original solidary creditor and it also considers the act that the assignee may do
after receiving the payment such as it may not give the shares of the others.
Art.1214
The debtor may pay any one of the solidary creditors; but if any demand, judicial or
extrajudicial, has been made by one of them, payment should be made to him.
 Payment to any of the solidary creditors
Rule:
 Payment should be made to any of the solidary creditors (general rule) however, payment
should be made to the solidary creditor who demanded, judicially or extrajudicially, of
the payment; otherwise, the obligation will not be extinguished except insofar as the
creditor-payee’s share is concerned in case the latter does not give to the other creditors
their share.
 Art. 1214 is not only applicable to active solidarity.
Example:
A is liable to pay B and C, solidary creditors, 10,000. In this case, A may pay either B or
C but if a demand, judicial or extrajudicial, is made by B, payment should be made to B.
If A, nevertheless, paid C 10,000, B is still entitled to his share from A in case C does not
turn over to B the latter’s share. If B and C demanded payment at the same time, A may pay
either of them.
If there are two (2) 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. 1215
Novation (Art. 1291), compensation (Art.1278), confusion (Art. 1275), or remission (Art.
1270) of the debt, made by any of the solidary creditors or with any of the solidary debtors, shall
extinguish the obligation, without prejudice to the provisions of article 1219.
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 obligation corresponding to them.
 Modes / causes of the extinguishment of obligation.
General Rule: the creditor who executed any of these acts should be liable to the others for their
corresponding shares considering that such acts are prejudicial to them.
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Example:
A, debtor and B, C, D, solidary creditors in the amount of 30,000. If B validly condones
the debt in the amount of 18,000, he shall be liable for 6,000 each to C and D. If B collects
15,000 from A, B must account for the 5,000 share each of C and D.
Effect of Novation, etc. where obligation joint.
- In a Joint Obligation, novation, compensation, confusion, remission, prescription, and
any other causes of modification or extinction does not extinguish or modify the
obligation except with respect to the creditor or debtor affected, without extending its
operation to any other part of the debt or of the credit.
Example:
If the obligation of A in the above example is joint, the condonation will affect only the
share of B in the amount of 10,000. So, A is still indebted to C and D in the amount of 20,000.
- Highlighted: Condonation will be based upon the share of the creditor condoned it.
In the first example, only 12,000 of the debt remains, the obligation of A to pay the
18,000 condoned having been extinguished.
Art. 1216
The creditor may proceed against any one of the solidary debtors or some or all of the
simultaneously. The demand made against on 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.
 Right of the creditor to proceed against any solidary debtor.
RULES:
 It is not applicable to a joint obligation.
 Reiterates the rule: In Solidary Obligation, any one or some or all of the solidary
debtors simultaneously, may be made to pay the debt so long as it has not been fully
collected.
 The choice to whom payment will be collected depends to the solidary creditor.
Example:
A, B, and C solidarily owe D the amount of 3,000. D can collect from A or B or C alone,
or from any two of them, or all of them simultaneously.
If demand is made on A, the latter cannot require D to make a demand also on B and C,
or to include them as party defendant, as D has the right to proceed against any one of them.
If A pays D 1,000, the latter can still go against all of the debtors for the balance as long
as the debt has not been entirely satisfied.
Art. 1217
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Payment made by one of the solidary debtors extinguishes the obligation. If two or more
solidary debtors offers to pay, the creditor may choose which offer to accept.
He who made the payment may claim from his co-debtors only the share which
corresponds to each, with the interest for the payment already made. If the payment is made
before the debt is due, no interest for the intervening period may be demanded.
When 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.
 Effect of payment by a Solidary Debtor
 If the problem is silent = equal
Rules:
1) Between Solidary Debtors and Creditors
 Payment made (payment in full) by one of the solidary debtors extinguishes the
obligation.
 However, the creditor is given the right to choose which offer to accept if two (2)
or more solidary debtors offer to pay.
2) Among the Solidary Debtors
 After the payment of debt was made, the paying solidary debtor can demand
reimbursement from his co-debtors for their proportionate shares with (legal)
interest only from the time of payment.
 Their liability is not based on the original obligation which has been extinguished
but it is upon the payment made by the co-debtor which creates a joint obligation
of reimbursement on the part of the others.
3) Among Solidary Creditors
 The receiving creditor is jointly liable to the others for their corresponding shares.
Example:
(1) A, B, and C are jointly and severally liable to D and E in the amount of 3,000 due on
January 5.
 Debtors: A, B, and C = 500 Each
 Creditors: D and E = 1,500 Each
If both A and B offer to pay D, on January 5, the latter may choose which offer to accept.
If A pays the entire amount of 3,000 on January 5, the obligation is extinguished.
(2) The payment by A gives him the right to demand reimbursement from B and C 1,000
each with interest from the date of payment. But A is not entitled to reimbursement nor to
interest for any payment made before January 5. The obligation of B and C to reimburse him
with interest will arise only from January 5.
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If C is insolvent, both A and B shall bear his insolvency in proportion to their shares.
Hence, A can still ask B to pay an additional sum of 500. A and B can later recover from C
should the latter’s finances improve.
If A paid only 2,400 and B, 600, A can recover reimbursement only to the extent that his
payment exceeds his share, so that C is liable to him for 1,000 and B, for 400. If C is insolvent, B
is liable to pay A 900. A is not entitled to reimbursement if his payment is 1,000 or less.
(3) D, in the above example, has the obligation to give E his corresponding share in the credit.
Art 1218
Payment by a Solidary Debtor shall not entitle him to reimbursement from his co-debtors
if such payment is made after the obligation has prescribed or become illegal.
 Effect of payment after obligation has prescribed.
General Rule: Debtor can reimburse form its co-debtor the payment made.
Exception: Debtor cannot reimburse if the obligation has already prescribed or become illegal
 By Prescription – one acquires ownership and other rights through lapse of time.
1. Within 10 years
 Written contract
 Obligation created by law.
 Judgment
2. Must commenced within 6 years.
 Oral contract
 Quasi – Contract
3. Instituted within 4 years.
 Upon injury to the right of the plaintiff
 Quasi – Delict
 Statute of Limitation – may be superseded by the contract between parties.
Art.1219
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 affected.
 Effect of remission of share after payment
Remission extinguishes the obligation of a debtor but does not release the latter from his
responsibility towards the co-debtor if insolvent (shall be borne by all his co-debtors, in
proportion) and if the payment of its co-debtor was made before remission.
Purpose: To forestall fraud whereby the debt having been paid, the creditor, who does not stand
to suffer any loss or damage, remits the share of a particular debtor
Art. 1220
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The remission of the while obligation obtained by one of the solidary debtors, does not
entitle him to reimbursement from his co-debtors.
 No right to reimbursement in case of remission
 Remission is essentially gratuitous – Donation.
o Debtor who obtains remission pays nothing to the creditor.
o Does not entitle him to reimbursement from co-debtors.
o Applies only when the whole obligation is remitted.
Example:
A and B executed jointly and severally a promissory note for 2,000 in favor of C.
C remitted the whole obligation out of regard for A.
A here is not entitled to reimbursement from B since A did not pay anything to C.
If only 1,300 is remitted, B is still liable to C for 700. B has no obligation to reimburse A
for the 300 of B’s share affected by the remission for the same reason that no payment
was made by A.
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.
 Rules in case thing has been lost or prestation has become impossible.
1. Loss w/out fault and before delay = Extinguished
2. Loss is due to fault on part of solidary debtor = all are liable.
 Remember: Solidary obligation is, in essence, a mutual agency. – as far as
the creditor is concerned, the fault or delay of one debtor shall also be the
fault or delay of the others.
 The debtor/s not on fault may reimburse to the one liable.
 If debtor in fault recovers the price and damages, the latter cannot
reimburse from others.
 Thing belongs to the person at fault.
Amount liable = Value of the thing + his share + damages (only
the person at fault shall be liable for damages)
3. Loss is without fault but after delay = all are liable
 The default of one makes all solidary debtors responsible even for a
fortuitous event.
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Art. 1222
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 of those which are personal to him, or pertain to
his own share. With respect to those which personally belong to the others, he may avail himself
thereof only as regards that part of the debt for which the latter are responsible.

 Defenses available to a Solidary Debtor

1. Derived from the Nature of the obligation = Complete defense
 Nullifies the obligation or renders it ineffective.
 Ex. Fraud, Prescription, Remission, Illegality, absence of consideration,
res judicata, non-performance of a suspensive condition, etc.
2. Defenses personal to, or which pertain to share of, debtor sued.
 Ex. Insanity, incapacity, mistake, violence, minority, etc.
3. Defenses personal to other solidary debtors.
 Partial defense; only his share in the obligation.