Obligations and Contracts Chapter 3 Nature and Effect of Obligations Section 4 Joint and Solidary Obligations Article 120

!he concurrence of t"o or #ore creditors or of t"o or #ore creditors or of t"o or #ore debtors in one and the sa#e obligation does not i#ply that each one of the for#er has a right to de#and$ or that each one of the latter is bound to render$ entire co#pliance "ith the prestation% !here is a solidary liability only "hen the obligation e&pressly so states$ or "hen the la" or the nature of the obligation re'uires solidarity% Article 120( )f fro# the la"$ or the nature or the "ording of the obligations to "hich the preceding article refers the contrary does not appear$ the credit or debt shall be presu#ed to be di*ided into as #any e'ual shares as there are creditors or debtors$ the credits or debts being considered distinct fro# one another$ sub+ect to the ,ules of Court go*erning the #ultiplicity of suits% Joint obligation - debtors are liable only for proportionate part of the debt. EAC/ debtor can be #ade to pay only /)S 0A,! of the obligation - creditors are entitled only to a proportionate part of the credit. EAC/ creditor can reco*er only /)S S/A,E of the obligation Solidary obligation - each debtor is liable for the EN!),E obligation. each debtor #ay be obliged to 0A1 )N 2344 - each creditor is entitled to de#and the 5/O4E obligation. each creditor #ay EN2O,CE the EN!),E obligation !er#s fro# !olentino6 JO)N! 8anco#unada 8anco#unada si#ple 0ro rata SO4)7A,1 8anco#unada solidaria Joint and se*eral 9 in solidu# Juntos o separada#ente :a pro#issory note$ creates solidary responsibility; 0hrase <) pro#ise to pay= "ith signatures of 2 or #ore persons

other "ords used to indicate character of a liability <indi*idually and collecti*ely=$ <indi*idually liable= and <indi*idually and +ointly liable= !he "ord <+oint= rendered in6 1% Judg#ent :ci*il la" ter#s; > e'ui*alent to #anco#unada or +oint only. to e&press the idea that each is liable for the "hole$ use of the "ords <+oint and se*eral= are necessary% 2% Statute of co##on la" origin > in co##on la" syste#$ e*ery debtor in a +oint obligation is liable in solidu# :+oint and se*eral 9 "holly; for the "hole. ?but@A only legal peculiarity in such an obligation is that the creditor is re'uired to sue all the debtors at once. not unusual for parties to stipulate that debtors are <+ointly and se*erally liable= so that creditor #ay sue any of the debtors indi*idually for the full a#ount% Joint character is 0,ES38E7 "hen6 1% !"o persons are liable under a contract or under a +udg#ent 2% No "ords appear in a contract or the +udg#ent to #aBe each liable for the entire obligation 8aBing each debtor liable ON41 for 0,O0O,!)ONA!E part of the obligation Oriental co##ercial *s% Abeto - Contract stipulated that debtors :the three defendants in the case; "ere +ointly and se*erally liable - SC ruling "as against all the defendants for the total a#ount$ C3! 5)!/O3! stating the nature of the liability - /eld6 final +udg#ent of SC$ declaring the obligation to be #erely +oint$ superseded the contract stipulation of the parties. - "hen a +udg#ent does not specify that each defendant is liable for the entire obligation$ the 0,ES380!)ON is that liability of defendants are 8E,E41 JO)N! :liable for his particular share9proportion only; o after +udg#ent has beco#e final$ court has NO 0O5E, to a#end it to a solidary obligation$ nor could the court issue an order of e&ecution on one of the parties for the entire obligation Effects of Joint 4iability

0hrase <"e pro#ise to pay= "hen there are 2 or #ore signers and there are no

1% 7efault > de#and by one creditor upon one debtor produces the effects of default only "ith respect to the creditor "ho de#anded and the debtor on "ho# the de#and "as #ade. but not "ith the others o 7elay of one is not the delay of others o Ds solidary > delay of one is the delay of others 2% )nterruption of prescription > "hen prescription is interrupted by the +udicial de#and of one creditor upon a debtor$ the other creditors are NO! benefited and prescriptions for the other debtors are NO! interrupted% a% 0artial pay#ent or acBno"ledge#ent #ade by one of se*eral JO)N! debtors does not stop the running of the statute of li#itations as to the others b% Statute of li#itation > a statute that li#its the ti#e in "hich a la"suit #ay be brought for an in'uiry or a cri#e$ after "hich the party "ith a grie*ance loses right to sue 3% 7efects > *ices of each obligation arising fro# the personal defect of a particular debtor or creditor does not affect the obligation or rights of the others 4% )nsol*ency > insol*ency of one debtor does not increase the liability of the others. does not also authoriEe the creditor to de#and anything fro# his co-creditors :in +oint; Ds% solidary > all co-debtors are liable to rei#burse the one "ho paid. if one beco#es insol*ent$ all the others "ho are not insol*ent "ill co*er the share of the insol*ent$ e*en the one "ho paid the full a#ount F% ,es +udicata :rule that courtGs final +udg#ent conclusi*ely settles the rights of all parties in*ol*ed; > in a +oint di*isible obligation$ res +udicata 7OES NO! EH!EN7 fro# one debtor to another :because each is liable only this his share@; Obligations are presu#ed to be +oint e&cept in the follo"ing cases "herein solidarity e&ists6 1% !here is an express stipulation in the contract that obligation is solidary$ or "ords "ith the sa#e effect are used a% Not necessary that agree#ent should precisely use the "ord <solidary= b% Sufficient that obligation states that each one of the debtors can be co#pelled to pay the totality of the debt$ or that each is obligated for the entire *alue

2% A charge or condition is i#posed upon heirs or legatees and the testament (will) expressly makes the charge or condition in solidum 3% 5hen the law e&pressly pro*ides for solidarity in the obligation of se*eral obligors :liBe the liability of coparticipants in a cri#e$ liability of the captain and the o"ner of the *essel in #ariti#e co##erce for the da#age of goods or cargo on board the *essel; 4% Solidary responsibility is i#posed by a final judgment on se*eral defendants F% Nature of the obligation re'uires solidarity liBe in the follo"ing cases6 a% Art 1I > e*ery person$ in the e&ercise of rights and perfor#ance of duties$ #ust act "ith +ustice$ gi*e e*eryone his due and obser*e honesty and good faith b% Art 20 > e*ery person "ho$ contrary to la"$ "illfully or negligently causes da#age to another$ shall inde#nify the latter for the sa#e c% Art 21 > any person "ho "illfully causes loss or in+ury to another in a #anner that is contrary to #orals$ good custo#s or public policy shall co#pensate the latter for the da#age d% Art22 > e*ery person "ho through an act of perfor#ance by another$ or any other #eans$ ac'uires or co#es into possession of so#ething at the e&pense of the latter "o +ust or legal ground$ shall return the sa#e o 3nder these pro*isions$ e*en if persons acted JO)N!41$ they "ill be 4)AC4E SO4)7A,)41 because of the nature of the obligation 0hil la" recogniEes solidary responsibility for "rongful acts$ "hether they are cri#es :art10 ,0C or 'uasi-delicts :Art21I4 ci*il code; Solidarity is i#posed on +oint payees of things "hich is deli*ered by #istaBe :21F ci*il code; Acts gi*ing rise to the liability under these articles are ANA4OJO3S$ if not identical$ to cri#es$ 'uasi-delicts and receipt of so#ething "hich is not due Co##on ele#ent > #orally "rong "hich cannot be di*ided into parts. therefore$ liability #ust be solidary

K% 0ro*ided by la" a% Conspiracy b% Luasi-delicts > +oint tort feasors 0adilla *s% /iponia - 0adilla filed action for unla"ful detainer on lessee /iponia and other 2 defendants !iu Sa# and 3dhara# as sublessees% - !iu Sa# and /iponia *acated the pre#ises but 3dhara# refused to *acate the portion he "as occupying% Court held he "as liable for the da#ages of the creditor for entire pre#ises - 3dhara# appealed clai#ing that he should be liable only for the portion he "as occupying - Court held that since his retention of the area that he "as occupying pre*ented the other persons fro# renting the pre#ises$ 3dhara# should be held responsible for the entire pre#ises - Note6 all three defendants "ere tortfeasors :person "ho co##its a tort > pri*ate in+ury or "rong$ *iolation of a socially recogniEed duty o"ed > against another;% !ortfeasors are responsible to the o"ners for the reasonable *alue of the possession "hich they "ithheld% Cut since the other t"o *oluntarily *acated$ they #ay not held responsible for the occupation *alue after lea*ing 7is+uncti*e Obligations - !"o or #ore creditors or t"o or #ore debtors na#ed in the alternative o A binds hi#self to pay 0100 to either H or 1 o Either A or C "ill pay 0F00 to H o !his Bind of situation is not e&pressly pro*ided in code - )ntention of parties #ust pre*ail in deter#ining "hether the rules on solidary or alternati*e obligations o Alternati*e > presu#ption is debtor chooses to "hich creditor to pay o Solidarity > either one of the creditors can de#and pay#ent and debtor cannot refuse to pay to that creditor "ho de#ands by saying that he chooses the other creditor. either one of the debtors can be co#pelled to pay o )n case of doubt$ solidarity is fa*ored$ since it is #ore conduci*e to the fulfill#ent of the obligations

)n alternati*e$ right to choose generally lies "ith debtor "ho #ay not e&ercise that right thus paralyEing the rights of creditors and other debtors$ if any

,elations of co-parties - Co-creditors and co-debtors #ay regulate their rights or liabilities in their internal relations - !hey can choose sole responsibility of one debtor or pro*ide for total rei#burse#ent or for a di*ision into e'ual parts 7ual character of obligations - Joint on the side of creditors and solidary on the side of the debtors$ or *ice *ersa - !he rules applicable to the character of the debtors and creditors should apply in deter#ining their rights and liabilities o )f +oint on the side of creditors and solidary on the side of debtors$ then creditors can de#and only his share in the obligation "hile each debtor #ay be co#pelled to pay the entire obligation Article 120I )f the di*ision is i#possible$ the right of the creditors #ay be pre+udiced only by their collecti*e acts$ and the debt can be enforced only by proceeding against all the debtors% )f one of the latter should be insol*ent$ the others shall not be liable for his share% Joint indi*isible obligations > there are se*eral debtors and creditors but the prestation is indi*isible :liBe deli*ery of house or other deter#inate thing;$ the obligation is +oint$ unless solidarity is stipulated - 8id"ay bet"een +oint and solidary - 2or +oint o No creditor can do an act pre+udicial to the others o No debtor can be #ade to ans"er for the others - 2or solidary o 2ulfill#ent re'uires CONC3,,ENCE of all the debtors$ although each for his part o 2or creditors$ collecti*e action is e&pressly re'uired for acts "hich #ay be pre+udicial 0lurality of Creditors - Se*eral creditors and only 1 debtor

obligation can be perfor#ed only by deli*ering the ob+ect to A44 creditors +ointly debtor "ho deli*ers to one creditor only is liable for da#ages because of non-performance to the other creditors, unless other creditors ha*e authoriEed the one creditor to recei*e in their behalf if only one or so#e of the creditors de#and perfor#ance9deli*ery$ debtor #ay legally refuse to deli*er to the#$ debtor can insist that all the creditors together recei*e the thing. if any refuse to +oin the others$ debtor #ay deposit the thing in court as a "ay of consignation if non-perfor#ance by debtor$ his obligation to pay da#ages arises o creditor can reco*er only /)S 0,O0O,!)ONA!E S/A,E of the da#ages :prestation of da#ages beco#es di*isible; interruption of prescription o so#e belie*e that action is re'uired to be collective only "hen it is prejudicial to the others and the act of 1 should be sufficient if the action is beneficial, liBe interruption of the period of prescription o others :de buen; belie*e that an act "hich "ould ordinarily interrupt prescription by one creditor or against one of the debtors$ is in*alid and has no effect o !olentino belie*es 7e Cuen opinion is applicable to the 0hils% /ere$ as long as the obligation is JO)N!$ the act of one creditor CANNO! ha*e an effect on the other creditors ,eason6 the credit of each one is separate fro# the credits of the others C3! the ob+ect is indivisible$ perfor#ance of "hich re'uires collecti*e action to be effecti*e !herefore$ pay#ent #ust be #ade to all together )f the obligation is solidary and indi*isible$ Art1212 applies "hich allo"s once creditor to do anything beneficial to the others. no si#ilar pro*ision is applicable for +oint indi*isible obligations

0lurality of 7ebtors - !here are t"o or #ore debtors

!he indi*isible obligation can be perfor#ed by the# ON41 by acting together. all #ust be sued )f AN1 of the debtors refuse to perfor#$ prestation is con*erted into an inde#nification for da#ages o Once con*erted$ the creditor can sue the debtors separately for their respecti*e share in the inde#nity :their indi*idual share in the *alue of the thing to be deli*ered; Obligations NO! !O 7O o 3nclear "hether di*isible or indi*isible o 8ust clarify6 "hether liability is +oint or solidary "hether obligation is di*isible or indi*isible o E&a#ple6 debtors are bound not to clear "oods in their property so that creditor can hunt there Obligation6 indi*isible because partial perfor#ance by not clearing "oods is e'ui*alent to !O!A4 non-perfor#ance 4iability6 but the indi*isible nature of the obligation does not i#ply solidary liability of the debtors +oint is presu#ed unless it is other"ise stipulated that liability is solidary the #o#ent there is partial *iolation of the contract$ art1224 "ill apply to the pay#ent of inde#nity for da#ages "herein each debtor "ill be liable only for his share in the *alue of the undertaBing6 the guilty debtor "ill ha*e to ans"er for the da#ages he caused Art1224 > a +oint indi*isible obligation gi*e rise to inde#nity for da#ages fro# the ti#e anyone of the debtors does not co#ply "ith his undertaBing% 7ebtors "ho #ay ha*e ben ready to fulfill their pro#ises shall not contribute to the inde#nity beyond the corresponding portion of the price of the thing or of the *alue of the ser*ice in "hich the obligation consists

Article 1210

!he indi*isibility of an obligation does not necessarily gi*e rise to solidarity% Nor does solidarity of itself i#ply indi*isibility

Judicia l effect s

)N7)D)S)C)4)!1 ,efers to the prestation$ "hich in the case of the +oint indi*isible obligation$ is NO! CA0AC4E of partial perfor#ance Only debtor guilty of breach is liable for da#ages :but all are liable to pay the *alue of the thing "hich "as not deli*ered in proportion to their shares; Can e&ist "ith only one debtor and one creditor )n case of insol*ency$ others are not liable Each creditor cannot de#and #ore than his share and each debtor is not liable for #ore than his share

SO4)7A,)!1 refers to the legal tie :*inculu#; bet"een co-parties$ defining the e&tent of liability All debtors are liable for breach

Since it is a reciprocal agency$ death of a solidary creditor does not trans#it the solidarity to each of his heirs but to all heirs taBen together Each creditor represents the others in the AC! O2 ,ECE)D)NJ pay#ent and in all other acts "hich tend to secure the credit or #aBe it #ore ad*antageous ONE creditor does NO! represent others in no*ation$ co#pensation and re#ission$ e*en if the credit beco#es #ore ad*antageous% Other creditors can still enforce their rights on the creditor "ho #ade the no*ation$ co#pensation or re#ission$ e*en if the debtor is released AC!)DE Credit and its benefits is di*ided e'ually a#ong the creditors$ unless there is an agree#ent to di*ide differently > accounting and distribution of the a#ount #ust follo" the collection by one creditor 7ebtor #ay pay to AN1 solidary creditor$ but if +udicial de#and is #ade upon hi#$ debtor #ust pay only to the plaintiff

Each debtor can be re'uired to pay the entire obligation$ but after pay#ent$ he can reco*er fro# his co-debtors their respecti*e shares 7ebtor re'uired to pay #ay set up his o"n clai# against the creditor$ by "ay of co#pensation% )n this case$ effect is the sa#e as that of pay#ent !otal re#ission of the debt in fa*or of a debtors releases all debtors. but "hen only the share of one debtor is re#itted$ other debtors re#ain liable for their balance of the obligation 0ASS)DE All debtors are liable for the loss of the thing due$ e*en if fault of only one or by fortuitous e*ent after the delay of +ust one nterruption of prescription as to one debtor affects all the others but renunciation by one of the prescription he already had does not pre+udice others ,eason6 e&tinguish#ent of obli by prescription "ill effecti*ely e&tinguish also the #utual representation of the debtors )nterest due by reason of delay of 1 are borne by all

8sut be at least t"o debtors or at least t"o creditors Other debtors are proportionately liable each creditor #ay de#and the full prestation and each debtor has the duty to co#ply "ith the entire obligation

Judicia l effect s

Article 1211 Solidarity #ay e&ist although the creditors and the debtors #ay not be bound in the sa#e #anner and by the sa#e periods and conditions Minds of solidarity6 acti*e$ passi*e and #i&ed
E&ists in Essen ce AC!)DE Creditors 0ASS)DE 7ebtors

:for #i&ed6 e&ists on the part of both creditors and debtors; A #utual agency. #utual A #utual guaranty representation Authority of EAC/ creditor to EAC/ debtor #ay be #ade to C4A)8 and enforce the rights of ans"er for all the others all ,esulting obligation to pay 7ebtor "ho paid has a e*eryone "hat belongs to hi# resulting right to reco*er fro# the other debtors their respecti*e shares

Each creditor #ay renounce his right$ e*en if against debtorGs "ill% )n "hich case$ the debtor no longer needs to pay his obligation to the creditor "ho renounced his right

,e#ission > "ai*er of creditorGs rights in relation to one of the solidary debtors No*ation > art 12I1 to 1304 Co#pensation > !er#s and Conditions > legal bonds in solidarity #ay be6

1% 3nifor# > debtors are bound by sa#e conditions and clauses 2% Daried > the obligors$ although liable for the sa#e prestation$ are ne*ertheless not sub+ect to the sa#e ter#s and conditions o Cefore the fulfill#ent of the condition or the arri*al of the ter# "hich affects a particular debtor$ an action #ay be brought against such debtor or any other solidary debtor for the reco*ery of the entire obligation Cut the portion corresponding to the debtor affected by the condition or ter# #ust be deducted !his latter portion cannot be de#anded fro# AN1ONE unless the condition happens or the ter# arri*es 3pon happening of the condition or arri*al of the ter#$ creditor #ay clai# this latter portion fro# AN1 debtor o Sureties #ay bind the#sel*es to conditions 7)S!)NC! fro# those under "hich their principal is bound 4i#itation6 surety cannot be greater than that of the principal in a#ount or in burdenso#e character Surety > person "ho taBes responsibility for so#eone elseGs debt$ if debtor fails to do so. usually bound by the sa#e original instru#ent as that of the debtor$ thus surety is responsible for the debt fro# its inception A solidary debtor is liable only for the perfor#ance of those "hich are due and de#andable% )f the condition does not happen "ith respect to only 1$ Article 1212 Each one of the solidary creditors #ay do "hate*er #ay be useful to the others$ but not anything "hich #ay be pre+udicial to the latter Acts beneficial to the creditor > so that the obligation #ay produce interest 1% )nterrupt prescription 2% Constitute the debtor in default 3% Cring suit

Acts pre+udicial > a solidary creditor cannot do anything pre+udicial to the others 1% ,e#ission 2% No*ation 3% Co#pensation 4% 8erger or confusion )t is understood fro# the present article that a solidary creditor cannot #aBe these acts alone$ but under Art121F$ these acts done alone is e&pressly authoriEed - Article 121F6 no*ation$ re#ission$ co#pensation or confusion "ill e&tinguish the obligation :"o pre+udice to Art121I; and the creditor "ho e&ecuted these acts shall be liable to the others for their share of the obligation o Art121I6 re#ission #ade by one creditor for the share of any solidary debtor "ill not release that debtor fro# the responsibility to his co-debtor in case a co-debtor has paid the entire obligation before re#ission "as effected o Article 1212 contradicts 121F. to har#oniEe the t"o6 1212 can be understood to #ean that the act of e&tinguish#ent "hich is pre+udicial to the co-creditors is DA4)7 ON41 !O EH!)NJ3)S/ !/E C4A)8 AJA)NS! !/E 7EC!O,S Cut it "ill not e&tinguish the clai# of the cocreditors$ "hose rights subsist and can be enforced against the creditor "ho perfor#ed such act Article 1213 A solidary creditor cannot assign his rights "ithout the consent of the others ,eason for this article6 the solidary creditor is an agent of the other creditors and he cannot assign this agency :#utual agency; to a third person "ithout the consent of the other creditors - 8utual agency i#plies #utual confidence "hich #ay be based on the personal 'ualifications of each creditor - !he right cannot be assigned to a third person "ho #ay ha*e different 'ualifications

Effects of assign#ent of right > la" is silent on this but see#s to i#ply that he assign#ent "ill not produce any effect$ since it cannot be #ade any"ay - )f an assign#ent is #ade$ the co-creditors and the debtor9s are not bound any"ay and they cannot regard the assignee as a solidary creditor o 0ay#ent #ade by a debtor to such an assignee "ould be pay#ent to a third person and "ill not be considered to e&tinguish obligation o A suit filed by that assignee cannot interrupt prescription - !he only assign#ent that 5)44 /ADE effects is an assign#ent !O A CO-C,E7)!O,$ in "hich case consent of other creditors is not necessary o ,eason6 confidence in this assignee already e&ist$ as a co-creditor assigned to be the #utual agent o 8utual representation is #ade by agree#ent of the parties$ not by la" o A solidary creditor "ho assigns his right to another "ithout consent of his co-creditors <shall ans"er subsidiarily for any pre+udice caused in connection "ith the credit= Article 1214 !he debtor #ay pay any of the solidary creditors$ but if any de#and$ +udicial or e&tra+udicial$ has been #ade by one of the#$ pay#ent should be #ade to hi# Creditor can #aBe +udicial O, e&tra+udicial de#and 1% Judicial o Solidary creditors are !AC)!41 mutual representatives of each other o 8utual representation lasts only until one creditor goes ahead of the others and sues the debtor 3pon this +udicial de#and by one of the solidary debtors$ #utual representation is considered re*oBed before this +udicial de#and$ debtor #ay pay any of the solidary creditors after this +udicial de#and$ debtor can only pay the creditor "ho #ade the +udicial de#and because that creditor is no" the plaintiff

pay#ent to any of the creditors "ho did not sue "ill be considered pay#ent to a third person and debtor pays at his o"n risB because if that creditor to "ho# pay#ent "as #ade did not turn o*er the pay#ent to his co-creditors$ the debtor "ill still be liable to pay for the full a#ount$ minus the share of the creditor to whom payment was made +udicial action by one solidary creditor does not definitely eli#inate the other creditors$ but only as long as the action and its effects e&ists% )f action fails$ any of the other cocreditors #ay in turn sue the debtor

2% E&tra+udicial de#and o sa#e effects "ith +udicial de#and o ter#inates #utual representation a#ong solidary creditors and concentrates the agency to the creditor "ho #ade the de#and Note6 !olentino thinBs that gi*ing e&tra+udicial de#and the sa#e effects as +udicial de#and is <+uridically erroneous and i#practical=6 - +udicial suspends the rights of the creditors only during the pendency of the action - in an e&tra+udicial de#and$ if the creditor "ho #ade such de#and taBes no further step in collecting$ other creditors "ould be fore*er barred fro# filing an action to de#and pay#ent +udicially% 7e#and by se*eral for all solidary creditors > debtor should pay the one "ho first notified hi# - if de#and is gi*en at the sa#e ti#e or collecti*ely$ debtorGs right to choose is preser*ed and he #ay pay anyone of those de#anding pay#ent 0artial pay#ent - so#e thinBs that partial pay#ent to other creditors "ho did not #aBe the de#and is not allo"ed$ e*en if pay#ent "as only for that creditorGs share - !olentino on the other hand says that an agent only represents the other creditors in a consolidated de#and

for pay#ent but does not deprive other creditors their character as 0,)NC)0A4S o*er their o"n shares in the obligation 0ay#ent to the principal is A45A1S *alid$ e*en if there is an irre*ocable agency )f a debtor already paid a creditor that creditorGs share before the de#and "as #ade$ his liability9obligation #ust be reduced$ #inus the share of the creditor "ho has been paid

8i&ed solidarity > *arious debtors and *arious creditors$ each ha*ing different ter#s and conditions - 7e#and by one creditor to one of the debtors6 that debtor "ill ha*e to pay only that creditor "ho de#anded o Cut this does not apply to the other debtors to "ho# de#and "as not #ad e. they #ay pay to any of the other solidary creditors Article 121F No*ation$ co#pensation$ confusion or re#ission of the debt$ #ade by any of the solidary creditors or "ith any of the solidary debtors$ shall e&tinguish the obligation$ "ithout pre+udice to the pro*isions of article 121I% !he creditor "ho #ay ha*e e&ecuted any of these acts$ as "ell as he "ho collects the debt$ shall be liable to the others for the share in the obligation corresponding to the#% No*ation > obligation #ay be #odified by6 changing the ob+ect$ substituting the person of the debtor$ substituting a third person for the creditor Co#pensation > taBes place "hen t"o persons are in their o"n right creditors and debtors of each other. debtor o"es creditor and creditor o"ed debtor and obligation is of the sa#e nature$ effect is set-off Confusion > characters of the creditors and debtors are #erged ,e#ission or condonation > gratuitous abandon#ent of the creditor of his right against the debtor No*ation - Each of the solidary debtors #ay ,E4EASE the other debtors fro# their responsibility by binding hi#self alone in their place $ in fa*or of the creditor

C3! he #ay not bind the others to a ne" contract "ithout their consent !he creditor #ay ho"e*er re'uire the consent of the others before they are released 3pon release$ only that debtor "ho secured the no*ation "ill be bound by the ne" contract Jeneral rule6 #ere e&tension of ti#e for pay#ent to a solidary debtor 7OES NO! release the others fro# the obligation o E&ception6 suretyship$ "herein a #aterial alteration on the contract "as #ade by the creditor and the principal debtor without the knowledge of the sureties% o 8ere e&tension of period to pay granted to the principal "ithout the consent of the sureties$ releases the sureties for# their obligation E&ception to the e&ception6 "hen the sureties are liable for different pay#ents :liBe install#ent$ rent or a series of pro#issory notes;

7ation in pay#ent > "hen a specific ob+ect is deli*ered as a substitute for the perfor#ance of the obligation - 5hen not i##ediately effected and is in the for# of a pro#ise$ then it a#ounts to a no*ation - )f #ade i##ediately$ shall be go*erned by Art124F$ pro*ision on sales - )f it is #ade upon the solidary relation$ it is treated as pay#ent 8erger and Co#pensation - 5hen partial and there is doubt as to "hat part of the debt it should be applied$ rules on application of pay#ents should go*ern - 5hen total$ obligation is e&tinguished6 relationship of creditors as one group and debtors as another group ceases o "hat is left is the resulting rei#burse#ent "ithin each group ,e#ission - "hen one creditor #aBes a re#ission$ the e&tinguishes the obligation in the a#ount and to the e&tent to "hich it is #ade - creditor "ho #ade the re#ission beco#es liable to his cocreditors for their shares

"hen se*eral > not all- of the solidary creditors #aBe the re#ission$ NO action can be #ade bet"een those "ho #ade it. and A44 O2 !/E8 "ill be liable for the shares of the creditors "ho did not re#it o if one is insol*ent$ his share "ill be #ade up by the others "ho concurred in the re#ission )f re#ission #ade to debtor is6 o 0artial > his character as solidary debtor continues both in relation to the creditors and his co-debtors o 2ull relation "ith creditors ceases :released;$ unless the continuation of his solidary relation has been reser*ed )n this case$ that debtor "ill be the surety for the other re#aining debtors Still bound to relation "ith co-debtors )f one of his co-debtors is #ade to pay the share of an insol*ent$ the released debtor "ill stil ha*e to gi*e his share in the portion of the insol*ent Art1220 pro*ides that re#ission is a gratuitous act. therefore$ the debtor in "hose fa*or the re#ission has been #ade$ e*en if it be of the "hole obligation$ cannot reco*er anything fro# his co-debtors

o o

4% 5hen o

!he co-debtor as to "ho# the obligation "as e&tinguished cannot reco*er fro# his other codebtors #ore than their respecti*e shares in "hate*er he #ay ha*e gi*en up or lost )n the case of total co#pensation "herein he debtor ga*e his o"n credit to e&tinguish the obligation$ he can reco*er fro# the others their respecti*e shares )n case of #erger$ if one co-debtor ac'uires the "hole credit$ he can de#and fro# the other debtors )n case of re#ission$ "herein the co-debtor in "hose fa*or re#ission "as #ade$ gi*es or loses nothing$ he cannot reco*er anything fro# the other debtors obligation is +oint No*ation$ co#pensation$ confusion$ re#ission$ prescription and any other causes of #odification or e&tinction 7OES NO! e&tinguish or #odify the obligation E&cept "ith respect to the creditor or debtor affected$ but this does not e&tend to any part of the debt or of the credit

Effects 1% ,elation bet"een creditors and debtors o 4 acts #entioned in article "ill e&tinguish the obligation so that no creditor #ay thereafter sue any debtor E&cept in no*ation "herein there is a ne" contract and the suit$ if any$ is based on this ne" contract 2% ,elation a#ong co-creditors o Act of one in e&tinguishing the obligation does not pre+udice the rights of the other creditors to reco*er their respecti*e shares fro# the creditor "ho effected the no*ation$ co#pensation$ confusion or re#ission 3% ,elation a#ong co-debtors the#sel*es

Article 121K !he creditor #ay proceed against any one of the solidary debtors or so#e or all of the# si#ultaneously% !he de#and #ade against one of the# shall no be an obstacle to those "hich #ay subse'uently be directed against the others so long as the debt has not been fully collected% 0assi*e solidarity Solidary Juaranty or Suretyship S)8)4A,)!)ES A solidary debtor stands for A surety stands for some other some other person person After pay#ent$ may re!uire After pay#ent$ may re!uire reimbursement fro# solidary reimbursement fro# principal co-debtors 7)S!)NC!)ONS 4iable for his and his co-debtorGs "nly a surety. liable for the obligation. both a principal debtorGs obligation "hich is not debtor and a surety his o"n ,esponsibility for his co-debtors ,esponsibility for his principal is primary debtor is only subsidiary #xtension of time gi*en by #xtension of time gi*en by the

creditor would not release a subsidiary co-debtor

creditor to the principal debtor releases the surety

!his pro*ision does not apply to +oint obligations. ON41 to SO4)7A,1 obligations% - 5herein the ,34E is6 any one or so#e or all of the solidary debtors #ay si#ultaneously be #ade to pay the debt as long as it has not been fully collected - 5ill also apply to sureties o Although their liability is subsidiary$ if they bind the#sel*es solidarily :+ointly and se*erally;$ "ith the principal debtor$ the creditor #ay bring an action against anyone of the# Action #ay be alone or together "ith the principal debtor Article 1212 > each solidary creditor #ay bring action to enforce obligation Article 1214 > pay#ent can be #ade only to the plaintiff Article 121K > solidary debtors #ay be sued - si#ultaneously in one suit - or successi*ely in different suits - article is NO! of public interest6 parties #ay still *alidly stipulate that the solidary debtors can only be sued si#ultaneously or #ay pro*ide an order for "hich the debtors #ay be sued indi*idually Judg#ent is rendered in an action brought by a solidary creditor against a solidary debtor > res +udicata@ - Judg#ent fa*orable to creditor inures to the benefit of all co-creditors :art1212; - Judg#ent is ad*erse to creditor6 o Since an action of one solidary creditor consolidates the rights of all the creditors in hi#$ ha*ing the representation of his co-creditors$ others #ust benefit fro# the fa*orable and suffer fro# the ad*erse :Art1214; EHCE0!)ON6 )f the +udg#ent is based on a cause personal to the plaintiff creditor$ it "ill not ad*ersely affect his co-creditors - Judg#ent against one debtor o cannot be enforced against the others. ne" action #ust be filed against the other solidary debtors - Judg#ent against se*eral debtors9defendants o Can be re*i*ed against one of the# only

Judg#ent fa*orable to the solidary debtor sued o Other debtors can in*oBe the fa*orable +udg#ent 0,OD)7E7 !/A! it is not based on a defense personal to the debtor o Minds of +udg#ents personal to the debtor6 Cased on the ine&istence of the obligation 3nenforceability of the obligation So#e other cause inherent in the *inculu# +uris ,EASON for these three6 in solidarity$ there is a 3N)!1 O2 4EJA4 !)E$ not"ithstanding plurality of sub+ects o Su##ary6 +udg#ent in fa*or of one solidary debtor a#ounts to an e&tinguish#ent of the obligation "ith respect to hi# "hich #ust necessarily inure to the benefit of the other co-debtors e&cept "hen the cause is personal

)dentity of parties - Cecause of the unity of the legal tie in solidarity$ although the solidary debtors may be individually distinct from each other$ they constitute legally one and the same party "ith the sa#e interest Article 121 0ay#ent #ade by one of the solidary debtors e&tinguishes the obligation )f t"o or #ore solidary debtors offer to pay$ the creditor #ay choose "hich offer to accept% /e "ho #ade the pay#ent #ay clai# fro# his co-debtors only the share "hich corresponds to each$ "ith the interest for the interest for the pay#ent already #ade% )f the pay#ent is #ade before the debt is due$ no interest for the inter*ening period #ay be de#anded% 5hen one of the solidary debtors cannot$ because of his insol*ency$ rei#burse 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% 0ay#ent by one of the solidary debtors - ,eleases hi# and his co-debtors fro# liability to the creditor - 5here debtors are sued and one or se*eral offers to pay$ the one offerer chosen by creditor #ay be substituted in the SA8E action as plaintiff against his for#er co-debtors - E&tinction or discharge of the solidary obligation by the pay#ent #ade by one co-debtor

o o

gi*es birth to a ,)J/! in fa*or or the paying codebtor and i#poses on the other co-debtors the 73!1 to pay hi# their shares in the discharged obligation :other co-debtors no" ha*e a JO)N! obligation to the debtor-payor;

Applies to a case "hen a co-debtor has already paid in full before re#ission of the part affecting another co-debtor is #ade )nsol*ency after partial re#ission - After re#ission$ the credit "ill be li#ited to the balance% )f one of the solidary debtors pay the full a#ount of the balance and later on one of his co-debtors beco#e insol*ent$ is the debtor "hose share "as re#itted re'uired to contribute to the share of the insol*ent@ - 3 beliefs6 1% 7ebtor-payor #ay reco*er the share of the insol*ent fro# the creditor because this is considered included in the re#ission% !his should be borne by the creditor o not fa*ored in 0hils bcoE this *ie" presu#es that the creditor has re#itted #ore than the share of the debtor he fa*ored o Jratuitous acts should be restricti*ely construed 2% ,e#ission by creditor to one debtor does not affect the obligation of that debtor "ith his co-debtors% /e should therefore contribute to the share of the insol*ent in rei#bursing the debtor-payor o ACCE0!E7 in the 0hils% Cecause of the 2 relations in passi*e solidarity :1; creditor to the debtors and :2; debtors a#ong the#sel*es% o 5hen a creditor re#its the share of one of the debtors$ he can only affect that 1 debtor and is only co*ered by the first relation. the relation of the debtors "ith each other is not affected o Art121 last par go*erns the relations of the codebtors "ith each other and is not affected by the relations of debtors "ith the creditor 3% Share of the insol*ent #ust be di*ided in the only a#ong the the other co-debtors but e&cluding the one "hose share "as re#itted o Not acceptable it #aBes the re#ission of one debtor #ore burdenso#e to the other debtors Article 1220 !he re#ission of the "hole obligation$ obtained by one of the solidary debtors does not entitle hi# to rei#burse#ent fro# his co-debtors ,eason6 debtor "ho obtains re#ission pays nothing to the creditor$ since re#ission is essentially gratuitous

Effects of pay#ent by solidary debtor 1% bet"een solidary debtors and creditors > e&tinguishes the obligation. creditor :for his protection@@; is gi*en the right to choose "hich offer to accept$ if there are t"o or #ore offers 2% a#ong the solidary debtors > after pay#ent of debt$ paying solidary debtor can de#and rei#burse#ent fro# his co-debtors. other co-debtors beco#e JO)N!41 liable to the debtor payor >but in case one is insol*ent$ all is re'uired to contribute to his share of the rei#burse#ent. NO! liBe in +oint "hen the other debtors do not co*er the share of the insol*ent 3% a#ong the solidary creditors > recei*ing creditor is +ointly liable to the others for their corresponding shares 4% 0artial pay#ent > debtor-payor can reco*er fro# his codebtors only that part "hich he has paid "hich EHCEE7S his share of the obligation Article 121( 0ay#ent by a solidary debtor shall not entitle hi#to rei#burse#ent fro# his co-debtors if such pay#ent is #ade after the obligation has prescribed or beco#e illegal 2 cases "hen rei#burse#ent to the debtor-payor fro# his codebtors is not allo"ed because the obligation is e&tinguished 6 1% 5hen obligation has prescreibed :art1231 par1; 2% 5hen obligation has beco#e illegal :art12KK; - Since obligation is e&tinguished$ no #ore obligation to be co#plied "ith. debtor-payor cannot co#pel his co-debtors to pay hi#$ neither can he reco*er fro# the creditor "hat he has paid - )f obligation no longer e&ists$ Only under the rule on 'uasi contracts #ay the debtor reco*er Article 121I !he re#ission #ade by the creditor of the share "hich affects one of the solidary debtors does not release the latter fro# his responsibility to"ards the co-debtors$ in case the debt has been totally paid by anyone of the# before the re#ission is effected%

!his article applies only "hen the 5/O4E obligation is re#itted Article 1221 )f the thing is lost or if the prestation has beco#e i#possible "ithout the fault of the solidary debtors$ the obligation shall be e&tinguished )f there "as fault on the part of any one of the debtors$ all shall be responsible to the creditor$ for the price and the pay#ent of da#ages and interest$ "ithout pre+udice to their action against the guilty or negligent debtor )f through a fortuitous e*ent$ the thing is lost or the perfor#ance has beco#e i#possible after one of the solidary debtors has incurred in delay through the +udicial or e&tra+udicial de#and upon hi# by the creditor$ the pro*isions of the preceding paragraph shall apply 4iability of debtor depends upon "hether or not there is fault or delay 1% )f "ithout fault of debtor and before delay > obligation e&tinguished 2% 4oss is due to fault of debtor a% 2ault or delay of one is the fault or delay of the others. all shall be responsible for i% 0rice of the ob+ect lost ii% 0lus da#ages and interest b% Other debtors "ithout fault #ay reco*er fro# the one "ith fault Article 1222 A solidary debtor #ay$ in actions filed by the creditor$ a*ail hi#self of all defenses "hich are deri*ed fro# the nature of the obligation and of those "hich are personal to hi#$ or pertain to his o"n share% 5ith respect to those "hich personally belong to the others$ hey #ay a*ail hi#self thereof only as regards that part of the debt for "hich the latter are responsible% 3 Binds of defenses a*ailable to debtor 1% 7eri*ed fro# the nature of the obligation > a co#plete defense because it nullifies the obligation or renders it ineffecti*e E&a#ples6 fraud$ prescription$ re#ission$ illegality or absence of consideraton 2% 7efenses personal to$ or "hich pertain to share of debtor sued > #ay be a co#plete or partial defense a% Co#plete personal defense include insanity$ #inority$ fraud$ *iolence or inti#idation

b% 0artial personal defense are those special ter#s and conditions affecting his part of the obligation$ he #ay utiliEe the# only "ith respect to his part Cut debtor can still be sued for the portions not sub+ect to ter#s or conditions$ because he is solidarily liable 3% 7efense personal to other debtors > defenses "hich affect the capacity or the consent of the other solidary debtors and ter#s and conditions affecting the shares of the other solidary debtors a% Cut to the debtor-defendant$ this Bind of defense is only a parial defense > only e&e#pts hi# fro# pay#ent for the part of the obligation corresponding to the O!/E, debtors "ho ha*e such personal defenses$ NO! !O /)S O5N S/A,E of the obligation Section F