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SPECIAL NOTES AND PRACTICAL EXERCISES ON JOINT

AND SOLIDARY OBLIGATIONS


Kinds of Obligation according to number of parties:
1. Individual obligation one where there is only one
obligor an one oblige; and
2. Collective obligation one where there are two or
more debtors and/or two or more creditors.
Joint obligation
Solidary obligation
Joint obligation each of the debtors is liable only for a proportionate part
of the debt and
each creditor is entitled to a proportionate part of the
credit.

NOTE:
In the absence of stipulation, when there are multiplicity of parties or
collective obligation, said obligation is presumed JOINT. Meaning, the share in
the obligation is specified, the correlative rights and obligation of the parties are
known.
Implications:
a) There are as many debts as there are debtors;
b) There are as many credits as there are creditors;
c) The debts/credits are considered distinct and separate from one another.
d) Each creditor is entitled only for a proportionate part of the credit.
e) Each debtor is liable only for his proportionate part of the debt.
Presumption established under Article 1208 is only disputable.
Other terms for joint obligation:
a) mancomunada
b) mancomunada simple
c) proportionately
d) pro-rata
Examples:
Joint obligation
A, B and C jointly executed a promissory note worded as
follows:
We promise to pay to the order of X P9,000.00
Sgd. A, B and C

Solidary obligation each debtor is liable for the entire obligation and each
creditor is
entitled to demand the whole obligation.

When solidarity exists:

As a general rule, the mere concurrence of two or more creditors or


two or more debtors in one and the same obligation does not imply solidarity.
By presumption of the law, the obligation is joint, unless:
a) Solidarity is expressly agreed upon (Conventional Solidarity)
b) Solidarity is declared by law (Legal Solidarity)
c) Solidarity is required by the nature of the obligation (Real
Solidarity)
Kinds of Solidarity
a) Active - solidarity among creditors
b) Passive solidarity among debtors
c) Mixed solidarity on the part of the creditors and debtors
Example:
1.
A, B, & C jointly executed a promissory note worded as
follows:
I promise to pay to the order of X P9,000.000
Sgd. A, B & C
X can collect the entire P 9,000 from any of A, B or C.
2. A, B and C joint debtors are obliged to give x, Y and Z, solidary creditors of P
18,000. How much can X collect and from whom?
X being a solidary creditor
can entirely collect P 18,000. But since A, B and c are joint debtors, X may
collect only P 6,000 from each of them. After collecting the sum of P 18,000, X
must give Y and Zs share of P 6,000.
3. A, B and C solidary debtor are obliged to give X,Y and Z joint creditors of P
18,000. How much may A be made liable? A being a solidary debtor may be
held liable for P 18,000. But since the creditors are merely joint ones, each one
of them can collect from A up to P 6,000.
Rules in case of Dual Nature of Obligation
If the obligation of the debtors is joint and the right of the creditors is solidary, or if
the obligation of the debtors is solidary and right of creditors is joint, the rules on
joint and solidary obligation shall be applied in determining the liabilities and rights
of the debtors and creditors as the case maybe.
A. Joints debtors and solidary creditors (Active solidarity)
A, B, C and D, joint debtors are liable to X, Y and Z, solidary creditors, in the amount
of P 36,000. Any one of the creditors can collect the entire amount of P 36,000 but
each one of debtors can be held liable for not more than P 9,000. Thus X can collect
P 36,000 but he can collect not more than 9,000 from A, 9,000 from B, 9,000 from C
and 9,000 from D. After X has collected the P 36,000, he must give P 12,000 each
to Y and Z.
B. Solidary debtors and Joint Creditors (Passive Solidarity)
A, B, C and D, solidary debtors are liable to X, Y and Z, joint creditors in the amount
of P 36,000. Anyone of the debtor can be held liable for the entire amount of P

36,000, but each of the creditors can collect only up to 12,000. Thus X, Y and Z can
collect 12,000 from A alone. After A has made the payment of P 36,000, he can
demand reimbursement of P 9,000 each from B, C and D
Illustrations:
1. A, B, C and D are obliged to give X, Y and Z P12,000. X may collect from A how
much?
* P1,000. When the obligation is silent, it is presumed joint.
2. A, B, C and D, joint debtors are obliged to give X, Y, and Z, solidary creditors,
P12,000. How much may X collect from A?
* P 3,000. As a solidary creditor, X may collect the whole amount owed by the
joint debtor A.
3. A, B, C and D, solidary debtors, are obliged to give X, Y and Z, joint creditors,
P12,000. How much may X collect from A?
* P4,000. As a joint debtor X is entitled only to his proportionate share, and A
being a solidary debtor may be required to pay the said amount.
4. A, B, C and D, solidary debtors, are obliged to give X, Y and Z, solidary creditors,
P12,000. How much may X collect from A?
* P12,000. X being a solidarity creditor may ask for the payment of the whole
amount in behalf of his co-creditors subject to a responsibility of X to give the latter
their corresponding shares. Similarly, A as a solidary debtor may be required to pay
the whole amount of the obligation subject to reimbursement from his co-debtors.
5. A and B are indebted to X and Y for P10,000. A and B share in the debt in the
ratio of 1:3 while X and Y share in the credit in the ratio of 2:3.
a. How much may X collect from A if the debtors are joint debtors, while the
creditors are joint creditors?
* P1,000. The obligation is joint on both the debtor and creditor,
therefore there are as many debts (credits) as debtors (creditors).
COMPUTATION:
Proportionate Share of A:
x P10,000 =
P 2,500
Proportionate Share of B on As Proportionate Debt:
2/5 X P2,500=
P 1,000
b. How much may X collect from A if there is active solidarity?
* P2,500(see computation above). The whole amount of the
proportionate share of A could be collected by X. As a solidary creditor, X may
collect the whole amount of the obligation corresponding against one or more
debtors.
c. How much may X collect from A if there is passive solidarity?
* P4,000. Being a joint creditor, X can collect only his corresponding
share in the credit. The full amount could be collected to A, being a solidary debtor.
COMPUTATION:
Proportionate Share of X in the credit:
2/5 x P10,000 =
P 4,000
d. How much may X collect from A if there is mixed solidarity?
P10,000. Since there is mixed solidarity the whole amount of obligation
may be collected by any of the solidary creditors against any of the solidary
debtors.

Problem 2 Unequal shares


A and B owe X and Y P 20,000.00. The share of A in the debt is one-fourth
(1/4), while that of B is three-fourths (3/4). The share of X in the credit is twofifths (2/5), while that of Y is three-fifths,
a. Joint debtors and creditors
A can be held liable for not more than P 5,000.00 (1/4 of P
20,000) while B not more than P 15,000 (3/4 of P 20,000). X can
collect not more than P 8,000 (2/5 of P 20,000) while & not more
than P 12,000 (3/5 of P 20,000)
1. How much may X collect from A? from B?
From A, X may recover P 2,000 (1/4 of P 8,000).
From B, X may collect P 6,000 (3/4 of P 8,000)
Alternate computations A, (P 5,000 x 2/5 P 2,000);
B, (P 15,000 x 2/5 P 6,000)
2. How much may Y collect from A> form B?
From A, Y may collect P 3,000 (1/4 of P 12,000).
From B, Y may collect P 9,000 (3/4 of P 12,000).
Alternate computations: A, (P 15,000 x 3/5 P 3,000) B, (P 15,000 x 3/5
9000)
b. Joint debtors and solidary creditors (active solidarity)
1. How much may X collect from A? From B?
X may collect the total amount of debt amounting
to P 20,000 he being a solidary creditor. However
since the debtors are jointly bound, he can collect
not more than P 5,000 from A and not more than P
15,000 from B. After collecting the amount of P
20,000, X must give the share to Y amounting to P
12,000.
2. How much may Y collect from A? From B?
If Y is the one collecting instead of X, he may also
collect the whole amount of P 20,000. However,
since the debtors are jointly bound, he cannot
collect Php 5,000 from A, and not more than P
15,000 from B. After collecting the amount of P
20,000, Y must give the share of X amounting to P
8,000.
c. Soliday debtors and joint creditor (passive solidarity)
1. How much may A be held liable and by
whom?
A may be held be liable for the whole amount of P
20,000. However, since the creditors are jointly
bound, X can collect from him not more than P
8,000, and Y, not more than P 12,000. If A pays the
debt, he can demand reimbursement from B in the
amount P 15,000.
2. How much may B be held liable and by
whom?
The same as in preceding answer, i.e,P 20,000 (X,
8,000; Y, P
12,000). But if B pays debt he can demand
reimbursement from
A in the amount of P 5,000.
d. Solidary debtors and solidary creditors ( mixed solidarity)
In this case, either A or B may be held liable by
either X or Y in the amount of P 20,000. If A is the one
making the payment, he can demand reimbursement of P

15,000 from B. If B is the one making the payment, he


can demand reimbursement of P 5,000 from A. If X is the
one collecting, he must give the share of Y in the amount
of P 12,000. If Y is the one collecting, he must give the
share of X in the amount of P 8,000.
Other terms for solidary obligation:
a) In solidum
b) Jointly and severally
c) Juntos o separadamente
d) Solidarias
e) Mancomumanda o in solidum
f) Mancomunada soldarias
g) Individually and collectively
Effects if obligation is JOINT and INDIVISIBLE. Art 1209 and Art.1224
A JOINT INDIVISIBLE OBLIGATION IS AN OBLIGATION WHERE THERE ARE
SEVERAL DEBTORS OR CREDITORS WHO ARE JOINTLY BOUND BUT THE
PRESTATION IS INDIVISIBLE.
The debt can be enforced by the collective acts of the debtors or
creditors in view of the indivisibility of the object. Like in the case of the joint
debtors the creditor has to proceed against all of them, otherwise, failure of
the other debtors to comply the obligation would call for the conversion of
the obligation to its monetary value or indemnity for damages plus payment
of damages as to defaulting debtors. The same rule applies to joint creditors
they have to proceed to the debtor jointly to ensure the fulfillment of the
obligation.
Illustration:
A, B and C are obliged to deliver a specific horse to X, Y and Z. What would be the
legal effect when C cannot comply with his obligation?
*This is a case of a jointly-indivisible obligation. Assuming there was a valid
demand made against all the debtors and since C could not comply with his part of
the obligation, the obligation is converted into a monetary obligation to pay the
value of the horse plus damages. (1224)
Rules Governing Solidary Obligations:
Solidarity does not imply indivisibility. An obligation may be divisible even if it
is solidary.
Indivisibility does not imply solidarity. It is the intention of the parties that
provides for the
nature of obligation (Art. 1210)
Solidarity may exist although the creditor and debtor may not be bound in the
same manner
same period and conditions. ( Art. 1211)
Each one of the solidary creditors may do whatever may be useful to others but
not anything that is prejudicial to the others ( Art. 1212). A solidary creditor
cannot assign his rights without the consent of the others (Art. 1213)
Essential feature is Mutual Agency.
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.
(Article 1214)

Novation, compensation, confusion or remission 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. ( Article 1215)
Illustrations: Renunciation
1. A, B and C are solidary debtors of X, Y and Z, solidary creditors, in the amount of
P2,700. X renounces the whole obligation without the consent of Y and Z. The
debtors accepted the renunciation. What is the legal effect of the renunciation?
* The whole obligation is extinguished, however X shall be liable to the
corresponding shares of the other co-creditors as they have agreed upon.
2. A, B and C are solidary debtors of X in the amount of P3,000. X renounces the
share of A and A accepts the renunciation. Thereafter B becomes insolvent. What is
the legal effect of the renunciation?
* A will be liable for P500, while C will be liable for P1,500 (P1,000 + P500).
Since the remaining obligation is P2,000 after the renunciation of As share, and
thereafter B becomes insolvent, A and C would have to absorb the debt
corresponding to B in the amount of P1,000. This shall be divided equally by A and
C.
Solidary creditors can collect from some or all of the debtors at one given time. If
the creditor fails to collect from one debtor, he can go against the other or others,
until the whole obligation is paid. It was held that the creditor may sue any of the
solidary debtors or all of them simultaneously. An action instituted against one shall
not a bar to those, which may be subsequently brought against others, as long as
the debt has not been entirely satisfied (Article 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.
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 codebtors, in proportion to the debt of each. ( Article 1217)
Note:
In action filed by the creditors, a solidary debtor may avail of the following
defenses:
Defenses derived from the nature of the obligation which
constitute total defenses, such as
- absolute simulated contract
- illegal cause or consideration
- illegal object or subject matter
- non-fulfillment of the suspensive conditions
- other defenses which will nullify the contract which is the basis of
creditors action.
Defenses personal in nature which may constitute a total or
partial defense
- factor which vitiate consent such as minority, insanity, fraud,
violence, intimidation, etc.

Defenses personal to the other co-debtors which will constitute


a partial defense for the solidary debtor being sued, thus exempting
him from paying the proportionate share of the co-debtor whose
personal defense he is invoking.
He is exempted to pay the
proportionate share of the invoking co-debtor but is still liable of his
share and of those co-debtors whose shares are not in question.
Illustration:
A, B and C are solidary debtors of X in the amount of P30,000. C was insane at the
time the obligation was constituted. What is the legal effect?
* X may collect from either A or C P20,000. Art. 1222 provides that a solidary
debtor may avail himself of the partial defense of the insanity of C. Such defense is
personal to C and would therefore affect only the part of the debt to which C may be
responsible.