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The divisibility or
against any one of the solidary debtors indivisibility of the things that are the
or some or all of them simultaneously. object of obligations in which there is
The demand made against one of them only one debtor and only one creditor
shall not be an obstacle to those which does not alter or modify the provisions o
may subsequently be directed against
the others, so long as the debt has not ART. 1224. A joint indivisible obligation
been fully collected. (1144a) gives rise to indemnity for damages
ART. 1217. Payment made by one of the from the time anyone of the debtors
solidary debtors extinguishes the does not comply with his undertaking.
obligation. If two or more solidary The debtors who may have been ready
debtors offer to pay, the creditor may to fulfill their promises shall not
choose which offer to accept. He who contribute to the indemnity beyond the
corresponding portion of the price of the
made the payment may claim from his
thing or of the value of the service in
co-debtors only the share which
which the obligation consists.(1150)
corresponds to each, with the interest
for the payment already made. If the ART. 1225. For the purposes of the
payment is made before the debt is due, preceding articles, obligations to give
no interest for the intervening period definite things and those which are not
may be demanded. When one of the susceptible of partial performance shall
solidary debtors cannot, because of his be deemed to be indivisible.
in solvency, reimburse his share to the When the obligation has for its object
debtor paying the obligation, such share the execution of a certain number of
ART. 1218. Payment by a solidary debtor days of work, the accomplishment of
shall not entitle him to reimbursement work by metrical units, or analogous
from his co-debtors if such payment is things which by their nature are
made after the obligation has prescribed susceptible of partial performance, it
or become illegal. (n) shall be divisible. However, even though
the object or service may be physically
ART. 1219. The remission made by the divisible, an obligation is indivisible if so
creditor of the share which affects one provided by law or intended by the
of the solidary debtors does not release parties. In obligations not to do,
the latter from his responsibility
towards the co-debtors, in case the debt ART. 1226. In obligations with a penal
had been totally paid by anyone of them clause, the penalty shall substitute the
before the remission was effected. indemnity for damages and the payment
ART. 1220. The remission of the whole of interests in case of noncompliance, if
obligation, obtained by one of the there is no stipulation tothe contrary.
solidary debtors, does not entitle him to Nevertheless, damages shall be paid if
reimbursement from his co-debtors. (n) the obligor refuses to pay the penalty or
is guilty of fraud in the fulfilment of the
obligation. The penalty may be enforced
ART. 1221. If the thing has been lost or
only when it is demandable in
if the prestation has become impossible
without the fault of the solidary debtors, ART. 1227. The debtor cannot exempt
the obligation shall be extinguished. If himself from the performance of the
there was fault on the part of any one of obligation by paying the penalty, save in
them, all shall be responsible to the the case where this right has been
creditor, for the price and the payment expressly reserved for him. Neither can
of damages and interest, without the creditor demand the fulfillment of
prejudice to their action against the the obligation and the satisfaction of
guilty or negligent debtor. If through a the penalty at the same time, unless
fortuitous event, the thing is lost or the this right has been clearly granted him.
performance has become impossible However, if after the creditor has
after one of the solidary debtors has decided to require the fulfillment of the
incurred in delay through the judicial or obligation, the performance thereof
should become impossible without his
ART. 1222. A solidary debtor may, in
ART. 1228. Proof of actual damages
actions filed by the creditor, avail suffered by the creditoris not necessary
himself of all defenses which are derived in order that the penalty may be
from the nature of the obligation and of
those which are personal to him, or ART. 1229. The judge shall equitably
pertain to his own share. With respect reduce the penalty when the principal
to those which personally belong to the obligation has been partly or irregularly
others, he may avail himself thereof complied with by the debtor. Even if
only as regards that part of the debt for there has been no performance, the
penalty may also be reduced by the
courts if it is iniquitous or
ART. 1230. The nullity of the penal ART. 1239. In obligations to give,
clause does not carry with it that of the payment made by one who does not
principal obligation. The nullity of the have the free disposal of the thing due
principal obligation carries with it that and capacity to alienate it shall not be
valid, without prejudice to the
ART. 1231. Obligations are extinguished: provisions of Article 1427 under the
(1) By payment or performance; Title on “Natural Obligations.’’ (1160a)
(2) By the loss of the thing due; ART. 1240. Payment shall be made to
(3) By the condonation or remission of the person in whose favor the obligation
the debt; has been constituted, or his successor in
(4) By the confusion or merger of the interest, or any person authorized to
rights of creditor and debtor; receive it. (1162a)
(5) By compensation; ART. 1241. Payment to a person who is
(6) By novation. incapacitated to administer his property
Other causes of extinguishment of shall be valid if he has kept the thing
obligations, such as annulment, delivered, or insofar as the payment has
rescission, fulfillment of a resolutory been beneficial to him. Payment made
to a third person shall also be valid in so
ART. 1232. Payment means not only the far as it has redounded to the benefit of
delivery of money but also the the creditor. Such benefit to the creditor
performance, in any other manner, of an need not be proved in the following
obligation.(n)
cases:
ART. 1233. A debt shall not be
(1) If after the payment, the third
understood to have been paid unless the
person acquires the creditor’s rights;
thing or service in which the obligation
(2) If the creditor ratifies the payment to
consists has been completely delivered
the third person;
or rendered, as the case may be. (1157)
(3) If by the creditor’s conduct, the
debtor has been led to believe that the
ART. 1234. If the obligation has been
substantially performed in good faith, ART. 1242. Payment made in good faith
the obligor may recover as though there to any person in possession of the credit
had been a strict and complete shall release the debtor. (1164)
fulfillment, less damages suffered by the
obligee. (n) ART. 1243. Payment made to the
ART. 1235. When the obligee accepts creditor by the debtor after the latter
the performance, knowing its has been judicially ordered to retain the
incompleteness or irregularity, and debt shall not be valid. (1165)
without expressing any protest or
objection, the obligation is deemed fully ART. 1244. The debtor of a thing cannot
compel the creditor to receive a
ART. 1236. The creditor is not bound to different one, although the latter may
accept payment or performance by a be of the same value as, or more
third person who has no interest in the valuable than that which is due. In
fulfilment of the obligation, unless there obligations to do or not to do, an act or
is a stipulation to the contrary. Whoever forbearance cannot be substituted by
pays for another may demand from the
debtor what he has paid, except that if ART. 1245. Dation in payment, whereby
property is alienated to the creditor in
he paid without the knowledge or
satisfaction of a debt in money, shall be
against the will of the debtor, he can
governed by the law of sales. (n)
recover only insofar as the payment has
ART. 1246. When the obligation consists
ART. 1237. Whoever pays on behalf of in the delivery of an indeterminate or
the debtor without the knowledge or
generic thing, whose quality and
against the will of the latter, cannot
circumstances have not been stated, the
compel the creditor to subrogate him in
creditor cannot demand a thing of
his rights, such as those arising from a
mortgage, guaranty, or penalty. (1159a) superior quality. Neither can the debtor
deliver a thing of inferior quality. The
ART. 1238. Payment made by a third purpose of the obligation and other
person who does not intend to be ART. 1247. Unless it is otherwise
reimbursed by the debtor is deemed to stipulated, the extra judicial expenses
be a donation, which requires the required by the payment shall be for the
debtor’s consent. But the payment is in account of the debtor. With regard to
any case valid as to the creditor who has judicial costs, the Rules of Court shall
govern. (1168a)
ART. 1248. Unless there is an express ART. 1254. When the payment cannot be
stipulation to that effect, the creditor applied in accordance with the
cannot be compelled partially to receive preceding rules, or if application cannot
the prestations in which the obligation be inferred from other circumstances,
consists. Neither may the debtor be the debt which is most onerous to the
required to make partial payments. debtor, among those due, shall be
However, when the debt is in part deemed to have been satisfied. If the
liquidated and in part unliquidated, the debts due are of the same nature and
creditor may demand and the debtor burden, the payment shall be applied to
may effect the payment of the former
ART. 1255. The debtor may cede or
ART. 1249. The payment of debts in assign his property to his creditors in
money shall be made in the currency payment of his debts. This cession,
stipulated, and if it is not possible to unless there is stipulation to the
deliver such currency, then in the contrary, shall only release the debtor
from responsibility for the net proceeds
currency which is legal tender in the
of the thing assigned. The agreements
Philippines. The delivery of promissory
which, on the effect of the cession, are
notes payable to order, or bills of
made between the debtor and his
exchange or other mercantile creditors shall be governed by special
documents shall produce the effect of
ART. 1256. If the creditor to whom
payment only when they have been
tender of payment has been made
cashed, or when through the fault of the
refuses without just cause to accept it,
creditor they have been impaired.
the debtor shall be released from
In the meantime, the action derived responsibility by the consignation of the
thing or sum due. Consignation alone
ART. 1250. In case an extraordinary shall produce the same effect in the
inflation or deflation of the currency following cases:
stipulated should supervene, the value (1) When the creditor is absent or
of the currency at the time of the unknown, or does not appear at the
establishment of the obligation shall be place of payment;
the basis of payment, unless there is an (2) When he is incapacitated to receive
agreement to the contrary. (n) the payment at the time it is due;
ART. 1251. Payment shall be made in
(3) When, without just cause, he refuses
the place designated in the obligation.
to give a receipt;
There being no express stipulation and
(4) When two or more persons claim the
if the undertaking is to deliver a
determinate thing, the payment shall be ART. 1257. In order that the
made wherever the thing might be at consignation of the thing due may
the moment the obligation was release the obligor, it must first be
constituted. In any other case the place announced to the persons interested in
of payment shall be the domicile of the the fulfillment of the obligation.
debtor. If the debtor changes his
The consignation shall be ineffectual if it
domicile in bad faith or after he has
is not made strictly in consonance with
incurred in delay, the additional
ART. 1258. Consignation shall be made
ART. 1252. He who has various debts of
by depositing the things due at the
the same kind in favor of one and the
disposal of judicial authority, before
same creditor, may declare at the time
whom the tender of payment shall be
of making the payment, to which of
proved, in a proper case, and the
them the same must be applied. Unless
announcement of the consignation in
the parties so stipulate, or when the
other cases.
application of payment is made by the
The consignation having been made, the
party for whose benefit the term has
interested parties shall also be notified
been constituted, application shall not
thereof. (1178)
be made as to debts which are not yet
ART. 1259. The expenses of
due. If the debtor accepts from the
consignation, when properly made, shall
creditor a receipt in which an
be charged against the creditor. (1179)
application of the payment is made, the
ART. 1260. Once the consignation has
ART. 1253. If the debt produces interest,
been duly made, the debtor may ask the
payment of the principal shall not be
judge to order the cancellation of the
deemed to have been made until the
interests have been covered. (1173) obligation. Before the creditor has
accepted the consignation, or before a
judicial declaration that the
consignation has been properly made,
the debtor may withdraw the thing or
the sum deposited, allowing the
obligation to remain in force. (1180)
ART. 1261. If, the consignation having ART. 1271. The delivery of a private
been made, the creditor should document evidencing a credit, made
authorize the debtor to withdraw the voluntarily by the creditor to the debtor,
same, he shall lose every preference implies the renunciation of the action
which he may have over the thing. The which the former had against the latter.
co-debtors, guarantors and sureties If in order to nullify this waiver it should
shall be released. (1181a) be claimed to be in officious, the debtor
ART. 1262. An obligation which consists and his heirs may uphold it by proving
in the delivery of a determinate thing that the delivery of the document was
shall be extinguished if it should be lost
or destroyed without the fault of the ART. 1272. Whenever the private
debtor, and before he has incurred in document in which the debt appears is
delay. When by law or stipulation, the found in the possession of the debtor, it
obligor is liable even for fortuitous shall be presumed that the creditor
events, the loss of the thing does not delivered it voluntarily, unless the
extinguish the obligation, and he shall contrary is proved. (1189)
be responsible for damages. The same ART. 1273. The renunciation of the
rule applies when the nature of the principal debt shall extinguish the
accessory obligations; but the waiver of
ART. 1263. In an obligation to deliver a the latter shall leave the former in force.
generic thing, the loss or destruction of
anything of the same kind does not ART. 1274. It is presumed that the
extinguish the obligation. (n) accessory obligation of pledge has been
ART. 1264. The courts shall determine remitted when the thing pledged, after
whether, under the circumstances, the its delivery to the creditor, is found in
partial loss of the object of the the possession of the debtor, or of a
obligation is so important as to third person who owns the thing.
extinguish the obligation. (n) ART. 1275. The obligation is
ART. 1265. Whenever the thing is lost in extinguished from the time the
the possession o fthe debtor, it shall be characters of creditor and debtor are
presumed that the loss was due to his merged in the same person. (1192a)
fault, unless there is proof to the ART. 1276. Merger which takes place in
contrary, and without prejudice to the the person of the principal debtor or
provisions of Article 1165. This creditor benefits the guarantors.
presumption does not apply in case of Confusion which takes place in the
earthquake, flood, storm or other person of any of the latter does not
ART. 1266. The debtor in obligations to
do shall also be released when the ART. 1277. Confusion does not
prestation becomes legally or physically extinguish a joint obligation except as
impossible without the fault of the regards the share corresponding to the
creditor or debtor in whom the two
ART. 1267. When the service has
become so difficult as to be manifestly ART. 1278. Compensation shall take
beyond the contemplation of the place when two persons, in their own
parties, the obligor may also be right, are creditors and debtors of each
released there from, in whole or in part. other. (1195)
ART. 1268. When the debt of a thing ART. 1279. In order that compensation
certain and determinate proceeds from may be proper, it is necessary:
a criminal offense, the debtor shall not (1) That each one of the obligors be
be exempted from the payment of its bound principally, and that he be at the
price, whatever may be the cause for same time a principal creditor of the
the loss, unless the thing having been other;
offered by him to the person who should (2) That both debts consist in a sum of
receive it, the latter refused without money, or if the things due are
justification to accept it. (1185) consumable, they be of the same kind,
ART. 1269. The obligation having been and also of the same quality if the latter
extinguished by the loss of the thing, has been stated;
the creditor shall have all the rights of (3) That the two debts be due;
action which the debtor may have
(4) That they be liquidated and
against third person by reason of the
demandable;
ART. 1270. Condonation or remission is (5) That over neither of them there be
essentially gratuitous and requires the
ART. 1280. Notwithstanding the
acceptance by the obligor. It may be
provisions of the preceding article, the
made expressly or impliedly. One and guarantor may set up compensation as
the other kind shall be subject to the regards what the creditor may owe the
rules which govern in officious principal debtor. (1197)
donations. Express condonation shall,
furthermore, comply with the forms of
ART. 1284. When one or both debts are
rescissible or voidable, they may be
compensated against each other before
they are judicially rescinded or avoided.
(n)
ART. 1285. The debtor who has
consented to the assignment of rights
made by a creditor in favor of a third
person, cannot set up against the
assignee the compensation which would
pertain to him against the assignor,
unless the assignor was notified by the
debtor at the time he gave his consent,
that he reserved his right to the
compensation.