KRISTEL AN TECSON LAMORENA BS Management Accounting II

Assignment No. 3: Divisible and Indivisible Obligations

I. Define the following:

a. Divisible Obligation
- A divisible obligation is one where the object of which, in its delivery or performance, is
capable of partial fulfilment.
b. Indivisible Obligation
- An indivisible obligation is one where the object of which, in its delivery or performance,
is not capable of partial fulfilment.
c. Legal Indivisibility
- This is where a specific provision of law declares as indivisible, obligations which, by
their nature, are divisible.

II. Discussion:
a. Explain: The divisibility of an obligation is different from the divisibility of the thing
which is the object thereof.
- In Article 1223, it is stated that the Divisibility of an obligation refers to the performance
of the obligation which constitutes the object of the obligation, means if the obligation
can be performed partially. While, the divisibility of the thing talks about the object
itself, if it can be shared proportionally. For example, A and B binds themselves to
deliver a horse to C. In this case, it is the obligation of delivering a horse is indivisible
since they cannot divide the horse into two and at the same time they have an
obligation to deliver it at one time. But it is divisible in the sense that they can split the
cost of buying the horse provided it be deliverable at the date of agreement.
b. What obligations are deemed indivisible?
- The following are obligations that are deemed indivisible:
(1) Obligations to give definite things. For example, to deliver a specific kubo to a buyer.
(2) Obligations which are not susceptible of partial performance. For example, to dance
a contemporary piece for the city mayor’s office and staff. Here, the obligation is
deemed indivisible because the performance needs all its parts.
(3) Obligations provided by law to be indivisible even if thing or service is physically
divisible. For example, to pay land/property tax annually. Money is physically
divisible in nature but the law requires us to pay in toto and not partially.
(4) Obligations intended by the parties to be indivisible even if thing or service is
physically divisible. For example, Carlos (debtor) owes Joahna (Creditor) Php 2,000.
They agreed that the full amount is payable at the end of the month when Carlos
has borrowed the money. Again, money here is physically divisible but the
agreement states that Carlos has to deliver it to Joahna in full (Php 2,000) by the end
of the month. Meaning full one-time payment.
c. What obligations are deemed divisible?
 - The following are obligations that are deemed divisible:
(1) Obligations which have for their object the execution of a certain number of days of
work. For example, Derek, an interior designer, agrees with his client, Jane, that the
project for Jane’s office will be finished within 15 days. Here, it can be said that time
is at the disposal of Derek, meaning he doesn’t have to this in one time but can be
done within the said number of days.
(2) Obligations which have for their object the accomplishment of work by metrical
units. For example, a craftsman’s obligation to make a wooden chair that is 45
centimetres wide, 45 centimetres long and 82 centimetres high.
(3) Obligations which by their nature are susceptible of partial performance. For
example, the obligation of Janine (debtor) to pay ABC Credit and Finance co.
(creditor), her debt of 24,000 pesos in 12 monthly installments of Php 2,000.
Although each prestation to pay 2,000 is indivisible as it is obligated to be paid at
one time and in its full amount.
III. Problems
Explain or state briefly the rule or reason for your answer.

a. A and B bind themselves to pay C their loan of P 100,000.00 on a certain date. Is the
obligation divisible or indivisible?

Here, the obligation itself as to concerning C is deemed Indivisible since the agreement
is to pay the full amount at one time to the creditor. But with regards to the division of
the obligation between A and B, it is divisible since the halves of their agreement to pay
the amount, assuming they are both obliged to pay P 50,000 each, can be done in parts.
Again, this is only the case if the concern is between A and B. Here, the rule applicable is
that obligations are deemed indivisible if “obligations intended by the parties to be
indivisible even if thing or service is physically divisible.” And it is also stated in Article
1225 that obligations become indivisible when they perform it one whole at a time
(debtors perform a certain obligation on the same date).

b. A, B and C obliges themselves jointly to deliver to D a particular horse on a certain date.

The agreement among A, B, and C which was made known to D is that they will
contribute the amount in buying the horse. The horse was not delivered on the due date
because of the failure of B to give his share of the purchase price. State the rights and
obligations of the parties.

With regards to A, B and C, the obligation is jointly indivisible and the failure of B to pay,
does not make A and C liable since they were both able to meet their ends. Under
Article 1224, A joint indivisible obligation gives rise to indemnity for damages from the
time anyone of the debtors does not comply with his undertaking. The debtors who may
have been ready to fulfill their promises shall not contribute to the indemnity beyond
the corresponding portion of the price of the thing or of the value of the service in which
the obligation consists. Meaning, any further damages caused by the failure of B to
comply to his joint obligation with A and C makes only B liable. Because as far as the law
is concerned, the two other debtors were willing to fulfill their promise in this joint
 obligation. With regards to D, he is still given the right to demand for the damages, only
to the extent of B but not to A and C because according to Article 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. Meaning, a creditor is still protected
by his rights to demand for possible damages but only to the extent of the debtor who
failed to comply.
c. D binds himself to pay his loans of P 10,000 in four equal monthly installments. Is the
obligation of D divisible or indivisible?

Here, the obligation itself is deemed divisible since it is in four monthly installments in
the value of P 2,500. Although, the prestation to pay P 2,500 every month is indivisible
since it should be done at one time and in the full amount of P 2,500 each month. Here,
the rule applicable is that obligations are deemed divisible if “Obligations which by their
nature are susceptible of partial performance.”