2.
) That in personal obligations which
DIVISIBLE AND
INDIVISIBLE
OBLIGATIONS
May either be: (Art 1223)
1.) Simple – there is only one (1) debtor
and one (1) creditor
2.) Compound, conditional and
collective
Indivisibility vs. Solidarity (Art 1210)
1.) Indivisibility refers to the prestation
while solidarity refers to the
relationship between the debtors and
the creditors
2.) Indivisibility exists as simple, pure,
conditional, period, compound or
collective; while solidarity is always
collective but may be compound,
conditional or with period.
Determination of divisibility or
indivisibility of prestation:
1.) Physical indivisibility/indivisibility
by nature – thing or service is capable of
partial delivery or performance
2.) Indivisibility or divisibility by
intention – thing or service is physically
divisible or physically indivisible but by
stipulation of the parties, it is
indivisible/divisible like qualitative
division, ideal and intellectual division.
Art 1225 – PRESUMPTIONS:
1.) That in obligation to give a
determinate thing which by its
nature is INDIVISIBLE.
can be performed in certain number of
days or performed in metrical units and
analogous cases is DIVISIBLE.
PRESUMPTIONS DO NOT ARISE IF:
>There is a law to the contrary.
>Contrary stipulation between parties
(by intention).
Art 1209 and 1224 – JOINT INDIVISIBLE
OBLIGATION
-though each debt or credit is distinct
from one another because the obligation
is joint, ALL the joint creditors must
proceed against ALL the joint debtors
for the enforcement of the whole
obligation (being indivisible) because
compliance is not possible if the joint
debtors do not act together.
LIABILITIES OF JOINT DEBTORS IN
CASE OF BREACH. Determinate thing
1.) All joint debtors breach the
obligation – all are liable
proportionately for damages (price,
interest and other damages)
2.) One joint debtor breaches the
obligation – all are liable for damages.
The liability non-faulting joint debtors is
limited to the price while the breaching
joint debtor shall bear in full interests
and other damages.
NOTE: Obligation is converted to
obligation for damages.
Specific performance?
Rescission?
Substitute performance?
OBLIGATIONS WITH Art 1129
GR: The contract is the law between the
A PENAL CLAUSE parties, courts have no power or
Principal obligation vs. Accessory authority to change the contract that
obligation (penalty) involves only private parties and
interests
Art 1230 – Accessory follows the
principal EXC: Justice so demands when

>Accessory derives its life from the >Penalty is excessive, iniquitous or

principal unconscionable

>So that if the principal is extinguished, >There is partial or irregular

or defective; so is the accessory but not performance not attended by fraud,
the other way. negligence or delay

Purposes of the stipulated penalty Art 1227 – Penalty is not a substitute to

the performance of the principal
1.) Deterrent against breach where obligation UNLESS the creditor consents
there will be greater liability – in which case there is a facultative
strengthens the coercive power of the obligation.
obligation.
2.) Substitute the indemnity for
damages like attorney’s fees, interests,
collection costs and other costs
(liquidated damages) UNLESS the
parties stipulated that aside from the
penalty, interests shall also be due.
NOTE:
>If violation is attended by fraud,
damages over damages may be due
>Even if the actual loss is greater or
lesser than the penalty stipulated, the
debtor is liable for the stipulated
penalty without need of proof.
>A punishment for a violation or non-
performance of obligation
Art 1228 – Proof of actual damages is
not necessary to demand the stipulated
penalty in case of violation or non-
performance.