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When negligence shows bad faith, the Meaning Of Simple Loan Or Mutuum.
provisions of Articles 1171 and 2201,
A simple loan or mutuum is a contract
paragraph 2, shall apply. If the law or
whereby one of the parties delivers to
contract does not state the diligence which is
another money or other consumable thing,
to be observed in the performance, that
upon the condition that the same amount of
which is expected of a good father of a
the same kind and quality shall be paid. It
family shall be required. (1104a)
may be gratuitous or with a stipulation to
Art. 1174. Except In Cases Expressly pay interest. (Art. 1933.)
Specified By The Law, Or When It Is
MEANING OF USURY.
Otherwise Declared By Stipulation, Or
When The Nature Of The Obligation Usury is contracting for or receiving interest
Requires The Assumption Of Risk, No in excess of the amount allowed by law for
Person Shall Be Responsible For Those the loan or use of money, goods, chattels, or
Events Which Could Not Be Foreseen, Or credits.
Which, Though Foreseen, Were
Inevitable. (1105a) Art. 1176. The Receipt Of The Principal
By The Creditor, Without Reservation
REQUISITES OF A FORTUITOUS With Respect To The Interest, Shall Give
EVENT. Rise To The Presumption That Said
Interest Has Been Paid. The Receipt Of A
Whether an act of man or an act of God, to
Later Installment Of A Debt Without
constitute a fortuitous event, it is essential
Reservation As To Prior Installments
that:
Shall Likewise Raise The Presumption
That Such Installments Have Been Paid. Prejudice To The Effects Of The
(1110a) Happening Event. (1113)
By presumption is meant the inference of a A pure obligation is one which is not subject
fact not actually known arising from its to any condition and no specific date is
usual connection with another which is mentioned for its fulfillment and is,
known or proved therefore, immediately demandable.
Art. 1202. The Debtor Shall Lose The Right (2) If the loss of one of the things occurs
Of Choice When Among The Prestations through the fault of the debtor, the
Whereby He Is Alternatively Bound, Only creditor may claim any of those subsisting,
One Is Practicable. (1134) or the price of that which, through the
fault of the former, has disappeared, with
Art. 1203. If Through The Creditor’s Acts,
a right to damages;
The Debtor Cannot Make A Choice
According To The Terms Of The Obligation, (3) If all the things are lost through the
The Latter May Rescind The Contract With fault of the debtor, the choice by the
Damages. (N) creditor shall fall upon the price of any one
of them, also with indemnity for damages.
ART. 1204. The creditor shall have a right
The same rules shall be applied to
to indemnity for damages when, through
obligations to do or not to do in case one,
the fault of the debtor, all the things which
some, or all of the prestations should
are alternatively the object of the
become impossible. (1136a)
obligation have been lost, or the
compliance of the obligation has become ART. 1206. When only one prestation has
impossible. been agreed upon, but the obligor may
render another in substitution, the
The indemnity shall be fixed taking as a
obligation is called facultative. The loss or
basis the value of the last thing which
deterioration of the thing intended as a
disappeared, or that of the service which
substitute, through the negligence of the
last became impossible.
obligor, does not render him liable. But
once the substitution has been made, the solidarity. Nor does solidarity of itself
obligor is liable for the loss of the imply indivisibility. (n)
substitute on account of his delay,
negligence, or fraud. (n) ART. 1211. Solidarity may exist although
the creditors and the debtors may not be
SECTION 4. — JOINT AND SOLIDARY bound in the same manner and by the
OBLIGATIONS same periods and conditions. (1140)
ART. 1207. The concurrence of two or ART. 1212. Each one of the solidary
more creditors or of two or more debtors creditors may do whatever may be useful
in one and the same obligation does not to the others, but not anything which may
imply that each one of the former has a be prejudicial to the latter. (1141a)
right to demand, or that each one of the
latter is bound to render, entire ART. 1213. A solidary creditor cannot
compliance with the prestations. There is a assign his rights without the consent of the
solidary liability only when the obligation others. (n)
expressly so states, or when the law or the
ART. 1214. The debtor may pay any one of
nature of the obligation requires solidarity.
the solidary creditors; but if any demand,
(1137a)
judicial or extrajudicial, has been made by
ART. 1208. If from the law, or the nature or one of them, payment should be made to
the wording of the obligations to which the him. (1142a)
preceding article refers the contrary does
ART. 1215. Novation, compensation,
not appear, the credit or debt shall be
confusion or remission of the debt, made
presumed to be divided into as many equal
by any of the solidary creditors or with any
shares as there are creditors or debtors,
of the solidary debtors, shall extinguish the
the credits or debts being considered
obligation, without prejudice to the
distinct from one another, subject to the
provisions of Article 1219.
Rules of Court governing the multiplicity of
suits. (1138a) The creditor who may have executed any
of these acts, as well as he who collects the
ART. 1209. If the division is impossible, the
debt, shall be liable to the others for the
right of the creditors may be prejudiced
share in the obligation corresponding to
only by their collective acts, and the debt
them. (1143)
can be enforced only by proceeding against
all the debtors. If one of the latter should ART. 1216. The creditor may proceed
be insolvent, the others shall not be liable against any one of the solidary debtors or
for his share. (1139) some or all of them simultaneously. The
demand made against one of them shall
ART. 1210. The indivisibility of an
not be an obstacle to those which may
obligation does not necessarily give rise to
subsequently be directed against the
others, so long as the debt has not been ART. 1221. If the thing has been lost or if
fully collected. (1144a) the prestation has become impossible
without the fault of the solidary debtors,
ART. 1217. Payment made by one of the the obligation shall be extinguished.
solidary debtors extinguishes the
obligation. If two or more solidary debtors If there was fault on the part of any one of
offer to pay, the creditor may choose them, all shall be responsible to the
which offer to accept. creditor, for the price and the payment of
damages and interest, without prejudice to
He who made the payment may claim from their action against the guilty or negligent
his co-debtors only the share which debtor.
corresponds to each, with the interest for
the payment already made. If the payment If through a fortuitous event, the thing is
is made before the debt is due, no interest lost or the performance has become
for the intervening period may be impossible after one of the solidary
demanded. debtors has incurred in delay through the
judicial or extra-judicial demand upon him
When one of the solidary debtors cannot, by the creditor, the provisions of the
because of his insolvency, reimburse his preceding paragraph shall apply. (1147a)
share to the debtor paying the obligation,
such share shall be borne by all his co- ART. 1222. A solidary debtor may, in
debtors, in proportion to the debt of each. actions filed by the creditor, avail himself
(1145a) of all defenses which are derived from the
nature of the obligation and of those which
ART. 1218. Payment by a solidary debtor are personal to him or pertain to his own
shall not entitle him to reimbursement share. With respect to those which
from his co-debtors if such payment is personally belong to the others, he may
made after the obligation has been avail himself thereof only as regards that
prescribed or become illegal. (n) part of the debt for which the latter are
responsible. (1148a)
ART. 1219. The remission made by the
creditor of the share which affects one of
the solidary debtors does not release the
latter from his responsibility towards the
co-debtors, in case the debt had been
totally paid by anyone of them before the
remission was effected. (1146a)