Section 4 Joint and Solidary Obligations

Maria Eryn B. Palad

Article 1215
ART. 1215. 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.

Causes of Extinguishment

Example
A
P12,000.00

X, Y, & Z

X substitute D, a third person, as the debtor Y change the object, P12,000.00 into an iPhone4

NOVATION

Example
A&B
P15,000.00

C&D

C owes A & B, P15,000.00

COMPENSATION

Example
A
Negotiable Promissory Note as Payment for debt

C&D

Endorsement

Endorsement

E
CONFUSION

Example
A
P2,000.00

M&N

N remits or condones debt of A

REMISSION

Query
What would be the effect if Novation, Compensation, Confusion or Remission is enacted on a joint obligation?

Article 1216
ART. 1216. The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. The demand made against one of them shall not be an obstacle to those which may subsequently be directed against the others, so long as the debt has not been fully collected.

Example
A, B & C
P18,000.00

D can demand from A, B or C If demand is on A, and A pays P6,000.00 only

Passive Solidarity vs. Suretyship

Similarity
Guarantee Reimbursement

Difference
Indemnity Reimbursement Extension

Article 1217
ART. 1217. 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 co-debtors, in proportion to the debt of each.

Effects of Payment
Both Parties
Solidary Debtor Solidary Creditor

EXAMPLE

EXAMPLE

EXAMPLE

Example
A, B & C X, Y, & Z debt is due on Dec. 31, 2011 A paid the whole debt A & B offer to pay Y
ART. 1217
P24,000.00

Example
A, B & C X, Y, & Z debt is due on Dec. 31, 2011 A is chosen to pay and paid the whole amount If paid on Dec. 10, 2011 If C is insolvent
ART. 1217
P30,000.00

Example
A, B & C X, Y, & Z debt is due on Dec. 31, 2011 A paid the whole amount to Y
P24,000.00

ART. 1217

Article 1218
ART. 1218. Payment by a solidary debtor shall not entitle him to reimbursement from his co-debtors if such payment is made after the obligation has prescribed or become illegal. (n)

Payment shall not entitle the solidary debtor an imbursement

Prescription Becomes Illegal

EXAMPLE

EXAMPLE

Example
Crispin & Basilio Bonifacio debt fell due for more than 10 yrs. If Crispin paid P10,000.00, does he have the right for reimbursement?
P10,000.00

ART. 1218

Example
A &B
30 cases of energy drink

FDA banned consumption and sale before date of delivery

ART. 1218

Clarifications?

Maria Eryn B. Palad BSBAMA 3A