Section 4: Joint and Solidary Obligations

ART. 1207. The concurrence of two or more creditors or of two or more debtors in one and the same obligation does not
imply that each one of the former has a right to demand, or that each one of the latter is bound to render, entire
compliance with the prestations. There is a solidary liability only when the obligation expressly so states, or when the law
or the nature of the obligation requires solidarity.

ART. 1208. If from the law, or the nature or the wording of the obligations to which the preceding article refers the
contrary does not appear, the credit or debt shall be presumed to be divided into as many equal shares as there are
creditors or debtors, the credits or debts being considered distinct from one another, subject to the Rules of Court
governing the multiplicity of suits.

Kinds of obligations according to the number of parties.

Individual obligation - one debtor and one creditor
Collective obligation - two or more debtors and/or two or more creditors. It may be joint of solidary

Joint and Solidary Obligations

Joint obligation - entire obligation is to be paid or performed proportionately by the debtors and/or be demanded proportionately
by the creditors
Solidary obligation - each one of the debtors is bound to render, and/or each one of the creditors hs a right to demand from any
of the debtors, entire complain with the prestation

Collective obligation presumed to be joint

-If it was an individual obligation, there can be no problem in determining:
• person liable to pay
• person entitled to demand payment
• extent of the liability of the debtors
• extent of the right of the creditor
-If it is a collective obligation, and the share of each in the obligation is specific, the correlative right and obligations of the
parties are known
→ if the share is not specified, the presumption is that the obligation is joint, as a consequence:
• there are as many debts as there are debtors
• there are as many credits as there are creditors
• the debts and/or credits are considere distinct and separate from one another
• each debtor is liable only for a proportionate part of the debt
• each creditors is entitle only to a proportionate part of the credit

Presumption subject to rules on multiplicity of suits

In article 1208, “subject to the Rules of Court governing the multiciplicity of suits.” Otherwise, situations may arise where there
are as many suits as there are debtors and creditors
— rules on multiplicity of suits seek to prevent the filling of two or more suits/complaints for a single cause of action or the same
violation of the legal right of the plaintiff

Words used to indicate joint liability

- mancomunada, mancomunadamente, pro rata, proportionately, “we promise to pa” signed by two or more persons
When obligation solidary
In 1207, there is only solidary liability when:
• obligation expressly so states
• law requires solidarity
• nature of the obligation requires solidarity
• imposed against a final judgement against several defendants

Words used to indicate solidary obligation

-not necessary for the agreement to employ precisely the word “solidary” for the obligation to be considered.
-it is sufficient that the obligation declares
-jointly and/or severally, solidaria, in solidum, together and/or separately, individually and/or collectively, juntos o
separadamente; “i promise to pay” signed by two or more persons

Kinds of solidarity
According to the parties bound
• Passive solidarity
→ solidarity in the part of the debtors, where any one of them can be made liable. It is in the nature of a mutual guaranty
• Active solidarity
→ solidarity in the part of the creditors, where any one of them can demand. Its essential feature is that of mutual representation
among the solidary creditors with powers to exercise the rights of others in the same mannes as their rights.
• Mixed solidarity
→ solidarity in the part of the debtors and creditors, where each one of the debtors is liable to render, and each one of the reditors
has a right to demand

According to source
• Conventional solidarity
→ where solidarity is agreed upon by the parties. If not mention in the contract, the obligation is only joint.
• Legal solidarity
→ where solidarity is imposed by the law
• Real solidarity
→ where solidarity is imposed by the nature of the obligation
→ the law does not indicate cases where it is solidarity because of the nature of the obligation. Opinion is offered in which intent
or purpose of the law is to have the obligation be satisfied in full but the law itself does not require solidarity.

Solidarity not presumed

-solidary obligations are very burdensome for they create unusual rights and liabilities. In between debtors, their responsibilities
increases. In between creditors, their right increases. The law tends to favor the debtors in presuming that they are bound jointly,
not solidarily.

ART. 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 for his share.
Joint indivisible obligation
— The obligation is joint because the parties are merely proportionately liable. It is indivisible because the object or subject
matter is not physically divisible into different parts. Hence, joint as to liabilities of the debtor and rights of the creditors but
indivisible as to compliance.
— Should anyone of the debtors be insolvent, the others shall not be liable for their share. The creditors must wait until the
insolvent partner can pay.

Ex: Batman and Robin jointly obliged themselves to deliver a brand new Toyota Fortuner worth P1,500,000.00 to Superman. The
object, a vehicle, is indivisible. They must deliver the thing jointly. In case of breach, the obligation is converted into monetary
obligation for indemnity for damages. Batman and Robin will be liable only for P 750,000.00 each.

1210. The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does solidarity of itself imply
indivisibility

Indivisibility and solidarity distinguished.

Simply means that the liability in an indivisible obligation may be either joint or solidarity. And in solidarity obligation, the
subject matter may be divisible or indivisible.

1211. Solidarity may exist although the creditors and the debtors may not be bound in the same manner and by the same
periods and conditions.

Kinds of obligations according to the legal tie.

Uniform
— when the parties are bound by the same stipulations
Non-uniform or varied
— when parties are not subject to the stipulations
Solidarity not affected by diverse stipulations
Essense of solidarity
— consists in the right of each creditor to enforce the rights of all and the liability of each debtor to answer for the liabilities of
all.
Action against any of the solidary debtors
— the creditor may bring his action in toto against any of the solidary debtors less the shares of the other debtors with unexpired
terms or unfulfilled conditions. Upon the expiration of the term or the fulfillment of the condition, the creditor will have the right
to demand the payment of the remainder.

Liability of any solidary debtors for entire obligation

— The parties may stipulate that any solidary debtor already bound may be made liable for the entire obligation.

ART. 1212. Each one of the solidary creditors may do whatever may be useful to the others, but not anything which may
be prejudicial to the latter.

Act of solidary creditor useful/prejudicial to others

— If he performs such act that may be prejudicial to others and as a result the obligation is extinguished, he shall be responsible
to the others for the damages.
— The rule is based on the theory of mutual agency among the solidary creditors.

1213. A solidary creditor cannot assign his rights without the consent of the others

Assignment by solidary creditor of his rights

— If no consent given by others, a solidary creditor can ‘t assign his righs to a third person, as the provisions says that each
creditor represents the others and the assignee may not have the confidence of the original solidary creditors, considering that he
may not give the shares of the others after receiving the payment.
— If the assignment is made to a co-creditor, the consent of the other creditors is not necessary.

1214. The debtor may pay any one of the solidary creditors; but if any demand, judicial or extrajudicial, has been made
by one of them, payment should be made to him.

Payment to any of the solidary creditors

The debtor can pay any one of the solidary creditors. To avoid confusion on the payment of the obligation, the debtor is required
to pay only to the demanding creditor and that payment is sufficient to effect the extinguishment of the obligation except if the
creditor, the one who demands, does not give to the other creditors their shares in the payments.

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.
The creditor who may have executed any of these acts, as well as he who collects the debt, shall be liable to the
others for the share in the obligation corresponding to them.

Liability of solidary creditor in case of novation, compensation, confusion, or remission.

Novation, compensation, confusion, and remission are modes or causes of extinguishment of obligations. The creditor who
executed any of these acts should be liable to the others for their corresponding shares considering that such acts are prejudicial to
them.

Effect of novation, etc. where obligation joint

In a joint obligation, novation, compensation, confusion, remission, prescription, and any other cause of modifi cation or
extinction does not extinguish or modify the obligation except with respect to the creditor or debtor affected, without extending
its operation to any other part of the debt or of the credit.
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, ĺ long as the debt has not been fully collected.

Right of creditor to proceed against any solidary debtor

This is not applicable to a joint obligation. In a solidary obligation (passive solidarity), any one or some or all of the solidary
debtors simultaneously, may be made to pay the debt so long as it has not been fully collected. The choice is left to the solidary
creditor to iì1

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 by a solidary debtor
Between the solidary debtors and creditor(s)
— full payment made by one of the solidary debtors extinguishes the obligation. However, the creditor may choose which offer
to accept if two or more solidary debtors offer to pay.
Among the solidary debtors
— after payment of the debt, the paying solidary debtor can demand reimbursement form his co-debtors for their proportionate
share with (legal) interest only from the time of payment
— The other debtors do not become payment solidary debtors of the debtor-payer. Their liability is not based on the original
obligation which has been extinguished, but upon the payment made by the co-debtor which creates a joint obligation of
reimbursement on the part of the others. However, in case of insolvency of any of the solidary debtors, the others assume the
share of the insolvent one pro rata.
— If a solidary debtor pays the obligation in part, he can recover reimbursement only if payment exceeded his share in the
obligation.
Among the solidary creditors.
— The receiving creditor is jointly liable to the others for their corresponding shares.

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.

When the obligation has prescribed (e.g. creditor did not make any demand for more than 10 years) or become illegal, the
obligation is extinguished.

Prescriptive periods of actions

— “By prescription, one acquires ownership and other rights through the lapse of time in the manner and under the conditions
laid down by law. In the same way, rights and actions are lost by prescription.”
— “The following actions must be brought within ten (10) years from the time the right of action accrues:
• Upon a written contract;
• Upon an obligation created by law;
• Upon a judgment.“ (Art. 1144.)
— “The following actions must be commenced within six (6) years:
• Upon an oral contract;
• Upon a quasi-contract.“ (Art. 1145.)
— “The following actions must be instituted within four (4) years:
• Upon an injury to the rights of the plaintiff;
• Upon a quasi-delict.’’ (Art. 1146.)
The statute of limitations, however, may be superseded or modified by a contract between the parties.
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. Debt remission is the extinguishing of a debtor's liability by operation of law or forgiveness by the
creditor
Effect of remission of share after payment
If payment is made first, the remission or waiver is of no effect. If remission is made previous to the payment and payment is
made, solutio indebiti arises (iuli ang payment back to debtor).

The purpose of the article is to forestall fraud whereby the debt having been paid, the creditor, who does not stand to suffer any
loss or damage, remits the share of a particular debtor. The article also secures equality and justice to the paying debtor inasmuch
as the payment benefits his co-debtors

ART. 1220. The remission of the whole obligation, obtained by one of the solidary debtors, does not entitle him to
reimbursement from his co-debtors

No right to reimbursement in case of remission.

In case of novation, compensation, or confusion (see Art. 1215.), the debtor with whom it is effected is entitled to recover from
his codebtors their corresponding shares of the obligation.

ART. 1221. If the thing has been lost or if the prestation has become impossible without the fault of the solidary debtors,
the obligation shall be extinguished.
If there was fault on the part of any one of them, all shall be responsible to the creditor, for the price and the
payment of damages and interest, without prejudice to their action against the guilty or negligent debtor.
If through a fortuitous event, the thing is lost or the performance has become impossible after one of the solidary
debtors has incurred in delay through the judicial or extra-judicial demand upon him by the creditor, the provisions of
the preceding paragraph shall apply.

Rules in case thing has been lost or prestation has become impossible.
Loss is without fault and before delay.
— obligation is extinguished
Loss is due to fault on the part of a solidary debtor.
— the fault or delay of one solidary debtor, shall be the fault or delay of all the solidary debtors. The paying debtors can recover
payment and damages from the debtor at fault. The debtor at fault can alse be made liable to pay interest for the payment made.
Loss is without fault but after delay.
— all solidary debtors even for a fortuitous event, is liable

Thing due was not lost, but there is merely a delay, fraud or negligence on the part of a solidary debtor
— all debtors will share in the payment of the PRINCIPAL prestation. The damages and interest imposed will be borne by the
guilty debtor.

Obligation to deliver is converted into an obligation to pay indemnity when there is loss or impossibility of performance

ART. 1222. A solidary debtor may, in actions filed by the creditor, avail himself of all defenses which are derived from the
nature of the obligation and of those which are personal to him, or pertain to his own share. With respect to those which
personally belong to the others, he may avail himself thereof only as regards that part of the debt for which the latter are
responsible.

Defenses available to a solidary debtor.

Defenses derived from the nature of the obligation.
— a complete defense, as it renders it ineffective. Such cases are fraud, prescription, remission, illegality or absence of
consideration, res judicata, non-performance of a suspensive condition, etc
Defenses personal to, or which pertain to share of, debtor sued.
— such as insanity, incapacity, mistake, violence, minority, etc., this is a complete defense
— A solidary debtor, by his own act or inaction, such as by failing to appeal, may lose the benefit of the provisions of Article
1222.
— non-fulfillment of the suspensive condition to a solidary debtor is a partial defense since creditor can demand portion of
obligation from other debtors as the solidary debtor is solidarily liable
Defenses personal to other solidary debtors.
— if one solidary debtor is protected in a defense, the other solidary debtors has partial defense, where they are only liable of
their own share sa obligation.