Module 5 Flashcards
(26 cards)
What is the liability when there is concurrence of two or more creditors or of two or more debtors in one and the same obligations?
The general rule is that joint obligation is presumed. The exceptions are:
- The obligation expressly stated that there is solidarity;
- The law requires solidarity, i.e. tort, quasi-contracts, liability of principals, accomplices and accessories of a felony.
- Nature of the obligation requires solidarity (Art. 1207) i.e. criminal offenses and torts.
Can the joint debtor be required to pay for the share of another?
No debtor can be compelled to answer for the liability of the others. Consequently, if there is a breach of the obligation by reason of the act of one of the debtors, the damages due to its breach must be borne by him alone. Similarly, if there is any defense which is purely personal to one of the debtors, he alone can avail himself of such defense. Thus, it has been held that payment or acknowledgment by one of the joint debtors will not stop the running of the period of prescription as to the others.
In case of insolvency of one of the joint debtors, can the creditor proceed against the others for the share of the insolvent debtor?
If one of the joint debtors should be insolvent, the others shall not be liable for his share (Art. 1209).
When is there a joint indivisible obligation and what are the effects?
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 (Art. 1209).
Should any one of the joint debtors fail to comply with his undertaking, are the other joint debtors liable for damages?
- In case of joint divisible obligation, the other debtors cannot be compelled to answer for the liability of others as the debt is divided into as many equal shares as there are debts (Art. 1208).
- In case of a joint indivisible obligation, it gives rise to indemnity for damages from the time any one 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 (Art. 1224).
JOINTLY AND SEVERALLY
SOLIDARY OBLIGATION
What are the effects of mutual agency among solidary creditors?
- 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 (Art. 1214).
- 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 (Art. 1215).
What are the effects of mutual guaranty among solidary debtors?
- 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 (Art. 1216).
- 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. - 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 (Art. 1222).
Under Art. 1222 of the Civil Code, there are three (3) kinds of defences which are available to a solidary debtor if the creditor proceeds against him alone for payment of the entire obligation. They are:
- Defenses derived from the nature of the obligation;
- Defenses personal to him or pertaining to his share; and
- Defenses personal to the others, but only as regards that part of the debt for which the latter are responsible.
Is the obligor liable for damages despite the fact that the obligation is with penal clause?
It depends. Generally, the penalty shall substitute the indemnity for damages and the payment of interests in case of non-compliance. The exceptions are:
- If there is stipulation to the contrary;
- If the obligor refuses to pay the penalty; or
- The obligor is guilty of fraud in the fulfilment of the obligation.
The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfilment of the obligation, unless:
- There is a stipulation to the contrary (Art. 1236 par.1); or
- When it is made by a third person who has an interest in the fulfilment of the obligation, such as a joint debtor, guarantor, or surety.
b. Whoever pays for another may demand from the debtor what he has paid, except that if he paid:
- Without the knowledge; or
- Against the will of the debtor
Note: He can recover only insofar as the payment has been beneficial to the debtor (Art. 1236 par.2)
When a person pays on behalf of the debtor without the knowledge or against the will of the latter, he cannot compel the creditor to ______ him in his rights, such as those arising from a mortgage, guaranty, or penalty (Art. 1237).
subrogate
is where property is alienated to the creditor in satisfaction of a debt in money, shall be governed by the law of sales (Art. 1245).
Dation in Payment/ Dacion en pago
Generally, payment must be made in legal tender in the Philippines. However, the delivery of promissory notes payable to order, or bills, of exchange or other mercantile documents shall produce the effect of payment only:
- When they have been cashed; or
2. When through the fault of the creditor they have been impaired.
Designation of the debt to which the payment must be applied when the debtor has several obligations of the same kind in favor of the same creditor.
application of payment
Requisites of Application of Payment
- There must be only one debtor and only one creditor;
- There must be two or more debts of the same kind;
- All of the debts must be due except:
a. If there is stipulation to the contrary; or
b. Application of payment is made by the party for those whose benefit the term has been constituted (Art. 1196); and - Amount paid by the debtor is insufficient to cover the total amount of all the debts.
is the manifestation of the debtor to the creditor of his decision to comply immediately with his obligation, preparatory act and extrajudicial in character.
Tender of payment
is to deposit the object if the obligation in a competent court in accordance with the rules prescribed by law, after refusal or inability of the creditor to accept the tender of payment; principal act and judicial in character.
Consignation
What are the instances where a consignation produces the effect of payment even without prior tender of payment:
- Creditor is absent or unknown, or does not appear at the place of payment;
- Creditor is incapacitated to receive the payment at the time it is due;
- When without just cause, the creditor refuses to give a receipt;
- When two or more persons claim the right to collect; and
- When the title of the obligation has been lost (Art. 1256).
May the debtor withdraw the consignation made?
Yes. The debtor may withdraw the thing or sum deposited:
- Before the creditor has accepted the consignation;
- Before judicial declaration that the consignation has been properly made (Art. 1260); or
- The creditor should authorize the debtor to withdraw the same.
What are the instances when a debtor in an obligation to do shall be released from the non-performance of his obligation?
- When the obligation becomes legally or physically impossible without the fault of the debtor, obligor is released from the obligation; and
- When the service has become so difficult as to be manifestly beyond the contemplation of the parties, the court should be authorized to release the obligor in whole or in part.
Express Condonations and Required Formality thereof
Requisites:
- It must be gratuitious;
- It must be accepted by the obligor;
- The obligation must be demandable;
- Parties must have the capacity;
- Not inofficious; and
- Must comply with the forms of donation should it be express.
What are the instances of implied condonation?
- The delivery of a private document evidencing the credit, made voluntarily by the creditor to the debtor;
- Whenever the private document in which the debt appears is found in the possession of the debtor; and
- It is presumed that the accessory obligation of pledge has been remitted when the thing pledged, after its delivery to the creditor, is found in the possession of the debtor, or of a third person who owns the thing (Art. 1274).
