Section 4 – Joint 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 prestation. There is a solidary liability only when the obligation requires solidarity. (1137a)
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 t he multiplicity of suits. (1138a)
Joint Obligation – It is an obligation where there is a concurrence of two or more debtors or two or more creditors or of several debtors and creditors, by virtue of which each of the debtors is liable for a proportionate part of the credit.
Example of different instances 1)
2)
3)
A, B, and C borrowed P9, 000 to D. The presumption is that A, B and C are jointly liable. D can demand only P3, 000 from each or a total of P9, 000. A borrowed from B, C and D P9, 000. There is one debtor and three creditors. Each creditor can demand only P3, 000 from A. A and B are liable to C and D for P9, 000. There are two debtors and two creditors. Each creditor can demand only P4, 500 from each debtor.
SOLIDARY OBLIGATION There are solidary liability when 1)
The obligation expressly so states, or
2)
The law requires solidarity or
3)
The nature of the obligation requires solidarity.
Kinds of Solidary Obligation 1.
Passive – solidarity on the part of the debtors, where anyone of them can be made liable for the t he fulfillment of the entire obligation. Example – A A and B are solidary debtors of C in the amount of P Example – 10, 000
2.
Active – solidarity on the part of the creditors, where anyone of them can demand the fulfillment of the entire obligation. Example – A A is liable to B and C for the amount of P10, 000. B Example – and C are solidary creditors.
3.
Mixed Solidarity – solidarity on the part of the debtors and creditors where each one of the debtors is liable to render and each one of the creditors has a right to demand, entire compliance with the obligation. Example – A A and B are solidarity debtors to C and D, solidary Example – creditors in the amount of P 10, 000.
Solidarity not presumed
The presumption, where there are two or more persons in the same obligation, is that it is joint. The reason is that solidary obligations are very burdensome for they create unusual rights and liabilities. Solidarity between debtors increases their responsibility while solidarity between creditors presuming that they are bound jointly and 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.
Indivisible Joint Obligation –
The object is indivisible and the T/E between the parties are merely proportionately liable.
Example – Example – A and B are jointly liable to to give C a particular car. car. The obligation is joint but since the object is indivisible, the creditor must proceed against al the joint debtor. If I f any of the joint debtors be insolvent, the others shall not be liable li able for others.
ART. 1210. The indivisibility of an obligation does not necessarily give rise t solidarity. Nor does solidarity of itself imply indivisibility. (n)
Indivisibility as Distinguished from Solidarity Indivisibility refers to the subject matter while solidarity refers to the Tie between the parties.
Examples: 1.
Joint divisible obligation – obligation – A A and B are jointly liable to C for P10, 000.
2.
Joint indivisible obligation – obligation – A A and B are jointly liable to give C their car.
3.
Solidary divisible obligation – obligation – A A and B are solidarily liable to give C P10, 000.
4.
Solidary indivisible obligation – obligation – A A and B are solidarily liable to give C their car.
ART. 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. The solidary character of the obligation is not destroyed even if the creditors and debtors are bound by different terms and conditions. The solidarity is still preserved by recognizing in the creditor the power of claiming from any or all debtors the payment of the entire obligation.
Example: A and B solidarily bound themselves to pay a total of P10, 000 to C, and D and E to the following conditions. C’s share will be due at the end of the year; D will get his share only after he passes the CPA exams and E will get his share only after he painted the house of C.