1 | Panda Notes in ObliCON

Solidary obligations

- There can be no solidarity with only one creditor and one debtor
o Solidary and joint obligations requires plurality of parties.
- When can there be solidary obligations [ test of solidarity]
o Law provides
o Stipulation by the party
o Nature of the obligation requires solidarity.
- Only joint obligations are presumed. Solidarity is never presumed.
o Because joint provides for lesser responsibility.
- It is not necessary for the parties to use the word solidary in its contract. Any term, as long as it connotes
solidarity considered as solidary
- Jointly and individually
o Ronquillo case
An action for sum of money was brought by the creditor. against 3 debtors. Parties entered
into a compromise before the judgment in the compromise, the creditor agreed to reduce
the amount we hereby bind ourselves jointly and individually for the obligations means
solidary.
o PNB vs concepcion
I in a negotiable instrument each of the maker is solidarily liable. .
Can only be used if the instrument is negotiable.
In solidarity, when the parties are indispensable, they are not necessary parties.
In this rule, ALWAYS CHECK IF THE INSTRUMENT IS NEGOTIABLE.
X, Y and Z are the creditors, A, B and C are debtors. Solidary liability if the obligation is 30k any one of the
solidary creditors can claim from any one of the solidary debtors, the entire obligation the relationship
existing among solidary creditors is that of mutual agency each one is acting in behalf of the other creditors.
o Solidary debtors -> any one can be made to pay the entire obligation mutual guaranty
Each is guaranteeing the payment of the entire obligation to the creditor
Creditor mutual agency, debtors mutual guaranty
The moment a creditor makes a demand to a debtor other creditor cannot be paid. Payment can be made
only to the creditor who made the demand.
o What if X made a demand to A, before A can pay, B paid B is allowed since there is still solidary
liable. B can still pay to Y or Z or X. however, X can still refuse to accept. B can pay to any of the creditor,
since no demand has been made from B and C.
o Suppose A, after receiving demand from X, A pays the entire obligation the obligation of ABC is
extinguished, A now becomes automatically the creditor of B and C with respect to their individual
shares the obligation of B and C to A becomes joint. A after payng X A becomes the new
creditor of B and C.
However, subrogation is not applicable here
Subrogation
o He who acquires the rights of the original creditor
Because A has not acquired the rights of the creditor. A only acquired
the right of reimbursement.
Can debtors agree to exempt a debtor yes. But the agreement of the Solidary debtors is valid only inter se ->
only within the solidary debtor, but not the creditors. e.g. AC agreed that B will not pay. A can pay the full
amount to a creditor, A can reimburse 0 from B and the other half from C.
o X demands payment from B [ who has been exempted ] X can collect the full amount from B.--> B can
collect from A and C 45 each.
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ABCDE are debtors. 90k obligation share of A becomes due on March 10, B Mar 11 are the debtors
bound by the same terms and conditions?
o How much can X collect on Mar 10? only 30k only mar 10 30k is only due X can collect from
any of the debtor since they bound to solidary
o X collected 30k on mar 10 from B what is the right of B? to recover from A what he paid which is
30k
o On Mar 11 another due X demanded from A?? he can demand from A.
o On Mar 12 can X collect from A again? yes - since A is solidarily liable
ABC are Solidary creditors of XYZ for 30k. their obligation is solidary. Before the due date, A learned that X has a
beautiful dog. A told X that if X will give the dog he will consider the entire obligation as fully paid? B and
C are dog haters. Can A do that? Art 1212 what binds the solidary creditors is mutual agency --. None fo
the solidary creditors can do something that is prejudicial to the creditors. None of the SC can do anything
prejudicial to the interest of the cocreditors. Since A is dog lover and B AND C are dog haters, A cannot
extinguish the obligation in consideration of the dog. Art 1215 should anyone of the solidary creditors avail
of novation, confusion, merger the same will be valid. [ 1215]. However, under 1218, the act of the acting
creditor will delivery the respective shares of the other creditors in this situation considered as novation
the respective shares of other creditors will be delivered by A.
o Suppose after a failed to deliver because he is insolvent what is the remedy of the creditors?
cannot go after original debtors they cannot also go after the insolvent creditor there is no
solution.

Remission

- An act of forgiveness
- Applicable to solidary obligations
o One of the creditors remitted the obligation, what is the effect? Will depend on the object of remission
If what was remitted is the share of the solidary debtor
Only that share of the solidary debtor is extinguished
If what was remitted is the entire obligation
The entire obligation is extinguished
If what was remitted is the solidary tie
The original solidary obligation is converted to joint.

Art 1216

- A soliary creditor can go after any one/ all of the solidary debtors until the entire obligations has been fully paid

Obligations with a penal clause

Penal clause

- An accessory undertaking to a greater responsibility in case of breach.

- Not always necessary in an obligations
- Purpose
o To induce or stipulate the performance of the obligation.
- If an obligation should the debtor not perform, the remedy of the creditor is to go after the debtor and hold the
debtor liable for damages. But one you must be able to prove the fact of damages.
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- If no damage was suffered no damage. However, if there is a penal clause, and the debtor failed to perform,
the remedy of the creditor is to claim the penal clause.
- If without penal clause damages, but the fact of damage must be proven. If there is penal clause what is
stipulated in penal clause.
- Do you have to prove damages if there is penal clause?
o No. what needs to be proven is the fact of breach.
- Can the creditor recover of claim both damage and penalty at the same time?
o In 2 instances, yes
When the debtor refuses to pay the penalty pay penalty and damage
If the debtor is guilty of fraud, in the performance of the obligation pay both penalty and
damages.
- Can a debtor, in an obligation with penal clause, offer to pay the penalty instead of performing the obligation?
o Yes, but only when that right is expressly given to the debtor.
- Can the creditor demand both the principal obligation and the penalty?
o Yes. If the right has been clearly given to the creditor.
In debtor there should be an express right. In creditor to be able to claim both, an exprss
grant of the right is not required by the law. It is enough that it is implied.
- Can the agreed penalty be reduced by the court?
o Yes.
o conditions
If the penalty agreed upon is valid if void, there is nothing to reduce. :D
If there has been partial performance/ irregular performance

o
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