NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
NATURE AND EFFECT OF OBLIGATIONS
As a fulfillment of the
Requirements in the course
BAC 105 – THE LAW ON OBLIGATIONS AND CONTRACTS
Submitted to:
Atty. Gerlie Mae Cabale, Lpt
Submitted by:
Vidad, Josh Vincent M.
1st Semester (2024-2025)
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
I. Definitions
1. Joint Obligation
A joint obligation is one where each debtor is bound to perform a part of the obligation,
and each creditor is entitled to demand only a portion of the debt. The responsibility of the debt
is divided among the debtors or creditors according to the respective shares in the obligation. If
one debtor fails to perform their share, only that debtor is responsible for the non-performance.
2. Solidary Obligations
A solidary obligation exists when each debtor is bound to fulfill the entire obligation, and
each creditor is entitled to demand the full performance of the debt. In this case, the liability or
right is not divided but is the same for all parties involved. Any of the debtors may be required
to pay the full amount, and any of the creditors may demand payment from any of the debtors.
3. Active Solidarity
Active solidarity refers to a situation where multiple creditors are involved, but each
creditor has the right to demand the entire fulfillment of the obligation from the debtor. The
debtor is required to pay the full amount to any of the creditors, and once payment is made to
one creditor, the obligation is extinguished.
4. Joint Indivisible Organization
A joint indivisible obligation is one in which the obligation is indivisible, meaning it
cannot be divided into separate parts. Even though it is a joint obligation (where multiple
debtors are involved), the nature of the obligation is such that the performance or non-
performance affects the entire obligation. The debtors are jointly liable for the whole of the
obligation, but the obligation cannot be divided into portions.
5. Solidary Divisible Obligation
A solidary divisible obligation occurs when the performance of the obligation can be
divided, but the debtors are still solidarity liable for the entire amount. This means each debtor
can be asked to pay the full amount, but the performance itself is divisible into parts. The
creditors can demand the full payment from any debtor, and once any debtor pays, the
obligation is extinguished for all parties. Even though the debt is divisible, the debtors are not
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
merely responsible for their own parts but are each fully liable for the entire obligation. This
type of obligation gives the creditor more security by ensuring they can collect the full debt from
any debtor.
II. Discussions
1. If there are two (2) or more debtors in one and the same obligation, is their liability joint or
solidary? Explain.
The liability of multiple debtors in the same obligation can be either joint or solidary,
depending on the nature of the obligation. In a joint obligation, the liability is shared equally,
and each debtor is responsible only for their portion of the debt. If one debtor fails to pay,
the others are still only responsible for their respective shares. In a solidary obligation, on the
other hand, each debtor can be asked to pay the full amount, and the creditor has the right
to demand the entire debt from any one of them. Whether the liability is joint or solidary
depends on the terms of the contract or the law that governs the obligation.
2. In case of active solidarity, to whom shall the debtor or debtors make payment?
In the case of active solidarity, where there are multiple creditors, the debtor may make
the payment to any one of the creditors. Once the payment is made to any creditor, the
obligation is fully discharged, and the remaining creditors cannot claim payment anymore.
This allows the debtor to settle the debt with the creditor they choose, giving more flexibility
in how the debt is paid. The concept of active solidarity ensures that the debtor is not
overwhelmed by multiple claims from all creditors. It also simplifies the payment process by
allowing the debtor to make a single payment to one creditor to settle the debt entirely.
3. Give the effect of the condonation or remission of a debt by one of several creditors:
(a) The Obligation is Joint
If the obligation is joint, the condonation (or remission) of the debt by one creditor only
releases that creditor’s portion of the debt. The remaining creditors still have the right to
collect from the debtors for their share. The other creditors' claims are not affected by the
remission from one creditor. So, in a joint obligation, the condonation does not affect the
whole debt but only the creditor who decided to forgive the debt. The debtor is still liable to
the other creditors for their respective shares.
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
(b) The Obligation is Solidary
If the obligation is solidary, the remission of the debt by one creditor means the whole
debt is considered extinguished. This is because, in solidary obligations, each creditor has
the right to demand the full amount of the debt, so if one creditor condones the entire debt,
the debtor no longer owes anything. The remission by one creditor benefits all, and the other
creditors cannot collect the debt anymore. The debtor is thus released from the obligation
entirely once any one creditor forgives the full debt. This shows the power of a solidary
creditor to unilaterally cancel the entire debt.
4. In case a remission is made by a creditor of the share of one of the solidary debtors, is the said
debtor released from responsibility to his co-debtors? Explain.
If a remission is made by a creditor in favor of one of the solidary debtors, that debtor is
released from their responsibility toward the creditor. However, this does not automatically
release them from responsibility to the other co-debtors. The co-debtors can still demand
reimbursement from the debtor who was released, as they remain liable for the entire debt.
The remission only affects the relationship between the debtor and the creditor but does not
extinguish the co-debtors' rights to claim reimbursement from the released debtor.
Essentially, the remission of the debt affects only the debtor and creditor, not the other
debtors.
5. Suppose a solidary debtor obtained remission of the whole obligation, is he entitled to
reimbursement from his co-debtor/s? Explain.
If a solidary debtor is granted remission of the entire debt, they can still seek
reimbursement from their co-debtors. This is because, under solidary obligations, each
debtor is responsible for the entire amount. Even if one debtor is released, the others remain
liable for the full debt. So, the released debtor could ask their co-debtors to pay their portion.
This ensures fairness and that no debtor bears the full burden of the debt unless they’ve paid
for it completely.
III. Problems
1. X, Y, and Z bind themselves to pay W ₱30,000. Only X received the money as per agreement
between X, Y, and Z. On the due date of the obligation, has W the right to demand the full
payment of ₱30,000 from Z alone?
Since X received the full amount, W cannot demand the full ₱30,000 from Z unless the
obligation is solidary. If the obligation is joint, W can only demand Z’s share of the debt. In
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
a solidary obligation, however, W can claim the entire ₱30,000 from any one of the debtors.
Z can still be required to pay their share, but they’re not responsible for the full debt unless
it's a solidary obligation. So it really depends on whether the obligation is joint or solidary.
2. X, Y, and Z promised to pay W solidarily ₱30,000 on or before September 10 without need of
demand. On September 9, X paid the whole ₱30,000 to W.
(a) How much can X collect from Y and Z?
Since X paid the full amount, X can collect the full ₱30,000 from Y and Z. In a solidary
obligation, each debtor is liable for the entire debt. So X can demand the entire amount from
either Y or Z, or split it between them. The amount is fully recoverable because of the solidary
nature of the obligation.
(b) May X collect interest from Y and Z?
X can only collect interest from Y and Z if it was agreed upon in the original contract. If
the contract didn’t specify interest charges, then X cannot demand interest. The key here is
whether the agreement included provisions for interest in case of payment before or after the
due date. In the absence of such provisions, X cannot collect interest.
(c) Suppose Z turns out to be insolvent, how much can X collect from Y?
If Z is insolvent, X can collect the full ₱30,000 from Y. This is because, in a solidary
obligation, if one debtor cannot pay, the others are responsible for the entire debt. Since Z is
unable to pay, Y is required to cover the full amount. Y and the others remain liable for the
full debt even if Z is unable to fulfill their portion.
3. A owes B and C, solidary creditors, the sum of ₱20,000:
(a) Can C condone the debt without the consent of B?
No, C cannot condone the debt without B’s consent because in a solidary obligation, the
creditor’s remission affects the whole debt. For one creditor to forgive the entire debt, both
creditors must agree. If C condones the debt, the debtor A will only be relieved of their
obligation to C, but B can still claim the full debt from A.
(b) Can C assign his rights without the consent of B?
Yes, C can assign their rights without B’s consent because each creditor has the right to
assign their claim. C can transfer their right to collect the debt from A to someone else. This
transfer does not affect B’s rights or responsibilities in relation to A, as they are independent
of each other. The assignment of rights by C does not require B’s approval.
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
4. A, B, and C are solidarily liable to D. For their failure to pay, D filed a complaint in court
but only against C. Has C the right to demand that A and B be also included as party
defendants?
A, B, and C are solidarily liable to D, meaning D can choose to sue any one, two, or all of
them for the entire obligation. If D files a complaint only against A, this does not prevent D
from demanding payment from B and C as well, since the obligation is solidary. C has the
right to demand that A and B be included as party defendants to share in the liability. This
is consistent with the principle of mutual benefit and burden among solidary debtors.
However, C cannot compel D to file the complaint against all debtors, as D has the
prerogative to select which debtor(s) to pursue.
5. A, B, and C, co-owners, sold a printing equipment to D. They solidarily bound themselves to
deliver the equipment on a certain date. Through the fault of C, the equipment was
completely destroyed. Give the rights and obligations of the parties.
In the case of A, B, and C selling printing equipment to D, their solidary obligation
requires them to ensure delivery. Due to C’s fault, the equipment was completely destroyed,
making C liable for damages to D. Both A and B are still solidarily liable to D for the
obligation, but they may demand reimbursement from C for the damages caused by C’s
negligence. This follows the principle that the party at fault bears ultimate responsibility
among solidary obligors. D retains the right to demand performance or compensation from
any of the solidary debtors, regardless of who caused the loss.
