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Novation - the substitution of a new contract in place of an old one.

Compensation - something, typically money, awarded to someone as a recompense for loss,


injury, or suffering.

Confusion - the state of being bewildered or unclear in one's mind about something.

The combination or mixture of two things; the process of commingling.

Remission- the cancellation of a debt, charge, or penalty.

Joint Obligation or one where the whole obligation is to be paid or fulfilled proportionately by
the different debtors and/or is to be demanded proportionately by the different creditors.

Solidary Obligation or one where each one of the debtors is bound to render, and/or each one
of the creditors has a right to demand from any of the debtors, entire compliance with prestation.

Passive Solidarity solidary on the part of the debtors, where any of them can be made liable
for the fulfillment of the entire obligation. It is in the nature of a mutual agency.

Active Solidarity solidarity on the part of the creditors, where any one of them can demand
the fulfillment of the entire obligation.
Essential feature Mutual representation among solidary creditors with powers to
exercise the rights of others in the same manner as their rights.

Mixed Solidarity solidarity on the part of the debtors and creditors, where each one of the
debtors is liable to render, and each on of the creditors are has a right to demand, entire
compliance with the obligation.

According to Source:
Conventional Solidarity where solidarity is agreed upon parties
Legal Solidarity where solidarity is imposed by the law
Real Solidarity where solidarity is imposed by the nature of the obligation.

Article 1217

Effects of payment by a solidary debtor :

Between the solidary debtors and creditors Payment made by one of the solidary debtors
extinguishes the obligation. However, the creditor is given the right to choose which offer to
accept if 2 or more solidary debtors offer to pay.

Among the solidary debtors After payment of the debt, the paying solidary debtor can
demand reimbursement from his co-debtors ofr their proportionate shares with (legal) interest
only from the time of the payment.

Among the solidary creditors - the receiving creditor is jointly liable to the others for their
corresponding shares.

Article 1218

When a solidary debtor pays the obligation, he is entitled as a rule to reimbursement


from his co-debtors. Article 1218 mentions 2 cases when the paying debtor cannot get
reimbursement (1) obligation has already prescribed (2) or become illegal THE
OBLIGATION IS EXTINGUISHED. HENCE, THERE ARE NO MORE OBLIGATION TO BE
COMPLIED WITH.

By prescription, one acquires ownership and other rights through the laps of timein the manner
and under the conditions laid down by law.

The following actions must be brought within 10 years from the time the right of action
accrues:

(1) Upon a written contract


(2) Upon an obligation created by law
(3) Upon a judegement
The following actions must be commenced within 6 years:

(1) Upon an oral contract


(2) Upon a quasi- contrarct

The following actions must be instituted within 4 years:

(1) Upon an injury to the rights of the plaintiff


(2) Upon a quasi-delict

Article 1219

Effect of remission of share after payment.

If payment is made first, the remission or waiver is no effect. There is no more obligation
to remit. If remission is made previous to the payment and is payment is made, solutio idebiti
arises.

Purpose:

To forestall fraud whereby the debt having been paid the creditors who does not
stand to suffer any loss, remits the share of a particular debtor.

Secures (1) Equity (2) Justice to the PAYING DEBTOR.

Article 1220

NO RIGHT TO REIMBURSEMNT IN CASE OF REMISSION

Bc remission is gratuitous or DONATION.

In case of novation, compensation, or confusion THE DEBTOR IS ENTITLED TO


RECOVER FROM HIS CO-DEBTORS THEIR CORRESPONDING SHARES OF THE
OBLIGATION.

Article 1221

RULES IN CASE THING HAS BEEN LOST OR PRESTATION HAS BECOME


IMPOSSIBLE

(1) Loss is without fault and before delay The obligation shall be extinguished.
(2) Loss is due to fault on the part of a solidary debtor the fault debtor cannot
claim reimbursement from his co- solidary debtors because he alone was at fault.
(3) Loss is without fault but after delay the default of one (1) makes all the solidary
debtors responsible (even for a fortuitous event)

Article 1222

DEFENSES AVAILABLE TO A SOLIDARY DEBTOR


(1) Defenses derive from the nature of the obligation it is complete
defense because it nullifies the obligation or renders it ineffective.
(2) Defenses personal to, or which pertain to share of, debtor sued.
insanity, incapacity, mistake violence
(3) Defenses personal to other solidary debtors
Article 1223
(1) Divisible Obligation is one the object of which, in its delivery or
performance is capable of partial fulfillment.
(2) Indivisible Obligation is one the object of which, in its delivery or
performance is not capable of partial fulfillment.
Test for distinction
Whether an obligation is divisible or not the controlling circumstance
is the purpose of the obligation or the intention of the parties. Though
objects are physically divisible, an obligation is indivisible if so provided
by law or intended by the parties. If the objects is not physically divisible,
the obligation is always indivisible.

Kinds of division
(1) Qualitative division based on quality, not on number of quantity
(2) Quantitative division based on quantity
(3) Ideal or intellectual division one which exist only in the minds of
the parties.

Kinds of Indivisibility
(1) Legal Indivisibility where a specific provision of law declares as
indivisible, obligations which, by their nature are divisible.
(2) Conventional indivisibility where the will of the parties makes as
indivisible, obligations which, by their nature are divisible
(3) Natural indivisibility where the nature of the objet or prestation
does not admit of division.
Article 1224
Effect Of Non-Compliance By A Debtor In A Joint Indivisible Obligation
If any one of the debtors does not comply with his undertaking in a joint
indivisible obligation, the obligation is converted into one for damages (pay
money). The creditor cannot ask for specific performance or rescission bc there
is no cause of action against the other debtors who r willing to fulfill their
promises.
Article 1225
Obligations deemed indivisible
(1) Obligations to give definite things (to give a particular electricfan,
to deliver a specific house)
(2) Obligations which are not susceptible of partial performance (to
sing a song, to dance the tinikling)

Obligations deemed visible


(1) Obligations which have for their object the execution of a certain
number of days of work. (the oblig of d to paint d house of c in 10
days, di niya knahanglan humanon at one day)
(2) Obligations which hav for their object the accomplishment of
work by metrical units.
(3) Obligations which by their nature are susceptible of partial
performance.

Divisibility or indivisibility in obligations not to do


(1) Indivisible Obligation the obligation should be fulfilled
continuously during a certain period
(2) Divisible obligation the forbearance is not continuous

TO DO AND NOT TO ARE GENERALLY INDIVISIBLE


Article 1226
(1) Principal Obligation is one which can stand by itself and does
depend for its validity and existence upon another obligation.
(2) Accessory Obligation is one which is attached to a principal
obligation and, therefore, cannot stand alone.

Obligation with a penal clause is one which contains an


accessory undertaking to pay a previously stipulated indemnity in
case of breach of the principal prestation, intended primarily to
induce its fulfillment.

Penal Clause is an accessory undertaking attached to an


obligation to assume greater liability in case of breach

Purposes:
(1) To insure their performace (general purpose)
(2) To substitute a penalty for the indemnity for damages and the
payment of interests.

Kinds of Penal Clause


(1) As to its origin
a. Legal Penal Clause when it is provided by law
b. Conventional Penal Clause when it is provided for by
stipulation of the parties
(2) As to its purpose
a. Compensatory Penal Clause when the penalty takes the
place of damages
b. Punitive Penal clause when the penalty is imposed merely
as punishment for breach
(3) As to its demandability or effect
a. Subsidiary or alternative penal clause when only the
penalty can be enforced
b. Joint or cumulative penal clause when both the principal
obligation and the penal clause can be enforced
Penalty substitutes for damages and interests
The penalty takes the place of indemnity for damages and the
payment of interest in case of NON-COMPLIANCE
When creditor may recover damages
(1) When stipulated by the parties
(2) When the obligor refuses to pay the penalty, in which case the
creditor may recover legal interest thereon
(3) When the obligor is guilty of fraud in the fulfillment of the
obligation
When penalty may be enforced
Only when it is demandable in accordance with the provisions of the
Civil Code. Obligation is demandable only if there is breach of contract and
Is not contrary to the law morals etc.
If due to fortuitous event the penalty is not demandable

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