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Divisible And
Indivisible
Obligation
Article1223
ligation
e object of which, in its delivery or
is capable of partial fulfillment.
Obligation
object of which, in its delivery or
Kinds Of Division
1. Qualitative Division
- or one based on quantity, not on number or quantity of the
things which are the object of the obligation.
2. Quantitative Division
- or one based on quantity rather than on quality.
• The rule in Article 1229 is evident justice. The penalty provided for in the penal clause may
be reduced by the courts:
• 1.) When there is partial or irregular performance- refers to the extent of fulfillment, the
latter, to the manner. As a general rule, an obligation is not deemed performed unless the
thing or service in which it consists has been completely delivered or rendered, as the case
may be(see Arts. 1233,1234,1235,1248); or
• 2.) When the penalty agreed upon is iniquitous or unconscionable- here, the penalty may be
reduced even if there is no performance at all. Even if iniquitous or unconscionable,
liquidated damages, whether, intended as an indemnity or as a penalty, are not void, but subject
merely to equitable reduction.(see Art.2227;Yulo vs. Chan Pe, 101 Phil.134.)
ARTICLE 1230
THE NULLITY OF THE PENAL CLAUSE
DOES NOT CARRY WITH IT THAT OF THE
PRINCIPAL OBLIGATION. THE NULLITY
OF THE PRINCIPAL OBLIGATION CARRIES
WITH IT THAT OF THE PENAL
CLAUSE.(1155)
• EFFECT OF NULLITY OF THE PENAL CLAUSE- if the penal clause
is void, the principal obligation remains valid and demandable.
The penal clause is just damages in case of non-performance of
the obligation as if no penalty has been stipulated.(see Art.1170.)
EXTINGUISHMENT OF
OBLIGATION
ART.1231. OBLIGATIONS ARE
EXTINGUISHED:
• BY PAYMENT OR PERFORMANCE;
• BY THE LOSS OF THE THING DUE;
• BY THE CONDONATION OR REMISSION OF THE DEBT;
• BY THE CONFUSION OR MERGER OF THE RIGHTS OF CREDITOR AND
DEBTOR;
• BY COMPENSATION;
• BY NOVATION.
OTHER CAUSES OF EXTINGUISHMENT OF OBLIGATIONS, SUCH AS
ANNULMENT, RESCISSION, FULFILLMENT OF A RESOLUTORY CONDITION, AND
PRESCRIPTION, ARE GOVERNED ELSEWHERE IN THE CODE.(1156A)
ART.1232. PAYMENT MEANS NOT ONLY THE DELIVERY
OF MONEY BUT ALSO THE PERFORMANCE, IN ANY
OTHER MANNER, OF AN OBLIGATION.
a debtor may refer to an obligation to deliver money, to deliver a thing(other than money),
to do an act, or not to do an act.
(1)Integrity of prestation - a debt to deliver a thing( including money) or to render service is not
understood to have been paid unless the thing or service has completely delivered or
rendered, as the case may be.
(2) Identify of the prestation- when a debt is admitted by the debtor or established by the
evidence of the creditor, the burden of proving extinguishment by payment devolves upon the
debtor who claims payment.
ARTICLE 1234
IF THE OBLIGATION HAS BEEN
SUBSTANTIALLY PERFORMED IN GOOD
FAITH, THE OBLIGOR MAY RECOVER AS
THOUGH THERE HAS BEEN A STRICT
AND COMPLETE FULFILLMENT, LESS
DAMAGES SUFFERED BY THE OBLIGEE.
RECOVERY ALLOWED IN CASE OD
SUBSTANTIAL PERFOMANCEIN GOOD
FAITH
Requisites for the application of Article 1234.
The requisites are:
(1)There must be substantial performance; and
(2) the obligor must be in good faith.
• “Under the old Civil Code, the creditor cannot refuse payment
by a third person but the commission believes that the creditor
should have a right to insist on the liability of the debtor.
Moreover, the creditor should not be compelled to accept
payment from a third person whom he may dislike or distrust.
The creditor may not, for a personal reasons desire to have any
business dealings with a third persons; or the creditor may not
have confidence in the honesty of the third person who might
deliver a defective thing or pay with a check which may not be
honored.” (Report of the Code Commission, p.8)
Effect of payment by a third party
• (1) If made without the knowledge or against the will of the debtor –
Payer can recover from the debtor only insofar the as the payment has been
beneficial the latter. In other words, the recovery is only up to extent or
amount of the debt at the time of payment.
• (2) If made with the knowledge of the debtor - Payer shall have the
rights of reimbursement and subrogation, that is, to recover what he has
paid the amount and to acquire all the rights of the creditor.
Article 1237
• (1) Free disposal of the thing due means that the thing
to be delivered must not be subject to any claim or
lien or encumbrance. (e.g., mortgage, pledge) of a
third person.