Joint Obligations Hand Outs

Joint Obligations
Mancommunada, pro rata
Kinds of Obligations according to number of parties

• Individual Obligation = one where there is only one obligor and one obligee
• Collective Obligation = one where there are two or more debtors and/or two or more
creditors. It may be joint or solidary
Joint and solidary obligation

• A joint obligation is 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
• A solidary obligation is one where each one of the debtors is bound to render, and/or each
one of the creditors has a right to demand entire compliance with the prestation
Joint and solidary obligation

• Joint Obligations — “To each his own.’’
• Solidary Obligations — “One for all, all for one.”
In a joint obligation “each obligor answers only for a part of the whole liability and to each
obligee belongs only a part of the correlative rights.” Whereas, in “a solidary or joint and several
obligation, the relationship between the active and the passive subjects is so close that each of
the former or of the latter may demand the fulfi llment of or must comply with the whole
obligation.” (8 Manresa 194)
Philippine credit corporation vs Court of appeals G.R. No. 109648. November 22, 2001
A solidary obligation is one in which each of the debtors is liable for the entire obligation, and
each of the creditors is entitled to demand the satisfaction of the whole obligation from any or all
of the debtors. On the other hand, a joint obligation is one in which each debtors is liable only for
a proportionate part of the debt, and the creditor is entitled to demand only a proportionate part
of the credit from each debtor. The well-entrenched rule is that solidary obligations cannot be
inferred lightly. They must be positively and clearly expressed. A liability is solidary "only when
the obligation expressly so states, when the law so provides or when the nature of the obligation
so requires." Article 1207 of the Civil Code explains the nature of solidary obligations in this
wise
Examples of joint obligations

• X and Y are joint debtors of Z to the amount of P1,000,000. Z can demand only P500,000
from X, and only P500,000 from Y.
• A and B are joint debtors of C, D, E, and F, who are joint creditors to the amount of
P1,000,000. C may demand only P125,000 from A, and P125,000 from B. D, E, and F,
have the same rights as C.
General rule
 Where there are two or more debtors or two or more creditors, the obligation is joint
Exceptions to the rule

• When there is a stipulation in the contract that the obligation is solidary
• When the nature of the obligation requires liability to be solidary
• When the law declares the obligation to be solidary
Presumption That Obligation Is Joint (Article 1208 NCC)

• The debt shall be divided into as many shares as there are creditors or debtors.
• The credits or the debts will be distinct from one another, BUT regarding the bringing of
the action in court, the Rules of Court governing the multiplicity of suits will be
followed.
Synonyms for joint obligation

• mancomunada = Joint
• mancomunada simple = Joint simple
• pro rata = Proportionate
• “We promise to pay,” when there are two or more signatures
Some Consequences of Joint Liability

 Vitiated consent on the part of one debtor does not affect the others.
Example: A and B are joint debtors of C for P1,000,000. A’s consent was obtained by C
thru fraud. B would still be liable for P500,000, while A will not be liable, since the 2
debts are considered distinct from each other
 Insolvency of one debtor does not make others responsible for his share.
Example: A, B, and C are joint debtors of D for P3,000,000. If A is insolvent, how much
should B pay D?
Answer = Only P1,000,000, his own proportionate share.
 Demand by the creditor on one joint debtor puts him in default, but not the others since
the debts are distinct.
 When the creditor interrupts the running of the prescriptive period by demanding
judicially from one, the others are not affected. (Therefore, it is possible that the share of
one joint debtor has not prescribed, while those of the others have already prescribed
 Defenses of one debtor are not necessarily available to the others
Liabilities of Partners
 If it arises out of a contract, the liability is joint or pro rata. (Art. 1816, Civil Code).
Exception = if the dependents of an employee claim compensation for the employee’s
death in line of duty. (Liwanag, et al. v. Workmen’s Compensation Commission, GR L-
12164, May 22, 1959).
 If it arises out of a crime or a quasi-delict, the liability is solidary (together with the
partnership). (Arts. 1822, 1823 and 1824, Civil Code).
Liabilities of agents
 In general — joint, even if appointed at the same time, unless solidarity has been agreed
upon. (Art. 1894, Civil Code).
Liabilities of Co-Principals (In Agency)

 It is Solidary
Liabilities of Husband and Wife

 After conjugal funds have been exhausted, the husband and the wife are liable jointly to
creditors of the conjugal partnership. (Here the rules of partnership are suppletorily
applicable.) (Art. 147, Civil Code)
Liabilities of Violators of Arts. 19, 20, 21, 22 (on Human Relations) of the Civil Code
 Although the law does not expressly say so, it is believed that infractors thereof should be
held liable in solidum, considering the fact that said violations are either penal in nature
or contrary to morals. These are perhaps cases where there is solidarity because of the
nature of the obligation. ( Art. 1207, Civil Code).
Liabilities of Employer and Employee for the Latter’s Tortious Act

 Here, the liability of an employer is primary (not subsidiary), and solidary with that of the
employees. (Arts. 2180 and 2194, Civil Code). However, if the injured party does not
appeal from an erroneous judgment holding the liability to be merely subsidiary, instead
of solidary, the same becomes res judicata, and the obligation ceases to be solidary.
(Bachrach Motor Co. v. Gamboa, L-10296, May 21, 1957).

Joint Obligations Hand Outs

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Joint Obligations

Mancommunada, pro rata

Kinds of Obligations according to number of parties

Joint and solidary obligation

Joint and solidary obligation

Examples of joint obligations

Exceptions to the rule

Presumption That Obligation Is Joint (Article 1208 NCC)

Synonyms for joint obligation

Some Consequences of Joint Liability

Liabilities of Co-Principals (In Agency)

Liabilities of Husband and Wife

Liabilities of Employer and Employee for the Latter’s Tortious Act

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