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MIDTERM REVIEWER

1221. If the thing has been lost or if theprestation has become impossible withoutthe fault of the

solidary debtors, theobligation shall be extinguished.If there was fault on the part of any one ofthem, all

shall be responsible to thecreditor, for the price and the payment ofdamages and interest, without

prejudice totheir action against the guilty or negligentdebtor.If through a fortuitous event, the thing is

lost or the performance has becomeimpossible after one of the solidary debtorshas incurred in delay

through the judicial orextrajudicial demand upon him by thecreditor, the provisions of the preceding

paragraph shall apply.

Loss of the thing or impossibility of prestation

1. NO

FAULT solidary debtors obligation is

extinguished

2. FAULT any one of them all are liable

because of their mutual agency

3. FORTUITOUS EVENT delay on the part of

the debtors all will be liable

merely a delay, fraud or negligence on thepart of one of the solidary debtors, all(including the innocent)

debtors will sharein the payment of the PRINCIPALprestation. The damages and interestimposed will

be borne by the guilty debtor.

obligation to pay indemnity when there us

loss or impossibility of performance.

1222. A solidary debtor may, in actions filedby the creditor, avail himself of all defenseswhich are

derived from the nature of theobligation and of those which are personalto him, or pertain to his own

share. Withrespect to those which personally belong tothe others, he may avail himself thereofonly as

regards that part of the debt forwhich the latter are responsible.

DEFENSES OF A SOLIDARY DEBTOR:

ription,remission, statute of frauds, presence ofvices of consent, etc.

2.Defenses which are personal to him or

which pertains to his own share alone such as minority, insanity and otherspurely personal to him.

art ofthe debt for which the other creditors areliable.

1223. The divisibility or indivisibility of thethings that are the object of obligations inwhich there is

only one debtor and only onecreditor does not alter or modify theprovisions of Chapter 2 of this Title.

DIVISIBILITY refers to the susceptibility of an

obligation to be performed partially.

articular typeINDIVISIBILITY refers to the non-susceptibility ofan obligation to partial

performance.

set

If a thing could be divided into parts

and asdivided, its value is impaired disproportionately,that thing is INDIVISIBLE.

1224. A joint indivisible obligation gives riseto indemnity for damages from the timeanyone of the

debtors does not comply withhis undertaking. The debtors who may havebeen ready to fulfill their

promises shall notcontribute to the indemnity beyond thecorresponding portion of the price of thething

or of the value of the service in whichthe obligation consists.

JOINT INDIVISIBLE OBLIGATION

the object is

indivisible but the liability of the parties is joint.

converted into a monetary obligation which

is no divisible.

1225. For the purposes of the precedingarticles, obligations to give definite thingsand those which are

not susceptible ofpartial performance shall be deemed to beindivisible.When the obligation has for its

object theexecution of a certain number of days ofwork, the accomplishment of work bymetrical units,

or analogous things which bytheir nature are

susceptible of partialperformance, it shall be

divisible.However, even though the object or servicemay be physically divisible, an obligation is

indivisible if so provided by law or intendedby the parties.In obligations not to do, divisibility or

indivisibility shall be determined by thecharacter of the prestation in eachparticular case.

The following are considered INDIVISIBLE

susceptible of

partial performance

3. Even though the object or service may be

ies intended it to be

indivisible

The following obligations are deemed DIVISIBLE:

ays ofwork

2. When the object of the obligation is the

accomplishment of work measured in units

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3. When the object of the obligation is

susceptible of partial compliance

ininstallments

illegal, the illegal part is void, and the rest

shall be valid and enforceable.

is illegal,

the entire contract is void.

obligation is tantamount to non-

performance.

1226. In obligations with a penal clause, thepenalty shall substitute the indemnity fordamages and the

payment of interests incase of noncompliance, if there is nostipulation to the contrary. Nevertheless,

damages shall be paid if the obligor refusesto pay the penalty or is guilty of fraud inthe fulfillment of

the obligation.The penalty may be enforced only when it isdemandable in accordance with the

provisions of this Code.

PENALTY CLAUSE

the principal obligation, which imposes an additional liability in case of breach of the principal

obligation.

obligation faithfully and without delay within the period agreed upon, or else, hesuffers a fixed civil

penalty without need ofproving the damages of the other party.

The penalty imposable is a substitute for the

indemnity for:

a. damages

b. payment of interest in case of breach

of

obligation

- unless the contrary is stipulated!

EXCEPTIONS additional damages may be

recovered from the following acts:

1. If the debtor refuses to pay the

penalty

2. If the debtor is guilty of fraud in the

fulfillment of the obligation

dable to the penalty in thepenal clause

Melvin obliged himself to proctor the exam inConstitutional Law to 1LLB, and in case he fails,he will

pay P10,000. Melvin has no choice but topay P10,000 if he fails to supervise said examresults.

1227. The debtor cannot exempt himselffrom the performance of the obligation bypaying the penalty,

save in the case wherethis right has been expressly

reserved forhim. Neither can the

creditor demand thefulfillment of the obligation and thesatisfaction of the penalty at the same

time, unless this right has been clearlygranted him. However, if after the creditorhas decided to require

the fulfillment of theobligation, the performance thereof shouldbecome impossible without his fault,

thepenalty may be enforced.

principal obligation by choosing to pay thepenalty stipulated, except when the debtoris EXPRESSLY

granted with the right tosubstitute the penalty for the principalobligation. an

obligation

with penaltyclause cannot be turned to facultativeobligation unless expressly stipulated inthe contract.

fulfillment of the principal obligation andthe penalty at the same time, except1. when the creditor was

clearly given

the right to enforce both the principal

obligation and penalty;

fulfilled due to the

a. debtors fault creditor may

demand for penalty

b. creditors fault he cannot

claim the penalty

1228. Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be

demanded.

breached.

obligation entitles the creditor to the

penalty stipulated.

precisely to avoid proving damages.

1229. The judge shall equitably reduce thepenalty when

the principal obligation hasbeen

partly or irregularly complied with bythe debtor. Even if there has been noperformance, the penalty

may also bereduced by the courts if it is iniquitous orunconscionable.

JUDICIAL REDUCTION OF PENALTY

sibleobligation, because it is tantamount tonon-compliance)

eement

3. Penalty iniquitous or unconscionable

limited to private contracts.

INIQUITOUS OR UNCONSCIONABLE

when it

isrevolting to the conscience or common sense;grossly disproportionate to the damages suffered.

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PENALTY NOT ENFORCEABLE:

1. Impossible performance of principal

obligation due to fortuitous events

2. Creditor prevented the debtor from

fulfilling the obligation

3. Penalty is contrary to good morals

or good customs

4. Both parties are guilty of breach of

cont

ract5. Breach of contract by the creditor6. None of the parties committed any

willful or culpable violation of the

agreement

1230. The nullity of the penal clause doesnot carry with it that of the principalobligation.The nullity of

the principal obligationcarries with it that of the penal clause.

accessory to the principal obligation, it

cannot exist alone.

l obligation remains enforceab