Joint and Solidary Obligations Quiz

Problem No. 1. —A, B, and C executed a promissory note binding themselves to pay P9,000 to X, Y, and Z. The note is now due and demandable. (a)Can the creditors proceed against A alone for payment of the entire obligation? Why? (b) Can X alone proceed against A, B and C for payment of the entire obligation? Why? (c) Suppose that X proceeds against A alone for payment, how much can he collect? Why? (d) Suppose that C is insolvent, can A and B be held liable for his share in the obligations? Why? (e) Suppose that the obligation was about to prescribe, but X wrote a letter to A demanding for payment of the entire debt, will this have the effect of interrupting the running of the period of prescription? Why?

Problem No. 2. —X, Y and Z owe A and B P12,000 in a joint obligation. How many obligations exist in this case, who are the parties in each obligation and for how much? Why?

What is the effect of demand on one solidary debtor?

• It will stop the creditor from going against another debtor.

• It will not stop the creditor from going against another debtor as long as the debt has not yet been paid in full.

What happens if one of the solidary debtors dies?

• The creditor is bound to make a claim on the estate of the deceased debtor within a 2-year period.

• The creditor is not bound to make a claim on the estate of the deceased debtor within a 2-year period.

What is the effect if several solidary debtors offer to pay?

• The creditor can choose from anyone or all of them, as long as he does not collect more than the full amount of the obligation.

• The creditor must accept payment from only one debtor.

What is the effect of prescription on creditors?

• Interruption of prescription to one creditor affects all creditors.

• Interruption of prescription to one creditor does not affect other creditors.

What is the effect of delay on one debtor?

• Interests from delay on one debtor is borne by all debtors.

• Only the debtor who caused the delay is responsible for the interests.

What is the effect of insolvency of one debtor?

• Others are liable for share pro-rata.

• Only the insolvent debtor is liable.

What happens if different terms and conditions are present?

• Collect only what is due, later on collect as and when they become due or the conditions are fulfilled.

• The creditor must collect the full amount immediately.

What is the effect of fault of any debtor?

• Everyone is responsible to the creditor – price, damage, and interest.

• Only the debtor at fault is responsible.