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WWW Law Activity 7 & 8
WWW Law Activity 7 & 8
Activity No. 7
I. Definitions
II. Discussion
b. Those which are not susceptible of partial performance (Article 1225, par. 1)
d. Those things which, though physically divisible, are intended by the parties to be
indivisible (Article 1225, par. 3).
III. Problems
1. A and B bind themselves to pay C their loan of 10,000 on a certain date. Is the
obligation divisible or indivisible? Explain.
- Indivisible. Art. 1225, For the purposes of the preceding articles, obligations to
give definite things and those which are not susceptible of partial performance shall be
deemed to be indivisible., as stated on the contract that A and B bind themselves to pay
C their loan P10,000 on a certain date.
Held: Art. 1224, the obligation to deliver the horse is converted into money
obligation, meaning, A, B and C will contribute the amount in buying the horse. A and C
are liable to give their shares. But, A and C are not liable for the share of B. On the
other hand, B is now indebted to D. Damages may be imposed against “B” the erring
debtor if warranted by the circumstances.
3. D finds himself to pay his loan of 10,000 in four equal monthly installments. Is
the obligation D divisible or indivisible? Explain.
Held: Divisible. Art. 1225 When the obligation has for its object the execution of
a certain number of days of work, the accomplishment of work by metrical units, or
analogous things which by their nature are susceptible of partial performance, it shall be
divisible, loans to be paid by installments are deemed divisible obligations. However,
each installment of P2,500 is indivisible.
Activity No. 8
I. Definitions
3. Joint penal clause – when both the principal obligation and the penal clause can be
enforced. (8 Manresa 215.)
II. Discussions
- According to ART. 1226. In obligations with a penal clause, the penalty shall
substitute the indemnity for damages and the payment of interests in case of
noncompliance, if there is no stipulation to the contrary. Nevertheless, damages shall be
paid if the obligor refuses to pay the penalty or is guilty of fraud in the fulfillment of the
obligation. The penalty may be enforced only when it is demandable in accordance with
the provisions of this Code. (1152a), they are:
(2) To substitute a penalty for the indemnity for damages and the payment of interests
in case of non-compliance (Art. 1226.); or
(3) To punish the debtor for the non-fulfillment or violation of his obligation. A penal
clause functions to strengthen the coercive force of the obligation by the threat of
greater liability in the event of breach and to provide, in effect, for what would be the
liquidated damages resulting from such a breach. The obligor would then be bound to
pay the stipulated indemnity without the necessity of proof on the existence and on the
measure of damages caused by the breach. (Ligutan vs. Court of Appeals, 376 SCRA
560 [2002]; Guatengco vs. Reyes, 574 SCRA 187 [2008].)
2. In what cases may the debtor validly object to the enforcement of the stipulated
penalty?
- According to ART. 1227. The debtor cannot exempt himself from the performance
of the obligation by paying the penalty, save in the case where this right has been
expressly reserved for him. Neither can the creditor demand the fulfillment of the
obligation and the satisfaction of the penalty at the same time, unless this right has
been clearly granted him. However, if after the creditor has decided to require the
fulfillment of the obligation, the performance thereof should become impossible without
his fault, the penalty may be enforced. (1153a), debtor may object the enforcement of
penalty if there is performance on his part or if the creditor already required fulfillment of
obligation.
III. Problems
Held: Yes. According to ART. 1227. The debtor cannot exempt himself from the
performance of the obligation by paying the penalty, save in the case where this right
has been expressly reserved for him. Neither can the creditor demand the fulfillment of
the obligation and the satisfaction of the penalty at the same time, unless this right has
been clearly granted him. However, if after the creditor has decided to require the
fulfillment of the obligation, the performance thereof should become impossible without
his fault, the penalty may be enforced. (1153a), X cannot exempt himself from delivering
the horse by paying the penalty, unless this right was reserved for him.
2. In the same problem, X was able to show that Y did not suffer any damage by
X’s violation of his obligation. Can Y still enforce the penalty?
Held: Yes. According to ART. 1228. Proof of actual damages suffered by the
creditor is not necessary in order that the penalty may be demanded. Y does not have
to prove that he suffered damages in order to demand the penalty. Since X violated the
obligation, Y can enforce the penalty.