Joint and Solidary Obligations

A joint and solidary obligation or solidary obligation is one wherein either one of several creditors has the right to demand full and complete compliance of an obligation against either one of the debtors. In such an obligation, the debtors are sureties who are liable for the full amount of the debt incurred by the principal debtor. A surety is liable regardless of whether it benefitted from the debt incurred by the principal debtor.

Example: In a loan document, a company president signed as a surety binding himself solidarily to pay a P10 million debt borrowed by his company from a bank. If the debt is unpaid, the bank may collect the full P10 million debt either from the company or its president.

Due to the consequences, a solidary obligation arises only when: (a) the obligation expressly so states; or (b) the law or the nature of the obligation requires solidarity.

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