Multi-Party Obligations
General
- Different types of contractual relationships may be distinguished by law.
- Multiparty obligations: obligations exist between more than 1 debtor/creditor
Different Types
Simple Co-Debtor/Creditor Relationship
- Simple Co-debtor: agree to pay debt & each liable equal portion.
- Simple Co-creditors: each creditor entitled to a proportional amount of debt.
Joint Co-Creditors/Debtors
- Joint co-debtors: full amount of debt must be claimed jointly from all of them.
- Joint co-creditors: when they must claim the full amount jointly.
Joint & Several Co-Creditors/Debtors
- Joint & several co-debtors: every debtor liable for full amount but if one
performs all are freed often used for security
- Joint & several co-creditors: all creditors are entitled to debt.
- Different scenarios distinguished in relation to performance:
Obligations of other debtors only expire on this basis if substantial
performance was made.
Payment, set-off and novation considered substantial, prescription not.
If creditor frees one debtor from performing whole obligation, other
debtors will be liable for whole amount minus amount for which that
debtor would have been liable if were each liable for pro rata share.
If solidary co-debtor performs only part of whole debt, he & other
debtors remain liable for remainder of debt.
If creditor claims lesser amount from him & pays that, he will be freed.
Question whether solidary co-debtor can claim from others where he
has performed more than pro-rata share will depend on express/
implied agreement between debtors
Type of Relationship Applicable
- Difficult to determine exactly which type of relationship wanted to conclude.
General
- Different types of contractual relationships may be distinguished by law.
- Multiparty obligations: obligations exist between more than 1 debtor/creditor
Different Types
Simple Co-Debtor/Creditor Relationship
- Simple Co-debtor: agree to pay debt & each liable equal portion.
- Simple Co-creditors: each creditor entitled to a proportional amount of debt.
Joint Co-Creditors/Debtors
- Joint co-debtors: full amount of debt must be claimed jointly from all of them.
- Joint co-creditors: when they must claim the full amount jointly.
Joint & Several Co-Creditors/Debtors
- Joint & several co-debtors: every debtor liable for full amount but if one
performs all are freed often used for security
- Joint & several co-creditors: all creditors are entitled to debt.
- Different scenarios distinguished in relation to performance:
Obligations of other debtors only expire on this basis if substantial
performance was made.
Payment, set-off and novation considered substantial, prescription not.
If creditor frees one debtor from performing whole obligation, other
debtors will be liable for whole amount minus amount for which that
debtor would have been liable if were each liable for pro rata share.
If solidary co-debtor performs only part of whole debt, he & other
debtors remain liable for remainder of debt.
If creditor claims lesser amount from him & pays that, he will be freed.
Question whether solidary co-debtor can claim from others where he
has performed more than pro-rata share will depend on express/
implied agreement between debtors
Type of Relationship Applicable
- Difficult to determine exactly which type of relationship wanted to conclude.
