VIDEO 4: Different Kinds of Obligation (Joint, Solidary,

Divisible, Indivisible, with a Penal Clause) SOLIDARY Obligation,

each debtor is liable for the whole obligation
and
10 Primary Classifications of Obligations: each creditor is entitled to demand payment of
1. pure the whole obligation.
2. conditional
EX: A and B are solidarily liable to X for 10,000
3. obligation with a period pesos. So solidary obligation, meaning each
4. alternative debtor is liable for the whole obligation,
meaning
5. facultative - A is liable for 10,000 pesos or
6. joint - B can be made liable for 10,000 pesos.

7. solidary EX: A owes X and Y, solidary creditors 8,000

8. divisible pesos.
- X can actually demand the entire 8,000
9. indivisible from A
10.obligation with a penal clause - and Y can also demand the entire 8,000
from A.

Art 1202 – Art 1222 Kinds of Solidary Obligation:

Joint or a Solidary obligation, there is a 1. Passive solidarity
concurrence of two or more debtors and or two or
more creditors in one and the same obligation. 2. Active solidarity
3. Mixed solidarity.
Alternative Obligations, there are several
prestation, but there is only one debtor and
only one creditor.  PASSIVE Solidarity
 This is solidarity on the part of the debtor.
In joint or solidary obligation, there are two  Passive subjects are solidarily liable.
or more debtors and or two or more creditors
in one and the same obligation. There are EX: A and B, solidary debtors, are indebted to X
more parties in one and the same obligation. for 10,000.
There are several parties with one prestation. - X can demand payment of 10,000 from either
A or B.
- if A pays X 10,000 pesos, the obligation is
extinguished.
- A can however demand reimbursement of
5,000 from B, representing the latter share in
JOINT Obligation,
the debt.
each debtor is liable only for a
- X can only claim up to 10,000 because that is
proportionate part of the debt and
the amount of the obligation.
each creditor is entitled only to a
- X can demand full payment from either A or B.
proportionate part of the credit.
- Payment from either A or B of the 10,000
pesos will extinguish the obligation.
EX: A and B are indebted to X for 10,000 pesos.
 ACTIVE Solidarity.
- A is liable only for 5,000,
 This is solidarity on the part of the creditors.
- B is liable only for 5,000,
 Active subjects are solidarily liable.
- because in this case, there are two debtors
in one and the same obligation. The
EX: A owes X and Y, solidary creditors, 8,000
obligation is to give or to pay X 10,000
pesos.
pesos.
- either X or Y may demand payment of 8,000
- And since there are two debtors that are
from A.
jointly liable to X, then they will divide
- if A pays X 8,000, the obligation is
10,000 pesos into two or as to the number
extinguished.
of debtors.
- X must therefore give 4,000 to Y representing
the latter share in the credit.
EX: A owes X and Y 8,000 pesos.
- it's just that either X or Y can demand full
payment from the A (debtor).
- X can only collect up to 4,000 pesos from A
- Whoever claimed the payment from A, must
- Y can collect only 4,000 pesos from A.
share it to the other, else if kept would result
- there are two creditors and in a solidary
to Unjust Enrichment.
obligation, each creditor is entitled only to a
proportionate part of the credit, meaning
 MIX Solidarity.
they can only demand payment from the
- solidarity on the part of the debtors and creditors.
debtor the proportionate part of their credit.
creditor is 8,000 pesos, meaning
EX: A and B, solidary debtors, owe X and Y,
solidary creditors, 12,000 pesos.
- X or Y may collect from A or B the total sum
of 12,000 pesos.
- If A pays X 12,000 pesos, then the obligation
is extinguished. B will just have to reimburse
A 6,000.
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 - On the other hand, X must give 6,000 pesos The other half should be shouldered by B, his
to Y. other partner, since their liability is only joint as
the law was silent on the nature of the liability.
Other Terms for SOLIDARY Obligations:
 Jointly and severally, But the court ruled that the partner's liability is
 Individually and collectively, solidarity since the nature of their obligation
 In solidum, requires solidarity. The evident intention of the
 Mancommunada solidaria, workman's compensation law is to give full
 Juntos o separadamente. protection to workers.
 Each will pay the whole value
 “I promise to pay” (2 or more sign affixed) This purpose would be defeated if the employer's
liability were only joined.
!!* if the stipulation in the contract is silent, and
there are two or more debtors and or two or more EX: (joint debtors, joint creditors):
creditors, then that obligation is presumed to be A, B, and C are obliged to give X, Y, and Z 27,000
JOINT obligation. Because a joint obligation has pesos.
lesser liability than in a solidary obligation.
 how many distinct debts are there in the
EX: A and B, solidary debtors, obligation?
or A and B, jointly and severally, liable to X, =9
or A and B, individually and collectively, are liable  type of obligation?
to X. =JOINT, because there is no word/term
showing that it is a solidary obligation. It is
There must be an express mention that the silent and not expressly stated that it is a
obligation is solidary or that the debtors and or the solidary obligation.
creditors are SOLIDARIY liable.
- there are three debtors
Other Terms for JOINT Obligations: - three creditors.
 Pro rata - they are jointly liable of 27,000
 Mancommunada
 Mancommunada simple  how do you compute?
 Proportionate =27,000 ÷ 3 creditors,
 each creditor should get 9,000 pesos in
total.
JOINT Obligation,  But since there are three debtors that
GR: the obligation is presumed to be joint when there are also jointly liable,
is a concurrence of two or more debtors and or two or  then 9,000 pesos is divided by three
more creditors in one and the same obligation. debtors.

There is SOLIDARY liability only in the following cases: =3,000 pesos claimed per debtor from each
1. when the obligation expressly so states. creditor.
-word or terms are present (see above)
2. Or when the law requires solidarity 9 Distinct Debts as follows:
1. A owes X 3,000.
XPNs: -they're joint debtors and joint creditors.
1. When expressly stated their solidarity. -therefore, A’s total pmt should only be
9,000.
1st XPN EX: Where the instrument containing the -since there are 3 joint creditors, then A’s
words, I promise to pay is signed by two or more 9k pmt shall be divided to 3 for each
persons, there are deemed to be jointly and creditor.
severally liable there on that is section 17 of your
negotiable instruments law. 2. A owes Y, 3,000.
3. A owes Z, 3,000.
2. When the Law requires solidarity. 4. B owes X 3,000.
5. B owes Y 3,000.
2nd XPN EX: Art 1915, when two or more persons 6. B owes Z 3,000.
have appointed an agent for a common 7. C owes X 3,000.
transaction or undertaking, they shall be solidarily 8. C owes Y 3,000.
liable for the consequences of the agency. 9. C owes Z 3,000.

2nd XPN EX: Art 2194, the responsibility of two or  A, is only liable to pay X up to 3,000.
more persons who are liable for a quasi-delict is  X, on the other hand, can only demand
solidary. payment from A up to 3,000.

3. When the nature of the obligation so requires The same goes with the other debtors and with the
other creditors. Okay. Okay.
3rd XPN EX: in a case decided by the Supreme
Court: EX (joint debtors, solidary creditors):
S, a security guard of AD partnership, was killed A, B, and C, joint debtors are obliged to give X,
by criminal elements in line of duty. Now the heirs Y, and Z, solidary creditors, 18,000. So how
of S demanded compensation under the much may X collect and from whom?
Workman's Compensation Law for the whole
amount from A, a partner of the security agency.  how much may X collect and from whom?
Now A claimed that he should not be liable for the X, being a solidary creditor may collect the
entire amount, only for one half of the amount. sum of 18,000 pesos.

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 Y may also collect the entire 18,000 pesos and 60% of 10K= 6,000. X can collect not more than
Z may collect the entire 18,000 pesos. 70% of 10,000= 7,000.
However, because the debtors are joint Y not more than 30% of 10,000 = 3,000.
debtors they're only liable up to their
proportionate share of the debt. each debtor  (for joint debtors and joint creditors)
is only liable to pay up to 6,000.  How much may X collect from A?
 How much may X collect from B?
Answer: X may collect the entire 18,000 from
A, B, and C. But since A, B, and C are joint Answer:
debtors, X can only collect 6,000 from A, 6,000 From A, X may collect 2,800.
from B, and 6,000 from C, a total of 18,000 That is 40% of 7,000.
pesos. After collecting the sum of 18,000 Share of X is 7,000. That is 70 percent of 10,000. But
pesos, X must give Y and Z their respective A can only be held liable up to 40% of the debt.
share of 6,000 each. So, X may collect 2,800 from A.

EX (solidary debtors, joint creditors): From B, X may collect 4,200.

A, B, and C, solidarity debtors are obliged to That is 60% of 7,000.
give X, Y, and Z joint creditors 18,000 pesos. Total of 7,000.
Proportionate demand of payment from the debtors.
 So how much may A be held liable?
 How much may Y collect from A?
Since they are solidarity debtors, meaning  How much may Y collect from B?
each of the debtors may be held liable for the
entire amount, 18,000 pesos. But since the Answer:
creditors are joint creditors, then each of them From A, Y may collect 1,200.
may only collect up to 6,000 from A. A being a That is 40% of 3,000.
solidarity debtor may be held liable for the From B, Y may collect 1,800.
entire 18,000 pesos in total. However, since 60% of 3,000. Okay.
the creditors are joint creditors, each of them
may collect only 6,000 from A.  (for joint debtors and solidary creditors)
So if A pays the whole amount of 18,000 to the  How much may X collect from A?
creditors, then A can demand reimbursement  How much may X collect from B?
of 6,000 each from B and C.
Answer:
EX (solidary debtors, solidary creditors): X, being a solidary creditor, may collect the whole
A, B, and C, solidarity debtors are obliged to amount of 10,000. However, since the debtors are
give X, Y, and Z solidarity creditors 18,000 joint, so he cannot collect more than 4,000 from A and
pesos. not more than 6,000 from B. So, after collecting the
amount of 10,000, he must give 3,000 to Y,
 So how much may Z collect and from whom? representing the latter share in the credit.

Z may collect the entire 18,000 pesos from any Answer:

of the solidarity debtors, each of whom may be So, if Y is the one collecting, so Y may collect the
held liable for the entire obligation. whole amount of 10,000. However, again, since the
X may collect the entire 18,000, debtors are joint, then he cannot collect more than
Y may collect the entire 18,000, 4,000 from A and not more than 6,000 from B. After
Z may collect the entire 18,000. collecting the amount of 10,000, of course, he must
give 7,000 to X, representing the latter share in the
And since the debtors are also solidarity, credit.
meaning
A, B, and C can be made liable to pay the
entire 18,000.  (for solidary debtors and joint creditors)
Z may collect 18,000 from A or B or C.  how much may A be held liable and by whom?
From any of the solidarity debtors, each of  how much may B be held liable and by whom?
whom may be held liable for the entire
obligation. Answer:
A may be held liable for the whole amount of
If Z collects 18,000 from A, then Z must give X 10,000.
and Y 6,000 each. However, since the creditors are jointly bound,
then X can collect not more than 7,000 and Y not
Then A on the other hand can demand more than 3,000.
reimbursement from B and C at 6,000 each. After A has paid the debt, then he can demand
reimbursement from B in the amount of 6,000.

EX (when there is an equal sharing in the debt and/or Answer:

credit): B may be held liable for the whole amount of
A and B, owe X, and Y, 10,000 pesos. 10,000.
But the share of A in the debt is 40%, However, since the creditors are jointly bound, X
while that of B is 60%. can collect from B not more than 7,000 and Y not
The share of X in the credit is 70%, more than 3,000.
while that of Y is 30%.
After B has paid the debt, then he can demand
A can be held liable for not more than 40% of reimbursement from A in the amount of 4,000.
10K= 4,000. B cannot be held liable for more than

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 them before the remission was affected then A’s
remedy will be to go after X or Y to collect the sum
 (MIX Solidarity) he paid to B.
Here either X or Y may collect from either A or B
the whole amount of 10,000. EX: A is indebted to X, Y, & Z, solidary creditors, for
If A is the one paying, then he can demand 24,000. Suppose X makes a demand against A, to
reimbursement from B in the amount of 6,000 whom shall A pay?
If B is the one paying, then he can demand
reimbursement from B in the amount of 4,000. Answer:
If X is the one collecting, he must give 3,000 to Y, A must pay to X.
then If A pays to another solidary creditor, say Y, the
If Y is the one collecting then he must give 7,000 sum of 24,000 pesos, the payment, as a rule, is
to X. valid only with respect to Y’s share of 8,000, thus if
X & Z do not receive the respective shares from Y,
Article 1215 then A can still be held liable for 16,000 because in
 (for solidary debtors and solidary creditors) this case X is the one who made the demand.
A and B are solidary debtors of X and Y solidary The RULE: the creditor who makes the demand, is
creditors in the amount of 20,000. the one whom payment should be made.

if X renounces or remits the whole obligation A, B and C solidary debtors borrowed 30,000 pesos
without the consent of Y will the obligation be from X. The obligation is evidenced by a promissory
extinguished? note signed by the debtors. X demands payment
from A, however A pays only 12,000. May X still go
Answer: after B and/or C?
Yes, because the remission made by any of the
solidary creditor extinguishes the whole obligation. Answer:
Art 1215 YES, X may still go after B or C both of them for the
balance of 18,000. The creditor may proceed
However, X has to give Y share of 10,000 since a against any one of the solidary debtors or some or
solidary creditor may not do anything that is all of them simultaneously. The demand made
prejudicial to his co-solidary creditor. against one of them shall not be an obstacle to
those which may subsequently be directed against
Since X voluntarily renounced the obligation of A and the others so long as the debt has not been fully
B, then X has the obligation to give the share of Y collected.
from the 10,000.
So, if A pays X 30,000, what are the rights of A?
Solidary creditor who has caused the extinguishment A can demand reimbursement from B and C at
of the obligation by remission, novation, 10,000 pesos each together with interest from the
compensation, or confusion, or who has collected the date of payment. However, if payment is made by
debt shall be liable to the others for the shares A before due date he cannot collect interest during
corresponding to them. the intervening period from date of payment to due
date. Interest always starts on due date until
Remission, novation, compensation, or confusion, reimbursement.
collected the debt or payment will be discussed
deeply when we reach Extinguishment of Obligation. EX: A, B, and C are solidary debtors.
A pays X 30,000 pesos however C has become
Suppose the remission of the whole obligation was insolvent. How much may A demand from the from
obtained by A, may A demand reimbursement from B? B as reimbursement?
NO
Answer:
EX: X has a crush on A. A was able to convince X Since C is insolvent, A can demand 15,000 from B
to renounce their solidary debt with B. Can A because if an insolvent debtor cannot reimburse his
demand reimbursement from B since A was able share to the debtor who paid the obligation, such
to convince X to extinguish their debt? NO shares shall be borne by all his co debtors in
proportion to the debt of each, thus A and B shall
!!*The remission of the whole obligation obtained by bear C’s share at 5,000 each.
one of the solidary debtors does not entitle him to
reimbursement from his co debtors, remission being Ex: (Natural Obligation)
the gratuitous abandonment by the creditors of if A pays X 30,000 more than 10 years after the note
their rights to the obligation. Had it been allowed so, had become due, can A still demand reimbursement
then it would resort to Unjust Enrichment on the part from B and C?
of A since A did not pay X, in fact, A is the one 10 years after its due, prescription has set, therefore
benefitted of the 6,000 debt share of B. Civil Obligation has elapsed. Natural Obligation have
commenced upon the voluntary payment of A.
EX: Suppose that X renounces a share amounting
to 10,000 pesos however it turned out that B had Answer:
already paid 20,000 to Y two days before, may B NO, A can no longer demand reimbursement.
still collect 10,000 from A representing a share? Payment by a solidary debtor after the obligation
has prescribed does not entitle A to reimbursement.
Answer: The same rule applies if payment is made after the
YES. B may still collect from A 10,000 because the obligation has become illegal.
remission made by the creditor of the share which
affects one of the solidary debtors does not release Ex: A, B, C and D, are solidarily liable to X for the
the latter from responsibility to his co debtors. In delivery of a specific ring valued at 20,000 pesos
case the debt has been totally paid by any one of

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 what is the rule if this if the ring is lost through a You may carry 2 at a time. Capable of partial
fortuitous event, or through the fault of D? performance.

Divisible Obligations:
Answer: 1. when the obligation her has for its object the
The obligation shall be extinguished if the specific execution of a certain number of days of work
ring was lost due to a fortuitous event. This is in such as an obligation to work.
accordance with the rule that no person shall be Ex: one week, five days
made responsible for fortuitous event, but if the ring
the specific ring was lost through the fault of one of 2. when the obligation has for its object the
the solidarity debtors or through the fault of D, then accomplishment of work by metrical units.
all the solidarity debtors shall be liable for the Ex: the obligation to construct a pavement with
payment of the price of the ring plus damages and which is 10 meters long and 2 meters. wide or
interest. analogous things which by their nature are
However, the solidary debtor making the payment susceptible of partial performance.
can recover what he has paid from the guilty debtor.
Thus, if X goes after A and pays the price of the ring  Indivisible Obligation
and the damages and interest, A can demand is one that is not capable of partial performance.
reimbursement of 20,000 plus damages and interest
from D, the guilty and negligent debtor. Ex: the obligation to deliver a specific car.
You cannot deliver the tires today, then the
Solidarity exists although the creditors and debtors windows tomorrow, then the seats the following
may not be bound by the same periods and week.
conditions.
Indivisible Obligations:
Ex: A, B, and C are solidarily liable to X for 1. obligations to give a definite.
9,000. Ex: the obligation to give a specific horse.
The party stipulated that the share of A is
payable on demand the share of B on Christmas 2. those not susceptible of partial performance.
Day next year and the share of C if X passes the Ex: singer cannot just sing a part of a song in a
bar exam. performance. She must sing the entire song.

Now X may demand payment of the share of a of 3. those were the objects or service is physically
3,000 anytime from either A, B, or C, since A B and divisible but it is indivisible by provision of law.
C are solidary debtors. Ex: and such as where the obligation is to pay
a sum of money but the law provides that the
Christmas Day next year, X may demand payment sum must be paid in full in case of certain
of the share of B of 3,000 from either A B or C. taxes now then
When X passes the bar exam, he may also demand
payment of the share of C of 3,000 from either A B 4. those were the object or service is physically
or C. divisible but it is indivisible by the intention of
the party
What is the effect of an unauthorized assignment of Ex: such as where the obligation is to pay a
the creditor’s right? sum of money but the parties agreed that the
The solidary creditors are bound by mutual trust and sum must be paid in full.
confidence; hence a solidary creditor cannot assign
his right to a third person without the consent of the Joint and Indivisible Obligation.
other solidary creditors because the assignee may parties supposedly liable only to their proportionate
not enjoy the same trust and confidence of the non- share,
assigning creditors. but prestation is indivisible, meaning, incapable of
partial performance.
If the assignment is without the consent of the co-
creditors the assignment is not valid as to them. is an obligation where the debtors or creditors are
Accordingly, they can recover the respective shares jointly bound but the prestation or object is indivisible.
from the assigning creditor in case the assignee who
collected the debt fails to give them their share. Characteristics:
1. the creditor must act collectively; all of them
What are the defenses available to solidary debtors? must make the demand, unless one is
Those derived from the nature of the obligations: specifically authorized to act for the others. a
 prescription of the obligation demand made by one or some but not all of
 illegality of the cause the creditors will not be effective. all of them
 those personal to the debtor being sued or must make a demand, else the demand is not
 those that pertain to his own share for an effective.
insolvency or incapacity
 those personal to the other debtors with 2. the demand must be made against all the
respect to their own share debtors since compliance is possible only if
Divisible and Indivisible Obligation they act together.

 Divisible Obligation
is one that is capable of partial performance. 3. the right of the creditors may be prejudiced
only by their collective acts thus a renunciation
Ex: Obligation to deliver 10 sacks of rice. You cannot made by a joint creditor extinguish only his
carry all 10 sacks of rice at once and carry it to the own share.
credited. 4. the obligation however is converted into an
obligation to pay the value of the thing so if all

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 joint creditors make the renunciation obligation Ex: A and B are solidarily liable to give C a specific
is extinguished. horse.

if one of the debtors does not comply with his !!* ONE does not imply or give rise to the other. so
undertaking the obligation is converted into a indivisibility and solidarity.
monetary obligation to pay damages.
Obligations With a Penal Clause
the debtors who may have been ready to comply shall is one which provides for a greater liability on the part
not contribute to the indemnity beyond the of the debtor in case of non-compliance.
corresponding price of the thing or the value of the
service in which the obligation consists. Penal Clause
- the accessory undertaking on the part of the debtor.
so, in the part but of the debtors: - is generally undertaken to ensure performance and
all of them must comply deliberately and one or some works as either or both punishment and reparation.
or majority of them. It must be united as one in
compliance with obligation or else if one is not ready Ex: D obliged to construct a commercial building
to comply then the obligation becomes a monetary for C within a period of three months the parties
obligation. agreed that should D fails to finish the
construction of the building within the said period
so if one of the debtors is insolvent, these shall pay C 1,000 for every day of delay as
the others shall not be liable for his share. a penalty.

Ex: A B and C are jointly indebted to deliver a Penal Clause = the payment of 1000 pesos for
specific car valued at 900,000 to X Y and Z. every day of delay.
X Y and Z must make a demand against A B and C
for the delivery of the car. Function of Penal Clause:
a penal clause is attached to an obligation in order to
 if A is not ready to comply with his ensure performance and has a double function.
undertaking, the obligation to deliver the car is  to provide for liquidated damages and
converted into an obligation to pay its value  to strengthen the coercive force of the
plus damages. obligation by a threat of greater responsibility
B and C shall be obliged to pay 300,000 each in the event of breach.
for their share of value of the car. Since A is
not ready, A shall be liable to pay 300,000 plus proof of actual damages suffered by the creditor is not
damages. necessary in order that the penalty may be
demanded.
 if A is insolvent, B and C shall be liable only for
the respective shares of 300,000. It is a the obligor is bound to pay the stipulated indemnity
defense of a debtor the personal incapability of without the necessity of proof of the existence and
the other debtors such as insolvency. the measure of damages caused by the breach.

 if X renounces his right to the obligation Kinds of Penal Clause:

without the consent of Y and Z then only X’s 1. Legal - those imposed by law.
proportionate share is extinguished. The 2. Conventional - imposed by the agreement of
obligation however is converted into a the parties
monetary obligation to pay 600,000 which 3. Subsidiary - when only one only the penalty
must be given to Y at 300,000 and Z at may be enforced.
300,000 by A B and C who will give 200,000 4. Joint - when both the obligation and the
each. penalty may be enforced.

Solidary and Indivisible Obligation. GR: the penalty takes the place of damages and
indivisibility of an obligation refers to the subject interest in case of non-compliance.
matter, or prestation, or object not being susceptible
of partial performance. XPNs: aside from the penalty, damages and interest
may also be demanded when there is a stipulation to
solidarity, on the other hand, refers to the tie the effect.
between the parties. One therefore does not imply or
give rise to the others. !!*A stipulation for the payment of interest and
penalty apart from the interest in case of delay is not
indivisibility refers to the object or subject matter of contrary to law morals good customs or public policy.
the obligation, while solidarity refers to the parties,
active or passive subject. Penalty is already the payment of the damages and
interest.
Joint and Divisible Obligation. But if Stipulation so provides, then you can still further
Ex: A and B are jointly obliged to C to construct a claim damages and interest on top of the penalty.
pavement two meters wide and ten meters long.

Ex: A and B are jointly obliged to give a specific When debtor refuses to pay the penalty, he is liable
horse to C. for damages and interest.

Solidary and Divisible Obligation. When debtor is guilty of fraud in the performance of
Ex: A and B are solidarily liable to pay C 10,000 in 2 the obligation, this is so because there can be no
equal installments. waiver of a future action of fraud.

Solidary and Indivisible Obligation.

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 Ex: D is obliged to deliver 10 sacks of rice to C on
May 10.
The parties agreed that if D fails to deliver on due
date, he will pay a penalty of 500. Supposing D
failed to deliver on due date, May he just pay the
penalty of 500?

NO, because the debtor cannot exempt himself

from the performance of the obligation by just
paying the penalty except if this right is expressly
reserved for him. Art 1227

May C demand the delivery of rice and the

payment of penalty at the same time upon default
of D?

NO, the creditor cannot demand fulfillment of the

obligation and the payment of the penalty at the
same time except when his right has been clearly
granted to him or if after requiring fulfillment of
the obligation the performance thereof becomes
impossible without his fault. He may also enforce
the penalty.

When the court may reduce the penalty?

When the obligation has been partly complied with by

the debtor.
When the obligation has been irregularly complied
with by the debtor.
When the penalty is unconscionable even if there has
been no performance.

What is the effect of nullity of the Principal

Obligation?

The nullity of the Principal Obligation carries with it

the nullity of the Penal Clause. This is so because
the Penal Clause, being just accessory undertaking,
cannot stand by itself.
But the nullity of the Penal Clause does not carry with
it the nullity of the Principal Obligation because the
Principal Obligation can stand by itself.

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