Share Solidary C D Debtors X Released Obligation

II. 

A, B, C and D are the solidary debtors of X for P40,000. X released D from the payment of his share of PI 0,000. When the obligation became due and demandable, C turned out to be insolvent.  Should the share of insolvent debtor C be divided only between the two other remaining debtors, A and B? (1%)

(A)  Yes. Remission of D's share carries with it total extinguishment of his obligation to the benefit of the solidary debtors.

(B)  Yes. The Civil Code recognizes remission as a mode of extinguishing an obligation. This clearly applies to D.

(C)  No. The rule is that gratuitous acts should be restrictively construed, allowing only the least transmission of rights.

(D)  No, as the release of the share of one debtor would then increase the burden of the other debtors without their consent.

SUGGESTED ANSWER:

(D)

When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor paying the obligation, such share shall be borne by all his co-debtors, in proportion to the debt of each(Art. 1217 Civil Code).  Additionally, D was released only from his share of P10,000 not from the solidary tie that binds him to A, B and C.