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Chapter three
plurality of debtors or creditors
Means the existence of more than one debtor/ creditor in a K. 1. Plurality of debtors /co-debtors Their oblgn- b/n themselves & the creditor depends on the nature of oblgn assumed in z K. Debtors may agree to be bound by one of the f/g ways: 1.1 joint obligation- all co-debtors are jointly liable for the oblgn- -Separate claim can be opposed /mandatory joinder of defendants, cpc 36, 43/ 1.2 several obligation- each debtor is liable only to the extent of his share -A debtor can oppose a claim beyond his share 1.3 joint & several obligation/liability/ or solidary oblgn Each debtor is liable not only for his share, but also, the whole debt , depending on the will of the creditor. • Each debtor is liable to z whole debt in r/n to z creditor, but only to his share in r/n to his co- debtors • There is a reimbursement from others co-debtors The Ethiopian C.C. focused on the z 3rd type of joint obligation /1896-1909/ However, it didn’t disregared the existence of the 1 st two oblgns- based on agreement or designation of the law. eg-divisible obgns- are several /1918 - indivisible oblgns- are joint /1917 However, the phrase “ -----regarding joint oblgn-----’’ in art.1917 should be amended to be “--- joint & several oblgn------’’ since there is no provision dealing with joint oblgn. Defenses against creditor • In Case of Joint & several oblgn – Capacity & consent- personal /individual/ – Novation & remission can be common defenses unless concern specific debtor – Merger & setoff – can’t be raised by others unless it rest on the debtor with whom setoff is made or become a creditor. – Common defenses- period of limitation, total performance, nullity based on object & form /1808(2) Obligations other than joint and several obligation A-indivisible oblgn- are oblgns-the corporal/ intellectual division of their object is legally/ physically impossible. /1917/ Eg. shares, debentures, bonds /com.code 328 & 438/ One co- debtor can’t be forced to perform his share or the whole debt -it should be performed totally from all co-debtors B- divisible obligation /11918-
-are oblgns- which are neither joint nor indivisible owing to
their nature. -are divided b/n co-debtors. -are several oblgns- Each debtor is liable only up to his share. Excepn- surety of one debtor for z other 2-plurality of creditors /co- creditors/ • Creditor is holder of right/ entitled to claim rights/ • Their right against z debtor or b/n them depends on the nature of right assumed under z K • They can assume in 3 ways – Jointly entitled- all creditors should join the claim – Severally entitled- each creditor can claim his share only – Jointly & severally entitled- either one of the creditors or all can claim the whole payment. – Payment of the whole debt to 1 will release the debtor. • Ethiopian C.C. /1910/ • Unless otherwise agreed/ provided by law, joint creditors are not jointly and severally entitled claim • Art. 1911 & f/g deal on joint & severally entitled creditors