SUMMARY:

Pure Obligation
Conditional Obligation
Obligation with a period
Alternative Obligation
Facultative Obligation
Joint/Solidary Obligation
Obligations with a Penal Clause

Pure Obligation:

An obligation whose performance

is demandable at once and does
not depend upon a condition or a
period.
Example:
I promise to deliver AVON products
to A.
Signed: B

Conditional Obligation:

An obligation whose demandability or

extinguishment is subject to a
condition
Example:
I promise to deliver AVON products to
A if he passed LEM1J02 under Atty.
Guia. Signed: B
Condition a future and uncertain
event which may or may not happen

Kinds of Condition:

Suspensive Condition the happening of

which gives rise to an obligation
Resolutory Condition the happening of
which extinguishes the obligation
Potestative condition where the
fulfillment depends upon ones will (either
the debtor, creditor or a third person)
Casual condition when the fulfillment of
the condition depends upon chance

Kinds of Condition:

Mixed condition when the fulfillment

of the condition depends partly upon
ones will and partly upon chance.
Impossible Condition that which is
not capable of fulfillment because it is
contrary to the law of nature or
contrary to law, morals, public order
or public policy.

Article 1191:

This article applies only to

reciprocal obligations and there
is no express power to rescind.
If one of the parties in reciprocal
obligations fails to comply with
what is incumbent upon him,
there is a right on the part of the
other to rescind.

Article 1191:

Rescission (Cancellation) can be

demanded only if plaintiff is ready,
willing and able to comply with his own
obligation and the other is not.
Slight breaches will not cause rescission.
Right to rescind needs judicial approval
if there has been delivery. If there is no
delivery, judicial approval is not
necessary.

Article 1191:

Right is presumed, need not be

express
Choices: (These are alternative
not simultaneous)
1. Specific performance +
damages
2. Rescission + damages

Obligations with a Period:

Definition: Those whose
demandability or extinguishment are
subject to the expiration of a term or
period.
Example: I shall deliver the
determinate thing on July 8, 2003.
Period or a day certain a future
and certain event which must surely
come to pass.

Kinds of period:

Suspensive period
(ex die)
Resolutory period
(in diem)
Legal/Convention
al
Voluntary Period

Definite Period
Indefinite Period
Judicial Period

Judicial period:
This is a period which is fixed by the
courts. The courts are empowered to
fix the duration of a period in an
obligation in the following instances:
1.
If the debtor binds himself when his
means permit him to do so.
2.
If the obligation does not fix a period
but it can be inferred that a period was
intended by the parties.

Example:
Article 1687 of the New Civil Code.
Month to month court may fix a
period if lessee occupied for more
than one year
Weekly- if lessee occupied for more
than six months
Daily if lessee occupied for more
than one month.

Facultative Obligation:
Obligation where only one principal
prestation is due, but the debtor
may render another in
substitution.

Alternative Obligation:
An obligation wherein two or more
prestations are due, and payment
or delivery of one is sufficient to
extinguish the obligation.
Rules:
1.
The right of choice belongs to the
debtor unless the choice is given
to the creditor

Alternative Obligation:
Rules:
2.
The choice must be communicated to the
creditor, otherwise it has no effect. Once
the choice is communicated to the
creditor, the alternative obligation ceases
and it becomes a pure obligation.
3.
If all the prestations are lost through a
fortuitous event before selection, the
obligation is extinguished

Alternative Obligation:
Rules:
4. If through the fault of the debtor
all the prestations are lost before
selection, the creditor shall have
a right to indemnity for damages
equivalent to the value of the
thing lost plus damages.

Alternative Obligation:
If the right of selection is expressly given to
the creditor, the following rules apply:
1.
The creditor must communicate to the
debtor the prestation he has selected;
2.
If one thing is lost through a fortuitous
event, the creditor may choose from the
remaining prestations
3.
If only one prestation is left, the debtor
must deliver it even without notice from
the creditor.

Alternative Obligation:
4.

5.

If one prestation is lost through

debtors fault, the creditor may
choose from the remaining
prestations or demand the value of
the thing plus damages;
If all the things are lost through
debtors fault, the creditor may
demand the value of any of the
things lost.

Obligation with a penal

clause:
It is an obligation with an accessory
undertaking by virtue of which
the obligor assumes a greater
liability in case of breach of the
obligation.

Important:
The penalty shall substitute the indemnity
for damages and the payment of
interest in case of non-compliance, if
there is no stipulation to the contrary.
Damages (Exemplary damages) as well as
the penalty (liquidated damages) shall
be recovered if obligor refuses to pay
the penalty or when the obligor is
guilty of fraud.

Joint and Solidary

Obligations:
Joint Obligation takes place when there is
concurrence of several debtors or
creditors, by virtue of which each of the
creditors has the right to demand, while
each of the debtor is bound to render
compliance with his proportionate part of
the prestation.
Solidary Obligation takes place where each
of the creditors is entitled to demand or
each of the debtors is bound to render
compliance of the entire obligation.

Important:
The contract is presumed to be joint unless the
obligation expressly states for its solidarity;
or when the law expressly provides for its
solidarity
Kinds of solidarity:
1.
Passive Solidarity existing among debtors
2.
Active Solidarity existing among creditors
3.
Mixed Solidarity existing among debtors
and creditors

Important:

Solidarity may exist although the creditors and the

debtors may not be bound in the same manner
and by the same periods and conditions. (Art.
1211)
Each one of the solidary creditors may do
whatever may be useful to the others, but not
anything which may be prejudicial to the latter
(Art. 1212)
Novation, compensation, confusion or remission of
the debt, made by any of the solidary creditors or
with any of the solidary debtors shall extinguish
the obligation without prejudice to the provisions
of Art. 1219 (Art. 1215).

Important:

Payment by a solidary debtor shall not entitle

him to reimbursement from his co-debtors if
such payment is made after the obligation
has prescribed or become illegal. (Art. 1218)
The remission made by the creditor of the
share which affects one of the solidary
debtors does not release the latter from his
responsibility towards the co-debtors, in case
the debt has been totally paid by anyone of
them before remission is effected(Art.1219)