Effect of Loss of Objects of Obligation
Before Substitutions
Articles 1203 and 1204 apply when the right of choice
belongs to the debtor. Under article 1205, the creditor
has the right to choose.
1. Some of the objects
a. Have been lost or have become
impossible even through the fault of the
debtor
b. Not liable since he has the right of
choice and the obligation can still be
performed
2. All of the objects
a. Lost or have become impossible
through his fault
b. Creditor shall have the right to
indemnity for damages
Basis of Indemnity
Indemnity shall be fixed taking as a basis the
value of the last thing which disappeared
In case of disagreement, it is incumbent upon
the creditor to prove such value or which thing last
disappeared
When right of choice belongs to creditor
Alternative Obligations – right of choice, as a rule,
belongs to the debtor; the debtor may expressly give
the right of choice to the creditor
Rules in case of loss before creditor has made choice
1. When a thing is lost through a fortuitous event
a. Lost through a fortuitous event
b. Choose from among the remainder
2. When a thing is lost through debtor’s fault
a. May claim item two or item three or
item four with a right
b. Price of item one also with a right to
damages
3. When all the things are lost through debtor’s
fault
a. Demand the payment of the price of
any one of them with a right to
indemnity
4. When all the things are lost through a
fortuitous event
a. Extinguished if all the items which are
alternatively the object of the obligation
are lost through a fortuitous event
Meaning of Facultative Obligation
Facultative Obligations – one prestation has been
agreed upon but the obligor may render another in
substitution
Effect of Loss
1.
a. principal thing is lost through a
fortuitous event
b. obligation is extinguished
c. debtor is liable for damages
2. After Substitution
a. Principal thing is lost
b. Debtor is not liable whatever may be
the cause of the loss
Alternative and Facultative Obligations Distinguished
1. Number of Prestation
a. First – several prestations are due but
compliance with one is sufficient
b. Second – only 1 prestation is due
although the debtor is allowed to
substitute it
2. Right of Choice
a. First – the loss of one or more of the
alternatives through a fortuitous event
does not extinguish the obligation
i. loss of one alternative through
the fault of the debtor gives rise
to liability
b. Second – loss of the thing due through
his fault makes him liable
i. Loss of the substitute before
the substitution through the
fault of the debtor does not
render him liable
Kinds of Obligations According to the number of
parties
1. Individual Obligation – only 1 obligor or 1
obligee
2. Collective Obligation – 2 or more debtors
and/or two or more creditors
Meaning of joint and Solidary Obligations
1. Join Obligation
a. Whole obligation is to be paid or
fulfilled proportionately by the different
debtors
b. To be demanded proportionately by the
different creditors
2. Solidary Obligation
a. Each one of the debtors is bound to
render
b. Each one of the creditors has a right to
demand from any of the debtors
Presumption subject to rules on multiplicity of suits
1. Situation may arise where there are as many
suits as there are debtors and creditors
Words used to indicate joint liability
Other word used for joint obligations:
1. Mancomunada, mancomunadamente, pro rata,
proportionately, “we promise to pay”
When obligation solidary
Solidary Liability is not lightly inferred.
Article 1207, there is solidary liability only when:
1. The obligation expressly so states
2. The law requires solidarity
3. The nature of the obligation requires solidarity
Kinds of Solidarity
1. According to the parties bound
a. Passive Solidarity
i. The part of the debtors
ii. Any one of them can be made
liable for the fulfillment of the
entire obligation
b. Active Solidarity
i. The part of the creditors where any
one of them can demand the
fulfillment of the entire obligation
c. Mixed Solidarity
i. The part of the debtors and
creditors where each one of the
debtors is liable to render
ii. A right to deman
2. According to source
a. Conventional Solidarity
i. Agreed upon by the parties
b. Legal Solidarity
i. Imposed by the law
c. Real Solidarity
i. Solidarity is imposed by the nature
of the obligation
SOLIDARITY NOT PRESUMED PAGE 159
Join Indivisible Obligation – joint because the parties
are merely proportionately liable.
Indivisibility and Solidarity Distinguished
1. Indivisibility refers to the prestation, while
solidarity refers to the juridical or legal tie that
binds tie
2. In indivisible obligations, only the debtor guilty of
breach of obligation is liable for damages
In solidarity obligations, all of the debtors are
liable for the breach of the obligation committed by
a debtor.
Kinds of Solidary Obligation According to the Legal Tie
Uniform – when the parties are bound by the same
stipulations
Non-uniform or Varied – when the parties are not
subject to the same stipulations
Solidarity not affected by the diverse stipulations
The essence of solidarity consists in the right of
each creditor to enforce the rights of all and the liability
of each debtor to answer the liabilities to all.
Rule – creditors may bring his action in toto
against any of the solidary debtors less the shares of the
other debtors with unexpired terms or unfulfilled
conditions.
Act of Solidary Creditor useful/prejudicial to others
Solidary Creditor – may do any act beneficial or useful
to the others but he cannot perform any act prejudicial
to them.
Assignment by Solidary Creditor of his Rights
In the absence of consent given by the others, a
solidary creditor cannot assign his rights to a third
person.
Payment to any of the solidary creditors
Rule – debtor may pay any one of the solidary creditors
Liability of Solidary Creditor in Case of Novation,
Compensation, Confusion, or remission.
It is but logical that the creditor who executed
any of these acts should be liable to the others for their
corresponding shares considering that such acts are
prejudicial to them.
Right of Creditor to Proceed Against Any Solidary
Debtor
It reiterates the rule that in a solidary obligation
(passive solidarity), any one or some or all of the
solidary debtors simultaneously, may be made to pay
the debt so long as it has not been fully collected.
Effects of Payment by a Solidary Debtor
1. Between the Solidary Debtors and Creditor(s)
2. Among the Solidary Debtors
3. Among the Solidary Creditors
Prescriptive Periods of Actions
By prescription, one acquires ownership and
other rights through the lapse of time In the manner
and under the conditions laid down by law.
Effect of Remission of Share After Payment
 If payment is made first, the remission or waiver
is of no effect. There is no more obligation to remit. If
remission is made previous to the payment and
payment is made, solution indebiti arises.

Rules in Case Thing Has Been Lost or Prestation has

Become Impossible
1. Loss is without fault and before delay
2. Loss is due to fault on the part of a solidary debtor
3. Loss is without fault but after delay

Defenses Available to a Solidary Debtor

1. Defenses derived from the nature of the obligation
2. Defenses personal to, or which pertain to share of,
debtor sued
3. Defenses personal to other solidary debtors.