Question:

Give the rules in case of loss or damage of an object and the corresponding liability of
the debtor (if there be any) in the following obligations:
 
1. Alternative Obligation
As stated in Article 1205, “When the choice has been expressly given to the creditor,
the obligation shall cease to be alternative from the day when the selection has been
communicated to the debtor.”
Rules in case of loss before creditor has made choice:
a. When a thing is lost through a fortuitous event – the creditor has the right to
choose among the other alternatives or the remainder if ever all other items got
lost.
Ex. Jane is obliged to deliver to Baste a television set, a camera or a laptop. The
house of Jane got flooded and the only thing saved among the three is the camera.
Jane is compelled to deliver the camera to Baste.
b. When a thing is lost through debtor’s fault – the creditor has the right to claim
among other remaining alternatives plus damages
c. When all things are lost through debtor’s fault – the creditor has the right to claim
the price of any one of them with a right to indemnify for damages.
d. When all things are lost through fortuitous event – the obligation of the debtor shall
be extinguished.
2. Joint Obligation
General Rule: If the thing is lost or damaged due to a fortuitous event, the obligation is
extinguished
In joint obligation:
1. If a joint debtor is guilty of fraud that caused the object to get lost, the other joint
debtor/s cannot be compelled to pay for the damages.
2. If a joint debtor incurred delay and subsequently, a fortuitous event happened,
the other joint debtor/s is/are still not compelled to pay for the damages.
Example: Shasha and Chacha are joint debtors. Shasha is required to deliver a golden
watch while ChaCha is required to deliver a golden ring to Lara. Shasha lost the golden
ring together with some of her valuable properties because her house was robbed the
night before the delivery of it to Lara.
Are they liable for damages?
 - NO because the cause of the loss of the thing is a fortuitous event and it
happened even before they have incurred delay.
What if it happened after incurring delay are they liable for damages?
- YES, Shasha is liable to pay the damages because the fortuitous event
happened after incurring delay in the delivery of the ring. Moreover, Lara cannot
compel Chacha to pay for the damages.
What if the ring is not really a golden ring and she just made Lara believed it was
just to lend her some money which made it impossible for Shasha to comply with
her obligation to give a “golden” ring, are they liable for damages?
- YES, Shasha is the only one liable because the cause of the impossibility to
deliver the thing is her fraudulent action. Moreover, the joint debtor Chacha
cannot be required to pay for the money borrowed by Shasha and the damages
as well.
3. Solidary Obligation
As stated in Article 1221. “If the thing has been lost or if the prestation has become
impossible, the liability of the solidary debtors depends upon whether or not there is
fault or delay.”
General rule: If thing is lost or damaged through fortuitous event the obligation shall be
extinguished
Exception: if the fortuitous event happened after one of the solidary debtors has
incurred delay through the judicial or extrajudicial demand upon him by the creditor, all
solidary debtors are obliged for indemnification of damages to creditor.
“If you just gave the thing when it is due and demandable, it might not have been lost or
damaged.”
RULES IN CASE OF FAULT AND DELAY:
1. Loss is without fault and before delay
- The object got lost without any fraudulent intention of the solidary debtor/s
and,
- It happened before any of the solidary debtors may have incurred delay in the
delivery of the object.
Example: Luis and Anne are solidarily obliged to deliver a car to their friend Billy on
March 1, 2020. On April 20,2020 a storm hit the city where Luis and Anne lives which
caused the car to be flooded and destroyed.
Are they liable for any damages?
 - Answer is NO, because the obligation is deemed to be extinguished because
the car got lost due to a fortuitous event and the solidary debtors did not incur
delay prior to the happening of the storm.
2. Loss is due to fault on the part of a solidary debtor
- The object has become impossible to be delivered due to malicious or
fraudulent intention of the solidary debtor/s.
- The rule is, all of the solidary debtors can be compelled to pay for the value of
the thing plus damages to the creditor/s.
- The solidary debtor/s who is/are not guilty can recover from the guilty or
negligent solidary debtor the full amount of the object and damages if they
already contributed to the price of it.
- If creditor solely recovers the price and damages from the guilty solidary
debtor, the latter cannot claim reimbursement from the other solidary debtors
because he alone was at fault.
- In other words, the solidary debtor who is at fault must shoulder the burden
of the consequences of his deed.
Example: Mae, John and Albert, solidary debtors sold a house in Marikina to Miguel
amounting to P2.5M. Due to some malicious intent of Albert, he intentionally started a
fire that caused the house to be burnt down and impossible to be delivered to Miguel.

Are they liable?

- YES, all of them are liable to pay the price of the house plus damages to
Miguel although, Mae and John are innocent because in solidary obligation
there is this what we call mutual agency. It is also very clear that the cause of
the loss of the prestation is the malicious intent of Albert.
- If either Mae or John or both of them contributed in paying the price of house
and damages, they are entitled to receive reimbursement from Albert.
- If Albert paid the full price of the house and damages to Miguel, he is not
entitled of reimbursement from other solidary debtors because he alone is at
fault.
3. Loss is without fault but after delay
- If a fortuitous event happened after incurring delay, the solidary debtors are
deemed responsible to pay for damages
Example: Max and Sam, solidary debtors are obliged to deliver a motorbike to Hector
on September 3, 2020 but they failed to deliver it to Hector on that specified date. 3
days after the due date, Max committed an accident while riding the motorbike causing
it to be in total wreck.
Are they liable for damages?
- YES, because the fortuitous event happened after they have incurred delay
on delivering the motorbike to Hector which made them responsible for the
loss of it. They are compelled to pay for the damages to Hector.