DIFFERENT KINDS OF OBLIGATION RESOLUTORY – the obligation is demandable at

once. Automatic na nag set na yung obligation ni

1. Pure obligation - without a term or condition it is
obligor. But it shall be extinguished upon the
demandable at once
happening of the condition.
2. Conditional obligation - demandability and
POTESTATIVE – yung happening ng condition
extinguishment of an obligation upon the
dedepende siya kung gusto ba siyang gawin ng isa
happening of the condition.
mga contracting party.
3. Obligation with a period - there is a day certain
• Potestative on the part of debtor – the
when the obligation will arise or cease.
obligation is void (if suspended).
4. Alternative obligation - several prestations are
Obligation is valid (if resolutory).
due but the complete performance of one of
• Potestative on the part of creditor –
them is sufficient to extinguish the obligation.
the obligation is valid whether it is
5. Facultative obligation - only one prestation is due
suspensive and resolutory.
but the debtor may render another in
CASUAL – yung condition dedepende sya sa
substitution.
happening ng isang bagay or will of the third
6. Joint obligation - each debtor is liable only for a
person.
proportionate part of the debt. Each creditor is
MIXED – partly upon the will of one of the parties
entitled only to a proportionate part of the
and partly upon the chance or upon the will of a
credit.
third person.
7. Solidary obligation - Each debtor is liable for the
POSSIBLE – possible by its nature. Capable of
whole obligation. Each creditor is entitled to
fulfillment in its nature and by law.
demand payment on the whole obligation.
IMPOSSIBLE – not capable of fulfillment in its
8. Divisible obligation - one capable of partial
nature or due to operation of law. The obligation
performance (such as the obligation to deliver
is void.
10 sacks of rice)
POSITIVE – an obligation to give or to do.
9. Indivisible obligation - one not capable of partial
NEGATIVE – an obligation not to do which
performance (such as the obligation to deliver a
necessarily include an obligation not to give.
specific car).
DIVISIBLE – capable of partial performance.
10. Obligation with a Penal clause - one which
INDIVISBLE – not capable of partial performance.
provides for a greater liability on the part of the
You have to comply your obligation wholly.
debtor in case of noncompliance.
EFFECT OF FULLFILMENT OF SUSPENSIVE CONDITION
PURE OBLIGATIONS
EXCEPTIONS:
• Unqualified; Without a term or condition it is
demandable at once. Not dependent on the term ▪ RECIPROCAL OBLIGATION – the fruits and
or a condition. interests shall be deemed to have been mutually
compensated.
CONDITIONAL OBLIGATIONS
▪ UNILATERAL OBLIGATION – the debtor keeps the
• The demandability and extinguishment of an fruits and interests received the dependency of
obligation upon the happening of the condition. the condition.
Naka depende ang obligation sa condition.
RIGHTS OF THE PARTIES BEFORE THE FULFILLMENT OF THE
Condition – uncertain event. We don’t know if this will CONDITION
happen or not.
1. CREDITOR – He may bring the appropriate actions
DIFFERENCE KIND OF CONDITION: for the preservation of his right.
2. DEBTOR - He may recover what he has paid by
SUSPENSIVE – suspended yung obligation until mistake.
the happening of the condition. Not demandable
at once because it is dependent on the condition.
EFFECT WHEN THE DEBTOR VOLUNTARILY PREVENTS 3. In case of loss, deterioration or improvement of
FULFILLMENT OF THE CONDITION the thing, which pertain to the debtor shall be
applied to the party who is bound to return.
- The condition is deemed fulfilled if the debtor
voluntarily prevents its fulfillment. hence, the OBLIGATIONS WITH A PERIOD
obligation becomes immediately demandable
- there is a day certain when the obligation will
RULES IN CASE OF LOSS, DETERIORATION OR arise or cease.
IMPROVEMENT OF DETERMINATE THING BEFORE THE
CONCEPT OF PERIOD AND DAY CERTAIN
FULFILLMENT OF THE SUSPENSIVE CONDITION.
PERIOD - a space of time which determines the
1. LOSS OF THE THING
effectivity or extinguishment of an obligation.
a. W/out debtor’s fault – obligation is
DAY CERTAIN - is that which must necessarily
extinguished.
come although it may not be known when.
b. W/ debtor’s fault – obliged to pay
damages. PERIOD DISTINGUISHED FROM CONDITION
CONCEPT OF LOSS – when it perishes;
goes out of commerce or disappears. CONDITION PERIOD
2. DETERIORATION OF THE THING As to Event may or Event that must
fulfillment may not happen necessarily come
a. W/out debtor’s fault - impairment shall
As to time Future or past Always refers to
be borne by the creditor. No liability on
event unknown the future
the part of the debtor to pay damages.
to the parties
b. W/ debtor’s fault – credit may choose: As to influence A condition Fixes the time for
RESCISSION, PLUS DAMAGES and on the causes an the
FULLFILMENT PLUS DAAMAGES. obligation obligation to efficaciousness of
arise or to cease an obligation
LOSS OF THEDETERIORATION OF
As to the will Upon the will of Upon the will of
THING THE THING
of the debtor the debtor the debtor
W/out Extinguished No liability on the
which is authorizes the
debtor’s debtor to pay
suspensive shall court to fix its
fault damages.
annul the duration
W/ debtor’s Obliged to pay Obliged to pay
obligation
fault damages damages but it
depends upon the
creditor. KINDS OF PERIOD

1. Ex die - a period with a suspensive effect

3. IMPROVEMENT OF THE THING
a. By nature of time – kung nag improve
yung isang property, yung improvement
mapupunta kay creditor. (no human
intervention)
b. At the expense of the debtor – (human
intervention) someone has exerted
efforts for the improvement of the thing.
RULE IN CASE OF FULFILLMENT OF RESOLUTORY
CONDITION
1. The obligation is extinguished
2. Parties shall return to each other want they gave
received.
2. In diem - a period with a resolutory effect.
OTHER KINDS
3. Legal - fixed by law
4. Voluntary - fixed by the particles
5. Judicial - fixed by the court
PRESUMPTION AS TO WHO HAS THE BENEFIT OF THE
PERIOD
- Whenever a period is designated in an obligation,
it shall be presumed to have been established for
the benefit of both the creditor and the debtor,
unless from the tenor of the obligation or other
circumstances, it should appear that it has been
 established for the benefit of only one of the RIGHT TO CHOOSE PRESTATION
parties.
- belongs to the debtor, unless it has been
PERIOD IS FOR THE BENEFIT OF ONE OF THE PARTIES expressly given to the creditor.

BENEFIT OF DEBTOR BENEFIT OF CREDITOR LIMITATIONS ON DEBTOR’S RIGHT TO CHOOSE

He cannot be compelled He cannot be compelled to
to perform his obligation accept performance before 1. he must completely perform prestation chose.
before the expiration of expiration of the term, but 2. Cannot choose those prestations which are
the term, but he may he may choose to demand imposible or unlawful or which could not been
choose to perform before performance before such object of the obligation.
such expiration at his expiration at his option.
WHEN THE OBLIGATION CEASES TO BE ALTERNATIVE AND
option.
BECOME A SIMPLE OBLIGATION

1. When the debtor has communicated his choice

WHEN DEBTOR LOSES HIS RIGHT TO MAKE USE OF THE
PERIOD IF IT IS FOR HIS BENEFIT
1. When he becomes insolvent, unless he gives a
guaranty or security for the debt.
2. when he fails to furnish the guaranties or
securities that he has promised.
3. When he impairs the said guaranties or securities
by his own acts, or when through a fortuitous
event they disappear, unless he gives new ones
equally satisfactory.
4. When he violates any undertaking in
consideration of which the creditor agreed to the
period.
5. When he attempts to abscond.
Sa AO at FO ang pinaguusapan dito ay yung prestation ng
isang obligation.
PRESTATION – subject matter or object. To give, to do or
not to do.
KINDS OF OBLIGATIONS ACCORDING TO THE NUMBER OF
PRESTATIONS
1. SIMPLE – one prestation
2. COMPOUND – several prestation
• CONJUNCTIVE – several prestations are
due but all must be performed.
• DISTRIBUTIVE or DISJUNCTIVE – either
alternative or facultative
ALTERNATIVE OBLIGATIONS
- several prestations are due but the complete
performance of one of them is sufficient to
extinguish the obligation.
to the creditor.
2. When among the prestations whereby the
debtor is alternatively bound, only one is
practicable.
3. When the creditor has communicated his choice
to the debtor, if the creditor has been expressly
given the right of choice.
RULES IN CASE OF LOSS OF THINGS OR IMPOSSIBILITY OF
SERVICES WHICH ARE ALTERNATIVELY THE OBJECT OF THE
OBLIGATION
1. When right of choice is with the debtor (check
the module, pg. 7)
2. When right of choice is expressly granted to the
creditor (check the module, pg.7)
FACULTATIVE OBLIGATION
- only one prestation is due but the debtor may
render another in substitution.
RULES IN CASE OF LOSS OF PRINCIPAL THING AND
SUBSTITUTE
1. Before substitution (before the debtor has
informed the creditor of the substitution)
a. Principal thing – lost due to fortuitous
event, obligation is extinguished. Lost
due to debtor’s fault, debtor shall pay
damages.
b. Substitute – lost due to fortuitous event
or debtor’s fault there is no additional
obligation on the debtor because it is not
yet due.
2. After substitution
a. Principal thing – lost due fortuitous event
or debtor’s fault there is no additional
 obligation on the debtor because the JOINT AND SOLIDARY OBLIGATIONS
thing due is already substitute.
- there is a concurrence of two or more debtors
(obligation ceases to be a facultative and
and/or two or more creditors in one and the
becomes simple obligation.)
same obligation.
b. Substitute – lost through a fortuitous
JOINT OBLIGATION
event, obligation is extinguished. Lost
▪ each debtor is liable only for a proportionate part
through debtor’s fault, debtor shall pay
of the debt.
damages.
▪ Each creditor is entitled only to a proportionate
Before After substitution part of the credit.
substitution SOLIDARY OBLIGATION
Principal thing -lost due to -lost due ▪ Each debtor is liable for the whole obligation.
fortuitous event, fortuitous event ▪ Each creditor is entitled to demand payment on
obligation is or debtor’s fault the whole obligation.
extinguished. there is no
-Lost due to additional KINDS OF SOLIDARY OBLIGATION
debtor’s fault, obligation on the
debtor shall pay debtor because 1. PASSIVE SOLIDARITY – solidarity on the part of
damages. the thing due is debtor’s
already 2. ACTIVE SOLIDARITY – solidarity on the part of
substitute. creditor’s
Substitute -lost due to -lost through a 3. MIXED SOLIDARITY – solidarity on the part of
fortuitous event fortuitous event, both debtors and creditors.
or debtor’s fault obligation is
there is no extinguished. OTHER TERMS OF SOLIDARY OBLIGATION
additional -Lost through 1. Jointly and severally
obligation on the debtor’s fault, 2. Individually and collectively
debtor because it debtor shall pay
3. In solidum
is not yet due. damages.
4. Moncomunada solidaria
5. Juntos o separadamente
ALTERNATIVE OBLIGATION AND FACULTATIVE
OTHER TERMS FOR JOINT OBLIGATION
OBLIGATION, DISTINGUISHED
1. Proportionately
Alternative obligation Facultative obligation
2. Pro rata
Several prestations are Only one prestation, the
due, but the - principal obligation, is 3. Moncomunada
performance of one is due. 4. Moncomunada simple
sufficient to extinguish the GENERAL RULE IF THERE IS A CONCURRENCE OF TWO OR
debt.
MORE DEBTORS AND/OR TWO OR MORE CREDITORS IN
if there are void If the principal obligation
ONE AND THE SAME OBLIGATION.
prestations, the - others is void, the debtor is not
may still be valid, hence, required to give the - The obligation is presumed to be joint when
the obligation remains. substitute. there is a concurrence of two or more debtors
The right of choice is with The right of choice and/or two or more creditors in one and the
the debtor, - unless belongs to the debtor same obligation.
expressly given to the only.
- There is solidary liability only in the ff. cases:
creditor.
1. When the obligation expressly so states.
If all prestations are If the principal obligation
2. When the law requires solidarity.
impossible except - one, is impossible, the debtor
that which is possible must is not required to give the 3. When the nature of the obligation requires
still be given. substitute. solidarity.
JOINT INDIVISIBLE OBLIGATION - an obligation where the RULE IN CASE OBLIGATION HAS A PENAL CAUSE
debtors or creditors are jointly bound but the prestation
General rule: The penalty takes the place of the damages
or object is indivisible.
and interest in case of noncompliance.
INDIVISIBILITY AND SOLIDARITY - indivisibility of an
Exceptions, i.e., aside from the penalty, damages and
obligation refers to the subject matter or object not being
interest may also be demanded.
susceptible of partial performance. Solidarity refers to tie
between the parties. There may be the ff obligations: 1. When there is a stipulation to that effect.
2. When the debtor refuses to pay the penalty.
1. Joint divisible obligation
3. When the debtor is guilty of fraud in the
2. Joint indivisible obligation
performance of the obligation.
3. Solidary divisible obligation
4. Solidary indivisible obligation WHEN THE COURT MAY REDUCE THE PENALTY
DIVISIBLE OBLIGATION 1. When the obligation has been partly complied
with the debtor.
- one capable of partial performance (such as the
2. When the obligation has been irregularly
obligation to deliver 10 sacks of rice)
complied with by the debtor.
INDIVISIBLE OBLIGATION 3. When the penalty is iniquitous or unconscionable
even if there has been no performance. (Art.
- one not capable of partial performance (such as
1229)
the obligation to deliver a specific car).
EFFECT OF NULLITY OF PRINCIPAL OBLIGATION, PENAL
OBLIGATION WITH A PENAL CLAUSE
CLAUSE
- one which provides for a greater liability on the
1. The nullity of the principal obligation carries with
part of the debtor in case of noncompliance
it the nullity of the penal clause. This is so
PENAL CLAUSE - accessory undertaking on the part of the because the penal clause, being just an accessory
debtor. undertaking, cannot stand by itself.
2. The nullity of the penal clause does not carry with
FUNCTION OF PENAL CLAUSE it that of the principal obligation. This is so
- A penal clause is attached to an obligation in because the principal obligation can stand by
order to insure performance and has a double itself.
function:
1. To provide or liquidated damaged, and
2. To strengthen the coercive force of the
obligation by a threat of greater
responsibility in the event of breach.

KINDS OF PENAL CLAUSE

1. Legal and conventional

a. Legal – imposed by law
b. Conventional – imposed by the
agreement of the parties.
2. Subsidiary and joint
a. Subsidiary – when only the penalty may
be enforced.
b. Joint – when both the obligation and the
penalty may be enforced.