Article 1184.
The condition that some
CHAPTER 3: Different Kinds of
Obligations
SECTION 1
Pure and Conditional Obligations
Article 1179. Every obligation whose
performance does not depend upon a
future or uncertain event, or upon a past
event unknown to the parties, is
demandable at once.
Every obligation which contains a
resolutory condition shall also be
demandable, without prejudice to the
effects of the happening of the event.
(1113)
Article 1180. When the debtor binds
himself to pay when his means permit him
to do so, the obligation shall be deemed to
be one with a period, subject to the
provisions of article 1197. (n)
Article 1181. In conditional obligations,
the acquisition of rights, as well as the
extinguishment or loss of those already
acquired, shall depend upon the happening
of the event which constitutes the
condition. (1114)
Article 1182. When the fulfillment of the
condition depends upon the sole will of the
debtor, the conditional obligation shall be
void. If it depends upon chance or upon
the will of a third person, the obligation
shall take effect in conformity with the
provisions of this Code. (1115)
Article 1183. Impossible conditions, those
contrary to good customs or public policy
and those prohibited by law shall annul the
obligation which depends upon them. If
the obligation is divisible, that part thereof
which is not affected by the impossible or
unlawful condition shall be valid.
The condition not to do an impossible
thing shall be considered as not having
been agreed upon. (1116a)
event happen at a determinate time shall
extinguish the obligation as soon as the
time expires or if it has become
indubitable that the event will not take
place. (1117)
Article 1185. The condition that some
event will not happen at a determinate
time shall render the obligation effective
from the moment the time indicated has
elapsed, or if it has become evident that
the event cannot occur.
If no time has been fixed, the condition
shall be deemed fulfilled at such time as
may have probably been contemplated,
bearing in mind the nature of the
obligation. (1118)
Article 1186. The condition shall be
deemed fulfilled when the obligor
voluntarily prevents its fulfillment. (1119)
Article 1187. The effects of a conditional
obligation to give, once the condition has
been fulfilled, shall retroact to the day of
the constitution of the obligation.
Nevertheless, when the obligation imposes
reciprocal prestations upon the parties, the
fruits and interests during the pendency of
the condition shall be deemed to have been
mutually compensated. If the obligation is
unilateral, the debtor shall appropriate the
fruits and interests received, unless from
the nature and circumstances of the
obligation it should be inferred that the
intention of the person constituting the
same was different.
In obligations to do and not to do, the
courts shall determine, in each case, the
retroactive effect of the condition that has
been complied with. (1120)
Article 1188. The creditor may, before the
fulfillment of the condition, bring the
appropriate actions for the preservation of
his right.
The debtor may recover what during the
same time he has paid by mistake in case
of a suspensive condition. (1121a)
Article 1189. When the conditions have
been imposed with the intention of
suspending the efficacy of an obligation to
give, the following rules shall be observed
in case of the improvement, loss or
deterioration of the thing during the
pendency of the condition:
(1) If the thing is lost without the
fault of the debtor, the obligation
shall be extinguished;
(2) If the thing is lost through the
fault of the debtor, he shall be
obliged to pay damages; it is
understood that the thing is lost
when it perishes, or goes out of
commerce, or disappears in such a
way that its existence is unknown
or it cannot be recovered;
(3) When the thing deteriorates
without the fault of the debtor, the
impairment is to be borne by the
creditor;
(4) If it deteriorates through the
fault of the debtor, the creditor
may choose between the
rescission of the obligation and its
fulfillment, with indemnity for
damages in either case;
(5) If the thing is improved by its
nature, or by time, the
improvement shall inure to the
benefit of the creditor;
(6) If it is improved at the expense
of the debtor, he shall have no
other right than that granted to the
usufructuary. (1122)
Article 1190. When the conditions have
for their purpose the extinguishment of an
obligation to give, the parties, upon the
fulfillment of said conditions, shall return
to each other what they have received.
In case of the loss, deterioration or
improvement of the thing, the provisions
which, with respect to the debtor, are laid
down in the preceding article shall be
applied to the party who is bound to
return.
As for the obligations to do and not to do,
the provisions of the second paragraph of
article 1187 shall be observed as regards
the effect of the extinguishment of the
obligation. (1123)
Article 1191. The power to rescind
obligations is implied in reciprocal ones,
in case one of the obligors should not
comply with what is incumbent upon him.
The injured party may choose between the
fulfillment and the rescission of the
obligation, with the payment of damages
in either case. He may also seek rescission,
even after he has chosen fulfillment, if the
latter should become impossible.
The court shall decree the rescission
claimed, unless there be just cause
authorizing the fixing of a period.
This is understood to be without prejudice
to the rights of third persons who have
acquired the thing, in accordance with
articles 1385 and 1388 and the Mortgage
Law. (1124)
Article 1192. In case both parties have
committed a breach of the obligation, the
liability of the first infractor shall be
equitably tempered by the courts. If it
cannot be determined which of the parties
first violated the contract, the same shall
be deemed extinguished, and each shall
bear his own damages. (n)
 SECTION 2
Obligations with a Period
Article 1193. Obligations for whose
fulfillment a day certain has been fixed,
shall be demandable only when that day
comes.
Obligations with a resolutory period take
effect at once, but terminate upon arrival
of the day certain.
A day certain is understood to be that
which must necessarily come, although it
may not be known when.
If the uncertainty consists in whether the
day will come or not, the obligation is
conditional, and it shall be regulated by
the rules of the preceding Section. (1125a)
Article 1194. In case of loss, deterioration
or improvement of the thing before the
arrival of the day certain, the rules in
article 1189 shall be observed. (n)
Article 1195. Anything paid or delivered
before the arrival of the period, the obligor
being unaware of the period or believing
that the obligation has become due and
demandable, may be recovered, with the
fruits and interests. (1126a)
Article 1196. Whenever in an obligation a
period is designated, it is presumed to
have been established for the benefit of
both the creditor and the debtor, unless
from the tenor of the same or other
circumstances it should appear that the
period has been established in favor of one
or of the other. (1127)
Article 1197. If the obligation does not fix
a period, but from its nature and the
circumstances it can be inferred that a
period was intended, the courts may fix
the duration thereof.
The courts shall also fix the duration of the
period when it depends upon the will of
the debtor.
In every case, the courts shall determine
such period as may under the
circumstances have been probably
contemplated by the parties. Once fixed by
the courts, the period cannot be changed
by them. (1128a)
Article 1198. The debtor shall lose every
right to make use of the period:
(1) When after the obligation has
been contracted, he becomes
insolvent, unless he gives a
guaranty or security for the debt;
(2) When he does not furnish to
the creditor the guaranties or
securities which he has promised;
(3) When by his own acts he has
impaired said guaranties or
securities after their establishment,
and when through a fortuitous
event they disappear, unless he
immediately gives new ones
equally satisfactory;
(4) When the debtor violates any
undertaking, in consideration of
which the creditor agreed to the
period;
(5) When the debtor attempts to
abscond. (1129a)
 SECTION 3
Alternative Obligations
ARTICLE 1199. A person alternatively
bound by different prestations shall
completely perform one of them.
The creditor cannot be compelled to
receive part of one and part of the other
undertaking. (1131)
Article 1200. The right of choice belongs
to the debtor, unless it has been expressly
granted to the creditor.
The debtor shall have no right to choose
those prestations which are impossible,
unlawful or which could not have been the
object of the obligation. (1132)
Article 1201. The choice shall produce no
effect except from the time it has been
communicated. (1133)
Article 1202. The debtor shall lose the
right of choice when among the
prestations whereby he is alternatively
bound, only one is practicable. (1134)
Article 1203. If through the creditor's acts
the debtor cannot make a choice according
to the terms of the obligation, the latter
may rescind the contract with damages. (n)
Article 1204. The creditor shall have a
right to indemnity for damages when,
through the fault of the debtor, all the
things which are alternatively the object of
the obligation have been lost, or the
compliance of the obligation has become
impossible.
The indemnity shall be fixed taking as a
basis the value of the last thing which
disappeared, or that of the service which
last became impossible.
Damages other than the value of the last
thing or service may also be awarded.
(1135a)
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.
Until then the responsibility of the debtor
shall be governed by the following rules:
(1) If one of the things is lost
through a fortuitous event, he shall
perform the obligation by
delivering that which the creditor
should choose from among the
remainder, or that which remains
if only one subsists;
(2) If the loss of one of the things
occurs through the fault of the
debtor, the creditor may claim any
of those subsisting, or the price of
that which, through the fault of the
former, has disappeared, with a
right to damages;
(3) If all the things are lost
through the fault of the debtor, the
choice by the creditor shall fall
upon the price of any one of them,
also with indemnity for damages.
The same rules shall be applied to
obligations to do or not to do in case one,
some or all of the prestations should
become impossible. (1136a)
Article 1206. When only one prestation
has been agreed upon, but the obligor may
render another in substitution, the
obligation is called facultative.
The loss or deterioration of the thing
intended as a substitute, through the
negligence of the obligor, does not render
him liable. But once the substitution has
been made, the obligor is liable for the loss
of the substitute on account of his delay,
negligence or fraud. (n)
 SECTION 4
Joint and Solidary Obligations
Article 1207. The concurrence of two or
more creditors or of two or more debtors
in one and the same obligation does not
imply that each one of the former has a
right to demand, or that each one of the
latter is bound to render, entire compliance
with the prestation. There is a solidary
liability only when the obligation
expressly so states, or when the law or the
nature of the obligation requires solidarity.
(1137a)
Article 1208. If from the law, or the nature
or the wording of the obligations to which
the preceding article refers the contrary
does not appear, the credit or debt shall be
presumed to be divided into as many
shares as there are creditors or debtors, the
credits or debts being considered distinct
from one another, subject to the Rules of
Court governing the multiplicity of suits.
(1138a)
Article 1209. If the division is impossible,
the right of the creditors may be
prejudiced only by their collective acts,
and the debt can be enforced only by
proceeding against all the debtors. If one
of the latter should be insolvent, the others
shall not be liable for his share. (1139)
Article 1210. The indivisibility of an
obligation does not necessarily give rise to
solidarity. Nor does solidarity of itself
imply indivisibility. (n)
Article 1211. Solidarity may exist
although the creditors and the debtors may
not be bound in the same manner and by
the same periods and conditions. (1140)
Article 1212. 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. (1141a)
Article 1213. A solidary creditor cannot
assign his rights without the consent of the
others. (n)
Article 1214. The debtor may pay any one
of the solidary creditors; but if any
demand, judicial or extrajudicial, has been
made by one of them, payment should be
made to him. (1142a)
Article 1215. 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 article 1219.
The creditor who may have executed any
of these acts, as well as he who collects
the debt, shall be liable to the others for
the share in the obligation corresponding
to them. (1143)
Article 1216. The creditor may proceed
against any one of the solidary debtors or
some or all of them simultaneously. The
demand made against one of them shall
not be an obstacle to those which may
subsequently be directed against the
others, so long as the debt has not been
fully collected. (1144a)
Article 1217. Payment made by one of the
solidary debtors extinguishes the
obligation. If two or more solidary debtors
offer to pay, the creditor may choose
which offer to accept.
He who made the payment may claim
from his co-debtors only the share which
corresponds to each, with the interest for
the payment already made. If the payment
is made before the debt is due, no interest
for the intervening period may be
demanded.
When one of the solidary debtors cannot,
because of his insolvency, reimburse his
share to the debtor paying the obligation,
such share shall be borne by all his
co-debtors, in proportion to the debt of
each. (1145a)
Article 1218. 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. (n)
Article 1219. 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 had been
totally paid by anyone of them before the
remission was effected. (1146a)
Article 1220. The remission of the whole
obligation, obtained by one of the solidary
debtors, does not entitle him to
reimbursement from his co-debtors. (n)
Article 1221. If the thing has been lost or
if the prestation has become impossible
without the fault of the solidary debtors,
the obligation shall be extinguished.
If there was fault on the part of any one of
them, all shall be responsible to the
creditor, for the price and the payment of
damages and interest, without prejudice to
their action against the guilty or negligent
debtor.
If through a fortuitous event, the thing is
lost or the performance has become
impossible after one of the solidary
debtors has incurred in delay through the
judicial or extrajudicial demand upon him
by the creditor, the provisions of the
preceding paragraph shall apply. (1147a)
Article 1222. A solidary debtor may, in
actions filed by the creditor, avail himself
of all defenses which are derived from the
nature of the obligation and of those which
are personal to him, or pertain to his own
share. With respect to those which
personally belong to the others, he may
avail himself thereof only as regards that
part of the debt for which the latter are
responsible. (1148a)
SECTION 5
Divisible and Indivisible Obligations
Article 1223. The divisibility or
indivisibility of the things that are the
object of obligations in which there is only
one debtor and only one creditor does not
alter or modify the provisions of Chapter 2
of this Title. (1149)
Article 1224. A joint indivisible
obligation gives rise to indemnity for
damages from the time anyone of the
debtors does not comply with his
undertaking. The debtors who may have
been ready to fulfill their promises shall
not contribute to the indemnity beyond the
corresponding portion of the price of the
thing or of the value of the service in
which the obligation consists. (1150)
Article 1225. For the purposes of the
preceding articles, obligations to give
definite things and those which are not
susceptible of partial performance shall be
deemed to be indivisible.
When the obligation has for its object the
execution of a certain number of days of
work, the accomplishment of work by
metrical units, or analogous things which
by their nature are susceptible of partial
performance, it shall be divisible.
However, even though the object or
service may be physically divisible, an
obligation is indivisible if so provided by
law or intended by the parties.
In obligations not to do, divisibility or
indivisibility shall be determined by the
character of the prestation in each
particular case. (1151a)
 SECTION 6
Obligations with a Penal Clause
Article 1226. In obligations with a penal
clause, the penalty shall substitute the
indemnity for damages and the payment of
interests in case of noncompliance, if there
is no stipulation to the contrary.
Nevertheless, damages shall be paid if the
obligor refuses to pay the penalty or is
guilty of fraud in the fulfillment of the
obligation.
The penalty may be enforced only when it
is demandable in accordance with the
provisions of this Code. (1152a)
Article 1227. The debtor cannot exempt
himself from the performance of the
obligation by paying the penalty, save in
the case where this right has been
expressly reserved for him. Neither can the
creditor demand the fulfillment of the
obligation and the satisfaction of the
penalty at the same time, unless this right
has been clearly granted him. However, if
after the creditor has decided to require the
fulfillment of the obligation, the
performance thereof should become
impossible without his fault, the penalty
may be enforced. (1153a)
Article 1228. Proof of actual damages
suffered by the creditor is not necessary in
order that the penalty may be demanded.
(n)
Article 1229. The judge shall equitably
reduce the penalty when the principal
obligation has been partly or irregularly
complied with by the debtor. Even if there
has been no performance, the penalty may
also be reduced by the courts if it is
iniquitous or unconscionable. (1154a)
Article 1230. The nullity of the penal
clause does not carry with it that of the
principal obligation.
The nullity of the principal obligation
carries with it that of the penal clause.
(1155)
KINDS OF OBLIGATIONS
Classifications of obligations:
(1) Primary classification of obligations
- Pure and conditional obligations
(Arts. 1179-1192.);
- Obligations with a period (Arts.
1193-1198.);
- Alternative (Arts. 1199-1205.) and
facultative obligations (Art. 1206.)
- Joint and solidary obligations
(Arts. 1207-1222.)
- Divisible and indivisible
obligations (Arts. 1223-1225.)
- Obligations with a penal clause.
(Arts. 1226-1230.)
(2)Secondary classification of
obligations under the Civil Code:
- Unilateral and bilateral obligations
(Arts. 1169-1191)
- Real and personal obligations
(Arts. 1163-1168)
- Determinate and generic
obligations (Art. 1168)
- Civil and natural obligations (Art.
1423)
- Legal, conventional, and penal
obligations. (Arts. 1157, 1159,
1161)
(3) Classification of obligations
according to Sanchez Roman:
(a) By their juridical quality and
efficaciousness:
- Natural — according to natural
law
- Civil — according to civil law
- Mixed — according to both
natural and civil law.
(b) By the parties or subject:
1) unilateral or bilateral
2) individual or collective (see
Arts. 1207, 1208)
3) joint or solidary.
(c) By the object of the obligation or
prestation:
1) specific or generic;
2) positive or negative (see Art.
1168.);
3) real or personal;
 4) possible or impossible (see
Arts. 1183, 1306)
5) divisible or indivisible;
6) principal or accessory (see Art.
1226)
7) simple or compound (see Art.
1199.) if compound, it may be:
a) conjunctive. —
demandable at the same time
b) distributive. — either
alternative or facultative.
c) By juridical perfection
and extinguishment:
o Pure or conditional
o With a period.
PURE (SIMPLE)
- one whose effectivity or
extinguishment does not depend
upon the fulfillment or
non-fulfillment of a condition or
upon the expiration of a term or
period
CONDITIONAL OBLIGATION
- one whose effectivity is
subordinated to the fulfillment or
non-fulfillment of a future and
uncertain fact or event
CONDITION – is an uncertain event
which may or may not happen.
GENERAL RULE: Future and uncertain
EXCEPTIONS:
1. past event, unknown to the parties
KINDS OF CONDITIONS
1. Suspensive – fulfillment of the
condition results in the acquisition of
rights arising out of the obligation
2. Resolutory – fulfillment of the
condition results in the extinguishment of
rights arising out of the obligation
3. Potestative – fulfillment of the
condition depends upon the will of a party
to the obligation
4. Casual – fulfillment of the condition
depends upon chance or upon the will of a
third person
5. Mixed – fulfillment of the condition
depends partly upon chance and the will
of a third person
Note: or vs and
6. Impossible – condition is not capable of
realization according to nature, law, public
policy or good customs
7. Possible - capable of realization
according to nature, law, public policy ar
good customs
8. Positive – condition involves the
performance of an act
9. Negative - condition involves the
omission of an act
10. Divisible – condition is susceptible of
partial realization
11. Indivisible - condition is not
susceptible of partial realization
12. Conjunctive – where there are several
conditions, all of which must be realized
13. Alternative – where there are several
conditions but only one must be realize
Rule in Potestative Conditions
a.) if the fulfillment of the potestative, the
condition depends upon the will of the
debtor, the condition as well as the
obligation itself is void
b.) if the fulfillment depends exclusively
upon the will of the creditor, both the
condition and obligation is valid. Rule in
Impossible Conditions
GENERAL RULE: They shall annul the
obligation which depends upon them.
EXCEPTIONS:
1. pre-existing obligation
2. if obligation is divisible
3. in simple or remuneratory donations
-liberality or gratuity
4. in testamentary dispositions
5. in case of conditions not to do an
impossible thing
Effects of Suspensive Condition
1. Before fulfillment of the condition, the
demandability as well as the acquisition or
effectivity of the rights arising from the
obligation.
2. After the fulfillment of the condition,
the obligation arisies or becomes effective.
3. The effects of a conditional obligation
to give once the condition has been
fulfilled, shall retroact to the day of the
constitution of the obligation but not as to
fruits & interest
4. When the obligation imposes reciprocal
prestations upon the parties, the fruits &
interests shall be deemed to have been
mutually compensated
If the obligation is unilateral, the debtor
shall appropriate the fruits & interests
received, unless from the nature &
circumstances it should be inferred
1. that the intention of the persons
constituting the same was different
Constructive fulfillment of Suspensive
Condition:
- the condition shall be deemed
fulfilled when the obligor prevents
its fulfillment
Effects of Resolutory Condition
1. Before the fulfillment of the of the
condition, the right which the creditor has
already acquired by virtue of the
obligation is subject to a threat of
extinction.
2. Upon fulfillment of the condition, the
parties shall return to each other what they
received
EFFECTS OF LOSS,
DETERIORATION AND
IMPROVEMENT IN REAL
OBLIGATIONS
1. Loss
a. without debtor’s fault – obligation is
extinguished
b. with debtor’s fault – debtor pays
damages
2. Deterioration
a. without debtor’s fault -
impairment to be borne by the
creditor
b. with debtor’s fault - creditor
may choose between the
rescission of the obligation and its
fulfillment with indemnity for
damages in either case
3. Improvement by the thing’s
nature or by time
- improvement shall inure to the
benefit of the creditor
- at the debtor’s expense – debtor
shall have no other right than that
granted to a usufructuary
RECIPROCAL OBLIGATIONS -
Those which are created or established
at the same time, out of the same
cause, and which result in mutual
relationships of creditor & debtor
between the parties TACIT
RESOLUTORY CONDITION - one
of the parties fails to comply with
what is incumbent upon him, there is a
right on the part of the other to rescind
the obligation.
RIGHT TO RESCIND
GENERAL RULE: The right to
rescind needs judicial approval.
EXCEPTIONS:
1. If there is an express stipulation of
automatic rescission
2. When the debtor voluntarily
returned the thing
Rescission will be ordered only where
the breach is substantial as to defeat
the object of the parties in entering
into the agreement The remedy of
rescission and fulfillment are
alternative, not cumulative
OBLIGATION WITH A PERIOD -
those whose demandability or
extinguishment is subject to the
expiration of a term or period
 Obligation with Period or Term When debtor loses right to make use of
distinguished from an Obligation with a period: (Article 1198)
Condition (Conditional Obligation)
1. when after the obligation has been
TERM/ PERIOD CONDITION contracted, he becomes insolvent, unless
interval of time 1. fact or event he gives guaranties or securities for the
w/c is future & w/c is future and debt (the insolvency need not be judicially
certain although it uncertain declared);
may not be known
when 2. when he does not furnish to the creditor
2.interval of time 2.future and the guaranties or securities he promised;
w/c must uncertain fact or
necessarily come, event w/c may or 3. when by his own act he has impaired
may not happen said guaranties or securities after their
3.exerts an 3.exerts an establishment, and when through
influence upon the influence upon the fortuitous event they disappear, unless he
time of very existence of gives new ones equally satisfactory;
demandability or the obligation
extinguishment of itself 4. when debtor violates any undertaking,
an obligation in consideration of which the creditor
4. does not have 4.has retroactive agreed to the period; or
any retroactive effect
effect unless there 5. when debtor attempts to abscond.
is an agreement to
the contrary ALTERNATIVE AND FACULTATIVE
5. when it is left 5.when it is left OBLIGATION
exclusively to the exclusively to the
will of the debtor, will of the debtor, Alternative Obligations
the existence of the very existence - one wherein various prestations
the obligation is of the obligation is are due but the performance of
not affected affected one of them is sufficiently
determined by the choice which,
GENERAL RULE: When a period is as a general rule, belongs to the
designated for the performance or debtor.
fulfillment of an obligation, it is presumed
to have been established for the benefit of Facultative Obligations
both creditor and debtor - one where only one prestation has
been agreed upon but the obligor
EXCEPTION: When it appears from the may render another in substitution.
tenor of the period or other circumstances
Facultative vs Alternative Obligations
that it is established in favor of one or the
other
Facultative Alternative
When court may fix period: Obligations Obligations
1. if the obligation does not fix a period, 1. comprehends 1. comprehends
but from its nature and circumstances it several objects or only one object or
can be inferred that a period was intended prestations which are prestation which is
by the parties due but may be due, but it may be
2. if the duration of the period depends complied with by the complied with by
upon the will of the debtor delivery or the delivery of
3. if the debtor binds himself when his performance of only another object or
means permit him to do so. one of them liability performance of
to debtor 3 4. choice another prestation
pertains only to in substitution
debtor
 2. fortuitous loss of ART. 1202. The debtor shall lose the right
all prestations will of choice when among the prestations
extinguish the whereby he is alternatively bound, only
obligation one is practicable.
2. fortuitous loss 3. culpable loss of
extinguishes the any object due will ART. 1204. The creditor shall have a right
obligation give rise to liability to indemnity for damages when, through
to debtor the fault of the debtor, all the things which
3. culpable loss 4. choice may are alternatively the object of the
obliges the debtor to pertain to creditor obligation have been lost, or the
deliver substitute or even third person compliance of the obligation has become
prestation without impossible. The indemnity shall be fi xed
taking as a basis the value of the last thing
When does the choice take effect? which disappeared, or that of the service
which last became impossible. Damages
In alternative obligations, choice takes other than the value of the last thing or
effect only upon communication of the service may also be awarded.
choice to the other party and from such
time the obligation ceases to be Facultative Obligations
alternative. - where only one prestation has
been agreed upon but the obligor
The debtor cannot choose those prestations may render another in substitution.
or undertakings which are impossible, Example:
unlawful or w/c could not have been the X obligates to give Y an Acer Predator
object of the obligation Laptop, but also obligates to give a
Samsung A 17 phone as substitute
Who has the right to choose in
alternative obligations? Effect of Loss

- As general rule it is given to Before substitution

debtor - principal thing is lost through a
- exception, it may be exercised by fortuitous event, the obligation is
the creditor but only when extinguished; otherwise, the
expressly granted to him (Art. debtor is liable for damages
1205.) - loss of the thing intended as a
- or by a third person when the right substitute with or without the fault
is given to him by common of the debtor does not render him
agreement. (Art. 1306) liable.
- debtor cannot choose those
prestations which are: (a) After substitution
impossible, (b) unlawful, or (c) - principal thing is lost, the debtor is
which could not have been the not liable whatever may be the
object of the obligation. cause of the loss, because it is no
- debtor has no more right of longer due.
choice, when among the - if substitute is lost, the liability of
prestations whereby he is the debtor depends upon whether
alternatively bound, only one is or not the loss is due through his
practicable fault
- Once the substitution is made, the
obligation is converted into a
simple one to deliver or perform
the substituted thing or prestation.
 JOINT AND SOLIDARY
OBLIGATIONS
- joint obligation is one where the
whole obligation is to be paid or
fulfilled proportionately by the
different debtors and/or is to be
demanded proportionately by the
different creditors. (Art. 1208)
- solidary obligation is one where
each one of the debtors is bound to
render, and/or each one of the
creditors has a right to demand
entire compliance with the
prestation. (Art. 1207)
- words used for joint obligations:
o mancum,
o mancomunada;
o mancomunadamente;
o pro rata;
o proportionately;
o pro rata, jointly;
o conjoint;
o “we promise to pay”
signed by two or more
persons.
JOINT INDIVISIBLE OBLIGATION
ART. 1209. If the division is impossible,
the right of the creditors may be
prejudiced only by their collective acts,
and the debt can be enforced only by
proceeding against all the debtors. If one
of the latter should be insolvent, the others
shall not be liable for his share.
- obligation is joint because the
parties are merely proportionately
liable.
- indivisible because the object or
subject matter is not physically
divisible into different parts.
Example:
X, Y, and Z are jointly liable to give A a
race horse valued at P900,000 On the date
of delivery, X and Y are willing to deliver
but X is not. In this case, A has no cause
of action against Z for the delivery of the
car because, as a joint-debtor, Z is liable
only for a proportionate part of the
obligation which is P 300,000 Since the
object race horse is indivisible, the debt
can only be enforced by proceeding
against all the debtors for compliance is
not possible unless they act together
ART. 1214. The debtor may pay any one
of the solidary creditors; but if any
demand, judicial or extrajudicial, has been
made by one of them, payment should be
made to him
ART. 1215. 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 Article 1219.
The creditor who may have executed any
of these acts, as well as he who collects
the debt, shall be liable to the others for
the share in the obligation corresponding
to them.
Effect of paying solidary debtors
1. Between the solidary debtors
and creditor.
- payment made by one of the
solidary debtors extinguishes the
obligation.
- creditor for his protection is given
the right to choose which offer to
accept if two or more solidary
debtors offer to pay
2. Among the solidary debtors.
- payment by one of the solidary
debtors does not create a real case
of subrogation. (see Arts. 1302,
1303.)
- entitles him to claim
reimbursement from his
co-debtorse only for their
proportionate shares with (legal)
interest only from the time of
payment.
3. Among the solidary creditors
- the receiving creditor is jointly
liable to the others for their
corresponding shares
 DIVISIBLE AND INDIVISIBLE
OBLIGATIONS
Divisible obligation
- object of which, in its delivery or
performance, is capable of partial
fulfillment.
Indivisible obligation
- one the object of which, in its
delivery or performance, is not
capable of partial fulfillment
How do you know if the obligation is
divisible or indivisible?
ART. 1225. For the purposes of the
preceding articles, obligations to give defi
nite things and those which are not
susceptible of partial performance shall be
deemed to be indivisible. When the
obligation has for its object the execution
of a certain number of days of work, the
accomplishment of work by metrical units,
or analogous things which by their nature
are susceptible of partial performance, it
shall be divisible. However, even though
the object or service may be physically
divisible, an obligation is indivisible if so
provided by law or intended by the parties.
In obligations not to do, divisibility or
indivisibility shall be determined by the
character of the prestation in each
particular case.
- purpose of the obligation or the
intention of the parties
- even though the object or service
may be physically divisible, an
obligation is indivisible if so
provided by law or intended by
the parties
- if the object is not physically
divisible or the service is not
susceptible of partial performance
(Art. 1225, par. 1. the obligation is
always indivisible
- obligation is presumed indivisible
where there is only one creditor
and only one debtor
Kinds of Indivisibility
1. legal indivisibility. — where a
specific provision of law declares
as indivisible, obligations which,
by their nature, are divisible
(Art. 1225, par. 3)
2. conventional indivisibility. —
where the will of the parties
makes as indivisible, obligations
which, by their nature, are
divisible
3. natural indivisibility. — where
the nature of the object or
prestation does not admit of
division. Example likes singing a
song (obligation to do)
Effect of Failure to comply with a Joint
Indivisible Obligation
ART. 1224. A joint indivisible obligation
gives rise to indemnity for damages from
the time anyone of the debtors does not
comply with his undertaking. The debtors
who may have been ready to fulfill their
promises shall not contribute to the
indemnity beyond the corresponding
portion of the price of the thing or of the
value of the service in which the
obligation consists
- obligation is transformed into one
for damages, i.e., to pay money
- creditor cannot ask for specific
performance or rescission because
there is no cause of action against
the other debtors who are willing
to fulfill their promises
 OBLIGATION WITH A PENAL
CLAUSE
ART. 1226. In obligations with a penal
clause, the penalty shall substitute the
indemnity for damages and the payment of
interests in case of noncompliance, if there
is no stipulation to the contrary.
Nevertheless, damages shall be paid if the
obligor refuses to pay the penalty or is
guilty of fraud in the fulfi llment of the
obligation. The penalty may be enforced
only when it is demandable in accordance
with the provisions of this Code
Obligation with a penal clause
- obligation which contains an
accessory undertaking to pay a
previously stipulated indemnity in
case of breach of the principal
prestation intended primarily to
induce its fulfillment.
Penal clause
- accessory undertaking attached to
an obligation to assume greater
liability on the part of the obligor
in case of breach of the obligation
ART. 1227. The debtor cannot exempt
himself from the performance of the
obligation by paying the penalty, save in
the case where this right has been
expressly reserved for him. Neither can the
creditor demand the fulfillment of the
obligation and the satisfaction of the
penalty at the same time, unless this right
has been clearly granted him. However, if
after the creditor has decided to require the
fulfi llment of the obligation, the
performance thereof should become
impossible without his fault, the penalty
may be enforced. Penalty is not substitute
for performance.
- the debtor cannot just pay the
penalty instead of performing the
obligation. Precisely, the object of
the penalty is to secure
compliance with the obligation
- this would in effect make the
obligation an alternative one

Purposes of penal clause

- to insure their performance by
creating an effective deterrent
against breach, making the
consequences of such breach as
onerous as it may be possible.)
- to substitute a penalty for the
indemnity for damages and the
payment of interests in case of
non-compliance
- to punish the debtor for the
non-fulfillment or violation of his
obligation.
- to strengthen the coercive force of
the obligation by the threat of
greater liability in the event of
breach
 MODULE 1 & 2 QUIZ ANSWERS
Which of following is the form of
obligations – Oral, in Writing, Partly
Oral and Partly in Writing
It is a wrong committed without any
pre-existing relations between the parties.
– Quasi-Delict
Unless the law or the stipulations of the
parties require another standard of care,
every person obliged to give something is
also obliged to take care of it with: –
diligence of a good father of a family
Which of following is an example of a
Private Law? – civil law
P took a public bus going to his office.
Although P paid his fare, the bus
conductor did not issue him a ticket.
Along the way, the bus met an accident
causing a slight injury to P and other
passengers. If P is to recover damages
from the bus owner, the source of the bus
owner’s liability is: – contract
P took a public bus going to his office.
Although P paid his fare, the bus
conductor did not issue him a ticket.
Along the way, the bus met an accident
causing a slight injury to P and other
passengers. If P is to recover damages
from the bus owner, the source of the bus
owner’s liability is: – negotiorum gestio
Three of the following statements pertain
to natural obligation –
● It is not enforceable in the
courts of justice
● Obligation exists by reason of
equity and moral justice
● If performed voluntarily,
recovery can no longer be made.
The following are the requisites of an
obligation:
● passive subject
● active subject
● demand
It refers to the voluntary administration of
property of another without his consent –
Negotiorum Gestio
One of the following is a determinate thing
– Honda Car with plate no. DSD 765
D stole the carabao of C. D was tried in
court and convicted. Aside from being
sentenced to prison, D was ordered to
return the carabao. However, the carabao
died before D could deliver it to C. – D is
liable to C whatever may be the cause of
death of the carabao
Which of following is an example of
Public Law? – Criminal Law
Which of following is a Source of Law –
● Constitution
● Statutory Law
● Jurisprudence
D is obliged to give his car to C on
December 1, 2018. On December 1, 2018,
D did not deliver the car. The following
day, armed men took the car from D’s
garage. – D must give another car of the
same kind to C
The creditor has the right to the fruits of
the thing from the time: – the obligation
to deliver it arises
The obligation of a school to provide its
students a safe and secure environment
and an atmosphere conducive for learning
is an obligation arising from: – LAW
Which following is a Characteristics of
Law? –
● It is a rule of Conduct
● It is promulgated by Legitimate
Authority
● It is of common observance and
benefit
The waiver of action for fraud is valid in
the case of: – past fraud
The absence of stipulation in liability of
fortuitous event is generally to the
advantage of the: – debtor
A stipulation that demand shall not be
necessary in order to make the debtor in
delay is generally to the advantage of the:
– creditor
The young and other products of animals,
produced without the intervention of
human labor are considered as: – natural
fruits
The following are the requisites of an
obligation, –
● passive subject, debtor or
obligor
● active subject, creditor or oblige
● efficient cause
Obligations may arise from any of the
following, –
● Contracts
● Quasi-contracts
● Law
It is a thing that is particularly designated
or physically segregated from all others of
the same class. – Determinate thing
This refers to delay on the part of the
creditor. – mora accipiendi
Which following is a reason for the
conclusive presumption of knowledge of
law – If laws will not be binding until
they are actually known, then social life
will be impossible.
MODULE 3 QUIZ; PART 1 ANSWERS
D is obliged to give C a specific car if C
passes the CPA Licensure Exam. D’s
obligation: is an example of: – An
obligation with a suspensive condition
One of the following obligations is NOT
immediately demandable – Obligation
with a suspensive period
D is obliged to give C P 10,000.00 If X
dies. This is an example of: – An
obligation with a period
When the debtor binds himself to pay
when his means permit him to do so, the
obligation is – An obligation with a
suspensive period
Whenever a period is designated in an
obligation, the said period shall be
presumed to have been established for the
benefit of: – Both the debtor and the
creditor
Under Art 1198, The debtor shall lose the
right to make use of the period in the
following cases, except when he: – Does
not furnish any guaranty or security to
the creditor.
On July 1, 2015, D obliged himself to give
C P50,000.00 if C will marry X on or
before December 31, 2015. The condition
of the obligation is a: – positive condition
● The obligation of D is demandable
if C marries X on or before
December 31, 2015.
● The obligation of D is
extinguished if it is already
January 1, 2016 and C has not yet
married X.
● The obligation of D is
extinguished on December 2,
2015, if X dies on the said date
and C has not yet married X.
On July 1, 2015, D obliged himself to give
C a specific car if C will NOT marry X on
or before December 31, 2015. The
condition of the obligation is a: – Negative
condition
Referring to the last number, which of the
following statements is incorrect? – The
obligation is demandable if C marries X
on December 2, 2015.
Which of the following is not considered a
conditional obligation? – D to pay C P
5,000.00 as soon as D has the means.
D promised to give C 10 sacks of rice
when X, C’s father dies. The obligation of
D to C is: – An obligation with a period
Prime Engineering Review Center (PERC)
stated in the leaflets it distributed last
January that any reviewee who places first
in the licensure examinations for engineers
this year will receive a cash price of P
500,000.00. – The obligation of PERC is
subject to a suspensive condition.
D appointed C as his agent to purchase a
parcel of land belonging to X. D promised
to give a commission of P 10,000.00 to C
if C can present to D the deed of absolute
sale signed by X in favor of D on or before
December 31, 2014. The condition of the
obligation is: – Positive
D promised to give P 20,000.00 to C
provided C does NOT sign a contract with
X on or before December 31, 2014. The
condition of the obligation is: – negative
Three of the following are the
characteristics of a condition:
● It may or may not happen
● It may refer to the future
● It may refer to a past event
unknown to the parties
When the debtor binds himself to pay as
soon as he has the means – The obligation
is valid, but the creditor must go to and
ask the court to fix the period for the
payment of the obligation.
D obliged himself to give P 50,000.00 to C
if C does not fly to the moon – The
condition of the obligation is physically
impossible
MODULE 3; PART 2 ANSWERS
Obligation ceases to be alternative and
becomes a simple obligation in the
following cases –
● The debtor has communicated
his choice to the creditor
● The right of choice has been
expressly granted to the creditor
and his choice has been
communicated to the debtor.
● Among the several prestations
that are due only one is
practicable
Derek is obliged to give Andrea a specific
watch, a specific ring, or a specific
bracelet. The parties agreed that Andrea
will have the right to choose the thing
which will be given to him. Before Andrea
could make his choice, the watch and the
ring are lost through Derek’s fault,
successively. What is the right of Andrea?
– Andrea may choose the delivery to
him of the bracelet, or the price of the
watch or the price of the ring plus
damages.
D is obliged to give C a specific ring. The
parties agreed that D may give a specific
bracelet as substitute. Which of the
following statements is true? – If the ring
is lost through a fortuitous event before
substitution, the obligation is
extinguished.
A, B, C and D are obliged to give V, W, X,
Y and Z P 20,000.00. Which of the
following statements is true? – V may
collect from A P 20, 000.00
A, B, C and D, joint debtors are obliged to
give V, W, X, Y and Z, solidary creditors P
20,000.00. Which of the following
statements is true? – V may collect from
A P 5, 000.00
A, B, C and D, solidary debtors, are
obliged to give V, W, X, Y and Z, joint
creditors P 20,000.00. Which of the
following statements is true? – V may
collect from A P 4, 000.00
A, B, C and D, solidary debtors, are
obliged to give V, W, X, Y and Z, solidary
debtors, P 20,000.00. Which of the
following statements is true? – V may
collect from A P 20, 000.00
Alternative obligation and Facultative
obligation are similar in which of the
following respects? – The obligation
becomes a simple obligation once the
choice of the prestation is made and
communicated.
The following are characteristics of a
facultative obligation –
● Only one thing is
principally due
● The right of choice
cannot be given to the
creditor
● The debtor must give the
substitute in case the
principal thing is lost
due to the debtor’s fault
before substitution.
John Lloyd promised to construct a house
for Ellen. The contract carried a penal
clause that in case of non-compliance,
John Lloyd would have to pay a penalty of
₱50,000. John Lloyd did not construct the
house and, as a consequence, Ellen
suffered damage in the amount of
₱100,000 plus a broken heart. How much
should John Lloyd pay? – P 50,000.00

Bea borrowed from Julia ₱100, 000. It was

agreed that Bea could comply with his
obligation by giving A ₱100,000, or a car,
or by renovating the house of Julia. What
kind of obligation is in the statement? –
Alternative Obligation

There is solidary liability only when: –

● the obligation expressly so states
● the law requires solidarity
● the nature of the obligation
requires solidarity

This kind of solidarity is on the part of the

debtors, where any one of them can be
made liable for the fulfillment of the entire
obligation. It is in the nature of a mutual
guarantee. This is called: – Passive
Solidarity

This kind of solidarity is on the part of the

creditors, where any one of them can
demand the fulfillment of the entire
obligation. Its essential feature is that of
mutual representation among the solidary
creditors with powers to exercise the rights
of others in the same manner as their
rights. This is called: – Active Solidarity

This kind of obligation is one of which,

the object, in its delivery or performance,
is capable of partial fulfillment. –
Divisible Obligation

Gerald obliged himself to deliver Derek a

specific car on a specific date. This is an
example of: – Indivisible Obligation

This kind of obligation is one which

contains an accessory undertaking to pay a
previously stipulated indemnity in case of
breach. – Obligation with a penal clause