lOMoARcPSD|22929772

lOMoARcPSD|22929772

CHAPTER 3
DIFFERENT KINDS OF
OBLIGATIONS
1. PURE 2.Even though
OBLIGATIO the event is
NS uncertain, it
- obligations should be
whose possible;
performance 3.The
does not condition
depend upon a must be
future and imposed
uncertain by the
event or upon will of
a past event the party
unknown to and not a
the parties and necessary
is demandable legal
at once. requisite;
4.Past event
2. but
CONDITIONAL unknown
OBLIGATIONS to parties
- an ( the
obligation the knowledg
happening or e to be
extinguishme acquired
nt of which in the
depends upon future of
the happening a past
of a future event
and uncertain which at
event. the
moment
Characteristi is
cs of unknown
Condition: to parties
1.It is a future interested
and certain - it is only
event upon in that
which an sense that
obligation the event
or provision is deemed
is made to uncertain)
depend;
 lOMoARcPSD|22929772

Effects of Co
Failure to nd
Comply with iti
Condition: on
1. If -
condition wh
is en
imposed the
on the ful
perfection fill
of a me
contract - nt
results in of
the failure the
of the co
contract; ndi
or tio
2. If n
condition res
is ult
imposed s
on the in
performa the
nce of the ac
obligation qui
gives the siti
other on
party an of
option rig
either to hts
refuse to ari
proceed sin
with the g
complian out
ce of the of
obligation the
or to obl
waive the iga
condition. tio
n.
Classifications of b. Re
Conditions: sol
1. As to the ut
Effect of or
Obligation y
a. Susp Co
ensiv nd
e iti
 lOMoARcPSD|22929772

on - m
when p
the l
fulfil e
lmen
t of P
the o
cond t
ition e
resul s
ts in t
the a
extin t
guish i
ment v
of e
right
s p
arisi r
ng e
out s
of u
the p
oblig p
ation o
. s
e
2. As to the s
Origin of
Condition n
a. Potesta o
tive t
Conditi
on - o
one n
which l
depends y
upon
the will a
of one
of the m
contract a
ing n
parties; i
i f
. e
S s
i t
 lOMoARcPSD|22929772

a a
t c
i t
o
n o
f
o
f a
w
i 3
r
l
d
l
b
u p
t a
a r
l t
s y
o .

t i
h i
e .
r
e P
a u
l r
i e
z l
a y
t
i P
o o
n t
e
o s
f t
a a
n t
i
e v
x e
t
e -
r
n i
a f
l
 lOMoARcPSD|22929772

i e
t
d d
e e
p b
e t
n o
d r
s ,
s
o i
l t
e
l i
y s

a v
n o
d i
d
e
x f
c o
l r
u
s t
i h
v e
e
l d
y e
b
u t
p o
o r
n
c
t a
h n
e n
w o
i t
l
l f
o u
f l
t f
h i
 lOMoARcPSD|22929772

l i
l s
a
n v
a
o l
b i
l d
i
g i
a f
t
i i
o t
n
d
a e
r p
i e
s n
i d
n s
g
o
f n
r
o t
m h
e
h
i w
s i
o l
w l
n
o
c f
h
o t
i h
c e
e
. c
B r
u e
t d
i i
t t
 lOMoARcPSD|22929772

o circu
r mstan
. ces
inclu
b. Casual ding
Conditi the
on - will
depends of
exclusi third
vely perso
upon ns or
chance, chanc
will of e.
a third
person, 3. As to
or Possibility
partiall a. Possi
y by ble
chance Cond
and ition
partiall -
y by when
will of the
a third condi
person, tion
or other is
factors capab
and not le of
upon realiz
the will ation
of the accor
contract ding
ing to
parties. natur
e,
c. Mixed law,
Conditi publi
on - c
depends polic
upon y or
the will good
of one custo
of the ms.
contract
ing b. Impo
parties ssible
and Cond
other ition
 lOMoARcPSD|22929772

-when d. Testamen
the tary
conditio depositio
n is not n
capable
of 4. As to
realizati Mode
on a. Positive
accordi Conditi
ng to on -
nature, conditio
law, n that
public some
policy, event
morals happen
or good at a
customs determin
. ate time
shall
General Rule extingui
(GR): If sh the
the obligatio
obligation n as
is soon as
divisible, the time
the expires
impossibl or
e become
conditions indubita
shall ble that
annul the the
obligation event
which will not
depends take
upon place.
them.
b. Negativ
Exceptions e
(XPNs): Conditi
a. Pre- on -
existing conditio
obligation n that
b. Divisible some
Obligation event
c. Negative will not
Impossible happen
Things at a
determin
 lOMoARcPSD|22929772

ate time io
shall n
render the is
obligation su
effective sc
from the ep
moment tib
the time le
has of
elapsed of pa
it has rti
become al
evident re
that the ali
event za
cannot tio
occur. n.

5. As to b. In
Divisibility di
a. D vi
i si
v bl
is e
i C
b on
le di
C tio
o n-
n w
d he
it n
i th
o e
n co
- nd
w iti
h on
e is
n no
t t
h su
e sc
c ep
o tib
n le
d of
it pa
 lOMoARcPSD|22929772

rt e
ia s
l
c t
o o
n
d t
it h
i e
o
n. h
e
Principle i
of r
Indivisib s
ility of
Conditions o
T f
h
e t
i h
n e
d
i d
v e
is b
i t
b o
il r
it :
y
o h
f e
t n
h c
e e
c ,
o
n s
d o
it m
i e
o
n h
p e
a i
s r
s s
 lOMoARcPSD|22929772

c g
a
n t
n o
o
t f
d u
e l
m f
a i
n l
d l
p
a p
rt a
i r
a t
l
p o
e f
rf
o t
r h
m e
a
n c
c o
e n
o d
f i
t t
h i
e o
o n
b
li c
g o
a r
ti r
o e
n s
b p
y o
o n
ff d
e i
ri n
n g
 lOMoARcPSD|22929772

t r
o e
t a
h r
e e
m s
. e
v
Exceptions: e
The condition r
may be divisible: a
a. By l
nature c
of the o
conditi n
on d
b. By it
stipulati i
on o
c. By law. n
s,
6. As to w
Plurali h
ty of i
Condit c
ions h
a.C m
o u
n st
j a
u ll
n b
c e
ti r
v e
e a
C li
o z
n e
d d
it ;
i
o b.A
n lt
- e
t r
h n
e a
 lOMoARcPSD|22929772

ti b
v e
e r
C e
o a
n li
d z
it e
i d
o .
n
- 7. As to
t Form
h a.
e Expre
r ss
e Condi
a tion -
r condit
e ion is
s stated
e expres
v sly
e
r b.
al Impli
c ed
o Condi
n tion -
d condit
it ion
i is tacit
o
n Effects of
s, Suspensive
b Condition
u -
t before
o the
n fulfillm
l ent,
y obligee
o acquire
n s a
e mere
m hope or
u expecta
st ncy,
 lOMoARcPSD|22929772

protected Effects of
by law. Resolutory
a. Before Condition
fulfillment a. Before
- fulfillme
demandabil nt - right
ity and the recogniz
acquisition ed in
of the Art.
rights 1188,
arising par. 1 of
from the the CC
obligation in case
is of a
suspended. suspensi
Obligation ve
of obligor conditio
to comply n should
with the likewise
prestation be
is held in available
suspense in
until the obligatio
fulfillment ns with a
of resolutor
condition. y
** Anything conditio
paid by n.
mistake
during such b. After
time may be fulfillme
recovered. nt -
whateve
b. After r may
Fulfillmen have
t - the been
obligation paid or
arises or delivere
becomes d by one
effective; or both
obligor can of the
be parties
compelled upon the
to comply constitut
with what ion of
is the
incumbent obligatio
upon him. n shall
 lOMoARcPSD|22929772

have to be condition
returned and
upon the obligation
fulfillment is valid.
of the
condition. Note: If the
There is a obligation is a
return to pre-existing
the status one, and does
quo. not depend for
its existence
Effects of upon the
Potestative fulfillment by
Condition the debtor of the
a. When it potestative
depends condition
exclusively unaffected the
uponthe obligation itself.
will of Here, the
creditor, the condition is
condition imposed not on
and the birth of the
obligation is obligation but
valid. on its
b. When it fulfillment
depends (valid
exclusively obligation).
uponthe
will of the Effect
debtor in of
case of a Casual
suspensive Condit
condition, ion:
the The
condition obligati
and on and
obligation conditi
are void. on shall
c. When it take
depends effect.
exclusively
uponthe Effect
will of the of
debtor in Mixed
case of Condit
resolutory ion:
condition, The
the obligati
 lOMoARcPSD|22929772

on and divisi
condition ble,
shall take the
effect. part
not
Effects of affect
Impossible ed by
Conditions: the
1.Condit impo
ional ssible
obligat condi
ion is tion
void - shall
both be
obligati valid.
on and 4.Only
conditi the
on are cond
void. ition
2.Condit is
ional void
obligat - if
ion is oblig
valid - ation
if is
conditi pre-
on is existi
negativ ng,
e, it is not
disrega depe
rded nding
and on
obligati fulfill
on is ment
rendere of the
d pure condi
and tion
valid. whic
3.Only h is
the impo
affecte ssible
d for
obligat its
ion is exist
void- if ence,
the only
obligati the
on is condi
 lOMoARcPSD|22929772

tion id of the
void. obligati
5.Condit on; a
ion superve
conside ning
red not impossi
impose bility
d if does
impossi not
ble/unl affect
awful the
conditi existen
on is ce of
attache the
d to a obligati
simple on.
or
remune Effects of
tory Positive and
donatio Negative
n as Condition:
well as In
to a positiv
testame e
ntary conditi
disposit on,
ion, obligati
conditi on is
on is extingu
conside ished
red not as soon
impose as th e
d while time
the expires
obligati or if it
on is become
valid. s
indubit
NOTE: able
The that the
impossibi event
lity of the will not
condition take
must place.
exist at
the time In
of the negativ
creation e
 lOMoARcPSD|22929772

condition Prevention must

, the be voluntary or
obligatio willful in
n is character.
effective
from the ** Doctrine
moment applies only to
the time suspensive
indicated condition. It can
has have no
lapsed, or application to an
if it has external
become contingency
evident which is
that the lawfully within
event the control of
cannot the obligor.
occur,
although ** The
the time mere intention
indicated of the debtor to
has not prevent its
yet happening or
lapsed. the mere placing
of ineffective
The intention obstacles to its
of the parties, compliance,
taking into without actually
consideration the preventing
nature of the fulfillment is
obligation, shall insufficient.
govern if no time
has been fixed for Requisites
the fulfillment of Constructive
the condition. Fulfillment:
1. Condition
Doctrine of is
Constructive suspensiv
Fulfillment of e.
Suspensive 2. Debtor
Condition actually
Condition is prevents
deemed fulfilled thefulfill
when the obligor ment of
actually prevented the
the obligee from condition;
complying with and
the condition.
 lOMoARcPSD|22929772

3. He acts contr
voluntarily. acts.
2. Contr
Principle of acts
in
Retroactivity in whic
Suspensive h the
Condition condi
The principle tionar
of retroactivity, ising
under the CC, Art. theref
1187, is limited to rom
the effects of the can
obligation. The only
cause of action for be
the enforcement realiz
of the obligation ed
must still be withi
computed from n
the moment of the succe
happening of the ssive
suspensive p
condition. e
r
Rule on i
retroactivity has o
no application to: d
1. Real s
contract
s o
because r
they
areperfe i
cted n
only by t
delivery e
of the r
object v
of the a
obligati l
on. The s
principl .
e only
applies (
to e
consens .
ual g
.
 lOMoARcPSD|22929772

l Oblig
e ation
a s: no
se retroa
, ctivit
hi y;
re debto
of r
se appro
rv priate
ic s the
e, fruits
lif and
e intere
a sts
n recei
n ved
ui becau
ty se it
) is
usual
Retroactive ly
Effects as to gratui
the Fruits tous
and Interests unles
in s
Obligations intent
to give: ion
1.In was
Recipro other
cal wise,
Obligat as
ions: no inferr
retroact ed
ivity - from
mutuall natur
y e and
compen circu
sated msta
(fruits nces.
may be
natural, In
industri oblig
al or ation
civil) s to
2.In do
Unilate and
ral not to
 lOMoARcPSD|22929772

do the
(person appropr
al iate
obligati action
ons): for the
NO reserva
fixed tion of
rule. his
Courts rights.
are
empow Rights of the
ered to Debtor Before
determi the
ne the Fulfillment of
retroact the Condition:
ive 1. The
effect debtor
of the may
suspens recover
ive what he
conditi paid by
on. mistake
This before
rule the
also happeni
applies ng of
to an the
obligati suspens
on with ive
a condition;
resolut 2. If the
ory paymen
conditi t was
on. for a
determi
Rights of the nate
Creditor Before thing,
the Fulfillment of debtor
the Condition: may
The file an
creditor accion
may, reivindi
before catoria
the ;
fulfillmen 3. If the
t of the paymen
obligatio t was
n, bring for an
 lOMoARcPSD|22929772

indetermi conditi
nate on; he
thing, cannot
there is recover
solutio what he
indebiti; has
4. If premat
payment urely
was made paid
with once
knowledg the
e of the suspens
condition, ive
debtor conditi
impliedly on is
waives fulfilled
the .
condition
and
cannot
recover; LOSS,
5. If DETERIORAT
payment ION OR
was with IMPROVEME
knowledg NT PENDING
e but the THE
condition HAPPENING
did not OF THE
happen, CONDITION:
the debtor
can LOSS
recover A thing is lost
lest the when it:
creditor a. Perishes
will be b. Goes out
unjustly of commerce of
enriched; men
and c. Disappe
6. If ars in such a
payment way that its
is not by existence is
mistake, unknown or it
debtor is cannot be
deemed recovered
to have
impliedly
waived
the
 lOMoARcPSD|22929772

DETERIORATI the
ON fault
Any reduction of the
or impairment in debto
the substance or r,obli
value of a thing ged
which does not to
amount to loss; pay
the thing is less dam
than when the ages.
obligation was
constituted. 3.If
thing
IMPROVEMNE deteri
T orate
Anything s
added to, witho
incorporated in, or ut the
attached to the fault
thing that is due. of the
debto
3. REAL r,
OBLIGATIONS impa
irme
In obligations to nt to
Give): be
The thing born
pending the e by
happening of the the
condition, in case credi
of improvement, tor.
loss, or 4.If the
deterioration, the thing
following rules deteri
shall be observed: orate
1.If loss s
is throu
without gh
the thefa
fault of ult of
thedebt the
or, debto
obligat r,
ion is credi
extingu tor
ished. may
2.If loss choo
through se
 lOMoARcPSD|22929772

betwee expens
n es
fulfillm incurre
ent and d for
rescissi useful
on with improv
damag ements
es in of or
either improv
case. ements
5.If for
improv mere
ement pleasur
is e. He
through can
nature only
ortime, ask
inures reimbu
to the rsemen
benefit t for
of necessa
credito ry
r; expens
6.If the es.
improv
ement
is at the The above
expens rules apply to
eof the the following:
debtor, a. Determin
rights ate things
similar only
to that because
grante the genus
d to of a thing
the never
usufru perishes
ctuary. (ge
nu
Note: s
Conseque nu
ntly, the n
debtor qu
cannot am
ask per
reimburse uit
ment for )
the
 lOMoARcPSD|22929772

b. Obligation created
with a or
period; or establis
c. Those who hed at
have a duty the
to return in same
case of loss, time,
deterioratio out of
n or the
improveme same
nt of the cause,
thing in an and
obligation which
with a result
resolutory in
condition mutual
relation
The ships of
happenin creditor
g of a and
resolutor debtor
y betwee
condition n the
does not parties.
ipso jure
revert G. R. If
ownershi none of
p in the the
original parties
debtor; he fails to
merely comply
becomes with
entitled to what is
the incumb
delivery ent
which upon
would him,
give him there is
ownershi a right
p a new. on the
part of
4. the
RECIPROCAL other to
OBLIGATIONS rescind
Th (or
ose resolve
which ) the
are obligati
 lOMoARcPSD|22929772

on (tacit **Right to
resolutor rescind not
y absolute. The
condition court is given
) discretionary
power to fix the
** Mere failure on period within
the part of the which the
party to comply obligor in
with what is default may be
incumbent upon permitted to
him does not ipso comply with
jure produce the what is
rescission or incumbent upon
resolution of the him (CC, Art.
obligation. 1191, par3). But
It requires the
restitution or discretionary
bringing parties power of the
back to its original court cannot be
status prior to the applied to
contract. reciprocal
obligations
Requisites of arising from a
Rescission: contract of lease
1. One of the because they are
parties failed governed by
to comply Art. 1659 of the
with that is Civil Code.
incumbent
upon him; Waiver of
2. The injured Right
party choose -
rescission t
over he
fulfillment or right
performance to
is no longer resci
possible; nd
3. The breach is may
substantial so be
as to defeat wai
the object of ved
the parties in eith
making the er
agreement. expr
essl
y or
 lOMoARcPSD|22929772

implie the
dly. revoc
ation.
Effects of right to
rescind 2. The
1. If there decre
is a e of
stipulati rescis
on sion
grantin shall
gthe bewit
right of hout
rescissi preju
on on dice
the part to the
of the rights
aggriev of
ed party third
and perso
express ns
grant, who
any have
court acqui
decisio red
n the
adjudgi thing
ng the in
propriet accor
ary of dance
the with
rescissi Art.
on 1385
extra- and
judiciall 1388
y made and
is not Mort
the gage
revocat Law.
ory act
of Art, 1191 of
rescissi the Civil
on but Code does
merely not apply to
declarat the
ory or following:
an 1. C
affirmat o
ion of n
 lOMoARcPSD|22929772

tr t
ac h
ts e
of
pa c
rt o
ne m
rs m
hi o
p n
w
he f
re u
a n
pa d
er .
tn 2. S
er a
fa l
ils e
to s
pa
y o
th f
e
w r
ho e
le a
a l
m
ou o
nt r
w
hi p
ch e
he r
ha s
s o
bo n
un a
d l
to
co p
nt r
ri o
bu p
te e
to r
 lOMoARcPSD|22929772

ty as
by Inst
in allm
st ent
all Sale
m s
en Law
ts. Thi
T s law
he covers
fir contrac
st ts of
be sale of
in persona
g l
go propert
ve y by
rn install
ed ments
by (Act
M No.
ac 4122).
ed It is
a also
L applied
a to
w contrac
w ts
hi purport
le ing to
th be
e leases
lat of
te persona
r l
by propert
R y with
ec option
to to buy,
L when
a the
w. lessor
has
Recto Law deprive
- d the
al lessee
so of the
known possess
 lOMoARcPSD|22929772

ion or the
enjoymen obl
t of the iga
thing. tio
(PCI n
Leasing wit
and h
Finance da
Inc vs. ma
Giraffe- ges
X, G.R. .
No. G.R.
142618, If availed
July 12, of, the
2007) unpaid
seller can
Alternati no longer
ve choose
Remedie other
s of remedies.
injured XPN: If
party in fulfillment has
case of become
Sale of impossible.
Personal
Properti b. Re
es in sci
Installme ssi
nt on
a. Speci wit
fic h
Perfo da
rman ma
ce ges
with . -
dama Ca
ges. - nce
Credi l
tor the
may obl
dema iga
nd tio
for n if
the bu
exact yer
fulfil fail
lmen s
t of to
 lOMoARcPSD|22929772

pay or
2 or mo
more re
instal ins
lmen tall
ts. me
This nts
reme .
dy is
deem Maceda Law
ed - also
chos known
en as the
when Realty
: Installment
i. Notice of Buyer Act.
rescission Provides for
is sent certain
protection to
ii. Takes particular
possessio buyers of real
n of estate payable
subject on installments
matter of against onerous
sale and oppressive
iii. Files conditions
action for (RA6552).
rescission Applicable
to contract to
c. Fore sell real
closu properties on
re. - installment
credi basis.
tor
may Transactions/
forec Sale covered by
lose Maceda Law:
the - Resident
chatt ial Real
el Estate
mort
gage Transactions/
if Sale excluded
buye in Maceda
r Law:
fails a. Industrial
to Lots
pay 2
 lOMoARcPSD|22929772

b. Commercial not
buildings exceedi
( commercial ng 90%
lots by of
implication) paymen
c. Sale to ts
tenants under made.
agrarian laws. Note:
Cancellatio
Rights granted to n to be
buyers: effected 30
1. Buyer paid days form
at least 2 notice and
years upon
installment payment of
: cash
a. Pay surrender
without value.
interest 2.
the less than 2 years
balance installment
within a. Grace
grace perio
period of d is
1 month not
for every less
year of than
installmen 60
t days
payment. from
Grace due
period to date
be b. Canc
exercised ellati
once on if
every five failur
(5) years. e to
b. When no pay
payment - withi
canceled; n 60
buyer is days
entitled to c. 30
50% of days
what he notic
has paid e
plus 5% befor
for every e
year but final
 lOMoARcPSD|22929772

cancell wa
ation s
*** not
There can abl
be partial e to
rescission co
and mp
partial ly
fulfillmen wit
t under h
Art. 1191 wh
of the at
Civil is
Code. inc
um
Effects of ben
rescission: t
1. Duty upo
upon n
the hi
court m);
to or
requi 2. Ca
re the n
partie no
s to lon
surre ger
nder be
what de
ever ma
they nde
may d
have wh
recei en
ved he
from wh
the o
other de
(with ma
out nds
preju is
dice no
to the lon
oblig ger
ation in
of the the
party pos
who itio
 lOMoARcPSD|22929772

n to aga
retur inst
n the
what par
ever ty
he res
may pon
be sibl
oblig e
ed to for
restor the
e; tra
neith nsf
er er
can it or
be con
dema vey
nded anc
when e
the for
thing da
whic ma
h is ges
the .
objec
t of Effects of
the Breach by Both
contr Parties:
act is a. Th
alrea e
dy in lia
the bili
posse ty
ssion of
of a the
third firs
perso t
n infr
who act
obtai or
ned it sha
in ll
good be
faith. equ
Rem ita
edy: bly
Proce te
ed mp
 lOMoARcPSD|22929772

ered wh
by ose
the ful
court fill
s; me
b. If it nt
cann a
ot be da
deter y
mine cer
d tai
whic n
h of has
the bee
partie n
s first fix
violat ed,
ed sha
the ll
contr be
act, de
the ma
same nd
shall abl
be e
deem onl
ed y
extin wh
guish en
ed, tha
and t
each da
shall y
bear co
his me
own s.
dama Ob
ges. lig
ati
5. ons
OBLIGATIONS wit
WITH h a
A res
PERIOD olu
- tor
Oblig y
ation per
s iod
 lOMoARcPSD|22929772

takes Requisites of
effect Period:
at 1. Future
once 2. Certain
but 3. Possible,
termi legally
nate and
upon physically
the
arriv **What is
al of suspended by
the the term is not
day the acquisition
certai of right or the
n. effectivity of
the obligation
**A day certain is but its
understood to be demandability.
that which must
necessarily come, When period
although it may of prescription
not be known begins:
when. If the - it
uncertainty commences
consists on from the time
whether the day the term in the
will come or not, obligation
the obligation is a arrives, for it is
conditional one. only from that
date that it is
Term/Period due and
Interval of demandable.
time, which,
exerting am Distinctions
influence on an between
obligation as a Term/Period
and
Condition
TERM/
consequence PERIOD
of a juridical act,
wither suspends CONDITION
its demandability agreement to the
or produces its contrary
extinguishment. When it is left
When it is left
exclusively to
the will
 lOMoARcPSD|22929772

exclusively upon d
the of the debtor, u
the will of the r
debtor, the a
existence of the t
very existence of i
the obligation is o
not obligation is n
affected
a
f o
f f
e
c
t t
e h
d e
; obligation
Must be
e possible, Must
m be possible,
p otherwise,
o obligation is
w otherwise,
e obligation is
r void.
s
Kinds of
t Period/Term:
h 1. As to
e Effect
a.
c Sus
o pe
u nsi
r ve
t Per
iod
t (E
o
x
die
f
)
i
obl
x
igat
t ion
h wh
e ose
fulf
ill
 lOMoARcPSD|22929772

ment ng
a day of
certai the
n has per
been iod
fixed, .
shall
be ***
dema Fortuitous
ndabl event does
e not interrupt
only the running
when of the
that period.
day
come b.
s.
*** R
If a e
fortui s
tous o
event l
super u
venes t
, the o
oblig r
y
or is
C
merel
o
y
n
reliev
d
ed of
it
the i
oblig o
ation n
to
fulfill
the (
oblig I
ation n
at D
that i
time e
and m
does )
not -
stop O
the b
runni li
 lOMoARcPSD|22929772

gati date of
ons its
wit happeni
ha ng is
res unknow
olu n.
tor
y *** The
per uncertainty of
iod the event of
tak occurrence does
e not convert into
effe a condition so
ct long as there is
at no uncertainty
onc whether the
e event will
but happen or not.
ter
mi 4.
As to Source
nat
a. Conven
e
tional -
upo
made
n
arri by the
val agreem
of ent of
the the
day parties
cert b. Legal -
ain. period
fixed by
law
Interval of time which Fact or event which isa. Express Period - when is future and
certain future and uncertain specifically stated
Must necessarily come, May or may notb. Implied Period - when it can be although
it may not be happen deduced that the parties known when intended a period such as
in case Exerts an influence Exerts an influence of Art. 1180 of the CC when one upon
the time of upon the very existence promises to pay when able.
demandability or of the obligation itself3. As to Definiteness
extinguishment of an a. Definite Period - refers to a
obligation fixed known date or time
No retroactive effect Has retroactive effect b. Indefinite Period - even which unless
there is an will necessarily happen but the
such as
2. As to Arts.
Expression
 lOMoARcPSD|22929772

1682 and cannot

1687 compel him
c. Judicial - to accept
set by payment
courts in before the
case of expiration
implied of the
and period (ex.
indefinite “on
period. demand”)

Effect of Period for the

Advance Benefit of the
Payment or Debtor
Delivery: - D
- In ebtor
obligation to cannot be
give, the compelled
obligorcan toperform
recover what obligation
he has paid or prematurely
delivered with , but he can
fruits and do so if he
interests. desires.

Note: There can Judicial

be no right of Term/Period
recovery if the - it
obligor delivers is the
the thing period/term
voluntarily or with which is
the knowledge of fixedby the
the period or term court in
or the fact that the accordance
obligation has not with the
yet become due causes
and demandable. expressly
Period for the recognized
Benefit of the by law.
Creditor Once fixed,
- Cre the period
ditor may can no
demand longer be
thefulfillment judicially
of the changed.
obligation at
any time but When Court
the obligor may fix period:
 lOMoARcPSD|22929772

G.R. Courts are par

without power .2)
to fix period. 3. If
XPNs: und
1. If the er
oblig the
ation circ
does um
not sta
fix a nce
perio s,
d, but the
from par
its ties
natur hav
e and e
circu con
msta tem
nces plat
it can ed
be a
inferr per
ed iod
that a (C
perio C,
d was Art
inten .
ded. 11
(CC, 97,
Art. par
1197) .3)
2. If the 4. If
durati the
on of deb
the tor
perio bin
d ds
depe hi
nds ms
upon elf
the wh
will en
of the his
debto me
r. ans
(CC, per
Art. mit
1197, hi
 lOMoARcPSD|22929772

m to the
do so gu
(CC, ara
Art. nti
1180) es
or
When sec
debtor uri
loses right tie
to make s
use of wh
period ich
1. He he
beco ha
mes s
insol pr
vent, om
unles ise
s he d.
gives 3. If,
a aft
guar er
anty the
or ir
secur est
ity abl
for ish
the me
debt, nt,
the the
insol gu
venc ara
y nty
need or
not sec
be uri
judic ty
ially is
decla im
red. pai
2. He red
does thr
not ou
furni gh
sh to the
the fau
credi lt
tor of
 lOMoARcPSD|22929772

the of
debt the
or, de
he bto
shall r.
lose 5. He
his vio
right lat
to es
the an
bene y
fit of un
the der
perio tak
d; ing
how , in
ever, co
if it nsi
is der
impa ati
ired on
with of
out wh
his ich
fault, the
he cre
shall dit
retai or
n his agr
right. ee
4. If the d
guar to
anty the
or per
secur iod
ity .
disap (e
pears x.
throu If
gh an
any em
caus pl
e, oy
even ee
with co
out m
the mi
fault ts
 lOMoARcPSD|22929772

a at the
subs same time.
tanti 8. DI
al ST
brea RI
ch of B
his U
empl TI
oym V
ent E
cont O
ract, B
the LI
empl G
oyer A
may TI
term O
inate N
the - when only
empl one of the
oym prestations or
ent) objects is
6. He demandable. It
atte may either be
mpts alternative or
to facultative.
absc
ond. 9. A
(CC, LT
Art. E
1197 R
) N
A
7. CO TI
NJU V
NCT E
IVE O
OBL B
IGA LI
TIO G
N A
- when TI
all the O
objects or N
prestations - one where
are out of two or
demandable more prestations
which may be
 lOMoARcPSD|22929772

given, only one is a. Im

due. pos
sib
Limitation: le;
The b. Un
creditor la
cannot be wf
compelled to ul;
receive part of c. W
one and part hic
of the other h
undertaking. co
uld
G.R. The not
right ha
of ve
choic bee
e n
belon the
gs to obj
the ect
debtor of
. the
obl
XPNs: 1. iga
Expre tio
ssly n.
grante (C
d to C,
the Art.
credit 120
or. 0,
2.Ex par.
pressly 2;)
granted to d. Un
third der
person. tak
ing
Limitations s
upon the Right of tha
Choice: t
The debtor shall are
have no right to not
choose those inc
prestations which lud
are: ed
am
on
 lOMoARcPSD|22929772

g ct
other or
s dif
from fer
whic ent
h the fro
oblig m
or tha
may t
selec co
t; nte
e. Thos mp
e lat
whic ed
h are by
not the
yet par
due ties
and wh
dema en
ndabl the
e at obl
the iga
time tio
the n
selec wa
tion s
is co
made nst
; itut
f. Thos ed.
e by **
reaso * The
n of choice
accid shall
ent produc
or e effect
some only
other upon
cause commu
, nicatio
have n of the
acqui choice
red a to the
new other
chara party.
cter
distin
 lOMoARcPSD|22929772

Notic r
e of i
selection g
may be in h
any form t
provided
that it is t
sufficient o
to make
the other c
party h
know that o
the o
election s
has been e
made. It
may be:: o
a. Orally; r
b. In writing;
or i
c. Tacitly n
i. P
er t
f h
o e
r
m a
a c
n c
c e
e p
b t
y a
th n
e c
d e
e
bt o
o f
r
w a
h
o p
h r
a e
s s
th t
e a
 lOMoARcPSD|22929772

ti t
o h
n e
b
y d
th e
e b
cr t
e o
di r
to
r f
w o
h r
e
n t
h h
e e
h
a p
s e
a r
ri f
g o
ht r
o m
f a
s n
el c
e e
ct
io o
n f
ii. W
h o
e n
n e
th
e o
cr f
e
di t
to h
r e
s
u p
e r
s e
 lOMoARcPSD|22929772

st sele
at ctio
io n
n. has
bee
Effects of Notice n
of Choice: co
1. Limit mm
s the uni
oblig cat
ation ed,
to the it
objec bec
t or om
presta es
tion irre
select voc
ed abl
with e.
all
the Effect of
conse Loss or
quenc Impossibili
es ty of One
whic or All
h the Prestations
law -
provi the
ded; de
2. The bto
oblig r
ation sha
is ll
conve los
rted e
to a the
simple rig
oblig ht
ation, of
to ch
perfor oic
m the e,
presta wh
tion en
chose am
n; on
3. Once g
the the
 lOMoARcPSD|22929772

prest indem
ation nity
s for
wher damag
eby es.
he is
altern ***
ativel When the
y choice has
boun been
d, expressly
only given to the
one creditor, the
is obligation
practi shall cease
cable to be
. alternative
from the
*** day when
When the
through selection
the fault has been
of the communica
debtor, all ted to the
the things debtor.
which are (CC, Art.
alternativ 1205, par1)
ely the
object of EFFECTS
the OF LOSS
obligatio OF
n have OBJECTS
been lost OF
or ALTERNA
complian TIVE
ce of the OBLIGAT
obligatio ION (Civil
n has Code, Art.
become 1204-1205)
impossibl
e unless When
due to choice
fortuitous belong to
event, the debtor:
creditor 1. Due to
is Fortuitous
entitled Event
to
 lOMoARcPSD|22929772

a. All ind
are em
lost - nity
debto for
r is da
releas ma
ed ges
form bas
the ed
obliga on
tion the
b. Some val
but ue
not of
all are the
lost last
delive thin
r that g
which whi
he ch
shall disa
choos ppe
e are
from d or
amon ser
g the vic
remai e
nder whi
c. Only ch
one bec
remai om
ns - e
delive imp
r that ossi
which ble
b. So
2. Debtor’s me
fault but
a. All not
are all
lost - are
credit lost
orsho deli
uld ver
have that
a whi
right ch
to he
 lOMoARcPSD|22929772

shall fro
choos m
e am
from ong
amon the
g the rem
remai ain
nder der
witho c. Onl
ut y
dama one
ges rem
c. Only ains
one - -
delive deli
r that ver
which that
remai whi
ns ch
rem
When choice ains
belongs to
creditor: 2. Debtor’s
1. Due to Fault
Fortuitous Event a. A
a. All ll
are a
lost - r
debto e
r l
isrele o
ased st
from -
the c
obliga r
tion e
b. Some d
but it
not o
all are r
lost m
delive a
r that y
which c
he l
shall a
choos i
e m
 lOMoARcPSD|22929772

the m
pri a
ce/ g
val e
ue s
of o
any r
of p
the ri
m c
wit e
h /
ind v
em a
nit l
y u
for e
da o
ma f
ges t
b. So h
me e
but t
not h
all i
are n
lost g
cre l
dit o
or st
ma w
y it
clai h
m ri
any g
of h
tho t
se t
sub o
sist d
ing a
wit m
hou a
t a g
rig e
ht s
to
da
 lOMoARcPSD|22929772

10. i
FACULTATIVE t
OBLIGATION u
- An t
obligatio e
n wherein
only one B
object or e
prestation f
has been o
agreed r
upon by e
the
parties to s
the u
obligatio b
n, but s
which t
may be i
complied t
with by u
the t
delivery e
of
another i
or the s
performa
nce of m
another a
prestation d
in e
substituti :
on. (CC, 1. If due to
Art. bad
1206) faith
Effect of Loss or
of Substitute fraud
in Facultative of
Obligation oblig
or -
Loss of the obligor is liable
Thing 2. If due to
Intended as a the
S negli
u gence
b of the
s oblig
t or -
 lOMoARcPSD|22929772

obligor nt
is not of
liable the
obl
After igo
substitution r’s
is made: del
1. ay,
T ne
h gli
e ge
l nce
o or
s fra
s ud
o -
r obl
d igo
e r is
t lia
e ble
ri bec
o aus
r e
a on
ti ce
o sub
n stit
o uti
f on
t is
h ma
e de,
s the
u obl
b iga
st tio
it n is
u co
t nv
e ert
o ed
n int
a o a
c si
c mp
o le
u obl
 lOMoARcPSD|22929772

i i
g c
a h
ti
o h
n a
. v
e
ALTERNATIVE
VS. n
FACULTATIVE o
OBLIGATIONS
ALTERNATIVE v
i
As to Nature c
Various prestations all Only the principalseveral creditors and debtors in one of which
constitute part prestation constitutesand the same obligation. of the obligation the
obligation, the accessory being onlyExceptions:

the e
means
to A
facilitat s
e1.
payme t
nt o
As to the effect of
the nullity of C
prestations h
Nullity of one of o
the Nullity of the i
principal c
prestation does e
not prestation Right to choose
invalidates may beOnly the
invalidate debtor can given
the obligation to the creditor
obligation which choose
is still in force the substitute
with respect to2. As to the effect
t of fortuitous
h event
o Only the
s impossibility
e Impossibility of
the3. of all the
w prestations
h principal
 lOMoARcPSD|22929772

prestation is due accom

without the fault plices
of sufficient to and
extinguish4. the access
debtor ories
extinguished the of a
obligation, even if felony,
the obligation the obligat
substitute is The ions of
obligation devisee
expressly states s and
that there is legatee
solidarity (ex. s,
“jointly and bailess
severall”, in
“individu commu
ally and datum;
collective Nature of the
ly”, “I obligation
promise requires
to pay” solidarity;
followed When a
by the charge
signature or
of two or conditi
more on is
persons); impose
The law d upon
requires heirs or
solidarity legatee
(ex. Tort, s, and
quasi- the
contracts testame
, liability nt
of express
principal ly
s,
possibl I
e. G
A
T
I
O
JOINT AND N
SOLIDARY S
O
B 1
L 1
 lOMoARcPSD|22929772

. charge or
condition in
J solidum;
O and
I 5.
N Wh
T en
OBLIGATI a
ON(Obligaci soli
on dar
Mancumuna y
da) res
- The whole po
obligation is to be nsi
pair or fulfilled bili
proportionately by ty
different debtors is
or demanded buy im
different creditors. put
ed
12. SOLIDARY by
OBLIGATION a
(Obligacion fin
Solidaria) al
- Each one of jud
the debtors is ge
bound to render, me
and/or each one of nt
the creditors or of up
several debtors or on
of several sev
creditors has a era
right to demand l
entire compliance def
with the prestation end
ant
General s.
Rule:
Obligation is Principal
presumed to Effects of Joint
be joint if Liability:
there are 1. Vic
concurrence es
of several of
creditors or of eac
several h
debtors or of obl
makes the iga
 lOMoARcPSD|22929772

tion one
arisin joi
g nt
from deb
the tor
perso put
nal s
defec hi
t of a m
partic in
ular def
debto aul
r or t,
credit but
or not
does the
not oth
affect ers
the sin
oblig ce
ation the
or deb
right ts
of the are
other dist
s; inc
2. Insol t;
venc 4. Wh
y of en
one the
debto cre
r dit
does or
not int
make err
other upt
s s
respo the
nsibl run
e for nin
his g
share of
; the
3. Dem pre
and scri
of the pti
credit ve
or on per
 lOMoARcPSD|22929772

iod his
by proportiona
dema te share of
nding the credit;
judici each debtor
ally can be held
from liable only
one, for the
the payment of
other his
s are proportiona
not te share of
affect the debt.
ed;
*** In
5. Defe case of
nses breach of
of obligation
one by one of
debto the debtors,
r, are damages
not due must be
neces borne by
sarily himself
avail alone; if
able there is any
tot he defense
other purely
s. personal to
one of the
*** debtors, he
Solidary alone can
liability is avail
determined by himself of
the tenor of such
the contract, defense.
not by judicial
admission of JOINT
the party. INDIVISIBLE
OBLIGATION
JOINT -
DIVISIBLE Midway
OBLIGATION between
- Each joint and
creditor can solidary
demand only obligations,
for the preserving
payment of the two
 lOMoARcPSD|22929772

characteristics is converted
of the joint into one of
obligation, in indemnity
that no for
creditor can damages.
do an act
prejudicial to
others and no
debtor can be Indivisibility
made to vs. Solidarity
answer for the
others. INDIVISIBILI
TY
Characteristi
cs: Refers to the
1. No prestation
creditor Refers to the
can act in legal tie that is
representa not capable of
tion of the or vinculum
other; juris and partial
2. No debtor performance
can be consequently to
compelled the subjects or
to answer parties of the
for the obligation
Exists even if
liability of
there is Exists
others;
only if there is
only one
*** In
creditor and
case of breach
more than one
of joint
creditor one
indivisible
debtor or more
obligation, than one debtor
obligation can Each creditor
be enforced cannot Each
only by creditor may
proceeding demand more
against all of than his demand
the debtors. the entire share
and each debtor
*** If
prestation and
anyone of the
each is n bound
debtors should
to pay more
fail or refuse
debtor is bound
to comply
to pay than his
with the
share the entire
obligation, it
prestation.
 lOMoARcPSD|22929772

Obligation is t
converted e
Solidarity remains r
i m
n i
t n
o a
t
i e
n d
d Only the debtors
e guilty All the
m debtors are of
n breach of
i obligation
t liable for the
y breach of is
liable for
f damages
o the
r obligations
committed by a
d debtor Other
a debtors are not
m All
a debtors
g are liable if one
e debtor is
s proportionately
; liable insolvent
for the
i insolvency of
n one
d deb
i tor
v
i **
s *
i Th
b e
i deb
l tor
i s
t wh
y o
ma
i y
s hav
e
 lOMoARcPSD|22929772

been Soldar
ready ity
to -
fulfill ma
or y
perfo exi
rm sts
what alt
was ho
incu ug
mben h
t cre
upon dit
them ors
shall an
not d
contri de
bute bto
to the rs
inde ma
mnity y
beyo not
nd be
the bo
corre un
spon d
ding in
porti the
on of sa
the me
price ma
of the nn
thing er
or the an
value d
of the by
servi the
ce in sa
whic me
h per
oblig iod
ation s
consi an
sts d
(CC, co
Art. ndi
1224 tio
). ns.
 lOMoARcPSD|22929772

Kinds of fulf
Solidarity: ill
1. As to me
Source nt
a) Legal of
- the
impos enti
ed by re
law obli
b) Conv gati
entio on
nal - b) Pas
agree siv
d e -
upon soli
by the dari
partie ty
s on
c) Real - the
impos part
ed by of
the the
natur deb
e of tors
the wh
oblig ere
ation any
one
2. As to of
Parties the
bound m
a) Activ can
e - be
solida ma
rity de
on the liab
part le
of the for
credit the
ors, fulf
where ill
any me
one nt
of of
them the
can enti
dema re
nd the obli
 lOMoARcPSD|22929772

gatio bou
n. nd
c) Mixe by
d - the
solida sa
rity me
on the stip
part ulat
of the ion
debto s
rs and b) No
credit n-
ors, uni
where for
each m
one or
of the vari
debto ed
rs is part
liable ies
to are
rende not
r, and sub
each ject
one to
of the the
credit sa
ors me
has a stip
right ulat
to ion
dema s
nd,
entire Solidarity vs
comp Surety
liance shares, if he
with pays the
the entire amount
oblig he
ation. entire
amount of
3. As to the has
Uniformi paid
ty obligation
a) Unifo An extension of
rm - time An
partie extension of
s are time granted by
 lOMoARcPSD|22929772

the creditor latt

granted by the er.
creditor to one of
the solidary to the ***As
principal debtor far as
debtors without the
the would release debtor/s
the knowledge of is/are
the other surety concern
from the solidary ed, a
debtors would prejudic
obligation not ial act
have the effect of perform
releasing the latter ed by a
from obligation solidary
creditor
is valid
***E and
binding
ach
as
one
between
of the
the
solid
solidary
ary
creditor
credit s, the
ors creditor
may who
do perform
what ed such
ever act shall
may incur
be the
usefu obligati
l or on of
benef indemni
icial fying
to the
other others
s, but for
not damage
anyth s.
ing
whic Effects of
h Assignment
may of Rights in
be Solidary
preju Obligations
dicial :
to the
 lOMoARcPSD|22929772

GENERA Eff
L ect
RUL of
E: A De
solid ath

Passive Solidary Surety (Solidary consideration)

Debtor Guarantor)
Both are solidarily liable to the creditor for theEXCEPTIONS:
payment of the entire obligation 1. Assignment to a co-creditor Liable not only for the
Liable only for the debt2. Assignment is with consent of
payment of the debt of of another co-creditor another, but also for the
payment of a debt *** Payment in solidary obligation which is properly his may be
made to any of the solidary own creditors, as a general rule, except if
Has a right to demand Acquires a right ofdemand, judicial or extra-judicial,,
reimbursement form reimbursement fromhas been made by one of them, his co-
debtors of their the principal debtor ofpayment should be made to him.

ary of
credit Pri
or nci
cann pal
ot De
assig bto
n his r
right Under
as it the law and
is jurispruden
predi ce, the
cated creditor
upon may sue,
mutu separately
al or together,
confi the
denc principal
e (ex. debtor and
pers the surety,
onal in view of
quali the solidary
ficati nature of
on of their
each liability.
credi The death
tor of the
had principal
been debtor will
taken not work to
into convert,
 lOMoARcPSD|22929772

decrease or his
nullify the cocreditors.
substantive
right of the Effect of
solidary Demand
creditor. Upon a
Evidently, Solidary
despite the Debtor
death of the - T
principal he demand
debtor, the made
creditor may against
still sue the oneof the
surety alone solidary
in accordance debtors
to soliday shall not be
nature of the an obstacle
latter’s to those
liability under which may
the subsequentl
performance y be
bond. directed
against the
Effect of others so
Payment to a long as the
Creditor debt has not
- If been fully
one of the collected.
solidary CC, Art.
creditorsis 1216)
able to collect
the entire The
amount of the creditor
debt from one may
or some or all proceed
of the against any
solidary ony one of
debtors, the the solidary
obligation is debtors or
totally against all
extinguished, of them
although there simultaneou
arises a sly. (Art.
consequent 1216, CC)
obligation on
his part to his The
part to render creditor’s
an account to right to
 lOMoARcPSD|22929772

proceed creditor
against the may
surety exists choose
independently which
of his right to offer to
proceed accept
against the it. (CC,
principal Art.
(Palmares vs. 1217,
CA, G.R. No. par1)
126490,
Marc **
h 31, * No
1998 reimbu
) rsemen
Effect of t if
Payment by a payme
Debtor nt is
- Pa made
yment after
made by the
one of obligati
thesolidar on has
y debtors prescri
either bed or
totally or has
partially become
extinguis illegal.
hes the (CC,
obligatio Art.
n 1218)
dependin
g upon Effect of Loss
whether or
the entire Impossibility of
amount Performance
of debt is in
paid or Solidary
only part Obligation
thereof. 1. I
f it is
- If not
two or due
more to the
solidaryd fault
ebtors andbe
offer to fore
pay, the delay
 lOMoARcPSD|22929772

of the an
solidary oblig
debtors, ation
the of
obligati inde
on is mnity
extingu for
ished. dama
(CC, ges
Art. but
1221 the
par1) solida
2. If ry
the loss chara
or cter
impossi of the
bility is oblig
dueto ation
the remai
fault of ns.
one of (CC,
the Art.
solidary 1221
debtors ,
(CC, par.3
Art. )
1221
par.2)
or due Defenses
to a available to a
fortuito Solidary
us Debtor
event 1.
after Def
one of ens
the es
solidary der
debtors ive
had d
already fro
incurre m
d in the
delay, nat
the ure
obligati of
on is the
convert obl
ed into igat
 lOMoARcPSD|22929772

ions - of
total the
defen righ
se ; ts
all of
the the
solid part
ary ies
debto or
rs are thei
benef r
ited. priv
ies
Ex. in
Payment all
or late
performa r
nce suit
Res s on
judicata all
Prescripti poi
on nts
and
Res mat
judic ters
ata - dete
refers rmi
to the ned
rule in
that a the
final for
judg mer
ment suit
or .
decre
e on Elemen
the ts of res
merits judicat
by a a:
court
of (1) t
comp he
etent former
jurisd judgme
iction nt or
is
concl
usive
 lOMoARcPSD|22929772

order and
must be partial
final; defense
.
(2) the
judgment Ex.
or order T
must be o
on the t
merits; a
l
(3) it
must D
have e
been f
rendered e
by a court n
having s
jurisdicti e
on over :
the
subject M
matter i
and the n
parties; o
r
(4) the i
re must t
be, y
between
the first I
and the n
second s
action, a
identity n
of parties, i
of subject t
matter y
and cause
of action. Pa
rti
al
2. Defenses De
personal fen
to him se
constitute Sp
s total ecial
defense terms
 lOMoARcPSD|22929772

or a
condition t
s t
affecting e
his part r
of the
obligatio a
n r
e
3. Defenses
pertaining r
to his own e
share - s
constitute p
a partial o
defense; n
only the s
debtor is i
benefited. b
l
4. Defenses e
personal
to the -
others,
but only c
as regards o
that part n
of s
t
t i
h t
e u
d t
e e
b s
t
f p
o a
r r
w t
h i
i a
c l
h
t d
h e
e f
l e
 lOMoARcPSD|22929772

n of
s obligati
e on
o change
n d
l
y 14. INDIVISI
f BLE
o OBLIGAT
r IONS
t -
h those
e which
d have as
e their
b object a
t prestati
o on
r which
d is
e suscept
f ible of
e partial
n perfor
d mance,
a otherwi
n se, the
t essence
of
13. DIVISIBLE obligati
OBLIGATI on
ONS change
- d.
those
which THREE
have as KINDS OF
their DIVISION
object a :
prestation 1.
which is Quanti
susceptibl tative -
e of the
partial thing
performa can be
nce materia
without lly
the divided
essence into
parts
 lOMoARcPSD|22929772

a u
n a
d n
t
s i
u t
c a
h t
i
p v
a e
r
t
p
s
a
a
r
r
t
e
h s
o
m a
o r
g e
e
n a
e c
o t
u u
s a
t l
o l
y
e
a s
c e
h p
a
o r
t a
h t
e e
r d
.
a. M
f
o
r
v
o
a
m
b
l
e
e
a
Q
 lOMoARcPSD|22929772

c d
h
o b
t y
h
e m
r e
b. I t
m e
m s
o
v a
a n
b d
l
e b
Q o
u u
a n
n d
ti s
t
a 2. Q
ti ua
v lit
e ati
t ve
h -
e the
li thi
m ng
it ca
n
s
be
o
ma
f
ter
t
ial
h ly
e di
p vi
a de
rt d
s bu
a t
r the
e pa
fi rts
x are
e no
 lOMoARcPSD|22929772

t co
exact mp
ly lia
hom nce
ogen .
eous
**
(ex. *
Inheri In
tance obl
) iga
tio
3. Idea ns
l/ to
Intel giv
lectu e,
al - eve
the n
thing tho
cann ug
ot be h
separ the
ated obj
into ect
mate ma
rial y
parts be
(ex. ph
Coo ysi
wner call
ship) y
div
Test isib
of le,
Divis the
ibilit obl
y: iga
Whet tio
her n is
the stil
prest l
ation ind
is ivis
susce ibl
ptible e if
of it is
partia pro
l vid
 lOMoARcPSD|22929772

ed by Effect of
law Divisible or
or it Indivisible
is so Obligation:
inten
ded G.R.
by Creditor
the cannot be
partie compelled
s. partially to
receive the
*** In prestation in
obligations to which the
do, the obligation
obligation consists;
shall be neither may
considered the debtor
divisible when be required
it has for its to make
object: partial
(CC, ART. payments.
1225, par3)
a. The XPNs:
execution 1. When
of a the
number of stipulati
days of on
work expressl
b. The y
accomplis stipulat
hment of es the
work by contrary
metrical ;
units 2. When
c. The the
accomplis differen
hment of t
analogous prestati
things ons
which by constitu
their ting the
nature are objects
susceptibl of the
e of obligati
partial on are
performan subject
ce. to
differen
 lOMoARcPSD|22929772

t terms demandable
and demandable
conditions upon
; and default
3. When the of
obligation the
is in part unpeformed
liquidated obligaion and
and in sometimes
part joinlty with it
unliquidat
ed. Porpuse of
Penalty:
15. OBLIGATI 1. Fun
ON WITH A cio
PENALCLA n
USE coe
- an rcit
obligation to iva
which an o
accessory de
undertaking (penal gar
clause/penalty) is anti
attached for the a-
purpose of to
insuring its insu
performance by re
virtue of which the
the obligor is perf
bound to pay a orm
stipulated anc
indemnity or e of
perform a the
stipulated obli
prestation in case gati
of breach. on
2. Fun
PENAL cio
CLAUSE n
VS. liqu
CONDITION idat
PENAL ori
CLAUSE a
- to
CONDITION liqu
May idat
become e
Never the
 lOMoARcPSD|22929772

amou cas
nt of e of
dama bre
ges to ach
be of
award the
ed in prin
case cipa
of l
breac obli
h of gati
the on
princi (pu
pal niti
ve).
Doe
obliga s
tion not
( reso
c lve
o the
m que
p stio
e n of
n da
s ma
a ges.
t
o Kinds of
r Penalty:
y 1. As to
) Origin
3. Funci a. Le
on ga
estric l -
tamen co
te ns
penal tit
- in ut
certai ed
n by
excep la
tional w
cases, b. C
to on
punis ve
h the nti
obligo on
r in al
 lOMoARcPSD|22929772

- 3. As to
cons Effect
titut a) S
ed u
byth b
e s
parti i
es d
i
2. As to a
Purpose r
a. y
Compens -
atory or o
Reparator n
y l
- y
inde p
mni e
ty n
for a
dam l
age t
s y
b. m
P a
u y
ni b
ti e
v d
e e
- m
p a
u n
ni d
s e
h d
m b) J
e o
nt i
fo n
r t
br o
e r
a C
c o
h m
p
 lOMoARcPSD|22929772

le the penalty can

me be
nta Penalty is
ry dependent
bot Principal
h obligationassum
pe ed by the same
nal upon the non-
ty itself is
an dependpersonnt
d performance of
pri the upon the
nci uncertainAs a
pal rule, penalty is
obl principal
iga obligation event
tio extinguished by
n the
ma nullity of the
y principal
be
de OBLIGATION
ma WITH A
nd PENAL
ed
CLAUSE
OBLIGATIO VS.
N WITH A ALTERNA
PENAL TIVE
CLAUSE VS. the guarantor is
CONDITIO the same
NAL Principal debtor
OBLIGATIO
Constitutes an Does not constitute anObligation with a Conditional
obligation obligation Penal Clause Obligation
N cannot be the
There is already guarantor of the
an No obligation same obligation
beforeobligation
existing obligation Guaranty
the suspensive subsists even
form the very though the
condition happens principal
Principal obligation is
obligation voidable,
beginning and unenforceabe or
a natural one.
 lOMoARcPSD|22929772

OBLIGATION

Obligation with a Alternative

of Penalty:
Penal Clause Obligation G.R. The penalty
shall substitute There is only one Two or
more the indemnity for damages prestation
obligations are due and payment of interest
in Impossibility of the The impossibility of
case of non-compliance.
principal
extinguishes
one, without
the fault also
the penalty of
the debtor,
leavesXPNs:
the other subsisting
a. When there is a stipulation to
The obligor cannot Debtor can choose
the contrary;
choose to pay the which prestation tob.
When the obligor refuses to pay
penalty to relieve fulfill the penalty; and
himself of the c. When the obligor is guilty
of principal, unless this fraud.
right is expressly
granted to him
a
contract, is demandable only if there is a
OBLIGATIONWITH A PENAL
breach of the obligation, and it is not
CLAUSE VS. FACULTATIVE
contrary to law, morals, good customs,
OBLIGATION
policy.
Obligation with a Facultative
Limitation on the Right of the
Penal Clause Obligation
in Obligations with a
Payment of the penalty Power of the
debtor toPenal Clause (CC, Art. 1227)
in lieu of the principal make the
substitution is
 lOMoARcPSD|22929772

obligation can be made absolute G.R.

Debtor cannot exempt himself only by
express from the performance of the
stipulation principal obligation by
paying
The creditor can The creditor can never
the stipulated penalty.
demand both the demand
prestations prestations
XPN:Unless this right has been
clearly and expressly granted

OBLIGATION WITH A PENAL

him.

CLAUSE VS. GUARANTY

Obligation with a Guaranty Limitation on
the Right of the Penal Clause Creditor in
Obligations with a
Obligation to pay the Object of
thePenal Clause (CC, Art. 1227)
penalty is different obligations of the
from the principal principal debtor
and

G.R.
C
r
e
d
i
t
o
r

c
a
n
n
o
t

d
e
m
a
n
d
 lOMoARcPSD|22929772

t
h
e

f
u
l
f
i
l
l
m
e
n
t

o
f

t
h
e

p
r
i
n
c
i
p
a
l

o
b
l
i
g
a
t
i
o
n

a
n
d
 lOMoARcPSD|22929772

d
e
m
a
n
d

t
h
e

s
a
t
i
s
f
a
c
t
i
o
n

o
f

t
h
e

p
e
n
a
l
t
y

a
t

t
h
e

s
 lOMoARcPSD|22929772

a
m
e

t
i
m
e
.

XPN:U
nl
e
ss
th
e
ri
g
ht
h
a
s
b
e
e
n
cl
e
ar
ly
g
ra
nt
e
d
to
hi
m
.

*
*
*

I
f

c
 lOMoARcPSD|22929772

r
e
d
i
t
o
r

h
a
s

c
h
o
s
e
n

f
u
l
f
i
l
l
m
e
n
t

o
f

t
h
e

p
r
i
n
c
i
p
a
l
 lOMoARcPSD|22929772

o
b
l
i
g
a
t
i
o
n

a
n
d

p
e
r
f
o
r
m
a
n
c
e

t
h
e
r
e
o
f

b
e
c
a
m
e

i
m
p
o
s
s
 lOMoARcPSD|22929772

i
b
l
e

w
i
t
h
o
u
t

h
i
s

f
a
u
l
t
,

h
e

m
a
y

s
t
i
l
l

d
e
m
a
n
d

s
a
t
i
 lOMoARcPSD|22929772

s
f
a
c
t
i
o
n

o
f

t
h
e

p
e
n
a
l
t
y
.
I
f

t
h
e
r
e

w
a
s

f
a
u
l
t

o
n

t
h
 lOMoARcPSD|22929772

p
a
r
t

o
f

t
h
e

d
e
b
t
o
r
,

c
r
e
d
i
t
o
r

m
a
y

d
e
m
a
n
d

n
o
t

o
n
 lOMoARcPSD|22929772

l
y

t
h
e

s
a
t
i
s
f
a
c
t
i
o
n

o
f

t
h
e

p
e
n
a
l
t
y

b
u
t

a
l
s
o

t
h
e
 lOMoARcPSD|22929772

p
a
y
m
e
n
t

o
f

d
a
m
a
g
e
s
.

Cases when penalty may be

reduced: (CC, Art. 1229)
1. I
f

t
h
e

p
r
i
n
c
i
p
a
l

o
b
l
i
g
a
t
i
o
 lOMoARcPSD|22929772

h
a
s

b
e
e
n

p
a
r
t
l
y

c
o
m
p
l
i
e
d

w
i
t
h
;
2. I
f

t
h
e

p
r
i
n
c
i
p
a
l
 lOMoARcPSD|22929772

o
b
l
i
g
a
t
i
o
n

h
a
s

b
e
e
n

i
r
r
e
g
u
l
a
r
l
y

c
o
m
p
l
i
e
d

w
i
t
h
;
 lOMoARcPSD|22929772

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 lOMoARcPSD|22929772

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 lOMoARcPSD|22929772

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-END-