DIFFERENT KINDS OF OBLIGATIONS

Section 1 – PURE and CONDITIONAL OBLIGATIONS

A.R. 1179
Obligations – is demandable at once
- When it is a pure obligation
- Subject to the resolutory condition
- Subject to a resolutory period

Pure Obligations - one which is not subject to any conditions

- No specific date was mentioned.
- Fulfillment is immediately demandable.
- Performance does not depend on a future or uncertain event
- Or past event unknown to the party

Conditional Obligations – subject in one way or another to the fulfillment of the condition
Condition – is a future and uncertain event,
- The acquisition and extinguishment of an obligation subject to it Depends
- Future and uncertain
- Past but unknown to the parties

Suspensive Condition - the fulfillment of the condition will give rise to an obligations
- The dependability of the obligation is suspended until the happening of the uncertain event

Resolutory condition – the fulfillment of the condition will extinguish the obligation
- Every obligation with the resolutory condition is Demandable .
A.R.1180
Obligation with a Period - is a Future and Certain event
- Upon the arrival of the obligation is subject to either arises or extinguished
- Upon the WILL of the DEBTOR, his will to the duration of the period
A.R. 1181
EFFECTS of Happening of the CONDITIONS:
Suspensive Condition – Acquisition of rights
Resolutory condition – extinguishment or loss of rights of those already acquired
A.R. 1182
CLASSIFICATIONS OF CONDITIONS :

PROTESTATIVE – means Sole Will

Prostestative on debtor + Suspensive = VOID
Protestative on debtor + Resolutory = VALID
Protestative on part of creditor = VALID

CASUAL - Depends upon chance or upon the WILL of a Third person – VALID

MIX condition – depends partly upon chance and partly the will of a third person – VALID

A.R 1183
IMPOSSIBLE CONDITIONS – conditions that are prohibited by law and are physically impossible .

Obligations and conditions are VOID – if physically and legally impossible

 Divisible – the condition is susceptible to PARTIAL performance -VALID
o Only the affected obligation is VOID
o Only the affected condition is VOID – if its PRE-EXISTING obligation
Indivisible – the condition is NOT susceptible to Partial performance – VOID
Obligations is Valid – if the obligation is negative but that is NOT TO DO an impossible thing

AR.1184:

POSITIVE conditions ( suspensive )

- Conditions that the event happens at DETERMINATE time shall extinguish the obligations
as soon as the DATE expires.
- If it has become indubitable (impossible) that the event will not take place/happen.
Obligations extinguish when :
a.) As soon as time expires – without the event taking place
b.) The specified time is NOT expired but the event has become indubitable to happen

AR. 1185
Negative conditions ( suspensive ) – shall become effective and binding
- Condition that the event WILL NOT happen at DETERMINATE time shall render the
obligation Effective from the moment the time INDICATED has elapsed
- If it has become evident that the event occurs
1.) The time indicated elapsed
2.) Become evident that the vent occurs.

A.R. 1186 – CONSTRUCTIVE FULFILLMENT

- The condition shall be deemed FULFILLED when the obligor Voluntarily prevents its fulfillment
Suspensive – Acts voluntarily – obligor prevents the fulfillment of the condition.
Resolutory – with respect to the debtor who is bound to return what he has received upon the fulfillment of the
conditions.

A.R. 1187 - Retroactive effects of fulfillment of suspensive conditions.

- In obligations to give – subject to suspensive conditions becomes demandable only upon the fulfillment of conditions,
and will retroact from the time it was constituted.
- in Obligations to do or not to do - no fixed rule is provided. the courts shall determine in each case the retroactive
effect of the condition that has been complied with.
UNILATERAL ( only 1 has obligation ) – retroact – upon fulfillment of the condition
Reciprocal ( both parties have obligation ) - NO retroactivity

Note: the debtor can still sell the THING if it’s NOT ANNOTATED.

“ Retroactive Effect as to FRUITS and INTEREST”

UNILATERAL obligation – NO Retroactive Effective
- Debtor shall appropriate the fruits unless the intention of the person constituting the same was
different
RECIPROCAL - Mutually Compensated

A.R. 1188
- Rights of the Creditor - he may take appropriate action for the preservation of his rights .
-Rights of the Debtor - He has the right to recover what he has paid by mistake prior to the happening of the suspensive
condition.

A.R. 1189
-When the condition has been imposed with the intention of suspending the efficacy of an obligation to give.

Following Rules must observe:

LOSS :
Not Fault of debtor - obligation Extinguished
Fault of debtor – obliged to pay dames
DETERIORATES :
Fault of debtor – Creditor may choose between rescission (cancel) of the obligations and
- It’s Fulfillment with indemnity of damages.
Not Fault of a Debtor - Impairment is to be borne by CREDITOR
IMPROVEMENT:
By Nature - Benefit of a Creditor
At the Expense of Debtor - He shall NO other right than granted to the USUFRACTUARY
Requisites :
1. Real obligation
2. Object is Specific or determinate
3. Suspensive condition
4. Condition is fulfilled
5. There is loss, deterioration, or improvement of the thing during the pendency of the condition
KINDS OF LOSS:
1. PHYSICAL LOSS - when the thing perishes as when a house is burned and reduced to ashes
2. LEGAL LOSS – when a thing goes out of commerce or “legal” thing becomes “ Illegal”
3. CIVIL LOSS – when a thing disappear in such way that its existence is unknown

A.R 1190
Effects of fulfillment of RESOLUTORY CONDITIONS:
1. Obligation is extinguished
2. The parties should return or restore to each what they have received including the fruits and interest
3. Rule of 1189 will apply to whoever has got a duty to return in case of loss, deterioration or improvement of
the thing
4. If the obligation is to do or not to do, the courts are given the power to determine the retroactivity of the
fulfillment of the condtion
AR. 1191
RESCISSION – is the remedy available to an OBLIGEE when the obligor Fails to comply with his obligation.

RIGHTS TO RESCIND ( CANCEL )

1. It exist only in Reciprocal obligations – the cause should arrive at the same contract
2. It can be demanded only if the party is ready, willing and able to comply with his own obligation and the
other is not
3. The right to rescind implied ( no need to stipulate in the contract )
4. The right is not automatic or absolute. Apply to the court for decree of rescission:
Judicial is not needed to rescission:
a. When the object is not delivered
b. The contract states the either party can rescind

5. The remedies of the injured or aggrieved party are alternative and not cumulative ( can choose one of the
remedies available )
a. Rescission
b. Rescission + damages
c. Fulfillment of obligation + damages

KINDS OF OBLIGATION according to the person OBLIGED :

1. UNILATERAL – only one party obliged with the prestation
2. BILATERAL - both parties are mutually bound to each other
- can be reciprocal or non-reciprocal
a. Reciprocal – arise from the same cause or the same contract
 b. Non-Reciprocal – Do not impose simultaneously and correlative (mutual )performance on both
parties
A.R. 1192
BREACH OF OBLIGATION OR CONTRACT
First infractor KNOWN- the liability of first infractor should be equitably reduced
First infraction UNKNOWN - contract SHALL be DEEMED EXTINGUISHED

SECTION 2 – OBLIGATION WITH A PERIOD

A.R. 1193
OBLIGATION WITH A PERIOD – fulfillment is in a certain date, and demandable when the day comes.
- In resolutory period take effect once but terminate upon the arrival of the period
- Day is certain which must necessarily come, though may not know when
- If the uncertainty consists in whether the day will come or not the obligation is conditional.

KINDS OF PERIOD ACCORDING TO:

SOURCE :
a. Legal
b. Voluntarily
c. Judicial
DEFINITENESS:
a. Definite
b. Indefinite
EFFECT:
a. Ex-die (suspensive)
b. In diem (resolutory period)
REQUISITES OF A PERIOD
1. it must refer to the future
2. it must be certain
3. it must be possible

A.R. 1194:
Incase of:
Loss, Deterioration, or improvement before the arrival of the period the rules in A.R 1189 shall be applied.

A.R. 1195
- Payment or delivery BEFORE the arrival of the period

To Give:
Obligor unaware of the period –he may recovered with the fruits and interests.
Before due - can recover the whole amount plus the interest he paid
After due – can recover the interest only
Obligor AWARE of the period – Obligor can’t recover anything

To Do and NOT to Do – recovery of the payment is NOT POSSIBLE

A.R 1196 :
BENEFIT OF A PERIOD IN AN OBLIGATION – benefit of BOTH creditor and the debtor
Creditor – can’t demand the obligation before the arrival of the period
- Can’t insist that he be paid
Debtor – can’t demand to accept the payment before the agreed period
- Can’t insist on Prepayment

BENIFIT OF CREDITOR only

- Can demand performance at anytime
 - Debtor cannot insist on prepayment
BENEFIT of DEBTOR only
- Can oppose a premature demand for payment
- May validly pay at anytime before the period expires
A.R 1197
- WHEN CAN THE COURT FIXED THE PERIOD
1. if the obligation does not fix a period can be inferred that a period was intended
2. when the duration depends upon the will of the debtor (when my means permit me to do so )

When COURT may NOT FIXED the period

1. When NO term was intended
2. Payable on Demand
3. When period is specified by Law

A.R 1198
DEBTOR LOSE RIGHT TO MAKE USE OF THE PERIOD WHEN HE :
1. becomes insolvent (bankrupt) unless gives a guarantee or security for the debt.
2. Doesn’t furnish (give ) to the creditor the guaranties or security he has promised
3. His own acts he impaired said guaranties after their establishment, even if its through a fortuitous event they
disappear UNLESS he immediately give new one equally satisfactory
4. Debtor violates any undertaking, inconsideration of which the creditor agreed to the period
5. Debtor attempts to abscond (run-away) (mere attempt is sufficient ) (leaving without any intention of
absconding -not sufficient )

SECTION 3 – ALTERNATIVE OBLIGATIONS

A.R. 1199
ALTERNATIVE OBLIGATIONS - a person bound by different presentation shall completely perform one of them. A
creditor cannot be compelled to receive part of one and part of the other undertaking.

KINDS OF OBLIGATION ACCORDING TO OBJECT:

1. SIMPLE obligation – only one prestation or object
2. COMPOUND obligation – two or more prestation
a. Conjunctive – all prestation are due
b. Distributive – though there are two or more prestation only one is due
1. Alternative - performance of one is sufficient
2. Facultative – only one prestation is due but debtor may substitute another.
A.R 11200
WHO has the RIGHT of CHOICE
General rule : Belongs to DEBTOR, unless expressly granted to the creditor.
SUBJECT TO LIMITATIONS : Debtor has NO right to choose prestation’s that are :
a.) Impossible
b.) Unlawful
c.) Could not been the object of the obligation
A.R 1201
-The choice shall produce no EFFECT except from the time it has been COMMUNICATED.
- Choice NOT communicated – NOT EFFECT
Choice Communicated - converts alternative obligation to Simple obligation
 -No particular form required
-choice properly made and communicated is irrevocable
A.R.1202
-DEBTOR Lose the right of choice
-When among prestation ONLY one is practicable
-what is the effect : the obligation is converted into Simple obligation

A.R 1203
If through creditor’s acts, the Debtor can’t make a choice according to the term of the obligation.
Debtor can rescind the contract with damages.

A.R 1204
-EFFECT if one or More or ALL of the THINGS the DEBTOR promised to DELIVER GOT LOST

-note: for this provision to take effects:

1. The right to choose belongs to the debtor
2. the loss or impossibility happened before selection was made (while in alternative selection )

Debtor Fault – (if some is lost or impossible ) - not Liable

To give:
- If ALL things lost – ( LIABLE ) a right to indemnity for damages , since obligation can no
longer be complied with
- Fortuitous event – obligation is extinguished
- If the first few objects lost due fortuitous event but the last thing is the fault of the debtor
( LIABLE )
- If the first few object lost fault of the debtor and the last object is fortuitous event ( not liable.
Obligation is extinguished) should communicate to the creditor that the first objects is lost or
damage )
- Obligation Becomes impossible – shall be fixed taking as basis the value of the last thing
which disappeared . or Service (to do ) the last became impossible

A.R 1205
CHOICE HAS BEEN EXPRESSLY GIVEN TO THE CREDITOR
- obligation shall cease to be alternative from the day when selection has been communicated to the debtor. Can be
written, call or verbally communicated.

BEFORE THE CHOICES COMMUNICATED by the creditor:

Responsibility of the debtor If :

Some of the things lost

1. If one of the things is lost through a fortuitous event. The creditor should choose from among the remaining
items or objects.
2. Fault of the debtor – The creditor may choose the remaining object + the price of the lost item with damages
ALL THINGS LOST
3. Creditor has the right to choose the price of any of the lost objects with damages.
4. If due to a fortuitous event – obligation is extinguished
The rules shall be applied to the obligations TO do or Not to do

A.R. 1206
FACULTATIVE OBLIGATIONS – when only one prestation has been agreed upon but the obligor may render
substitutions.

OBLIGORS Fault : negligence, fraud, delay , deterioration, lost

Before Substitution –- Not Liable
After Substitution –– LIABLE
 SECTION 4 – JOINT AND SOLIDARY OBLIGATIONS

Art. 1207

Classification of Obligation (Accdg. To # of parties)

1. Individual Obligation – there is only one debtor and one creditor in a contract

2. Collective Obligation – there are two or more debtors and two or more creditors

KINDS OF COLLECTIVE OBLIGATIONS

Joint Obligation
where the whole obligation is to be paid or fulfilled proportionately by the different debtors and
demanded proportionately by the different creditors. This is the presumption in all collective obligations
unless solidarity is expressly stated.

Solidary Obligation
where each one of the debtors is bound to render, and/or each creditor has the right to demand from any of the
debtors, the entire compliance with the presentation.
Obligation is only Solidary when:
1. the obligation expressly states
2. the law requires solidarity
3. the nature of the obligation requires solidarity

KINDS and CONSEQUENCES OF SOLIDARITY according to the parties bound

1. Passive Solidarity – on the part of the debtor – anyone of them can be made liable for the fulfillment of
the entire obligation
2. Active Solidarity – on the part of the creditor – anyone of them can demand the fulfillment of the
entire obligation
3. Mixed solidarity - part of debtors and creditors – each of the debtor is liable to render and each of the
creditors has the right to demand the entire compliance with the obligation
Solidary liability cannot be presumed / According to the source
1. Conventional - agreed upon by the parties - When the obligation itself expressly provides for solidarity, for
the burden s now assumed voluntarily by the debtor/s who are supposed to take care of their own concerns
and affairs
2. Legal Solidarity – imposed by the law –
3. Real Solidarity -imposed by the nature of the obligation - he nature of the obligation requires solidarity

CONSEQUENCES OF JOINT OBLIGATION

1. Each debtor is liable only for a proportionate part of the entire debt
2. Each creditor, if there are several, is entitled to a proportionate part of the credit
3. The demand made by one creditor upon one debtor, produces the effects of default only as between them, but
not with respect to the others.
4. The interruption of prescription caused by the demand by one creditor upon one debtor , will not benefit the
the co-creditors; neither, will that demand interrupt the prescription of the obligation as to the other
debtor.
5. The insolvency of a debtor will not increase the liability of his co-debtors. Neither, will it allow a creditor to
demand anything from the co-creditors.
6. The vices of each obligation emanating from the personal defect of a particular debtor or creditor will not
affect the obligation or rights of the others.

Other Names or Statements Equivalent to Solidarity

1. Mancomunada Solidaria
2. De mancomun e insolidum
3. In solidum
4. Juntos or Separadamente
5. Jointly or severally
6. Individually & Collectively
7. Each to pay the whole value
8. “I promise to pay” signed by two or more debtors.

ART. 1208 –

Join indivisible obligations - gives the rise to indemnity for damages from the time anyone of the debtors does not
comply with his undertaking.
- the obligation is joint because the parties are merely proportionately liable
- It is indivisible because the object of the subject matter is not physically divisible into different
parts.
- It is joint as to liabilities of the debtors or rights of the creditors but indivisible as to compliance

Article 1209 applies to joint indivisible obligation because the prestation or object is not susceptible of division, and
solidarity is not provided.

joint indivisible obligation:

Debtors – the fulfillment of obligation requires the concurrence of ALL the debtors (each for his part)

Creditors – there has to be a collective action for acts which are deemed prejudicial to the rights of the creditors.

In case of breach of a joint indivisible obligation:

When there is plurality of debtors – compliance can be enforced by proceeding against ALL of the debtors. If one of the
debtors fails to perform, the obligation can no longer be fulfilled because the prestation or object is indivisible. In
indivisible prestation, division is not possible.

When there is plurality of creditors (but only one debtor)

 – the obligation can be performed only by the delivery of the thing to all the creditors jointly.

-The debtor must not deliver to just one unless that particular person has been authorize by all the creditors to
receive the delivery.

- Otherwise, the debtor may be liable for damages due to non-performance of the obligation in consideration of
the other creditors.

Art. 1210

The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does solidarity of itself imply
indivisibility.

An indivisible obligation is one where the prestation or object cannot be performed by parts without altering the essence
or substance.

Indivisibility refers to the character of a subject matter or object of a contract which does not permit its division or
segregation without destroying its essence or substance.

Kinds of Indivisibility:

1. Legal indivisibility- indivisibility by operation of law

2. Conventional indivisibility- indivisibility by the agreement of the parties; an obligation which is divisible by
nature is made divisible by the will of the parties
3. Solidary obligation- obligation where each debtor is liable for the entire obligation, and each creditor is entitled
to demand the fulfillment of the whole obligation.

This refers to the vinculum or tie or relationship existing between the parties.

An obligation can be indivisible and solidary at the same time. Hence, an obligation can be:

1. Solidary divisible obligation

2. Solidary indivisible obligation
3. Joint indivisible obligation
4. Joint divisible obligation

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.

KINDS OF SOLIDARY OBLIGATION ACCORDING TO LEGAL TIE

1. Uniform Solidarity – when the debtors are bound by the same terms and conditions or stipulations.
2. Non-uniform / Varied Solidarity – when the debtors while bound under the same obligation (like a loan) are not
subject to the same terms and conditions of payment but to different secondary stipulations or clauses.

Solidarity not affected by diverse stipulation

1. Essence of solidarity – consists in the right of each creditor to enforce the rights of all and the liability of
each debtor to answer for the liabilities to all
 2. Actions against any of the solidary debtors – the creditor may bring his actions actoions against any of the
solidary debtors less the shares of unexpired terms or unfulfilled conditions
3. Liability of any solidary debtor for entire obligation – the parties may stipulate that any solidary debtor
already bound may be made liable for the entire obligations.

ART 1212

Each one of the solidary creditors may do whatever may be useful to the others, but not anything which maybe
prejudicial to the latter.

Acts Beneficial. All creditors may perform acts that will benefit each other. They may help each other to have more gains
and built up their relationship in good standing.

Acts Prejudicial. If one or more of the member performs acts that will have bad effects, loss of profit or may harm the
good standing, in which the performing creditor will be liable to his co-creditors.

ART. 1213

A solidary creditor cannot assign his rights without the consent of the others.

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.

JUDICIAL DEMAND - when one creditor makes a judicial demand for payment, the tacit representation by the other
creditor is considered revoked, during the pendency of action, the creditors who did not sue lose their representation of the
others.

EXTRA JUDICIAL DEMAND – has the same effect as judicial demand in terminating relationship between creditor
and debtor

DEMAND BY SEVERAL CREDITORS - if all or several creditors demand payment, the debtor must pay separately
and pay to the one who notified the latter first.

COMPARATIVE LAW - he rule that demand by a solidary creditor limits the right of the debtor to choose the creditor
whom he will pay, and requires him to pay the suing creditor, has been scrapped in some modern codes, allowing freedom
of choice to the debtor even after judicial demand, because the rule as it is, virtually establishes and fixes who the creditor
is by right occupation.

ART. 1215

Four (4) Modes of extinguishment of obligations.

Novation – obligation is modified by (1) changing object or principal obligations; (2)substituting the person of the
debtor , and (3) subrogating a third person in the rights of the creditor

Compensation – when two (2) persons, in their own right, become creditors and debtors of each other.
Confusion or Merger of Rights – when the characters of creditor and debtor are merged in the same person
Remission or Condonation – This is the gratuitous abandonment by the creditor of his right.

These are acts prejudicial to the other solidary co-creditors because of its effects to the extinguishment of the
obligation due to all of them.
ART. 1216
The creditor may proceed against anyone 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

ART. 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.

EFFECTS of PAYMENTs by Solidary debtor

 Between Solidary Debtors and Creditors - payment made by one of the solidary debtors extinguishes the
obligations
 Among Solidary debtors - After payment of the debt, the paying solidary debtors can demand reimbursement
from his co debtors for their proportionate shares with interest only from the time of payment.
 Among the solidary creditors – the receiving creditors is jointly liable to the others for their corresponding
shares.

ART 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.

In cases where the debtor has co-debtors and they were obliged to pay solidarity, under the following situations, the payor
is not entitled to reimbursement:

1. The obligation had already prescribed due to the lapse of time required by law; or
2. The obligation or prestation has become illegal before it could be performed.

ART. 1219

The remission ( cancellation / rescinding ) 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

*Applicable only if one of the solidary debtors paid the entire obligation to the creditor.”

ART 1220
The remission of the whole obligation, obtained by one of the solidary debtors, does not entitle him to
reimbursement from his co-debtors.
( the debtor is not entitled to reimbursement from his co-debtors. The remission of the entire obligation is essentially
gratuitous and he paid nothing, thus, he shall not be reimbursed. )

The article applies only when the remission covers the whole or entire obligation and the remission is obtained by one
of the solidary debtors without spending anything for its grant.

In case the remission is only partial, the solidary debtor who paid the unremitted part of the obligation is entitled to
reimbursement with respect only to the amount he actually paid.

ART. 1221

If the thing has been lost or if the presentation 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

 Loss without the fault and before delay – Obligation shall be extinguished
 Loss due to fault on the part or any of the solidary debtors - in fault or delay all creditors shall be liable,
 Loss without fault and after delay – all of the solidary debtors are responsible even for a fortuitous event

ARTT.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 for which the latter are responsible

Kinds of Defenses
1. Those derived from the nature of obligation (complete defense)
2. Defenses personal to, or which pertain to share of, debtor sued. A solidary debtor, by his own act or inaction,
such as by failing to appeal, may lose the benefit of
3. Defenses personal to other solidary debtors

Notes: Obligations are extinguished:

1. By payment or performance;
2. By the loss of the thing due;
3. By the condonation or remission of the debt;
4. By the confusion or merger of the rights of creditor and debtor;
5. By compensation;
6. By novation.

Other cause of extinguishment of obligations are annulment, rescission, fulfilment of a resolutory condition, and
prescription,