1190- the articles talk about resolutory
conditions that wen it is fulfilled, the obligation
is extinguished. The effect of the
extinguishment, the parties shall return what
they have received including fruits and interest.
Rules in art. 1189 will apply to whosoever has
the duty to return in case of loss, deterioration
or improvement of the thing.
For obligation to do or not to do, refer to art
1187. It is the court that shall determine in each
case the retroactive effect of the condition that
has been complied with.
1192- Effect of breach by both parties, the
liability of the 1st who violates the contract, is
liable for damages but it will be lessened by the
court since the second violator would also get
some advantage by his own act or neglect.
But if it cannot be determined who first violated
the contract, then the obligation is extinguish
and each shall bear his own damages.
When the injured party opted to rescind the
contract, the effect would be, the relation of
the parties is extinguished it is as if there is no
relation had ever been created.
Remeber the ESSENTIAL FEATURE of rescission
in reciprocal obligation:
1. The right to rescind is implied.
2. The right is not automatic or absolute
because the injured party should apply to the
court for decree of rescission.
3. The court has discretionary power to fix the
period, instead of rescinding the obligation
specially if the breach of contract is just slight.
Rescission will not take place if the object is
already in the possession of third person
(person other than debtor or creditor) who has
acted in good faith.
1193- Requisites of Obligation with a period
1. It must be future; and
2. Certain
Obligation with a period is only demandable
when the day agreed upon by the parties come.
Ex. X promise to give his particular laptop to Y
on Dec 30, 2018.
Prior Dec 30, Y cannot demand the said laptop
be delivered to him.
1194- please refer to 1189 in case of loss,
deterioration or improvement of the thing
before the arrival of the period agreed upon by
the parties as to who will bear the risk ors
enjoyment of the thing.
1195- in obligation to give, the debtor can
recover what he has paid or delivered before
the arrival of the period, provided it must be
delivered by mistake. But he delivered or paid
voluntarily with knowledge that it has not yet
due and demandable, then he can no longer
recover wat he gave or delivered.
1196- when there is a fix period agreed upon by
the parties, it is presumed that is established for
the benefit of both the creditor and the and
debtor.
1197- the GENERAL RULE is, the court is not
authorized to fix the period of obligation. But
this aticle speaks of the exception when court
can fix the period.
1. If the obligation does not fix a period, but
from its nature and circumstances, it can be
inferred that a period was intended.
Ex. A contract to construct a house where the
period is not stated.
2. If the period depends upon the will of the
debtor.
Ex. “As soon as i have money”
“When my means permit me to do so”
“As soon as possible”
1198- “when the debtor loses the benefit of the
period” - it means there was a period agreed
upon as to when the obligation is due and
demandable but because of some instances
enumerated in the article, the term is
extinguished and the obligation becomes
demandable at once.
Ex. D owes C 100,000 demandable on July 2026.
In December 2025, D becomes insolvent. The
debt of 100,000 is immediately demandable in
December 2025, he already loses the benefit of
paying it in July 2026 unless D can offer
sufficient security.
Attempt to abscond- means attempt to escape.
This is a sign of bad faith because the debtor
intends to evade his obligation.
1199- alternative or facultative obligation is one
where out of the two or more prestations which
may be given, only one is due.
Ex. A will give B his car or ring or his fountain
pen.
A does not have to give B all the three things
mentioned. The giving of one is sufficient to
satisfy the obligation.
1200- as a general rule, the right of choice in an
alternative obligation belongs to debtor.
Exception: when the right of choice has
EXPRESSLY been granted to creditor.
1201- the law did not require specific form on
how to communicate the choice of debtor to
creditor. It can be orally, in writing, expressly or
impliedly. What is important is that it is
sufficient to make the other party know that the
choice has been made. Once the selection or
choice has already been communicates to
creditors as to what prestations will be
delivered, then the obligation becomes a simple
obligation and it becomes irrevocable. Meaning,
the selection is already binding on the person
who will make it and will not be permitted to
renounce his choice
1202- in this article, the obligation becomes
simple and also pure obligation since the other
objects have been lost or become impossible.
Ex. X is bound to give his celfon, or his laptop, or
his only TV to Y. When the celfon and tv have
been lost, consequently, X is obliged to to just
deliver the laptop that makes his obligation
pure and simple instead of alternative.
1203- please observe that the contract is NOT
AUTOMATICALLY RESCINDED. The law says that
the debtor “MAY RESCIND”, implying that he
may allow it to remain in force insofar as the
possible or choices are involved.
Refer to example above:
If the celfon and laptop were lost through the
negligence of Y, as a rule, X can choose to
deliver the TV however X may cancel or rescind
the contract as an option and he may also claim
for damages.
1204-the creditor is entitled to indemnity for
damages when through the fault of debtor:
1. All the things which are alternatively the
object of the obligation have been lost OR
2. The compliance of the obligation has become
impossible.
The basis of amount of indemnity is the value of
the LAST THING which dissappeared or became
impossible.
1205- when choice of debtor as to which of the
objects he selected to be given to creditor has
been communicated, the alternative form of
obligation stops. This is wat will happen in case
of loss AFTER expressing his choice:
1. LOSS DUE TO FORTUITOUS EVENT
a. ALL of the objects are loss
The obligation of the debtor is extinguished.
b. ONLY ONE of the objects remains
The oblgation of debtor is to deliver the
remaining object.
c. TWO or MORE of the objects remain
the obligation of debtor is to deliver that
which the CREDITOR shall choose from among
the remainder.
2. LOSS DUE TO THE FAULT OF DEBTOR
a. ALL of the objects are lost
the creditor shall choose the price of any
objects plus indemnity for damages.
Take note that the ground for asking damages is
NEGLIGENCE on the part of debtor for losing the
objects at his fault which is attached to the
objects. Remember that the debtor is obliged to
take care the things with the required diligence.
b. Only ONE of the objects remains
the creditor has 2 options:
* choose the objects remains without
damages on the part of debtor; OR
* the creditor may also choose the VALUE of
any one of the objects lost plus damages.
c. TWO or MORE objects remain
the same rule above (b), if the creditor shall
choose the one existing, no damages. But if he
will choose any of the objects which were lost,
plus damages.
3. ALL THINGS ARE LOST DUE TO FAULT OF
DEBTOR
creditor can choose the value or price of any
object lost plus damages.
1206- talks about FACULTATIVE OBLIGATION
where only one object has been agreed upon
but the debtor may render another in
substitution.
Please take note the difference between
facultative and alternative obligation.The effect
of LOSS or DETERIORATION of substitute in
facultative obligation:
1. Before substitution
 The loss or deterioration of the thing
intended to be a substitute, DOES NOT RENDER
THE DEBTOR OR OBLIGOR LIABLE.
2. After substitution
The obligor is liable for damages for the loss
or deterioration of the substitute because once
the substitution is made, the obligation
becomes simple obligation that makes the
substitute thing as the object of obligation.
1207- we are now discussiong about JOINT and
SOLIDARY OBLIGATIONS.
Ha hambuuk obligation, bang mataud debtors
and mataud creditors, that does not necessarily
mean na in obligation icomply sadja sin
hambuuk debtor in entire obligation or in
hambuuk creditor manjari na magdemand sin
entire compliance daing ha hambuuk debtor.
We have this so called JOINT OBLIGATION. In
this case, in obligation or debt sin debtors are
divided among themselves and likewise in mga
creditors can only demand proportionately, in
hati biyabahagi.
The general rule is, if there are many debtors
and creditors in one obligation, the obligation is
JOINT OBLIGATION. Mahinang sadja siya
SOLIDARY OBLIGATION bang aun stipulations or
expressly agreed upon by the parties
irrespective of when the law or nature of the
obligation magrequire solidarity.
In ha SOLIDARY OBLIGATION, is the opposite of
JOINT OBLIGATION. Because ha solidary
obligation, in hambuuk sadja debtor can be
bound to comply the obligation and likewise
hambuuk ha mga creditor aun right to demand
for the entire compliance sin obligation.
EXAMPLE:
A and B owe X and Y the amount of 100,000. In
this case, the agreement is silent as to whether
or not it is joint or solidary. REMEMBER, if there
is no agreement, it is presumed that the
obligation is JOINT. So this means, bang joint, in
utang 100,000, magbahagi hi A and B. In
manjari da ibayad hi A is 50,000(25,000 kay X
and 25,000 kay Y) and same thing with B also
50,000 (25,000 kay X and 25,000 kay Y). Either A
or B cannot be forced to pay the entire
obligation of 100,000 because in joint
obligation, EACH of A and B is only bound to
render compliance of his proportionate share.
Since the creditor is also JOINT, X is only
entitled to demand 50,000 from debtors
(25,000 from A and 25,000 from B) the same
case with Y.
1208- i repeat this articles says that the
obligation is PRESUMED to be JOINT when there
are two or more debtors or two or more
creditors in one and the same obligation, this is
the GENERAL RULE.
Exceptions:
1. When the obligation EXPRESSLY so states that
there is solidarity.
2. The law requires solidarity
3. Nature of the obligation requires solidarity
1209- this article refers to a JOINT INDIVISIBLE
OBLIGATION. The nature of rights and
obligations of parties are joint and nature of
OBJECT is indivisible.
Example: A and B promise to deliver a specific
car to X and Y. Take note that there is no
agreement between the parties as to whether it
is joint or solidary, therefore, it is presumed to
be joint. Also take note that the object is a car
which is an indivisible thing. If X and Y demand od 100,000 kay W, atawa kay, X, or kay Y atawa
the delivery on maturity date against the kay Z. Sah bang hi X nagdemand from B on due
obligors, A willing to deliver while B is not date, hi B subay in duhalan niya sin bayad hi X
willing to deliver, the obligation of A and B will inorder to avoid delay.
be converted into an indemnity for damages. If
the car has a market value of 1,000,000, then A
will pay 500,000 with no additional damages
because he is willing to deliver. However, B will
be paying 500,000 plus damages for not willing
to deliver the car.

Assuming that both willing to deliver but B

becomes insolvent, the obligation of A is only
up to his share of 500,000 which is 50% of the
entire obligation.

1210- this article only caution against the broad

interpretation of solidarity. It provides that in
obligation misan siya indivisible, bukun in
hatihan niya automatic na maggive rise to
solidarity. Misan in obligation indivisible just like
ha example cited above, still joint da in
obligation sin parties. Likewise, solidarity does
not imply indivisibility.

1211- solidarity may exist even if the creditors

and debtors are subject to different
stipulations. For instance, in a solidary
obligations where there is a stipulation that A’s
obligation of 100,000 is due on June 17, 2024
while share of debtor B in the obligation will be
due if she pass the board exam.

1214- GENERAL RULE: debtor may pay any one

of the solidary creditors.

Exception: if a demand, judicial or extrajudicial,

has been made by one of the solidary creditors,
PAYMENT SHOULD BE MADE TO HIM.

Example

B solidary owes W, X, Y and Z 100,000. In this

case, hi B manjari magbayad sin total amount