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SUMMARY:

Pure Obligation
Conditional Obligation
Obligation with a period
Alternative Obligation
Facultative Obligation
Joint/Solidary Obligation
Obligations with a Penal Clause
Pure Obligation:
An obligation whose performance is
demandable at once and does not
depend upon a condition or a period.
Example:
I promise to deliver AVON products to
A. Signed: B
Conditional Obligation:
An obligation whose demandability or
extinguishment is subject to a condition
Example:
I promise to deliver AVON products to A
if he passed LEM1J02 under Atty. Guia.
Signed: B
Condition a future and uncertain
event which may or may not happen
Kinds of Condition:
Suspensive Condition the happening of
which gives rise to an obligation
Resolutory Condition the happening of
which extinguishes the obligation
Potestative condition where the
fulfillment depends upon ones will (either
the debtor, creditor or a third person)
Casual condition when the fulfillment of
the condition depends upon chance
Kinds of Condition:
Mixed condition when the fulfillment of
the condition depends partly upon ones
will and partly upon chance.
Impossible Condition that which is not
capable of fulfillment because it is contrary
to the law of nature or contrary to law,
morals, public order or public policy.
Article 1191:
This article applies only to reciprocal
obligations and there is no express
power to rescind.
If one of the parties in reciprocal
obligations fails to comply with what
is incumbent upon him, there is a
right on the part of the other to
rescind.
Article 1191:
Rescission (Cancellation) can be
demanded only if plaintiff is ready, willing
and able to comply with his own obligation
and the other is not.
Slight breaches will not cause rescission.
Right to rescind needs judicial approval if
there has been delivery. If there is no
delivery, judicial approval is not necessary.
Article 1191:
Right is presumed, need not be
express
Choices: (These are alternative not
simultaneous)
1. Specific performance + damages
2. Rescission + damages
Obligations with a Period:
Definition: Those whose demandability
or extinguishment are subject to the
expiration of a term or period.
Example: I shall deliver the
determinate thing on July 8, 2003.
Period or a day certain a future and
certain event which must surely come
to pass.
Kinds of period:
Suspensive period
(ex die)
Resolutory period (in
diem)
Legal/Conventional
Voluntary Period

Definite Period
Indefinite Period
Judicial Period
Judicial period:
This is a period which is fixed by the courts.
The courts are empowered to fix the
duration of a period in an obligation in the
following instances:
1. If the debtor binds himself when his means
permit him to do so.
2. If the obligation does not fix a period but it
can be inferred that a period was intended
by the parties.
Example:
Article 1687 of the New Civil Code.
Month to month court may fix a period
if lessee occupied for more than one
year
Weekly- if lessee occupied for more than
six months
Daily if lessee occupied for more than
one month.
Facultative Obligation:
Obligation where only one principal
prestation is due, but the debtor may
render another in substitution.
Alternative Obligation:
An obligation wherein two or more
prestations are due, and payment or
delivery of one is sufficient to
extinguish the obligation.
Rules:
1. The right of choice belongs to the
debtor unless the choice is given to
the creditor

Alternative Obligation:
Rules:
2. The choice must be communicated to the
creditor, otherwise it has no effect. Once
the choice is communicated to the creditor,
the alternative obligation ceases and it
becomes a pure obligation.
3. If all the prestations are lost through a
fortuitous event before selection, the
obligation is extinguished
Alternative Obligation:
Rules:
4. If through the fault of the debtor all
the prestations are lost before
selection, the creditor shall have a
right to indemnity for damages
equivalent to the value of the thing
lost plus damages.
Alternative Obligation:
If the right of selection is expressly given to the
creditor, the following rules apply:
1. The creditor must communicate to the
debtor the prestation he has selected;
2. If one thing is lost through a fortuitous
event, the creditor may choose from the
remaining prestations
3. If only one prestation is left, the debtor
must deliver it even without notice from the
creditor.
Alternative Obligation:
4. If one prestation is lost through
debtors fault, the creditor may choose
from the remaining prestations or
demand the value of the thing plus
damages;
5. If all the things are lost through
debtors fault, the creditor may
demand the value of any of the things
lost.
Obligation with a penal clause:
It is an obligation with an accessory
undertaking by virtue of which the
obligor assumes a greater liability in
case of breach of the obligation.
Important:
The penalty shall substitute the indemnity for
damages and the payment of interest in
case of non-compliance, if there is no
stipulation to the contrary.
Damages (Exemplary damages) as well as the
penalty (liquidated damages) shall be
recovered if obligor refuses to pay the
penalty or when the obligor is guilty of
fraud.
Joint and Solidary Obligations:
Joint Obligation takes place when there is
concurrence of several debtors or creditors,
by virtue of which each of the creditors has
the right to demand, while each of the
debtor is bound to render compliance with
his proportionate part of the prestation.
Solidary Obligation takes place where each of
the creditors is entitled to demand or each
of the debtors is bound to render
compliance of the entire obligation.
Problems:
A, B, and C are indebted to D in the
amount of P15,000.00. How much
can D recover from C?

Answer: P5,000.00
Problems:
A is indebted to B, C and D in the amount
of P15,000.00. How much can C
recover from A?

Answer: P5,000.00
Problems:
A and B are indebted to C, D and E in the
amount of P15,000.00. How much
can C recover from A?

Answer: P2,500.00
Important:
The contract is presumed to be joint unless the
obligation expressly states for its solidarity;
or when the law expressly provides for its
solidarity
Kinds of solidarity:
1. Passive Solidarity existing among debtors
2. Active Solidarity existing among creditors
3. Mixed Solidarity existing among debtors
and creditors
Problems:
A, B and C are jointly and solidarily liable
to D in the amount of P15,000.00.
How much can D recover from A?

Answer: P15,000.00
Problems:
A is liable to B, C and D (solidary
creditors) in the amount of
P15,000.00. How much can D recover
from A?

Answer: P15,000.00
Problems:
A and B are jointly and solidarily liable to
C, D and E in the amount of
P15,000.00. How much can C recover
from A?

Answer: P5,000.00
Problems:
A and B are liable to C, D and E (solidary
creditors) in the amount of
P15,000.00. How much can C recover
from A?

Answer: P7,500.00
Problems:
A and B are jointly and solidarily liable to
C, D and E (solidary creditors) in the
amount of P15,000.00. How much
can C recover from A?

Answer: P15,000.00
Important:
Solidarity may exist although the creditors and the
debtors may not be bound in the same manner and
by the same periods and conditions. (Art. 1211)
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 (Art. 1212)
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
Art. 1219 (Art. 1215).
Important:
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. (Art. 1218)
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 has been totally
paid by anyone of them before remission is
effected(Art.1219)