Other Primary Classification

of Obligations
 Classifications of Obligations
Primary classification of obligations
under the Civil Code:
• (a) Pure and conditional obligations
• (b) Obligations with a period
• (c) Alternative and facultative
obligations
• (d) Joint and solidary obligations
• (e) Divisible and indivisible
obligations
• (f) Obligations with a penal clause
Secondary classification of obligations
under the Civil Code:
• (a) Unilateral and bilateral
obligations
• (b) Real and personal obligations
• (c) Determinate and generic
obligations
• (d) Civil and natural obligations
• (e) Legal, conventional, and
penal obligations.
 Kinds of Obligation According to Object
• (1) Simple obligation. — one where there is only one prestation,
• Ex.: S obliged himself to deliver to B a piano; S promised to repair the car of B.
• (2) Compound obligation. — one where there are two or more
prestations. It may be:
• (a) Conjunctive obligation. — one where there are several prestations and all
of them are due; or
• (b) Distributive obligation. — one where one of two or more of the
prestations is due. It may be
• Alternative
• Facultative
 Alternative Obligation
• Alternative obligation - is one where several prestations are due but the complete
performance of one of them is sufficient to extinguish the obligation.

• Right to choose
• General rule: The right belongs to the debtor.
• Exception : Unless given to the creditor.

• Limitations on the right of the debtor to choose: The debtor shall have no right to choose
those prestations which are
• 1. Impossible
• 2. Unlawful
• 3. Those which could not have been the object of the obligation.
 Alternative Obligation
• Rules, obligations and rights of debtor and creditor in an alternative obligation:
• A. Choice belongs to the debtor:
• 1. Loss is due to fortuitous event
a) If all are lost, obligation is extinguished.
b) If 2 or more of the objects remain, the debtor can deliver any of the 2 remaining.
c) If only 1 remains, there is no more alternative obligation but a pure and simple obligation. He should
deliver the remaining object.
• 2. Loss is due to debtor’s fault:
a) If all are lost, the obligation is converted into monetary consideration as indemnity for damages
amounting to the value of the last thing lost plus damages.
b) If 2 or more objects remain, the debtor can choose (between the 2) which one to deliver but no
damages.
c) If only 1 remains, there is no more alternative obligation but a pure and simple obligation. He should
deliver the remaining object but no damages.
 Alternative Obligation
• Rules, obligations and rights of debtor and creditor in an alternative obligation:
• B. Choice belongs to the creditor:
• 1. Loss is due to fortuitous event – the effects are the same as the right of choice
belongs to the debtor.
• 2. Loss is due to debtor’s fault
a) If none remains, the obligation is converted into monetary consideration based on the
value of any of object chosen by the creditor plus damages.
b) If 2 or more remain, the right of the creditor is to choose between the 2 objects plus
damages. If he chooses the lost object, the debtor is liable for the value plus damages.
c) If only 1 remains, the creditor may choose the remaining object with damages or may
choose any of the 2 which were lost, the debtor must pay the value plus damages.
 Facultative Obligation
• Facultative obligation – is one where only one prestation has been agreed upon but the debtor may
render another in substitution.
• Effect of loss of the thing in facultative obligation:
• (1) Before substitution.
a) If the principal thing is lost through a fortuitous event, the obligation is extinguished; otherwise, the debtor is
liable for damages.
b) The loss of the thing intended as a substitute with or without the fault of the debtor does not render him liable.
The reason is that the thing intended as a substitute is not due. The effect of the loss is merely to extinguish the
facultative character of the obligation.
• (2) After substitution. Once the substitution is made, the obligation is converted into a simple one to
deliver or perform the substituted thing or prestation. The substitution becomes effective from the
time it has been communicated.
a) If the principal thing is lost, the debtor is not liable whatever may be the cause of the loss, because it is no longer
due.
b) If the substitute is lost, the liability of the debtor depends upon whether or not the loss is due through his fault.
 Distinguished Facultative Obligation from
Alternative Obligation
Alternative Obligation
Several objects are due but compliance with one is
sufficient.
The right of choice is with the debtor but may be given
to the creditor or third person.
Where the choice belongs to the creditor,
the loss of one alternative through the fault of the
debtor gives rise to liability.
The loss of one of the alternatives through the fault of
the debtor does not render him liable.
If there are void objects, the others may still be valid,
hence the obligation remains.
If all objects are impossible, except one, that which is
possible must still be given.
Facultative Obligation
Only one object is due although the debtor is allowed
to substitute another.
The right of choice belongs to the debtor only.
The loss of the substitute before the substitution
through the fault of the debtor does not render him
liable
The loss of the thing due through debtor’s fault makes
him liable.
If the principal obligation is void, the debtor is not
required to give the substitute.
If the principal obligation is impossible, the debtor is
not required to give the substitute.
 Kinds of obligation according
to the number of parties
• (1) Individual obligation. — one where there is only one obligor and
one obligee; and
• (2) Collective obligation. — one where there are two or more debtors
and/or two or more creditors.
• It may be joint or solidary.
• In a collective obligation, there are two relations involved:
• That between the creditor and the debtors (or the creditors and the debtor,
or the creditors and the debtors) and
• that among the creditors and/or debtors themselves.
 Joint Obligations and Solidary Obligations
• Joint obligation - is one where the whole obligation is to be paid or
fulfilled proportionately by the different debtors and/or is to be
demanded proportionately by the different creditors.
• Solidary obligation - is one where each one of the debtors is bound to
render, and/or each one of the creditors has a right to demand entire
compliance with the prestation.

• Note: The street parlance for joint obligation is to each his own while
for solidary obligation is one for all and all for one.
Joint Obligations and Solidary Obligations

Synonyms for Joint and Solidary Obligations

Joint Solidary
1. Pro-rata 1. In solidum
2. Proportionate 2. Jointly and severally
3. Mancomunada 3. Individually and collectively
4. Mancomunada Simple 4. Mancomunada Solidaria
5. Juntos separadamente
 Joint Obligations
• Presumption that the obligation is joint:
• General rule: Obligations are presumed to be joint.
• Even when there are 2 or more debtors, or 2 or more creditors, the obligation is
still joint, hence
• 1) The debt shall be divided into as many shares as there are creditors or debtors.
• 2) The creditors or the debtors will be considered distinct from one another, but
for purposes of bringing the action, the Rules of Court governing the multiplicity
(a large number) of suit will apply.

• Except:
• 1) When the obligation expressly so states.
• 2) When the law or the nature of the obligation requires solidarity.
 Joint Obligations
• Some features of joint liability (to each his own):
1) Insolvency (inability to pay one's debts) of one debtor does not make
the others liable.
2) Vitiated (voidable) consent on the part of one debtor does not affect
the others.
3) Demand made to one of the debtors is not a demand to all because the
debt of one is distinct from the others.
4) When the creditor interrupts the running of the prescriptive period by
demanding judicially from one, the others are not affected.
5) Defenses of one debtor are not necessarily available to the others.
 Solidary Obligations
• (1) Kinds of solidarity according to the parties bound:
• (a) Passive solidarity - solidarity on the part of the debtors, where anyone of them
can be made liable for the fulfillment of the entire obligation.
• Its characteristics are plurality of debtors and unity of prestation.
• It is in the nature of a mutual guaranty.
• (b) Active solidarity - solidarity on the part of the creditors, where anyone of them
can demand the fulfillment of the entire obligation.
• Its essential feature is that of mutual representation among the solidary creditors with
powers to exercise the rights of others in the same manner as their rights.
• (c) Mixed solidarity - solidarity on the part of the debtors and creditors, where
each one of the debtors is liable to render, and each one of the creditors has a
right to demand, entire compliance with the obligation.
 Solidary Obligations
• (2) Kinds of solidarity according to source:
• (a) Conventional solidarity - where solidarity is agreed upon by the
parties.
• If nothing is mentioned in the contract relating to solidarity, the obligation is
only joint.
• (b) Legal solidarity - where solidarity is imposed by the law.
• (c) Real solidarity - where solidarity is imposed by the nature of the
obligation.
 Solidary Obligations
• (3) Kinds of solidary obligation according to the legal tie:
• (1) Uniform. — when the parties are bound by the same stipulations
or clauses.
• (2) Non-uniform or varied. — when the parties are not subject to the
same stipulations or clauses.
 Solidary Obligations
• Some instances when the law requires solidarity:
1) All partners are liable solidarity with the partnership if the act complained of arises
from a crime or quasi-delict.
2) In agency, if 2 or more persons have appointed an agent for a common transaction,
they shall be solidarity liable to the agent for all the consequences of the agency.
3) The responsibility of 2 or more persons who are liable for a quasi-delict is solidary.
4) The responsibility of 2 or more payees, when there has been payment of what is
not due, is solidary.

• Quasi Delict or tort  refers to acts or omission causes damage to another, there is
being fault or negligence, is obliged to pay for the damages done.
 Joint Obligations and Solidary Obligations
• Joint indivisible obligation - constitutes the middle ground between a joint obligation and a
solidary obligation.
• The obligation is joint because the parties are merely proportionately liable.
• It is indivisible because the object or subject matter is not physically divisible into different parts.
• Indivisibility refers to the prestation (object), while solidarity refers to the juridical or legal tie that binds the parties.
• In other words, it is joint as to liabilities of the debtors or rights of the creditors but indivisible as to
compliance.

• EXAMPLE:
• A, B, and C are jointly liable to give D a car valued at P240,000.00. On the date of delivery, A
and B are willing to deliver but C is not.
• The object, which is the car, is indivisible but the obligation is joint---demand must be made to
the joint debtors. But If one the debtors cannot comply, the obligation is converted into
monetary consideration. One who is ready and willing to comply will pay his proportionate
share, and the other not willing shall pay his share plus damages.
 Joint Obligations and Solidary Obligations
• Characteristics of joint indivisible obligation:
1) Demand must be made to all the joint debtors.
2) The creditor must proceed against all the joint debtors, because the compliance
of the obligation is possible only if all of the joint debtors would act together.
3) If one of the debtors is insolvent, the other shall not be liable for his share.
4) If one the debtors cannot comply, the obligation is converted into monetary
consideration. One who is ready and willing to comply will pay his proportionate
share, and the other not willing shall pay his share plus damages.
5) If there are more than one creditor, delivery must be made to all, unless one is
authorized to receive for the others.
 Joint Obligations and Solidary Obligations
• The indivisibility of an obligation does not necessarily give rise to
solidarity.
• means that the liability in an indivisible obligation may be either joint or
solidary.
• Nor does solidarity of itself imply indivisibility.
• means that in a solidary obligation, the subject matter may bedivisible or
indivisible.
 Joint Obligations and Solidary Obligations
• Indivisibility distinguished from solidarity:
• (1) Indivisibility refers to the prestation (object), while solidarity refers to the
juridical or legal tie that binds the parties.
• (2) In indivisible obligations, only the debtor guilty of breach of obligation is
liable for damages, thereby terminating the agency, while in solidary
obligations, all of the debtors are liable for the breach of the obligation
committed by a co-debtor for solidarity among them remains.
• (3) Indivisibility can exist although there is only one debtor and one creditor,
while in solidarity, there must be at least two debtors or two creditors.
• (4) In indivisible obligations, the others are not liable in case of insolvency of
one debtor, while in solidary obligations, the others are proportionately liable.
 Joint Obligations and Solidary Obligations
• Joint obligation on one side, solidary on the other. An obligation
may be joint on the side of the creditors and solidary on the side of
the debtors, or vice versa.
• In such cases, the rules applicable to each subject of the obligation
should be applied, the character of the creditors or the debtors
determining their respective rights and liabilities.
• Thus, if the obligation is joint on the side of the creditors, and solidary
on the side of the debtors, each creditor can demand only his share in
the obligation; but each debtor may be compelled to pay the entire
obligation to the creditors.
 Divisible and Indivisible obligations
• Divisible obligation is one the object of which, in its delivery or performance, is
capable of partial fulfilment (such as the obligation to deliver 10 sacks of rice).

• The following obligations are deemed divisible:

1) When the obligation has for its object the execution of a certain number of days
of work (such as an obligation to work for 1 week).
2) When the obligation has for its object the accomplishment of work by metrical
units (such as the obligation to construct a pavement which is 10 meters long
and 1 meters wide).
3) Analogous thins which by their nature are susceptible of partial performance.
 Divisible and Indivisible obligations
• Indivisible obligation is one the object of which, in its delivery or performance, is not
capable of partial fulfilment (such as the obligation to deliver a specific car).
• The following obligations are deemed indivisible:
1) Obligation to give definite things (such as the obligation to give a specific horse).
2) Those not susceptible of partial performance (such as the obligation of a singer to sing
one song in a program).
3) Those where the object or service is physically divisible but it is indivisible by
provision of law (such as where the obligation is to pay a sum of money but the law
provides that the sum must be paid in full as in the case of certain taxes).
4) Those where the object or service is physically divisible but it is indivisible by the
intention of the parties (such as where the obligation is to pay a sum of money but
the parties agreed that the sum be paid in full).
 Obligation with a Penal Clause
• Meaning of principal and accessory obligations:
• (1) Principal obligation - is one which can stand by itself and does not depend
for its validity and existence upon another obligation.
• (2) Accessory obligation - is one which is attached to a principal obligation and,
therefore, cannot stand alone.

• Obligation with a penal clause – is one which provides for a greater liability on
the part of the debtor in case of noncompliance.
• Penal clause – is the accessory undertaking on the part of the debtor.
• Is undertaken to insure performance and works as either or both punishment and
reparation.
 Obligation with a Penal Clause
• Purposes of penal clause:
1) To provide for liquidated damages
2) To strengthen the coercive force of the obligation, by threat of
greater responsibility in the event of breach.
3) To punish the debtor for the nonfulfillment or violation of his
obligation
 Obligation with a Penal Clause:
Kinds of Penal Clause.
• (1) As to its origin:
• (a) Legal penal clause. — when it is provided for by law; and
• (b) Conventional penal clause. — when it is provided for by stipulation of the parties.
• (2) As to its purpose:
• (a) Compensatory penal clause. — when the penalty takes the place of damages; and
• (b) Punitive penal clause. — when the penalty is imposed merely as punishment for
breach.
• (3) As to its dependability or effect:
• (a) Subsidiary or alternative penal clause. — when only the penalty can be enforced;
and
• (b) Joint or cumulative penal clause. — when both the principal obligation and the penal
clause can be enforced.
 Obligation with a Penal Clause
• Rule in case obligation has a penal clause
• General Rule: The penalty takes the place of the damages and
interest in case of non-compliance.
• Exceptions, i.e., aside from the penalty, damages and interest may
also be demanded.
1) When there is a stipulation to that effect.
2) When the debtor refuses to pay the penalty.
3) When the debtor is guilty of fraud in the performance of the
obligation.
 Obligation with a Penal Clause
• When the court may reduce the penalty:
1) When there is partial or irregular performance by the debtor. — The
first refers to the extent of fulfillment, the latter, to the manner.
2) When the penalty agreed upon is iniquitous (grossly unfair and
morally wrong) or unconscionable (unreasonably excessive) even if
there has been no performance.
 Obligation with a Penal Clause
• Effect of nullity (legally void) of principal obligation or penal clause:
1) The nullity of the principal obligation carries with it the nullity of the
penal clause. Being just an accessory undertaking, penal clause
cannot stand itself.
2) The nullity of the penal clause does not carry with it that of the
principal obligation. The principal obligation can stand by itself.
The End