Juwed Mark T.

Tawali
BSBA-FM2A

Alternative obligation is one where out of the two or more prestation which may be given, only
one is due.
Example: Benjie will give Angel this car or this ring or this fountain pen.

* Benjie does not have to give Angel all the three things enumerated.

The giving of one is sufficient to satisfy the obligation.

As a general rule, the right to choose the prestation belongs to the debtor.
By the way of exception, it may be exercised by the creditor but only when expressly granted to 
him (Art. 1205), or by a third person when the right is given to him by a common agreement, (Art. 
1306)

In a joint obligation “each obligor answers only for a part of the whole liability and
to each obligee belongs only a part of the correlative rights.” Whereas, in “a solidary
or joint and several obligations, the relationship between the active and the passive
subjects is so close that each of the former or of the latter may demand the fulfillment
of or must comply with the whole obligation.”
For Joint Obligations:

1. (a)  A and B are joint debtors of C to the amount of P1,000,000. C can demand only
P500,000 from A, and only P500,000 from B.

For Solidary Obligations:

1. (a)  A and B are solidary debtors of C to the amount of P1,000,000. C can demand the

whole P1,000,000 from A. A in turn, after paying C, can ask reimbursement from B to
the amount of P500,000.

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.

The solidarity of the debtors is not affected even if different terms and conditions are made
applicable to them.
Enforcement of the terms and conditions may be made at different times. The obligations which
have matured can be enforced while those still undue will have to be awaited. Enforcement can
be made against any one of the solidary debtors although it can happen that a particular
obligation chargeable to a particular debtor is not yet due. He will be answerable for all the
prestations which fall due although chargeable to the other co-debtors.

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Example: 

A, B, C, and D obliged themselves solitarily to pay E P20,000.00, as follows:

A, to pay by installment at the rate of P1,000.00 a month, to start in July; B, to pay in September;
C, to pay in December; and D, if E passes the Bar examinations.
(a) In July, E can demand only P1,000.00 from A. E can also make a demand from B, C, and/or
D the P1,000.00 share corresponding to A. But E cannot recover yet the shares of B, C, and D
which are not yet due and demandable.
(b) In September, E is entitled to collect from any of the solidary debtors the share corresponding
to B which is P5,000.00 and A, P1,000.00 or P3,000.00, if A had not yet paid any installment.
The shares of C and D are not yet recoverable.
(c) In December, E can recover from any of the solidary debtors, the share corresponding to C in
the amount of P5,000.00 plus such amounts from the shares of A and B which have not yet been
paid. The share of D will mature only after E passes the Bar examinations.
(d) If E passes the Bar examinations, the obligation of D to pay P5,000.00 arises. This amount
can be demanded from any of the solidary debtors. Again, E is also entitled to recover all
amounts which are already due and demandable and unpaid pertaining to the shares of A, B, and
C.
(e) If the agreement is that E may demand the entire obligation from B in September, from C in
December, or from D if E passes the Bar examinations, then B is liable for P20,000.00 in
September less the amount, if any, already paid by A and D; C is liable for P20,000.00 in
December less the amount, if any, already paid by A, B, and D. D is liable for P20,000.00 if E
passes the Bar examinations less the amount, if any, already paid by A, B, and C.

Payment is the fulfillment of a promise; the performance of an agreement. A delivery of money,

or its equivalent in either specific property or services, by a debtor to a creditor.

An obligation is divisible when the object of the performance is susceptible of division. An

obligation is indivisible when the object of the performance, because of its nature or because of
the intent of the parties, is not susceptible of division.

Article 1231. 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.

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Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of

a resolutory condition, and prescription, are governed elsewhere in this Code.
Payment or Performance
Article 1232. Payment means not only the delivery of money but also the performance, in
any other manner, of an obligation. 

Example:

1. If D is obligated to give E a specific car, payment is made by delivering the car.

2. If C is obligated to repair the computer of F, payment is made by performing
the service.

Loss of the Thing Due

Article 1262. An obligation which consists in the delivery of a determinate thing shall be
extinguished if it should be lost or destroyed without the fault of the debtor, and before he
has incurred in delay.
When by law or stipulation, the obligor is liable even for fortuitous events, the loss of the
thing does not extinguish the obligation, and he shall be responsible for damages. The same
rule applies when the nature of the obligation requires the assumption of risk. 

Example:

Gloria obliged himself to deliver to Joseph a specific race horse. The horse met an
accident as a result of which it suffered a broken leg. The injury is permanent. Here,
the partial loss is so important as to extinguish the obligation.

If the loss is due to the fault of Gloria, she shall be obliged to pay the value of the
horse with indemnity for damages.

If the horse to be delivered is to be slaughtered by Joseph, the injury is clearly not

important. Even if there was fault on the part of Gloria, she can still deliver the horse
with liability for damages, if any, suffered by Joseph.

CONDONATION OR REMISSION OF DEBT

Article 1270. Condonation or remission is essentially gratuitous, and requires the acceptance by
the obligor. It may be made expressly or impliedly.
One and the other kind shall be subject to the rules which govern in officious donations. Express
condonation shall, furthermore, comply with the forms of donation. 

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Example:

Kris owes Bam $1 million with Noy as guarantor. The principal obligation is the debt of $1
million, while the accessory obligation is the guaranty of Noy.

The remission of the debt of Kris by Bam shall extinguish the guaranty of Noy. But if only the
guaranty of Noy is condoned, the obligation of Kris shall remain in force.

CONFUSION OR MERGER OF RIGHTS

Article 1275. The obligation is extinguished from the time the characters of creditor and debtor
are merged in the same person. 

Example:

Cleopatra owes Ptolemy fifty thousand pesos. Before Ptolemy can collect he dies and the credit
passes on to his heir Mark Anthony. Sometime in 2018 Mark Anthony owed Cleopatra the
amount of fifty thousand arising from Mark Anthony’s purchase of a racing horse. In satisfaction
of his debt, Mark Anthony assigns to Cleopatra the credit he inherited from Ptolemy. So, there is
now a merger of creditor and debtor in one person.

COMPENSATION

Article 1278. Compensation shall take place when two persons, in their own right, are creditors
and debtors of each other. 

Example:

Chowqueen owes MacBonald 10M. MacBonald on another occasion owed Chowqueen 15M
pesos. MacBonald is liable to Chowqueen with 5M.

NOVATION

Article 1291. Obligations may be modified by:

(1) Changing their object or principal conditions;

(2) Substituting the person of the debtor;

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(3) Subrogating a third person in the rights of the creditor. 

Example:

(1) CHANGING THEIR OBJECT OR PRINCIPAL CONDITIONS

Simon agreed to deliver to Ben a car. Later, they entered into another contract whereby, instead
of Simon delivering a car, he would deliver 10 air conditioners. The obligation to deliver a car is
extinguished by the obligation to deliver the 10 air conditioners. The change may involve the
principal terms of the obligation.

(2) SUBSTITUTING THE PERSON OF THE DEBTOR

If after the constitution of the obligation, both parties agreed that Cath will substitute for Simon
or that Dan will be subrogated in the rights of Ben, there is a personal novation. In this case, Cath
becomes the new debtor or Dan, the new creditor as the case may be.

(3) SUBROGATING A THIRD PERSON IN THE RIGHTS OF THE CREDITOR

If the agreement of the parties is that Simon will deliver to Dan the 10 air conditioners, instead of
Simon delivering a car to Ben, then there is a mixed novation because the object of the obligation
and the person of the creditor are changed.

What is COVID-19? 

COVID-19 is a disease caused by a new strain of coronavirus. ‘CO’ stands for corona, ‘VI’ for
virus, and ‘D’ for disease. Formerly, this disease was referred to as ‘2019 novel coronavirus’ or
‘2019-nCoV.’ The COVID-19 virus is a new virus linked to the same family of viruses as Severe
Acute Respiratory Syndrome (SARS) and some types of common cold.

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