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Chapter 3 - Different Kinds of Obligations Identification Reviewer Section 1 - Pure and Conditional Obligation
Chapter 3 - Different Kinds of Obligations Identification Reviewer Section 1 - Pure and Conditional Obligation
Chapter 3 - Different Kinds of Obligations Identification Reviewer Section 1 - Pure and Conditional Obligation
Identification Reviewer 13) Possible – the condition is capable of fulfillment, legally and physically.
Section 1 – Pure and Conditional Obligation
1) Article 1179. Every obligation which is not subject to a future or uncertain, and with a 14) Impossible – the condition is not capable of fulfillment, legally and physically.
past event which is unknown to the parties, is demandable at once. Also, an obligation
subject to a resolutory condition shall also be demandable, without prejudice to the effects 15) Potestative – the condition is dependent upon the will of one of the contracting parties.
of the happening of the events.
16) Casual – the condition is dependent upon chance or upon the will of a third person.
2) Pure obligation – is an obligation which is not subject to a condition and there is no
date specified with its fulfillment and is therefore, demandable. 17) Mixed – the condition is dependent partly upon chance and partly upon the will of a
third person.
3) Conditional obligation – is an obligation which its consequences are subject in one way
or another to the fulfillment of a condition. 18) Positive – the condition consists in the performance of an act.
4) Condition – is a future AND uncertain event in which the effectivity or extinguishment 19) Negative – the condition consists in the omission of an act.
of an obligation is subject to its fulfillment. It may refer to a past event which is unknown to
the parties. It is important that the event is uncertain, otherwise it is considered as 20) Conjunctive – there are several conditions and all must be fulfilled.
obligation with a period. However, the condition must be possible.
21) Disjunctive – there are several conditions and one or two of them must be fulfilled.
5) Suspensive condition – a condition in which its fulfillment will give rise to an obligation.
The demandability of the obligation is subject to its fulfillment. 22) Divisible – the condition is susceptible to partial performance.
6) Resolutory condition – a condition in which the fulfillment of it will extinguish an 23) Indivisible – the condition must be performed as a whole.
existing obligation.
24) Physically impossible conditions – when they, in nature of things, cannot be done or
7) Past event unknown to the parties – this term only refers to the knowledge of a future cannot exist. (Ex. Not rain in the Philippines for one year)
event with regards to a past event which makes it uncertain.
25) Legally impossible conditions – when it is contrary to law, morals, good customs, public
8) Period – is a future and certain event in which the effectivity or extinguishment of an order and public policy. (Ex. Killing, common-law-wife, slap, publicly advocate the overthrow
obligation is subject to its fulfillment. It is as if the debtor will fulfill the obligation when his of the government and not appear as witness against the criminal)
means permit him to do so. Also, it is a certain event although it may not be known when.
26) Physical loss – when the thing perishes as when the house is burned and reduced to
9) Suspensive – the happening of which gives rise to an obligation. ashes.
10) Resolutory – the happening of which extinguishes an obligation. 27) Legal loss – when the thing goes out of commerce or when it is legal before and it
becomes illegal.
11) Express – the condition is clearly stated.
28) Civil loss – when the thing disappears as if its existence is unknown or if known, it
12) Implied – the condition is merely inferred. cannot be recovered, as a matter of fact or of law.
29) Usufruct – the right to enjoy the fruits of the thing belonging to another. 39) Obligation with a period – is one whose consequences are subjected in one way or
another to the expiration of a period or term.
30) Applicability of Article 1189 in obligation to return – in a resolutory condition, the
fulfillment of the condition converts the debtor into a creditor and creditor into a debtor. 40) Suspensive period – an obligation arises upon the happening of a certain event or
Hence, the rules on loss, deterioration or improvement of the thing apply in the obligation period.
to return.
41) Resolutory period – an obligation is extinguished upon the happening of a certain
31) Unilateral obligation – obligation in which only one party is bound to comply with a event.
prestation.
42) Legal period – a period which is set or provided by law.
32) Bilateral obligation – obligation in which both parties are bound to give one another a
prestation. This is a case in which both parties are creditors and debtors of one another. 43) Conventional or voluntary period – a period which is agreed by the parties.
33) Reciprocal obligation – obligation which arises from the same cause and the 44) Judicial period – a period fixed by the court.
performance of one party is dependent upon the performance of another.
45) Definite period – a period/time known to the parties.
34) Non-reciprocal obligations – are those which do not impose simultaneous and
correlative performance on both parties. The performance of one party is not dependent 46) Indefinite period – a period which is not known to the parties. In this case, the court
upon the performance of another. may be called upon to set the time of fulfillment of the obligation.
35) The courts may grant guilty party term for performance – if there is a just cause to give 47) Recovery of the thing (payment before arrival of the period) – the debtor may still
the party in default time to perform his obligation, the court may still approve it. This is recover the thing if it is delivered by mistake prior to the fulfillment of a period. He carries
applicable if the debtor is willing to perform. the burden of proving that he is unaware that the period has not yet arrived. However, if the
period has already arrived, the debtor cannot recover the payment but he can still recover
36) Remedy is alternative – it is not cumulative, meaning once the injured party decided to the interest from the premature payment up to the date of the maturity of obligation.
have the obligation performed, he can still ask for rescission if the obligation is impossible to
perform, otherwise he could not choose both performance and rescission. If the injured 48) No recovery in case of personal obligation – you cannot recover the service you have
party chose rescission, he could not ask for the performance of the obligation anymore. rendered, the same goes with a negative obligation, you cannot recover what you have not
done.
37) When expressly stipulated in contract, it is possible for both parties to enter in a
contract whereby they agree that in case of breach or violation of the terms, the injured 49) Period for the benefit of both parties – it is presumed that the period agreed by both
party may choose rescission even without the intervention of the court. parties benefits both of them or one of them. Therefore, the debtor cannot be compelled to
pay and creditor cannot demand prior to the fulfillment of period unless otherwise
38) Where contract still executory – in an obligation where both parties have not yet stipulated. However, it is rebuttable.
performed their obligations, however one party is already willing and ready to perform and
the other is not, he may choose rescission even without the intervention of the court. 50) Computation of term or period – when the laws speak of years, months, days and
nights, it should be understood as 365 days in a year, 12 months and 30 days in a month, 24
Section 2 – Obligations with a period hours in a day and night is from sunset to sunrise. Also, in computing for a period, the last
day should be included while the first day excluded. Also, holidays should be excluded. If applicable if it is upon the creditor. Before the selection of the creditor, the debtor could not
months are designated by their name, the number of days they respectively have should be incur in delay.
computed.
CHAPTER 3 – SECTION 4: JOINT AND SOLIDARY OBLIGATIONS
Section 3 – Alternative Obligations (Identification)
51) Simple Obligation – an obligation in which there is only one prestation required. 1) Individual obligation – an obligation where there is only one obligor and obligee.
52) Compound Obligation – an obligation in which there are two or more prestation 2) Collective obligation – an obligation where there are two or more debtors and/or two
required. or more creditors.
53) Conjunctive Obligation – an obligation in which there are several prestation and all 3) Joint obligation – one where the obligation is to be paid or fulfilled proportionately by
must be fulfilled or given. the different debtors and/or is to be demanded proportionately by the different creditors.
54) Distributive Obligation – there are several prestation but only one of them must be 4) Solidary obligation – one where each one of the debtors is bound to render, and/or
fulfilled. each one of the creditors has a right to demand to any of the debtors, the entire compliance
with the prestation.
55) Alternative Obligation – One of the two or more prestation must be fulfilled. The right
of choosing the prestation to be given, as a general rule, belongs to the debtor. 5) Multiplicity of suits – the presumption in Article 1208 is subject to the rules of Court
governing this. Otherwise, situations may arise where there are as many suits as there are
56) Facultative obligation – is one where only one prestation has been agreed upon but the debtors and creditors.
obligor may render another in substitution.
6) Passive Solidarity – solidarity on the part of the debtors, where anyone of them can be
57) The right of choice, as a rule, belongs to the debtor – unless expressly stated, the compelled to pay the entire obligation.
creditor can also choose the prestation to be given or a third person can choose by common
agreement. 7) Active Solidarity – solidarity on the part of the creditors, where anyone of them can
demand payment of the entire obligation from anyone of the debtors.
58) Rescission – creates an obligation to return what has been given as an object of the
obligation together with its fruits, and price with its interest. 8) 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,
59) Basis of indemnity – the value or price of the last prestation that has disappeared or compliance of the entire obligation.
destroyed through the fault of debtor would be the basis of indemnity. In case of
disagreement, the creditor has to prove the value or which of the things last disappeared. 9) Conventional Solidarity – when solidarity is expressly stipulated in the contract or
agreed upon by the parties.
60) When the right of choice belongs to the creditor – In alternative obligation, the right of 10) Legal Solidarity – when solidarity is imposed by law
choice naturally belongs to the debtor. However, the debtor may expressly give the right of
choice to the creditor. In such, the rules regarding in the right of choice of debtor are also 11) Real Solidarity – when solidarity is imposed by the nature of obligation
12) Solidarity not presumed – if there are two or more persons in the same obligation, it is give the shares of the others. However, if the assignment is made to a co-creditor, the
presumed to be joint because solidarity is very burdensome for the part of the debtors and consent of the other creditors is not necessary.
the law tends to favor the debtors in presuming that they are bound jointly and not
solidarily. 24) Payment to any of the solidary creditors – in case of active or mixed solidarity, the
debtor(s) can pay either of the creditors but if a judicial or extra-judicial demand was made
13) Joint Indivisible obligation – an obligation where it is joint as to liabilities of debtors and by one of the creditors, the debtor who was asked to pay is bound to make the payment to
rights of the creditors but indivisible as to compliance. that creditor. If the debtor made the payment to other creditor who did not make the
demand and if that creditor did not give the other his share of the payment, the other
14) Joint Indivisible Obligation – Debtors are liable jointly to deliver a car (particular thing creditor can still collect from the debtor his share of the payment.
which is indivisible).
25) Effect of novation, etc. where obligation is joint – In a joint obligation, causes of
15) Joint Divisible Obligation – debtors are liable jointly to pay money (money is divisible). modification or extinction does not terminate the obligation except with respect to the
creditor or debtor affected.
16) Solidary Indivisible Obligation – debtors are liable solidarily to deliver a car (particular
thing which is indivisible). 26) Creditor may proceed against any solidary debtor – if a demand is made by the creditor
to one of the debtors and that debtor did not make the payment in full, the creditor can still
17) Solidary Divisible Obligation – debtors are liable solidarily to pay sum of money (money demand from other solidary debtors for the remaining obligation. However, if demand is
is divisible). made to A, he cannot ask for the creditor to make a demand to other debtors as the creditor
has the right to proceed against any one of them.
18) Uniform Solidary obligation – when the parties are bound by the same stipulations.
27) Prescription – one acquires ownership and other rights through the lapse of time in the
19) Non-uniform or varied Solidary obligation – when the parties are not bound by the manner and under the conditions laid down by law.
same stipulations.
28) Effect of remission of share after payment – if payment is made before remission, the
20) Solidarity not affected by diverse stipulations – the rule is that the creditor may bring remission will have no effect because there is no more obligation to remit. However, if
his action in toto against any of the solidary debtors less the shares of the other debtors remission is made and payment is made subsequently, solutio indebiti arises. The solidary
with unexpired terms or unfulfilled conditions or less the shares already been paid by other debtor who made the payment is entitled to receive back his proportionate share.
debtors.
29) No right to reimbursement in case of remission – the solidary debtor who received
21) Act of solidary creditor prejudicial to others – a solidary creditor may do any act remission is not entitled to ask for reimbursement from his co-debtors because remission is
beneficial or useful to the others but he cannot perform any act prejudicial to them. If he gratuitous and he did not actually make payments to the creditor.
performs such act and as a result the obligation is extinguished, he shall be responsible to
the others for damages. SECTION 5 – DIVISIBLE AND INDIVISIBLE OBLIGATIONS
22) Remission or condonation – gratuitous abandonment of debt. 1) Divisible Obligation – is one where the object of which, in its delivery or performance,
is capable of partial fulfillment.
23) Assignment by solidary creditor of his rights – in the absence of consent given by the
others, a solidary creditor cannot assign his rights to a third person. The assignee may not 2) Indivisible Obligation – is one where the object of which, in its delivery or performance,
is not capable of partial fulfillment.
3) Absolute Rule in Divisibility – divisibility of obligation is not subject to possibility or 14) General Rule – generally, obligations to do and not to do are indivisible. However,
impossibility of partial prestation, you can determine it according to the purpose or obligations to do stated in article 1225 are divisible.
intention of the parties. However, an indivisible prestation will remain indivisible even if the
intention of the parties is otherwise.
SECTION 6 – OBLIGATION WITH A PENAL CLAUSE
4) An obligation is presumed to be indivisible when there are only one debtor and
creditor. 1) Principal obligation – is one which can stand by itself and its validity and existence do
not depend on another obligation.
5) Applicability of Article 1223 – although it may appears that the article refers to a real
obligation, divisibility of obligation refers to the object or prestation of an obligation in its 2) Accessory obligation – is one which cannot stand by itself and depends upon a
broad sense, whether it may be a service or a thing. principal obligation.
6) Qualitative Division – division of object of obligation based on quality rather than on 3) Obligation with a penal clause – is one which there is an accessory undertaking
numbers or quantity. attached to it in order to pay previously stipulated indemnity in case of breach.
7) Quantitative Division – division of object of obligation based on numbers or quantity 4) Penal clause – is an accessory undertaking attached to an obligation to assume greater
rather than on quality. liability in case of breach.
8) Ideal or Intellectual Division – is one which exists only in the mind of the parties. 5) Legal Penal clause – when it is provided for by law.
9) Legal indivisibility – an indivisible obligation set by law even if the object is by nature 6) Conventional penal clause – when it is provided by the contracting parties.
divisible.
7) Compensatory penal clause – when the purpose of the penalty is for payment of
10) Conventional Indivisibility – an indivisible obligation set or contracted by the parties, damages.
even though the object is by nature divisible.
8) Punitive penal clause – when the purpose of the penalty is to punish the violator.
11) Natural Indivisibility – an object which is by nature indivisible, regardless of the
intention of the parties. (Example: car) 9) Subsidiary or alternative penal clause – when only the penalty can be enforced.
12) Where there is only one debtor and creditor – the debtor has to perform the obligation 10) Joint or cumulative penal clause – when the principal obligation and penalty can be
in totality, whether the prestation is divisible or not. The creditor cannot be compelled to enforced.
receive partial performance and a partial performance would not extinguish the obligation
unless it is fully performed. 11) Penalty substitutes for damages and interests – as a general rule, the penal clause
substitutes for damages and payment of interests in case of non-compliance. The creditor
13) Effect of non-compliance by a debtor in a joint indivisible obligation – the obligation will does not need to go to court to prove the actual damages if there is penal clause.
be turned into one for damages (i.e., to pay money). The creditor cannot demand specific
performance or rescission because there is no cause of action against the other debtors who 12) When penalty may be enforced – penalty can only be demandable if there is a breach
are willing to fulfill their promises. committed by the obligor and if it is not contrary to law, morals, customs, public policy and
public order. The penalty may also be reduced if it is iniquitous or unconscionable and if
there is already partial fulfillment. 2) Primary Classification of obligations
· Pure and conditional obligations
13) Penalty not substitute for performance – the debtor cannot just pay the penalty in · Obligations with a period
substitution for non-compliance of the obligation. By the general purpose of penal clause, it · Alternative and facultative obligations
is to ensure the compliance of the obligation, thus penalty is not a substitute. However, the · Joint and solidary obligations
debtor can do so if it is clearly stipulated that the creditor allowed him, thus the obligation is · Divisible and indivisible obligations
not with a penal clause anymore but an alternative. · Obligations with a penal clause
Section 1 – Pure and Conditional Obligations
14) When penal clause joint – with respect to the creditor, he has the right to demand both 3) Secondary Classification of obligation
the principal obligation and penalty jointly if this right is clearly granted to him. However, it · Unilateral and bilateral obligations
is not required for it to be expressed clearly if it can be understood impliedly through the · Real and personal obligations
nature of obligation. Example, if the principal obligation is to pay a sum of money, in case of · Determinate and generic obligations
non-compliance it is implied that the creditor can demand both principal and the penalty. · Civil and natural obligations
· Legal, conventional and penal obligations
15) Penalty demandable even without proof of actual damages – the creditor need not to
present proof of actual damages in obligation with a penal clause, the only thing needs to be 4) Principal Kinds of Conditional Obligation
proven is the breach of contract or non-compliance. The creditor may enforce penalty · Suspensive condition (condition precedent or antecedent)
whether he suffered or not. However, the penalty cannot exceed the amount stipulated · Resolutory condition (condition subsequent)
even if actual damages are more than the penalty stipulated.
5) When obligation is demandable at once
16) Damages recoverable in addition to penalty must be proved – in case when the creditor · When it is pure
can still demand damages in addition to the penalty, the creditor must prove those damages · When it is subject to a resolutory condition
which he actually suffered. · When it is subject to a resolutory period
17) The nullity of penal clause does not carry with it that of the principal obligation – if the 6) When the debtor obliges himself to pay (other cases of period)
penal clause is void, the principal obligation can still be enforced. In case of non-compliance · Little by little
or breach, the creditor may demand payment for damages and not the void penalty. · As soon as possible
· From time to time
18) The nullity of principal obligation carries with it that of the penal clause – the penal · At any time I have the money
clause is dependent to the principal obligation; therefore if the principal is void, penal clause · In partial payments
will also be void. However, if the nullity is due to the fault of debtor who acted in bad faith, · When I am in a position to pay
the creditor who suffered damages can demand for the payment of penalty (which is not 7) Effects of Happening of a Condition
void). · In a suspensive condition, the creditor will only have real right over the
Chapter 3 – Different Kinds of Obligations (Section 1, 2, 3) thing/performance when the condition is fulfilled. If the condition did not happen, it will be
Enumeration Reviewer treated as if the obligation never existed.
1) Classifications of Obligation · In a resolutory condition, the extinguishment of obligation is subject to its fulfillment.
· Primary Classification of obligations When the condition is fulfilled, the creditor will lose the rights he already acquired.
· Secondary Classification of obligations
8) Void Conditional Obligation · Positive
· When the fulfillment of suspensive condition is dependent upon the sole will of the · Negative
debtor. As to Number
· When the condition is impossible. · Conjunctive
· Disjunctive
9) Void Condition As to Divisibility
· If an obligation is a pre-existing one and therefore not dependent upon the fulfillment · Divisible
of a subsequent condition, only the condition is void. · Indivisible
· If an obligation is a pre-existing one and an impossible condition subsequently arises,
only the condition is void. 12) Kinds of Impossible Conditions
· Physically Impossible Condition
10) Valid Conditional Obligation · Legally Impossible Condition
· When the fulfillment of condition is dependent upon chance or upon the will of a third
person. 13) Effects of Impossible Condition
· When the suspensive condition is dependent upon the will of creditor. · An impossible condition annuls the obligation which depends on it.
· When the resolutory condition is subject to the will of debtor. · If the impossible condition refers to a negative condition, which is not to do an
· When the suspensive condition is subject partly upon chance and partly upon will of a impossible thing, the obligation is considered valid and pure.
third person. · If the obligation is divisible, the part that is not subject to an impossible condition
· When the suspensive condition is dependent partly upon will of a third person and would still be valid.
partly upon will of debtor. · If there is already a pre-existing obligation before an impossible condition arises, only
· When the obligation is divisible, that part thereof which is not affected by unlawful or the condition is void.
impossible condition shall be valid.
14) The obligation is extinguished in a positive suspensive condition
· As soon as the time to fulfill the condition expires
11) Classifications of Conditions · If the condition becomes too obvious to be doubted that it will not be fulfilled, the
As to Effect obligation is extinguished even if the time is not yet expired.
· Suspensive
· Resolutory 15) The obligation shall become effective in a negative obligation when
As to Form · The time indicated has elapsed without the event taking place
· Express · The condition becomes impossible even if the time has not yet elapsed.
· Implied
As to Possibility 16) Constructive fulfillment of a suspensive and resolutory condition
· Possible · The obligor actually prevents the fulfillment of the condition
· Impossible · He acts voluntarily
As to Cause/Origin
· Potestative 17) Retroactive effect of fulfillment of a suspensive condition
· Casual · In obligations to give, the condition has retroactive effect, even if the effectivity only
· Mixed arises when the condition is fulfilled. It is because even without the condition, the obligation
As to Mode can still exist. If there has been no condition, they would have been entered into a pure
obligation. Hence, the creditor has a nominal right to the thing even before the condition is · If loss of the thing through debtor’s fault, the debtor is liable for damages and
fulfilled. incidental damages if any.
· In obligations to do or not to do, there is no fixed provision as to its retroactivity. The · If deterioration without debtor’s fault, the creditor will bear the consequences of
court will decide, considering the intent of the parties and the nature of obligation, whether deterioration.
to apply retroactivity or not. · If deterioration through debtor’s fault, the creditor may choose whether to cancel the
obligation with damages or demand for the fulfillment of obligation with the right to
18) Retroactive effect as to fruits and interests in obligations to give damages.
· In reciprocal obligation, there is no retroactive effect because the fruits and interest · If improvement due to nature or by time, the creditor will benefit from the
are deemed to have been mutually compensated. improvement of the thing.
· In unilateral obligation, there is no retroactive effect because it is gratuitous. The · If improvement at debtor’s expense, the debtor has the right to the improvement
debtor does not receive anything from the creditor. Thus, the fruits and interest belong to subject to the right granted in usufructuary.
the debtor unless otherwise stipulated.
23) Rights granted to Usufructuary
19) Rights pending fulfillment of a suspensive condition · In usufruct, the debtor can put improvements to the thing for mere pleasure, as long
· The creditor has a right to take appropriate actions to preserve his rights, as the as it will not change its form and substance.
debtor may render nugatory the obligation upon the happening of the condition. · The debtor may remove the improvements provided that it will not cause damages to
· The debtor has a right to recover what he has paid before the condition is fulfilled. This the thing.
is a case of solutio indebiti. However, he cannot recover the payment made prior to the · The improvements made to the thing will offset the damages made to the thing.
condition if the condition is fulfilled.
24) Effects of fulfillment of a resolutory condition
20) Requisites in the application of article 1189 · In obligations to give, when the condition is fulfilled, the obligation is extinguished and
· The obligation is a real obligation therefore both parties should return to each other the things they received. In case one of
· The object is a specific or determinate thing the things is already in the possession of a third who did not act in bad faith, the remedy of
· The obligation is subject to a suspensive condition the party is restitution against the other. The restitution is also applicable to the fruits and
· The condition is fulfilled interest. It means there is a retroactive effect in this case. The only exception is when the
· There is loss, deterioration or improvement to the thing during pendency of the parties’ intention is otherwise.
condition · In obligation to do or not to do, there is no specific provision to its retroactivity. The
court will decide whether retroactivity applies to the obligation or not, similar to the case of
21) Kinds of Loss a suspensive condition.
· Physical Loss
· Legal Loss 25) Kinds of obligation according to person obliged
· Civil Loss · Unilateral obligation
· Bilateral obligation
22) Rules in case of loss, deterioration or improvement of the thing during pendency of a
condition 26) Kinds of Bilateral obligation
· If loss of the thing without debtor’s fault, the obligation will be extinguished and the · Reciprocal obligation
debtor is not liable for damages. A person, in nature, is not liable for damages in case of · Non-reciprocal obligation
fortuitous event.
27) Remedies in reciprocal obligation
· Demand fulfillment of the obligation with damages
· Demand rescission with damages 32) Kinds of Period or Term
As to effect
28) Limitations on the right to rescind · Suspensive period
· The court has a discretionary power to give time for the person in default in order to · Resolutory period
perform his obligation if there is a just cause for doing so. As to source
· If the object is in the hands of a third person, rescission is not available as a remedy. · Legal period
· The general rule is that the rescission shall not be granted for slight breaches of · Conventional or voluntary period
contract; the violation should be substantial enough to defy the object of the agreement. · Judicial period
· The rescission should be a judicial rescission. The injured party should go to the court As to definiteness
in order to have his right for rescission. · Definite period
· The right to rescind may be waived, expressly or impliedly. The creditor may only · Indefinite period
recover the balance for the damages in this case.
33) Exceptions to the general rule (regarding to the general rule that both parties should
29) Rescission without previous judicial decree benefit from the agreed period)
· When expressly stipulated · If the term is for the benefit of the debtor alone, he cannot be compelled to pay
· Where contract still executory prematurely unless if he desires to do so.
· If the term is for the benefit of the creditor, he may demand payment before the
30) Where both parties are guilty of breach period but he cannot be compelled to accept premature payment.
· If one party committed a violation which is followed by a violation of the other party as
well, the liability of the first infractor shall be equitably reduced. 34) Exceptions to the general rule (regarding to the rule that courts in general have no
· If both parties committed breach but it cannot be determined who among them is the power to fix a period)
first violator, the contract is extinguished and both shall bear damages. · When there is no date specified but it can be inferred from the nature of the
obligation that there is a period intended.
31) Period and Condition Distinguished · When the period is dependent upon the sole will of the debtor.
As to fulfillment
· A period is a certain event which must come sooner or later while a condition is an 35) When obligation can be demanded before lapse of period (exceptions to the general
uncertain event. rule that obligations cannot be demanded before the lapse of period)
As to time · When the debtor becomes insolvent
· A period only refers to a future event while a condition may refer to a past event · When the debtor does not furnish guaranties or securities promised
unknown to the parties. · When securities or guaranties given has become impaired or has disappeared
As to effect when left to debtor’s will · When debtor violates an undertaking
· In a period, the court is required to fix the time of fulfillment while in a condition the · When debtor attempts to abscond
obligation is void. Section 3 – Alternative Obligations
As to retroactivity of effect
· Unless otherwise stated, there is no retroactive effect in a period while in a condition 36) Kinds of Obligation according to object
there is retroactivity of effect. · Simple Obligation
· Compound Obligation
Section 2 – Obligations with a Period
37) Kinds of Compound Obligation
· Conjunctive Obligation 43) Rules in case of loss before creditor has made a choice (also applicable to personal
· Distributive Obligation obligations)
· If a thing is lost through a fortuitous event – the creditor will be limited to choose from
38) Kinds of Distributive Obligation the remaining alternative prestation.
· Alternative Obligation · If a thing is lost through debtor’s fault – the creditor can choose one of the remaining
· Facultative Obligation prestation with the right to damages or he could ask for the value of the lost prestation with
also the right to damages.
39) Right of choice of the debtor is not absolute · If all things are lost through debtor’s fault – the creditor may ask for the payment of
· The debtor could not give a prestation which is impossible, unlawful and those could the value of one of the prestation with a right to damages.
not have been the object of obligation. · If all things are lost through a fortuitous event – the obligation will be extinguished.
· If the choices of prestation offer only one practicable prestation to be complied with
by the debtor, the obligation becomes simple. It does not however give right of choice to 44) Effect of Loss in Facultative Obligation
creditor. · Before substitution – if the item due is lost through debtor’s fault, he is liable for
· The debtor cannot choose half of prestation and the half of another prestation. damages. He’s not liable for damages if it is lost through a fortuitous event. If item two is
lost with or without the debtor’s fault, he will not be liable for it because it is not the item
40) Effect of notice that choice has been made due.
· When the choice has been made by the debtor, it is irrevocable, which means that the · After substitution – after substituting the item due to item two, it ceases to be a
debtor could not change his choice of prestation without the consent of the creditor. The facultative obligation, it becomes simple obligation. The debtor is not liable for the loss of
obligation ceases to be alternative and becomes simple. the first thing since it is not due anymore. He is liable for the loss of the second thing if it is
· When the choice has been made, it creates legal effect. The giving of notice can be through his fault. If it is through a fortuitous event, the obligation is extinguished.
made orally or in writing, expressly or impliedly.
45) Alternative and facultative obligations distinguished
41) When debtor may rescind contract · Alternative – several prestations are due but compliance with one is sufficient.
· If through the creditor’s fault, one of the prestation is destroyed, the debtor could Facultative – only one prestation is due although the debtor is allowed to substitute it.
choose to rescind the contract. If he rescinds the contract, the debtor is obliged to return · Alternative – the right of choice may be given to the creditor or third person.
the amount borrowed to the creditor while the creditor is liable to pay for the prestation Facultative – the right to make the substitution is given only to the debtor.
destroyed. · Alternative – the loss of one or more of the alternatives through a fortuitous event
· Also, the debtor could choose the other alternative prestation with the right to does not extinguish the obligation. Facultative – the loss of the thing due extinguishes the
recover damages for the prestation destroyed. obligation.
· The debtor could choose the prestation destroyed through the fault of creditor, thus · Alternative – the loss of one of the alternatives through the fault of the debtor does
obligation is extinguished. not render him liable. Facultative – the loss of the thing due through his fault makes him
liable.
42) Effects of loss of objects of obligation · Alternative – where the choice belongs to the creditor, the loss of one alternative
· If one of the prestation is lost through the fault of debtor, the obligation can still be through the fault of the debtor gives rise to liability. Facultative – the loss of the substitute
performed by choosing the other alternatives left. before the substitution through the fault of the debtor does not render him liable.
· If all the prestation are lost through the fault of debtor, the creditor has a right to CHAPTER 3 – SECTION 4: JOINT AND SOLIDARY OBLIGATIONS
receive payment for damages. (Enumeration)
· If all the prestation are lost through fortuitous event, the obligation is extinguished.
1) Kinds of Obligations according to number of parties · Individually and/or collectively
· Individual Obligation · Juntos o separadamente
· Collective Obligation · I promise to pay signed by two or more persons