KINDS OF OBLIGATIONS Reviewer

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KINDS OF OBLIGATIONS

A. As to subject matter
Focusing on the subject matter of the obligation or the conduct required to be observed by
the debtor:

a. Real obligation – those which requires the debtor to give.

Art. 1163. Every person obliged to give something is also obliged to take care of it with the
proper diligence of a good father of a family, unless the law or the stipulation of the parties
requires another standard of care. (1094a)
Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to
deliver it arises. However, he shall acquire no real right over it until the same has been
delivered to him. (1095)
Art. 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the
right granted him by Article 1170, may compel the debtor to make the delivery. If the thing is
indeterminate or generic, he may ask that the obligation be complied with at the expense of
the debtor. If the obligor delays, or has promised to deliver the same thing to two or more
persons who do not have the same interest, he shall be responsible for any fortuitous event
until he has effected the delivery. (1096)
Art. 1166. The obligation to give a determinate thing includes that of delivering all its
accessions and accessories, even though they may not have been mentioned. (1097a)
Art. 1169. Those obliged to deliver or to do something incur in delay from the time the
obligee judicially or extrajudicially demands from them the fulfillment of their obligation.

However, the demand by the creditor shall not be necessary in order that delay may exist:
(1) When the obligation or the law expressly so declare; or
(2) When from the nature and the circumstances of the obligation it appears that the
designation of the time when the thing is to be delivered or the service is to be rendered was
a controlling motive for the establishment of the contract; or
(3) When demand would be useless, as when the obligor has rendered it beyond his
power to perform.
In reciprocal obligations, neither party incurs in delay if the other does not comply or
is not ready to comply in a proper manner with what is incumbent upon him. From the
moment one of the parties fulfills his obligation, delay by the other begins. (1100a)

b. Personal Obligation – those which requires the debtor to do or not to do something.


Art. 1167. If a person obliged to do something fails to do it, the same shall be executed at
his cost.
This same rule shall be observed if he does it in contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been poorly done be undone. (1098)

Art. 1168. When the obligation consists in not doing, and the obligor does what has been
forbidden him, it shall also be undone at his expense. (1099a)

B. As to the number of persons bound to perform


This classification focuses on who are bound to perform an obligation, it is either only one of
the parties or both are bound to comply with the obligation.

a. Unilateral obligation – it is an obligation wherein only one of the parties is obliged to


perform the obligation.
Consider the obligation to provide support.

b. Bilateral obligation – it is an obligation where both parties are obliged to perform part of
the obligation. It is further classified to:
1. Reciprocal – Obligations that depend on the performance of both parties.
For reciprocal, bilateral obligations, the performance of one party’s obligation is
dependent on the other party performing his/her own obligation.
2. Non-reciprocal – obligations wherein the performance of one party is not
dependent on the performance of the other party.

C. As to the capability of fulfillment


Obligations may also be classified based on their possibility of performance.

a. Possible obligation – those which are capable of being accomplished by the debtor in
accordance with nature or in law.

b. Impossible obligation - those which are not capable of being accomplished by the
debtor in accordance with nature or in law.

D. As to susceptibility of partial fulfillment/divisibility


Certain obligations, due to their nature may be accomplished in parts, while some cannot be
fulfilled unless the whole prestation is complied with.

a. Divisible obligation – those which are capable of partial performance.


b. Indivisible obligation – those which are not susceptible to partial performance.

The important thing to consider in this classification is the nature of the prestation itself. If
obligation can be performed in parts, then it is divisible. But if the obligation cannot be
performed without fulfilling the whole obligation, then it is Indivisible Obligation. On other
hand, an obligation to transport a passenger from point A to point B is indivisible. Should the
driver transports the passenger only halfway to the destination, the driver is still deemed in
breach of his obligation.

E. As to their dependence upon one another


There are obligations that can exist without any other obligations, while some can only exist
in relation to another obligation.

a. Principal Obligation – this pertains to the main obligation entered into by the parties.
b. Accessory Obligation – refers to the secondary obligation which exists to guarantee the
fulfillment of the principal obligation.
For example: Trevor borrowed money from Sandra. In order to ensure that Trevor
will pay Sandra, Trevor gave Sandra his celfone as collateral. In this situation, the principal
obligation was created when Trevor borrowed money from Sandra. It is an obligation that
can exist as it is without any other obligation or condition. When Trevor gave Sandra his
celfone as collateral, they engaged in an accessory obligation which is dependent on the
principal obligation.

F. As to the existence of a burden or condition


Another classification of obligations is based on the presence of attached burden on the
performance of the obligation itself.

a. Pure obligation – an obligation where the performance of which does not rely on the
happening of any condition.
b. Conditional Obligation – provides for certain condition before the obligation becomes
demandable or the right exists. Conditions can be classified to:
1. Resolutory Condition/ Condition Subsequent – the right or obligation exists
until the condition is met.
2. Suspensive Condition/ Condition Precedent – the right or obligation does not
exist until the condition is met.
c. Obligation with a term – an obligation that is subject to the fulfillment of an event that is
certain to happen, although the date may not be known as of the moment.

G. As to the nature of performance


An obligation may also be classified based on the whether the debtor is required to do
something or forbidden to do something.

a. Positive Obligation – the debtor is obliged to give or do something in favor of the


creditor.
b. Negative Obligation – when the debtor is forbidden to do something.
Art. 1168. When the obligation consists in not doing, and the obligor does what has been
forbidden him, it shall also be undone at his expense. (1099a)

H. As to the nature of creation of the obligation


An obligation may exist through the will of parties or by operation of law.
a. Legal Obligation – obligations which are expressly provided by law.
b. Conventional Obligation – obligations which are created by the agreement of the
parties.

Under Art. 1157 of the New Civil Code, the sources of obligations are Law, Contracts,
Quasi-Contracts, Acts or Omissions punished by law and Quasi- delicts. The
aforementioned sources of obligation can be classified to either Legal Obligations or
Conventional Obligations. All obligations derived from law, quasi-contracts, acts or
omissions punished by law and quasi-delicts are considered as Legal Obligations since their
existence are based on legal provisions. Contracts on the other hand create Conventional
Obligations in which parties must first agree.

I. As to the character of responsibility or liability/ plurality of subjects


Obligations may be classified taking into consideration the relationship of multiple debtors
and/or multiple creditors.
a. Joint obligation – an obligation where each debtor is only liable to a part of the whole
liability and each creditor is only entitled to a part of the correlative rights.
b. Solidary Obligation – an obligation wherein each one of the debtors is bound to render
entire performance of the obligation while each creditor has the right to demand fulfillment of
the entire obligation.

J. As to the grant of right to choose one prestation out of several, or to substitute the
first one/ plurality of objects
An obligation may have a single or multiple prestations,

a. Single Obligation – an obligation where there is only one prestation.


b. Alternative Obligation – an obligation wherein the debtor has the option to perform any
of several prestations to fulfill the obligation.
Art. 1199. A person alternatively bound by different prestations shall completely
perform one of them. The creditor cannot be compelled to receive part of one and
part of the other undertaking. (1131)
c. Facultative Obligation – an obligation wherein only one prestation is agreed upon but
the debtor may render one in substitution of the first one.
Art. 1206. When only one prestation has been agreed upon, but the obligor may
render another in substitution, the obligation is called facultative.

The loss or deterioration of the thing intended as a substitute, through the negligence
of the obligor, does not render him liable. But once the substitution has been made,
the obligor is liable for the loss of the substitute on account of his delay, negligence
or fraud. (n)

K. As to the imposition of penalty


Some obligations may provide certain sanctions in case of breach or default.

a. Simple Obligation – an obligation wherein there is no provision of penalty in case there is


a default.
b. Obligation with penalty/ with penal provision – an obligation which already provides a
sort of penalty for violation of its terms.

Art. 1226. In obligations with a penal clause, the penalty shall substitute the
indemnity for damages and the payment of interests in case of noncompliance, if
there is no stipulation to the contrary. Nevertheless, damages shall be paid if the
obligor refuses to pay the penalty or is guilty of fraud in the fulfillment of the
obligation. The penalty may be enforced only when it is demandable in accordance
with the provisions of this Code. (1152a)

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