FACULTATIVE OBLIGATIONS (Art. 1206)
– Joint and Solidary Obligations
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.
 Facultative – only one prestation has
been agreed upon but another may be
given in substitution
 For example, I will give you my iPhone
but I may give you my laptop as a
substitute. In this obligation, only the
phone is due, Hence, the loss of the
laptop will not render the obligor liable.
 If loss or deterioration happened before
substitution is made, obligor is not
liable; after substitution is
communicated, he is liable for loss
(through delay, negligence or fraud)
 Effect of loss or deterioration thru
negligence, delay or fraud of obligor:
a) of thing intended as substitute - no
liability
b) of the substitute after substitution is
made – with liability
ALTERNATIVE VS. FACULTATIVE
SECTION 4.
INDIVIDUAL OBLIGATION – one debtor and one creditor
COLLECTIVE OBLIGATION – two or more debtors and two
or more creditors
Art. 1207. The concurrence of two or more
creditors or of two or more debtors in one and
the same obligation does not imply that each
one of the former has a right to demand, or
that each one of the latter is bound to render,
entire compliance with the prestation. There is
a solidary liability only when the obligation
expressly so states, or when the law or the
nature of the obligation requires solidarity.
--------
Art. 1208. If from the law, or the nature or the
wording of the obligations to which the
preceding article refers the contrary does not
appear, the credit or debt shall be presumed to
be divided into as many shares as there are
creditors or debtors, the credits or debts being
considered distinct from one another, subject
to the Rules of Court governing the multiplicity
of suits.
JOINT OBLIGATIONS (mancommunada,pro-rata)
One in which each of the debtor is liable only
for a proportionate part of the debt and each
creditor is entitled only to a proportionate part
of the credit.
Each creditor can recover only his share of the
obligation, and each debtor can be made to pay
only his part.
Ex. Steph and Klay are joint debtors of John to the
amount P10,000. John can only demand P5,000
from Steph and 5,000 from Klay.
Ex. X and Y are joint debtors of A,B,C, and D who are joint
creditors to the amount of P10k. A may demand only
P1,250 from X and P1,250 from Y. B,C, and D have the
same rights as A.
Mancomunada, mancomunada simple, pro
rata, “We promise to pay” General rule and
exceptions – where there are two or more debtors
or two or more creditors, the obligation is Joint.
Exceptions:
– when there is stipulation in the contract
– when the nature of the obligation requires liability to
be solidary
– when the law declares the obligation to be solidary
Joint Obligations Character/Nature Presumed:
When the persons are liable under a contract
or judgment, and no words appear in a contract
under the same, the presumption is that their
obligation is joint.
Joint Obligations Created By: (Art.1208)
1. Stipulations - An agreement made between
two opposing parties about a demand,
condition, or fact in a legal action.
2. Presumptions - A conclusion drawn from the
facts at hand, based on logic and applicable
laws, unless there is evidence provided to
refute it.
Effects of Joint Liability:
1. The defect of each obligation arising
from the personal defect of a particular
joint debtor or joint creditor does not
affect the obligation or right of the
other joint parties.
2. Insolvency of one joint debtor does not
make the other joint debtor or debtors
responsible for his proportionate share.
3. The demand by the creditor or creditors
on one joint debtor puts him in delay in
case of non-payment while the other
joint debtor or debtors are not liable.
4. The defenses of one joint debtor are
not necessarily available to the other
joint debtor or debtors
Ex. John and Luke owe Anne and May the
amount of P100,000. In the present case, since
there is no agreement, it is disputably
presumed that the obligation of John and Luke
are joint and that the credit of Anne and May
are also joint. It means that John’s share in the
obligation is P50,000 so that he will only pay
Anne P25,000 and another P25,000 to May. This
is the same with Luke. As to Anne, his credit is
P50,000 so that she can only demand from John
the amount of P25,000 and from Luke the other
P25,000. This is the same with May.
SOLIDARY OBLIGATIONS (Art.1207)
One which each debtor is liable for the entire
obligation, and each creditor is entitled to
demand the whole obligation.
Each creditor may enforce the entire
obligation, and each debtor may be obliged to
pay it in full.
-A solidary obligation refers to an obligation
where there is concurrence of several creditors,
or of several debtors, or of several creditors and
several debtors, by virtue of which, each of the
creditors has the right to demand, and each of
the debtors is bound to render, entire
compliance with the prestation which
constitutes the object of the obligation.
- Mancomunada solidaria, joint and several, in
solidum, “I promise to pay” with several
signatures, individually and collectively,
individually liable, individually and jointly liable,
juntos o separadamente, each will pay the
whole value.
Ex. Josh and John are solidary debtors of Klay
to the amount of P10k. Klay can demand the
whole obligation from Josh, after paying Klay,
Josh can ask reimbursement from John to the
amount of P5k.
Ex. X and Y are solidary debtors of A,B,C, and D are solidary
creditors to the amount of P10k. Any creditor like A, can
demand from any debtor, like X, the whole obligation of
P10k. In turn A has to give P2,500 to B,C, and D. X has to
reimburse from Y the amount of P5K .
Art. 1209. If the division is impossible, the right
of the creditors may be prejudiced only by
their collective acts, and the debt can be
enforced only by proceeding against all the
debtors. If one of the latter should be
insolvent, the others shall not be liable for his
share.

SOLIDARITY VS. INDIVISIBILITY (ART.1209)
INDIVISIBLE OBLIGATION – an obligation where
the prestation or object to be delivered cannot
be performed by parts without altering its
essence or substance.
Ex. To deliver a specific car
Indivisibility refers to the prestation which is
not capable of partial performance, while
solidarity refers to the legal tie or vinculum
defining the extent of liability. A divisible
obligation is one the object of which, in its
delivery or performance, is capable of partial
fulfillment. For example, A agreed to pay B
Php4,000 in two equal monthly installments for
his debt. Here, the obligation of A is divisible
because it is capable of partial performance.
SOLIDARY OBLIGATIONS CREATED BY/ Exists:
1. When there is Express stipulations
2. When the law expressly provides for
solidarity of the obligation, Articles 927,
1824, 1911 ,2146
a. Co-participants in a crime
b. Captain and owner of a vessels operating
common carrier
c. Joint tortfeasors
d. Officers of company for insider trading or
manipulation of prices
e. Directors or trustees for violation of rights of
shareholder or member of corporation
f. Insurance company and agent for fraudulent
denial for just insurance claim
3. When a solidary responsibility is imposed
by a final judgement
4. When the nature of the obligation requires
solidarity
5. Jurisprudence
SOLIDARITY SHOULD BE EXPRESSED – law,
stipulation, nature of obligation. When the
obligation is ambiguous, it must be considered as
joint obligation.
ACTIVE SOLIDARITY OR MUTUAL AGENCY
Essence: The essence of active solidarity
consists in the authority of each creditor to
claim and enforce the rights of all, with the
resulting obligation of paying everyone what
belongs to him.
Only Mutual Representation: There is NO
merger, much less a renunciation of rights, but
only mutual representation.
Purpose: Mutual agency extends ONLY to acts
which are beneficial and NOT to those which
are prejudiced.
Extinguishment without consent: If
extinguishment is made by a solidary creditor
without consent or ratification from his co-
creditors, the former is liable for the latter’s
respective shares.
EFFECTS OF MUTUAL AGENCY: (A.1211-1216)
1. Since it is a reciprocal agency, the death of
a solidary creditor does not transmit the
solidarity to each of his heirs but to all of
them taken together.
2. Each creditor represents the others in the
act of receiving payment, and in all other
acts which tend to secure the credit or
make it more advantageous. - Hence, if he
receives only a partial payment, he must
divide it among the other creditors. - He
can interrupt the period of prescription or
render the debtor in default, for the benefit
of all other creditors.
3. One creditor, however, does not represent
the other in such acts as novation (even if
the credit becomes more advantageous),
compensation and remission. - In this case,
even if the debtor is released, the other
creditors can still enforce their rights
against the creditor who made the
novation, compensation or remission.
4. The credit and its benefits shall be divided
equally among creditors, unless otherwise
stipulated. - Hence, once the credit is
collected, an accounting and distribution of
the amount collected should follow.
5. The debtor may pay to any solidary
creditor, but if a judicial demand is made
on him, he must pay only to the plaintiff. -
If the debtor pays to another creditor, the
debtor may pay again to the debtor who
sue him and collect the previously paid
amount from another debtor following the
principle of solutio indebiti. - Or the
creditor who made the demand, may
acknowledge the payment of debtor to co-
creditor; the obligation is then
extinguished.
6. Each creditor may renounce his right even
against the will of the debtor, and the latter
need not thereafter pay the obligation to
former.
Art. 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.
Art. 1212. 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.
- Every solidary creditor is benefited by the
useful acts of any one of them. 
- If a solidary creditor performs an act which is
not fair to his co-creditors, the act may have
valid legal effects or the obligation of the debtor
due to them may be extinguished, but the
performing creditor shall be liable to his co-
creditors.
-Question: May solidary creditors perform an
act that is beneficial to others?
Art. 1213. A solidary creditor cannot assign his
rights without the consent of the others.
Assign – transfer of right
-
The assignee does not become a solidary
creditor, and any payment made upon him by
the debtor does not extinguish the obligation.
He is considered a STRANGER, and his acts are
not binding to the solidarity.
-DOCTRINE OF MUTUAL AGENCY - In solidary
obligations, the act of one is act of the others.
Exceptions to the doctrine:
1. Art. 1212 – a creditor may not perform
an act prejudicial to other creditors
2. Art. 1213 – a creditor cannot transfer
his right without consent
Art. 1214. The debtor may pay any one of the
solidary creditors; but if any demand, judicial
or extrajudicial, has been made by one of
them, payment should be made to him.
-The debtor can pay any one of the solidary
creditors. Such payment when accepted by any
of the solidary creditors will extinguish the
obligation.
-To avoid confusion on the payment of the
obligation, the debtor is required to ay only to
the demanding creditor and that payment is
sufficient to effect the extinguishment of the
obligation.
-In case two or more demands made by the
other creditors, the first demand must be given
priority.
Art. 1215. 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 Article
1219.
The creditor who may have executed any of
these acts, as well as he who collects the debt,
shall be liable to the others for the share in the
obligation corresponding to them.
NOVATION – obligations are modified by:
1. Changing their object or principal conditions;
2. Substituting the person of the debtor; and
3. Subrogating (placing) a third person in the
rights of the creditor. [Art. 1291, CC]
COMPENSATION – takes place when two
persons, in their own right, become creditors
and debtors of each other
 the amount of one is covered by the amount
of the other
CONFUSION – takes place when the characters
of creditor and debtor are merged in the same
person.
REMISSION – the gratuitous abandonment by
the creditor of his right; acceptance of the
obligor is necessary.
- These 4 modes of extinguishing obligations are
acts prejudicial to the other solidary co-
creditors because these have the effect of
extinguishing the debt or obligation which is
due to all of them.
–The only recourse of the co-creditors is to let
the one who executed any of those acts be
liable for the shares corresponding to all his co-
creditors (in their internal agreement).
Art. 1216. The creditor may proceed against
any one of the solidary debtors or some or all
of them simultaneously. The demand made
against one of them shall not be an obstacle to
those which may subsequently be directed
against the others, so long as the debt has not
been fully collected.
 When there is passive solidarity, the creditor
can proceed against:
1. Any of the solidary debtors;
2. Some of the solidary debtors;
3. All of the solidary debtors,
simultaneously. Extrajudicial demands - first
demand shall not prevent subsequent
demands on the other co-debtors, if co-
debtor first to have been required to fulfill
obligation did not act on it.
Creditor cannot assign his rights without
other’s consent:
- Mutual agency implies mutual confidence
which may take into account the personal
qualifications of each other. Hence, it is only
just to require consent of the others when
one transfers his rights to another.
- Effect of Unauthorized Transfer: Since
such assignment cannot be made, it
produces no effect whatsoever; the co-
creditors and the debtor or debtors are not
bound thereby, and the assignee cannot be
regarded as a solidary creditor
- Example: A payment made by the debtor
to such an assignee would be a payment to
a third person and may not extinguish the
obligation; and a suit filed by such assignee
cannot interrupt prescription.
Transfer to Co –creditor: The assignment
would produce its effects if made to a co-
creditor.
To whom can the debtor pay:
- General Rule: The debtor may pay any one
of the solidary creditors.
Exception: If any demand, judicial or
extrajudicial, has been made by any one of
them, payment should be made to him.
Effects of Judicial Demand:
1. When one creditor makes a judicial
demand for payment, the tacit
representation by the other creditors is
considered revoked, and during the
pendency of the action, the creditors
who did not sue lose their
representation of others.
2. Once action is filed against a debtor by
one of the creditors, the debtor can
only pay to plaintiffcreditor, and he can
no longer be sued by others.
3. A payment to any of the creditors who
did not sue would be a payment to a
THIRD PERSON, and in so far as the
shares of others in the credit are
concerned.
4. If the payee does not turn over to the
others their shares in the payment, the
debtor can still be required to pay to
the plaintiff the full amount minus the
share of the creditor to whom payment
is made.
Effects of Extra-Judicial Demand: Art.
1214 has given to extra-judicial demand
the same effect as judicial demand in
terminating the mutual representation
among the solidary creditors and
concentrating the agency in the creditor
who made the demand.
Demand by Several Creditors:
1. If all or several solidary creditors
demand payment separately, the
debtor should pay to the one who first
notified him.
2. If they all demand at the same time or
collectively in a single action or written
demand, the debtor preserves his right
to choose and may pay anyone of those
demanding payment.
Demands on Mixed Solidarity:
1. When one creditor makes a demand
upon one of the debtors, the latter
cannot pay to any other creditor but the
one who made the demand.
 2. . This prohibition, however, does not
apply to the other debtors upon whom
no demand has been made, and so they
may pay to any creditor who may not
be the one who made the demand.
Effects of Novation, Compensation, Confusion
or Remission of Debt:
General Rule: 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
subject to responsibility of that creditor towards
his co-creditor. –
As between creditors and debtors: Any of these
acts will extinguish the obligation, so that no
creditor may thereafter sue any debtor, except
in case of novation, where there may be no
change or only a partial change of parties
As among co-creditors: The act of any of them
in extinguishing the obligation with respect to
the debtor or debtors, does not prejudice the
rights of the other creditors to recover their
respective shares in the obligation from the
creditor who effected the novation,
compensation, confusion or remission.
PASSIVE SOLIDARITY OR MUTUAL GUARANTY
(Art. 1217- 1222)
Essence: The essence is that each debtor can
be made to answer for the others, with the right
on the part of the debtor-payer to recover from
the others their respective shares.
1. Each debtor can be required to pay the
entire obligation; but after payment, he
can recover from the co-debtors their
respective shares.
ALONE.
2. The debtor who is required to pay may
set up by way of compensation his own
claim against the creditor, in this case,
the effect is the same as payment.
3. The total remission of the debt in favor
of a debtor releases all the debtors; but
when this remission affects only the
share of one debtor, the other debtors
are still liable for the balance of the
obligation.
4. All the debtors are liable for the loss of
the thing due, even if such loss is
caused by the fault of only one of them,
or by fortuitous event after one of the
debtors has incurred in delay.
5. The interruption of prescription as to
one debtor affects all others; but the
renunciation by one debtor or
prescription already had does not
prejudice the others, because the
extinguishment of the obligation by
prescription extinguishes also the
mutual representation among the
solidary debtors.
6. The interests due by reason of delay of
one of the debtors are borne by all of
them.
In case, a case is filed by the creditor
against any or all of the debtors, the
following defenses shall be considered:
1. Prescription, res judicata, prior
payment in full, illegality of cause,
vitiated consent on part of ALL debtors,
novation, compensation, etc.
- These are considered as COMPLETE
DEFENSES, which are beneficial to all
debtors not only to the one who was
sued.
2. Vitiated consent of the defendant
- Obligation of the contract will be
subtracted to the remaining obligation
of the debtors.
 3. Vitiated consent of non-defendant co-
debtor
– This is a PARTIAL DEFENSE, if the same
is proven, subtract from the total
amount of the obligation the share of
that co-debtor whose consent was
vitiated
Payment by solidary debtors:
- If two or more solidary debtors offer
to pay, the creditor may choose which
offer to accept.
- Right to collect by the paying debtor to his
co-debtors: He who made the payment may
claim from his co-debtors only the share which
corresponds to each, with the interest for the
payment already made.
- Payment before debt is due: No interest for
the intervening period may be demanded.
Insolvency of one debtor: When one solidary
debtor cannot reimburse his share because of
insolvency, such share shall be borne by all his
co-debtors, in proportion to the debt of each.
Partial payment: Paying debtor can recover
reimbursement from the co-debtors only in so
far as his payment exceeded his share. E.g. if A
and B are solidary debtors of P100, and A paid
P70 then he can claim P20 from B.
Effects of payment of entire obligation by one
debtor:
1. When a solidary debtor pays the
entire obligation, the resulting
obligation of the co-debtors to
reimburse him becomes joint.
2. . Hence, if one, by insolvency,
cannot pay his share in the
reimbursement, the others
(including the one who paid) shall
bear such share proportionately.
Payment by solidary creditor without
reimbursement:
-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.
Remission of one solidary debtor after the full
payment of his co-debtor:
- The remission made by the creditor of the
share of a solidary debtor, after his co-debtor
has paid the full amount due, does not release
the said debtor from his responsibility to pay his
co-debtor.
No reimbursement on full remission of debt
for solidary debtors: - The remission of the
whole obligation, obtained by one of the
solidary debtors, does not entitle him to
reimbursement from his co-debtors
Loss of the Thing or Impossibility of Prestation:
- Without the fault of the solidary debtors: The
obligation is extinguished.
- With fault by any of solidary debtor, or due to
fortuitous event after one incurred delay: All
shall be responsible to the creditor, for the price
and the payment of damages and interest,
without prejudice to their action against the
guilty or negligent debtor.
Defenses of Solidary Debtor:
1. Defenses derived from the nature of the
obligation
2. Defenses personal to the debtor-defendant
3. Defenses personal to the other solidary
debtors
Defenses Inherent in Obligation: (TOTAL
DEFENSE)
1. The non-existence of the obligation because
of illicit cause or object, or absolute simulation
2. Nullity due to the defect in capacity or
consent of all debtors, such as minority,
mistake, fraud, violence.
 3. Unenforceability because of lack of proper
proof under the Statute of Frauds.

4. Non-performance of suspensive condition or

non-arrival of period affecting the entire
obligation.
5. Extinguishment of the obligation, such as in
payment and remission.

6. All other means of defense which may

invalidate the original contract from which the
right or the action of the creditor against the
debtors arises, such as res judicata, prescription
and others of the same class.

Defenses Personal to Defendant: (TOTAL OR

PARTIAL DEFENSE)
1. Total defense: Minority, insanity, fraud,
violence, or intimidation

2. Partial defense: If special terms or conditions

affecting his part of the obligation, he may
utilize them only with respect to his part; but he
can still be sued for the portions not subject to
terms or conditions, because he is solidarily
liable.

Defenses Personal to Other Debtors: - It

includes whether such defenses affect the
capacity or consent of such debtors or only to
refer to terms or conditions affecting their
shares.

- Partial defense: To the debtor-defendant, all

these are only a partial defense, exempting him
from payment of the portions of the obligation
corresponding to the other debtors who have
such personal defenses. DIVISIBILITY OF
OBLIGATION