KINDS OF OBLIGATION

ATTY. TRANQUILINO R. CAGURANGAN, JR.

 1. Pure obligation
2. Conditional obligation
3. Reciprocal obligation
4. Obligation with a period
5. Alternative obligation
6. Facultative obligation
The different kinds of 7. Joint obligation
obligation 8. Solidary obligation
9. Divisible obligation
10.Indivisible obligation
11.Obligation with a penal clause
 1. PURE OBLIGATION

Pure obligation is one whose performance or extinguishment is not subject

to any condition or a period. This kind of obligation is demandable at once.

Example: Miguel obliged himself to give Ponpon P25,000.00. This is a

pure obligation because Miguel’s obligation to give money is not subject to
any condition or a period. Thus, Ponpon can demand from Miguel the said
amount anytime.

2. CONDITIONAL
OBLIGATION
Conditional obligation is an obligation
the performance or extinguishment of
which is dependent upon the
happening of the condition.
A condition is an uncertain even
which may or may not happen.
Classifications of Conditional Obligations
a) Suspensive condition
b) Resolutory condition (Condition subsequent)
c) Potestative condition
d) Casual Condition
e) Mixed Condition
f) Impossible condition
g) Positive condition
h) Negative condition
 Classifications of Conditional Obligations
a. Suspensive condition
Sometimes called condition antecedent/precedent is a
condition where the happening of which shall
give rise.
Example: Kristine obliged himself to transfer the
ownership of her land in favor of Leonard upon
the latter’s full payment of the purchase price.
Here Kristine’s obligation is suspended until the
happening of the condition that is the full
payment of the purchase price to an obligation
b. Resolutory condition
Condition subsequent, is a condition where the
happening or fulfilment of which shall extinguish
an obligation.
Example: Turibio obliged himself to give Robie
P12,000.00 per month until he finishes
accountancy course. So, once Robie finishes his
accountancy course the obligation of Turibio
ceases.
C. POTESTATIVE
CONDITION
Classifications of potestative condition

a. Potestative on the part of the debtor

Potestative condition is
one where the condition b. Potestative on the part of the creditor
is dependent upon the
will of a party to an
obligation.
 • If the condition is suspensive and it is dependent upon
a. Potestative on the part
of the debtor
The fulfillment of the condition is
dependent upon the will of the
debtor.
The effect of this would depend on
whether the condition is suspensive
or resolutory.
the sole will of the debtor, then the conditional
obligation shall be void.
Example: Morris obliged himself to give Alden a car if
Morris will go to Cebu. This is a suspensive condition
because the obligation will only arise if Morris goes to
Cebu. But, notice that the happening of this suspensive
condition is solely dependent upon the will of Morris. In
which case, this conditional obligation is void.
• If the condition is resolutory and the happening of
which is dependent upon the will of the debtor, the
conditional obligation is valid.
Example: Morris will continue to give Robie the amount
of P12,000.00 every month, but will cease ones Morris
goes to Cebu. This is a valid condition.
 POTESTATIVE ON THE PART OF THE CREDITOR

when the condition is dependent upon the will of the creditor, regardless
whether the condition is suspensive or resolutory, the conditional obligation
remains valid.

Example: Morris obliged himself to give Alden a car if Alden will go to

Cebu. (Suspensive Condition).

Example: Morris obliged himself to give Robie P12,000.00 every month

until Robie finishes his accountancy course.
 D. CASUAL CONDITION

There is casual condition when the condition depends upon chance or upon the
will of a third person (a person who is not a party to the obligation, he is neither the
debtor nor the creditor), the effect of which is valid.

Example: Turibio obliged himself to give Leonard a car if Lenin will enter the
vocation of priesthood. Here, the conditional obligation of Turibio is dependent
upon Lenin, who is not a party to the agreement of Turibio and Leonart.

Example: Aldwin is to give Kelvin P50,000.00 if Aldwin wins in the racehorse.

The conditional obligation of Aldwin here is dependent upon chance, that is the
winning in the racehorse.
 E. MIXED CONDITION

This happens when the condition depends partly upon the will of one of
the parties and partly upon chance or upon the will of a third person.
 F. IMPOSSIBLE CONDITION

Impossible conditions are those that are contrary to good customs or public policy or those that
are prohibited by law. The effect of this condition shall render the obligation void if the same is
dependent on the said condition.

Example: Kelvin obliged himself to give P25,000.00 to Turibio if the latter will marry Kristine
despite the existence of the first marriage of Turibio to Marian. This obligation of Kelvin is void
because the condition where the obligation depends upon is contrary to law. Marrying another
during the subsistence of the first marriage is not allowed.

Note: If the obligation of the debtor does not depend upon an impossible condition, only the
condition is void but the obligation shall remain to be effective such as when there is pre-
existing obligation.
 G. POSITIVE CONDITION

Positive condition is a condition that an event happens at a determinate time. If the

time within which the event must happen expires or was not fulfilled, the
obligation is extinguished.

Example: Paolo is to give Justine P25,000,00 if Justine will finish his law degree
on March 15, 2016. Justine was not able to finish his degree on March 15, 2016,
Paolo has no more obligations to Justine.

In the same vein, if it has become evident that the event will not take place, the
debtor’s obligation likewise extinguished.
 H. NEGATIVE CONDITION

Negative condition is a condition that an event will not happen at a

determinate time. The debtor’s obligation shall be effective as soon as the
time indicated has elapsed or it has become evident that the event will not
occur.
For example: Paolo obliged himself to give P25, 000,00 to Justine if the
latter will not finish his law degree on March 2016. In the event that Justine
was not able to finish his law course, Paolo’s obligation shall become
effective.
 The rule is that when the debtor voluntarily
prevented the fulfillment of the condition,
such condition is deemed fulfilled. This is
what we call the constructive fulfillment of a
suspensive condition

In order to apply the rule, two requisites must

concur, namely:
Constructive fufillment of a
suspensive condition (a) The intent of the obligor to prevent the
fulfillment of the condition, and

(b) The actual prevention of the fulfillment. Mere

intention of the debtor to prevent the happening of
the condition, or to place ineffective obstacles to its
compliance, without actually preventing the
fulfillment, is insufficient
 RULES IN CASE OF LOSS, DETERIORATION
AND IMPROVEMENT

Loss Deteriorates The thing improves

• If the thing was lost while
waiting for the fulfillment
of the condition and such
lost was not due to the
debtor, the debtor’s
obligation shall be
extinguished. However, if
the thing is lost through
the fault of the debtor,
then he is liable for
damages.
If the thing subject of the If the thing is
suspensive condition
deteriorates, and the reason for improved by its nature,
such deterioration was due to or by time, the
the debtor, the creditor has the improvement shall
option to rescind the obligation
or fulfillment with damages in inure to the benefit of
either case. the creditor. If the thing
is improved at the
On the other hand, if the expense of the debtor,
thing deteriorates without the fault
of the debtor, the impairment is to
the debtor has no other
be borne by the creditor right than that granted
to the usufructuary.
 3. RECIPROCAL OBLIGATION

Reciprocal obligations are those which arise from the same cause, and in
which each party is a debtor and a creditor of the other, such that the
obligation of one is dependent upon the obligation of the other. They are to be
performed simultaneously such that the performance of one is conditioned
upon the simultaneous fulfillment of the other.
 4. OBLIGATION WITH A PERIOD

Concept of Period

Period is one that has a fixed day certain for its fulfillment. This obligation
is demandable only when that day comes.
 Kinds of Period

1. Definite – those obligations that must be fulfilled on a specific date

Example: In a contract of sale, Jose obliged himself to deliver particular car on

December 21, 2017. Here, Jose has until December 21, 20 perform his obligation.

2. Indefinite – those obligations that must be fulfilled upon the fulfillment of a

certain event which is certain to happen. Example is death.
3. Ex-die – a period with a suspensive effect
4. In diem – a period with a resolutory effect
 INSTANCES WHEN THE COURT WILL BE THE ONE TO FIX THE
PERIOD

1. If the obligation does not fix a period, but from its nature and the
circumstances, it can be inferred that a period was intended, the courts may
fix the duration thereof.
2. The courts shall also fix the duration of the period when it depends upon
the will of the debtor.
 1. When the debtor becomes insolvent, unless he gives
a guaranty or security for the debt;
2. When he does not furnish to the creditor the
guaranties or securities which he has promised;
3. When by his own acts he has impaired said
guaranties or securities after their establishment,
and when through fortuitous event they disappear,
Instances when the unless he immediately gives new ones equally
satisfactory;
debtor will lose the 4. When the debtor violates any undertaking, in
benefit of the period consideration of which the creditor agreed to the
period;
5. When the debtor attempts to abscond.
 In an alternative obligation, there is more than
one object, and the fulfillment of one is
sufficient to extinguish the obligation.

Example: Pedro obliged himself to give Jose a

wrist watch, a ring or a bracelet on January 21,
5. ALTERNATIVE 2018. On the said date Pedro delivered to Jose
a ring. Will Pedro be under obligation to still
OBLIGATION deliver the wrist watch and the bracelet? No,
because in an alternative obligation the
delivery of one object from among the several
objects will cause the extinguishment of his
obligation.

RIGHT OF CHOICE
In an alternative obligation the right
of choice (right of election) belongs to the
debtor. The creditor may have the right of
choice or election only when it has been
expressly granted to him.
Limitations in the Right of Choice
The debtor shall have no right to choose those
prestations or objects which are:
a. Impossible;
b. Unlawful;
c. Which could not have been the object of the
obligation;
d. The debtor cannot compel the creditor to receive
part of one and part of the other undertaking.

Rules in case of loss of things or
impossibility of services in alternative
obligation when the right of choice
belongs to the debtor
• If all the things which are alternatively the object of the
obligation have been lost, or the compliance of the obligation
have become impossible due to the fault of the debtor, the latter
is under obligation to indemnify the creditor by paying the
value of the last thing which disappeared, or that of the service
which last became impossible;
• If all the things which are alternatively the object of the
obligation are lost through fortuitous event, the obligation is
extinguished and the debtor will not be held liable for
damaged. This is based on the rule that no person shall be
liable for fortuitous event.
• If one or some of the prestation in alternative obligation are lost
due to fortuitous event or through the debtor’s fault, the debtor
cannot be held liable because the debtor may still deliver any of
the remainder.

APPLICATION:
John obliged himself to give Lizel a specific
ring, or a specific cellular phone or a
specific wristwatch. The right of choice
belongs to John.
1. If the said ring, cellular phone and the wristwatch
are lost one after the other due to John’s fault, John
shall indemnify Lizel by paying her the value of the
wristwatch because the latter is the last item that was
lost plus damages.
2. If all the things (ring, cellular phone and the
wristwatch) are lost due to fortuitous event, John’s
obligation is extinguished and will not be held liable
because of the rule that no person shall be liable for
fortuitous event.
3. If the ring was lost due to the fault of John or
through fortuitous ever but the specific cellular
phone or specific wristwatch are still subsisting, John
cannot be held liable for damages because John can
still comply with his obligation be delivering either
the specific cellular phone or specific wristwatch.

6. FACULTATIVE
OBLIGATION
It is an obligation where only one
prestation has agreed upon but the
obligor may render another in
substitution.
The debtor in this kind of obligation has to perform or deliver the
“principal thing or obligation” to the creditor but this principal
obligation may be substituted by the other obligation (the substitute) if
there is an agreement to that effect. Thus, in the absence of any
agreement the obligation remains to be a simple obligation.
Example: Princess is obliged to give Turibio a vehicle particularly
Montero 2012 model with plate number ABC 8910 but with the
agreement that Princess may deliver a parcel of land covered by
certificate of title number TCT No. 12345.
In the above example, the main or the principal obligation of Princess
is to give Montero car with plate number ABC 8910.
However, there is an agreement that Princess may instead of
delivering the said car, she may deliver a parcel of land covered by
TCT No. 12345. The parcel of land is the intended substitute if the
principal obligation cannot be delivered.
 7. JOINT OBLIGATION

Joint Obligation is one in which each debtor is liable only for a proportionate
part of the debt, and the creditor is entitled to demand only a proportionate
part of the credit from each debtor.

In joint obligation each obligor answers only part of the whole liability
and to each oblige belongs only a part of the correlative rights.

The creditor cannot compel one of the debtors to satisfy in full the
whole obligation.
 ILLUSTRATION
A, B and C are creditors of X in the amount of P9000,00. Since this is a joint
obligation, there are 3 obligations, specifically:

1) the obligation of X to A;
2) The obligation of X to B; and
3) The obligation of x to C.

Can A compel X to pay the whole P9000?

How much can B collect from X?
 ILLUSTRATION II
Example 1: John, Aldwin and Leonard owe Pon-pon and Mark the sum of P1500 due on
December 15, 2018. How much can Pon-pon collect from Aldwin?

Since, this a joint obligation there are 6 different and distinct obligations to wit:
1. The obligation of John to Pon-pon;
2. The obligation of John to Mark;
3. The obligation of Aldwin to Pon-pon
4. The obligation of Aldwin to Mark
5. The obligation of Leonard to Pon-pon
6. The obligation of Leonad to Mark
• The presumption is that the obligation
is always joint unless it is clearly stated
that the obligation is solidary.

• Other terms for joint obligation:

a.Pro-rata
b.Proportionate
c. Mancomunada
 8. SOLIDARY OBLIGATION

Solidary Obligation is one in which each of the debtors is liable for the entire
obligation, and each of the creditors is entitled to demand the satisfaction of the
whole obligation from any or all of the debtors.

Unlike in joint obligation, a solidary obligation is not presumed, there is

solidary obligation only when:

The obligation expressly so states;

When the law so provides; or
When the nature of the obligation so requires.
 EXAMPLE
Mark and Kelvin owe Danna and Grace the sum of P1500 due on December
15, 2018. Mark and Kelvin oblige themselves to be liable solidarily to Danna
and Grace.

In this case, it is expressly agreed upon that the obligation is solidary, thus, we
treat the obligation of Mark and Kelvin as one. Thus, Danna can collect the
entire amount of P1500 form Mark alone or from Kelvin alone.
 a. In solidum
b. Jointly and Severally
c. Individually and Collectively
d. Mancomunada Solidaria
OTHER TERMS e. If the contract states that the persons are
liable “together or separately”
FOR SOLIDARY
f. When the promissory note states “ I
OBLIGATION promise to pay” but it was signed by
several persons, the obligation is solidary.
 Example 1: A, B and C are solidary debtors of
X, Y and Z, solidary creditors, in the amount
of P9000.00. Here, considering that the
obligation of A, B and C is solidary, we treat
Mixed Solidarity their obligation as one.
Here, any of the creditors may demand
There are multiple payment the whole obligation to any of A, B
creditors and and C. If C pays X the whole amount, X has
debtors the obligation to give to Y and Z P3000.00
each.
 Example 2:

Jose, Margo and Perry are solidary debtors of Mark, Justin and Renz, joint creditors, in
the amount of P90,000.00. How much can Mark collect from Jose?

In this case, note that the obligation of the debtors here is solidary, hence, we treat them as one
debt. On the other hand, the creditors here is joint, thus, there are independent and separate
credits extended (3 joint creditors x 1 debtor =3) therefore, P90,000.00/3 = P30,000.00. Thus,
Mark can only collect P30,000.00 from Jose.

ENFORCEMENT OF SOLIDARY
OBLIGATIONS
1. 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. Consent of
other creditors is not necessary.
Example: In a contract of loan, Joanna, Danna and Tin oblige
themselves in solidum to Luke, Mark and John in the amount of
P300,000.00 to be paid on or before March 6, 2018. When the
maturity date arrived, Mark demanded payment of the whole
obligation. However, despite repeated demand, the debtors failed
to pay. Unfortunately, Mark and his co-debtors did not file a case
immediately. Two days before the prescriptive period to file a
case, Luke filed a complaint of sum of money against Joanna,
Danna and Tin.
Is the filing of the case made by Luke alone binds Mark and John?
Yes, because the filing of the case before the prescriptive period to
file the case is beneficial on the part of Mark and John. Otherwise,
if none of them filed the case before the prescriptive period, the
creditors can no longer file and collect their credits to their
debtors.

ENFORCEMENT OF SOLIDARY
OBLIGATIONS
2. A solidary creditor cannot assign his
rights without the consent of the others.
Example: Lenin, Gene and TJ are solidary creditors
in the amount of P27, 000.00 of Jedi, Lizel and
Karen, joint debtors.
In this case, each of the solidary creditors has a
share in the credit such that Lenin has P9,000.00
share in the P27,000.00 credit.
May Lenin assign his share to Alex his cousin and
not a co-creditor?
The answer is yes but the consent of Gene and TJ
must be secured.

ENFORCEMENT OF SOLIDARY
OBLIGATIONS
3. 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.
Note that in solidary obligation, the whole
amount is demandable against any of the solidary
debtors, thus, it follows that any of the solidary
debtors can pay the whole amount to any of the
solidary creditors. But if one of the creditors
demanded payment, the debtor should pay the
creditor who demanded the same.
Example: RJ, Jose and Aldwin are solidary creditors of
Jam, Mabs and Pinks, solidary debtors in the amount of
P300, 000.00 to be paid on or before March 6, 2018. Since,
the obligation is solidary, any of the debtors can pay the
whole amount to any of the solidary creditors on or before
the maturity date.
Supposed, after maturity date, none of the solidary debtors
paid their obligation. Aldwin wrote a demand letter
against the three debtors, to whom must the payment be
made?
If any of the creditors demanded payment, the payment
must be paid to the creditor who demanded the payment.
In this case the solidary debtors should pay the whole
amount to Aldwin because he was the one who made the
demand.

ENFORCEMENT OF SOLIDARY
OBLIGATIONS
3. 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. 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, compensation, confusion or remission
extinguishes an obligation, thus, if Jolord and
Grace are solidary debtors of Erick and Edward in
the amount of P10,000, and if Erick made any of
the acts mentioned shall extinguish the obligation.
However, it is worthy to note that the
extinguishment may be total or partial. If Erick
only condoned P5000,00 out the P10,000.00 then
the obligation is partly extinguished.
The creditor who is responsible in the
extinguishment of the obligation shall be liable to
his co-creditor for the share in the obligation
corresponding to them.
 EFFECT IF ONE OF THE SOLIDARY
DEBTORS IS INSOLVENT
When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the
debtor paying the obligation, such share shall be borne by all his co-debtors, in proportion to
the debt of each.

Example: Robie, Lenin and Mark are solidary liable to Paolo the amount of P3,000,00 to be
paid on January 20, 2020. At the time of payment, Robie becomes insolvent. Paolo demanded
payment from Mark. In this case, Mark is obliged to pay the whole amount of P3,000.00, since
the insolvency of one of the solidary debtors do not affect the right of the creditor to enforce
the whole obligation.

Mark, however, may demand from Lenin a reimbursement in the amount of P1500.
(P1000 Lenin’s share plus P500, portion of the share of the insolvent debtor).
 EFFECT OF REMISSION MADE BY THE CREDITOR THAT AFFECTS
ONE SOLIDARY DEBTOR

Remission or condonation is the creditor’s act of extinguishing an obligation. If

the debt has already been paid by one of the solidary debtors before the
remission or condonation was made by the creditor to other debtor such
debtor is still liable to pay his share in the debt.
 EFFECT OF REMISSION OF THE WHOLE OBLIGATION OBTAINED BY ONE
OF THE SOLIDARY DEBTORS

The remission or condonation obtained by one of the solidary debtors does not give him the
right to reimbursement from his co-debtors. This is logical because the debtor who obtained
the condonation did not pay anything.

Example: Marie, Ange and Faith are solidary debtors of Gege the amount of P9,000.00. Since
Gege and Ange are best of friends, Ange asks Gege to condone their indebtedness from her.
Gege, out of friendship and soft-hearted fellow, condoned the entire obligation.
Can Ange demand from Marie and Faith for reimbursement because the obligation was
extinguished through her effort?

The answer is no. While she was instrumental in the extinguishment of the entire obligation,
she did not give any money to the creditor which will give her the right for reimbursement.
 9. DIVISIBLE
OBLIGATION Example: Jose obliged himself to pay James
the amount of P10,000.00 payable in two equal
Divisible Obligation – is one capable installments. Here the obligation of Jose is
of partial performance.
divisible considering the fact that he can
partially fulfill his obligation.
 10. INDIVISIBLE OBLIGATION

Example: James obliged himself to deliver a

horse to Peter on January 20,2020. The
obligation of James is indivisible because he
must deliver completely the horse on January
An obligation is indivisible when it cannot
be validly performed in parts, whatever 20,2020.
may be the nature of the thing which is the
object thereof.
 1. When the obligation is to give a definite
thing.
2. When the obligation is not susceptible of
partial performance.
3. When the object although divisible, becomes
indivisible as provided by law.
Instances where the
4. When the object or service is physically
obligation is considered
divisible but it is indivisible by the intention of
indivisible
the parties.

11. OBLIGATION WITH PENAL
CLAUSE
A penal clause is an accessory undertaking
to assume greater liability in case of breach.
It is an accessory obligation which the
parties attach to a principal obligation for
the purpose of ensuring the performance
thereof by imposing on the debtor a special
prestation (generally consisting in the
payment of a sum of money) in case the
obligation is not fulfilled or is irregularly or
inadequately fulfilled
Example: In a construction contract, CCT obliged
to finish the construction of the warehouse of
Nikki Corp. within a period of six (6) months. In
the same contract, it is stated that should CCT fail
to finish the warehouse within the said period,
CCT shall pay Nikki Corp. P10,000.00 for every
day of delay.
In the above example the amount of ten
thousand for every day of delay is what we call the
penal clause or sometime called the liquidated
damages.
CLASSIFICATION OF
PENAL CLAUSE
(a) legal (when it is provided by law) and

1) According to source: (b) conventional (when it is provided for by

stipulation of the parties);
CLASSIFICATION OF
PENAL CLAUSE
a) subsidiary (when only the penalty may be
enforced)

2) According to
demandability: (b) complementary (when both the principal
obligation and the penalty may be enforced)
CLASSIFICATION OF
PENAL CLAUSE
(a) cumulative (when damages may be collected in
addition to penalty) and
(b) reparatory (when the penalty substitutes indemnity
(3) According to for damages).
purpose:
 EFFECT TO THE PRINCIPAL OBLIGATION IF THE PENAL CLAUSE IS VOID

• If the penal clause is void the principal obligation of the debtor remains valid
and demandable. The reason is that the penal clause is only an accessory
obligation in which case it can be disregarded.
 EFFECT TO THE PENAL CLAUSE IF THE PRINCIPAL OBLIGATION
IS VOID OR A NULLITY

• The nullity of the principal obligation carries with it that of the penal clause.
This means that the penalty clause is likewise void. And therefore, there is no
obligation to pay.