02D-BA222-WK4 DEVELOPMENT OF THE LESSON

ALTERNATION OBLIGATIONS; JOINT AND SOLIDARY OBLIGATIONS

I. COMPOUND OBLIGATIONS
Compound obligations comprehend several objects or prestations, it may be either conjunctive or
distributive. Distributive obligations are either alternative or facultative.1

a. Conjunctive obligations involve several prestations and all of them are due and
demandable.2
b. Distributive obligations involve several prestations but only one is demandable.3 The
obligation is alternative when it comprehends several objects or prestations which are due but
it may be complied with by the delivery of performance of only one of them. It is facultative
when it comprehends only one object or prestation which is due, but it may be complied with
by the delivery of another object or the performance of another prestation in substitution.4

ALTERNATIVE OBLIGATIONS FACULTATIVE OBLIGATIONS

Several objects are due Only one object is due

May be complied with by the delivery of one of the May be complied with by the delivery of another
objects or by the performance of one of the object or by the performance of another prestation
prestations which are alternatively due in substitution of that which is due.

The right of choice pertains even to the creditor or The right of choice pertains to the debtor
a third person

Loss or impossibility of the object or prestation Loss or impossibility of all of the objects or
which is due without any fault of the debtor is prestations which are due without any fault of the
necessary to extinguish an obligation. debtor is necessary to extinguish an obligation.

Culpable loss of the object intended as substitute Culpable loss of any of the objects which are
before substitution does not give rise to any alternatively due before the choice is made may
liability give rise to liability

1
Jurado, D. P. Comments and Jurisprudence on Obligations and Contracts. Quezon City, Rex
Printing Company, Inc.
2
De Leon, H. S. The Law on Obligations and Contracts. Quezon City, Rex Printing Company, Inc.
3
Supra, note 1.
4
8 Manresa,5th Ed., Bk. 1, p. 393; 3 Castan, 7th Ed., pp. 75-76.
 02D-BA222-WK4 DEVELOPMENT OF THE LESSON

A. ALTERNATIVE OBLIGATIONS
An obligation wherein various prestations are due but the performance of one of them is sufficient as
determined by the choice, which as a general rule belongs to the debtor.5

As a general rule, the right of choice belongs to the debtor.6 There are two known exceptions: (a) when
the choice has been expressly granted to the creditor; and second, when it has been expressly granted
to a third person.7

1. Right of Choice belongs to the Debtor

Limitations to the Right of Choice of the Debtor
1) The debtor cannot choose prestations which are: (a) impossible, (b) unlawful or (c) which
could not have been the object of the obligation.8 The debtor’s right of choice is not
extinguished altogether but is only limited to the remaining valid prestations.9
2) The debtor has no more right of choice when, among the prestations where is alternatively
bound, only one is practicable.10 The obligations is converted into a simple obligation.
3) The debtor cannot choose part of one prestation and part of another prestation.11

Notice of Choice

The choice shall produce no effect except from the time it has been communicated.12 Considering the
fact that the choice shall produce no effect except from the time the other party is notified of the
selection and the fact that the proof of such notification is incumbent upon him who made the selection,
it is always much better to make the notification either in a notarized document or in any other authentic
writing.13 The law does not require the creditor’s concurrence to the choice; if it did, it would destroy the
very nature of alternative obligations, which empowers the debtor to perform completely one of them.14
Once the choice is made by the debtor, the obligation ceases to be alternative from the moment the
selection has been communicated to the other party.15

If through the creditor’s acts, the debtor cannot make a choice according to the terms of the obligation,
the latter may rescind the contract with damages.16

Example:
Vic borrowed from Joey the amount of P50,000. Vic will not return the P50,000, instead he will deliver
to Joey either a horse, a cow or a goat.

5
8 Manresa 176, Article 1200, Civil Code.
6
Ibid.
7
Article 1200, Civil Code.
8
Ibid.
9
Supra, note 2.
10
Article 1202, Civil Code.
11
Article 1199, Civil Code.
12
Article 1201 Civil Code
13
8 Manresa, 5th Ed., Bk. 1
14
3 Capistrano, Civil Code, 1950 Ed., p. 131.
15
Supra, note 1.
16
Article 1203, Civil Code.
 02D-BA222-WK4 DEVELOPMENT OF THE LESSON

If through Joey’s fault, the cow died, Vic may rescind the contract and return the amount of P50,00.000.
Joey must pay the value of the cow plus damages.

Vic may also choose either a horse or a goat with a right to recover the value of the cow with damages.

If Vic chooses the cow, his obligations is extinguished. Joey will not be liable to pay for damages.

EFFECT OF LOSS
Right of Choice belongs to the Debtor (Art. Right of Choice belongs to the Creditor 17

1204) (Art. 1205)

Creditor shall have the right to indemnity for
damages since the obligation can no longer be
complied with. The indemnity shall be fixed taking
as a basis the value of the last thing which
disappeared, or that of the service which last
become impossible. Damages other than the
value of the last thing or service may also be
awarded.18
Note: If one of the things is lost or one of the
prestations cannot be performed by reason of a
fortuitous event, the debtor must still comply with
the obligation by delivering or performing that
which he shall choose from the remainder.19
When a thing is lost through a fortuitous event,
the debtor shall perform the obligation by
delivering that which the creditor should choose
from among the remainder or that which
remains if only one subsists.
When the loss of one of the things is through
the fault of the debtor, the creditor may either:
1. Claim any of those subsisting with right to
damages
2. Demand the price of that which has
disappeared with right to damages
When all the things are lost through the fault of
the debtor, the choice of the creditor shall fall
upon the price of any one of them, with
indemnity for damages.

These rules shall apply to obligations to do or not

to do.20

17
Before the creditor makes the selection and communicates it to the debtor, there can be no delay.
18
Article 1204, Civil Code.
19
Supra, note 1.
20
Article 1205, Civil Code.
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B. FACULTATIVE OBLIGATIONS

When only one prestation has been agreed upon, but the obligor may render another in substitution,
the obligation is facultative.

EFFECT OF LOSS
Before substitution After substitution
The loss of a the thing intended as a If the substitute is lost, the question to be
substitute with or without the fault of the asked is whether the loss was due to the
debtor does not render him liable.21 The fault of the debtor:
effect of the loss is merely to extinguish a) If the debtor is at fault, he is liable
the facultative character of the for damages
obligation.22
b) If the debtor has no fault, the
obligation is extinguished

Note: If after the substitution has been

communicated, the principal thing was
lost, the debtor is not liable regardless of
the cause of loss.

II. COLLECTIVE OBLIGATIONS

An obligation is considered individual if only two parties are involved, one (1) obligor
and one (1) obligee. An obligation may also be considered collective if there two (2) or more
debtors and/or creditors.

A collective obligation may either be:

A) Joint obligation (obligacion mancomunada) is defined as an obligation where there is a

concurrence of several creditors, or of several debtors, or of several creditors and debtor, by
virtue of which each of the creditors has a right to demand, and each of the debtors is bound
to render, compliance with his proportionate part of the prestation which constitutes the
object of the obligation.23
B) Joint Indivisible Obligations. In this type of obligation, the obligation is considered joint as
to the liabilities because each of the debtor remains proportionately liable. The obligation is
also indivisible because there is no partial compliance. This obligation serves as the middle
ground between a joint and solidary obligation.24

21
Supra, note 2.
22
Article 1206, Civil Code.
23
Supra, note 1.
24
Supra, note 1.
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Example:
Aida, Lorna and Fe are jointly liable to give Susie a car valued at P300,000. On the agreed date of
delivery, Lorna and Fe are willing to pay but Aida is not.

Aida, Lorna and Fe are only liable for their proportionate share of P100,000 each. Susie must proceed
against all three of them in order to satisfy the obligation. The debtor who is not willing to comply, in this
case, Aida, shall be liable for damages.
If one of the three (3) ladies, becomes insolvent, the others shall not be liable for the payment of her
share.25

Another Example:
Gaspar is liable to deliver a P150,000 motorcycle to Melchor and Baltazar jointly. If Gaspar delivers the
motorcycle but either of Melchor or Baltazar refuses to accept, Gaspar may refuse to deliver the
motorcycle. If Gaspar fails to perform his obligation, Melchor and Baltazar may only recover their
respective shares in the indemnity.

C) Solidary obligation (obligacion solidaria) is defined as an obligation where there is a

concurrence of several creditors or of several debtors or of several debtors and creditors, by
virtue of which each of the creditors has a right to demand and each of the debtors is bound
to render entire compliance with the prestation which constitutes the object of the
obligation.26

Note: There is a solidary liability only when:

(1) the obligation expressly so states; (words like “individually and collectively”, “jointly and
severally” suggests that the obligation is solidary). 27 This is also called Conventional
Solidarity.28
(2) when the law requires solidarity. This is also referred to as a Legal Solidarity.29
(3) when the nature of the obligation requires solidarity such as obligations arising from criminal
offenses and torts.30 This is in fact Real Solidarity.31

25
Article 1209, Civil Code.
26
Supra, note 24.
27
Supra, note 2.
28
Ibid.
29
Ibid.
30
Ibid.
31
Ibid.
 02D-BA222-WK4 DEVELOPMENT OF THE LESSON

INDIVISIBILITY
Indivisibility refers to the prestation which Solidarity refers to the legal tie or
constitutes the object of the obligation32
SOLIDARITY
vinculum between the parties to an
obligation33
Active solidarity is the solidarity among
creditors. Passive solidarity is the
solidarity among debtors while mixed
solidarity is solidarity among creditors
and debtors.34
In active solidarity, there is mutual
agency among the creditors.35 In passive
solidarity, a debtor can be made to pay
the entire obligation with the right to ask
for the share of his or her co-debtors.
Note: Solidarity may exist although the
creditors and the debtors may not be
bound in the same manner and by the
same periods and conditions.36

Plurality of subjects is not required37 Plurality of subjects is necessary38

In indivisible obligations, when the In solidary obligations, when there is

obligation is converted into one of liability on the part of the debtors because
indemnity for damages because of of breach, the solidarity among the
breach, indivisibility of the obligation is debtors remains.39
terminated

1. Rights of a Solidary Creditor

The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously.
The demand 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.40

But a solidary creditor cannot assign his rights without the consent of the others41 except when the
assignment is made to his or her co-creditors.

32
Supra, note 1.
33
Ibid.
34
Ibid.
35
Ibid.
36
Article 1211, Civil Code.
37
Supra, note 1.
38
Ibid.
39
8 Manresa, 5th ed., Bk. 1
40
Article 1217, Civil Code.
41
Article 1213, Civil Code.
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If any of the creditor causes the extinguishment of the obligation, he or she will be held liable to the
others for their corresponding shares considering that such acts are prejudicial to them.42

2. Payment by a Solidary Debtor

In the absence of any judicial or extra judicial demand, payment may be made by the debtor to any of
the solidary creditors.43 However if a creditor made a demand, judicially or extra judicially, payment
shall be made tom him or her.

In case of mixed solidarity, only the debtor to whom demand has been made shall be obliged to pay the
demanding creditor. The other debtors may still tender payment to any of the creditors.

Payment by one of the solidary debtors extinguishes the obligation.44 If two or more solidary debtors
offer to pay, the creditor may choose which offer to accept.45

After payment of the debt, the solidary debtor who paid can demand reimbursement from his co debtors
for their proportionate share.46 In case of insolvency of one of the co debtors the others shall assume
his or her share in proportion to each of their debt.47

Example:
Pepe, Nene and Bebe are jointly and severally liable to Guy and Pip in the amount of P9,000.00. If both
Pepe and Bebe offer to pay Pip, Pip may choose which offer to accept.

If Pip chooses Bebe and Bebe pays the entire P9,000.00, the obligation is extinguished. Bebe can now
proceed to seek reimbursement from Pepe and Nene in the amount of P3,000 each. If Nene becomes
insolvent, both Pepe and Bebe shall bear the share of Nene in the amount of P1,500 each. On the
other hand, Pip shall give Guy her share in the credit.

Note: There are two cases when a solidary co debtor loses his or her right to reimbursement:48
a) when the obligation already prescribed49; and
b) when the obligation has become illegal.50

3. Effect of Remission
Remission is the gratuitous abandonment by the creditor of his right against the debtor.51 If payment
was made before remission, there is no effect as the obligation was already extinguished through
payment. If payment was made after remission, the paying debtor cannot go after his or he co debtor
whose obligation was already remitted by the creditor.
42
Articles 1212 and 1215, Civil Code.
43
Article 1214, Civil Code.
44
Supra, note 39.
45
Ibid.
46
Supra, note 2.
47
Supra, note 39.
48
Article 1218, Civil Code.
49
Articles 1231 and 1424, Civil Code.
50
Article 1266, Civil Code.
51
4 Roman 122.
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Example:

Pepe, Nene and Bebe are indebted to Guy only in the amount of P9,000.00. Guy remitted Pepe’s
obligation. In case Nene pays the sum of P9,000.00, she cannot go after Pepe to seek reimbursement.
But Nene can demand the return of P3,000 by reason of solution indebiti.

Note: However, if the remission is for the whole obligation, the solidary debtor who obtained the
remission is not entitled to reimbursement.52

4. Effect of Loss or Impossibility of the Prestation

Loss/Impossibility is not due Loss/Impossibility is due to Loss/Impossibility is due to a

to the fault of the solidary fault on the part of a solidary fortuitous even after one of
debtors and before delay debtor the debtors incurred in delay

The obligation is extinguished
Creditor can proceed against The obligation is converted into
one, some or all of the debtors an obligation of indemnity for
for the payment of the price plus damages.55
damages53
Creditor can proceed against
Debtor/debtors may proceed one, some or all of the debtors
against the guilt or negligent for the payment of the price plus
debtor.54 damages.56

If the creditor proceeds claims Debtor/debtors may proceed

from the guilty or negligent against the guilt or negligent
debtor, the latter shall have no debtor.57
right to reimbursement.

5. Defenses of a Solidary Debtor

In the event of a demand from the creditor, the solidary debtor may set up any of these types of
defenses:
a. Defenses derived from the nature of the obligation like payment, performance or prescription.
b. Defenses which are personal to or which pertain to the debtor sued such as minority or insanity.
c. Defenses personal to others which is only a partial defense.

Example: Ben, Bob and Bill are solidarily liable to Chuck in the amount of P3,000.00. Out of nowhere,
Bong pays the P3,000 in behalf of his three friends. If Chuck files an action against Bob, Bob may raise

52
Article 1220, Civil Code.
53
Supra, note 1.
54
Ibid.
55
Ibid.
56
Ibid.
57
Ibid.
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the defense that the debt has already been paid.

In the example above assuming no payment was made and suppose Bill was still a minor at the time
the obligation was contracted, he may then raise such defense if Chuck proceeds to claim from him.
This is a complete defense.

Suppose Ben’s liability is subject to the condition that Chuck will graduate with honors. If Chuck
proceeds against Ben, Ben may raise the defense that the condition has not yet been fulfilled. BUT
Chuck can still proceed against Ben for the share of Bob since he is solidarily liable.

Suppose Chuck proceeds against Bob, Bob may raise the defense that Bill was still a minor and that
Ben’s obligation is subject to a suspensive condition which has not yet happened. Hence, Bob will only
pay P1,000.00 which corresponds to his share