PRESUMPTION AS TO WHO HAS THE BENEFIT OF THE PERIOD

Art. 1196, CC

GR: Whenever a period is designated in an obligation it shall be

presumed to have been established for the benefit of both the debtor
and creditor.

EFFECT: Before the term expires, the debtor cannot be compelled to

perform the prestation, and the creditor cannot be compelled to
accept performance thereof.
45
PRESUMPTION AS TO WHO HAS THE BENEFIT OF THE PERIOD
Art. 1196, CC

XPN: From the tenor of the obligation or other circumstances, it

should appear that it has been established for the benefit of only
one of the parties.

46
 PERIOD IS FOR THE BENEFIT OF ONE OF THE PARTIES
Art. 1196, CC
1.) For the benefit of the DEBTOR
 He cannot be compelled to perform his obligation before the expiration
of the term, but he may choose to perform before such expiration at his
option.
Ex. D owes C the amount of P500K payable on or before 31 Dec
2023. Here, D cannot be compelled to pay before 31 Dec 2023.
However, he may pay at anytime before 31 Dec 2023 or on 31
Dec 2023, at his option.
47
 PERIOD IS FOR THE BENEFIT OF ONE OF THE PARTIES
Art. 1196, CC
2.) For the benefit of the CREDITOR
He cannot be compelled to accept performance before the expiration of
the term, but he may choose to demand performance before such
expiration at his option.

Ex. X borrowed from Y the amount of P20K collectible on or before 30

Nov 2023. Here, Y may compel payment on 30 Nov 2023 or anytime
before said date. However, X cannot compel Y to accept payment at
anytime before 30 Nov 2023.
48
 WHEN DEBTOR LOSES HIS RIGHT TO MAKE USE OF THE PERIOD
Art. 1198, CC
1) When after the obligation has been contracted, he 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 a fortuitous event they disappear, unless he immediately gives new ones
equally satisfactory;
4) When the debtor violates any undertaking, in consideration of which the creditor agreed to
the period;
5) When the debtor attempts to abscond.

EFFECT: the creditor may demand immediate payment.

49
I. KINDS OF OBLIGATIONS
A. As to Perfection & Extinguishment D. As to Performance of Prestation
1) Pure 1) Divisible
2) Conditional
2) Indivisible
3) Obligation with a Term or Period
B. As to Plurality of Prestation
1) Alternative F. As to the presence of an accessory
2) Facultative undertaking in case of breach
1) Obligations with Penal Clause
C. As to Rights & Obligations of Multiple
Parties
1) Solidary
2) Joint
50
KINDS OF OBLIGATIONS ACCDG TO THE NUMBER OF PRESTATIONS
I. SIMPLE
There is only one prestation.
II. COMPOUND
There are several prestations.
a. Conjunctive – several prestations are due and all must be
performed.
b. Disjunctive/Distributive
– one or more prestations are due, but not all must be
performed, or another may be rendered in substitution.
– can either be alternative or facultative.
51
I. KINDS OF OBLIGATIONS
A. As to Plurality of Prestation

1)ALTERNATIVE OBLIGATIONS
An obligation where there are several
prestations due, but the complete performance of
one of them is sufficient to extinguish the
obligation. (Art. 1199, CC)

52
I. KINDS OF OBLIGATIONS
A. As to Plurality of Prestation

1) ALTERNATIVE OBLIGATIONS
Ex. XYZ & Co. is to obliged to perform financial audit,
management advisory services, or quality assurance audit of
MNO, Corp.
Here, the performance of any of the 3 services will
extinguish the obligation.
53
 The right of choice
belongs to the
debtor, unless it has
been expressly
given to the creditor.
(Art. 1200, CC)
 NO. There are
limitations to the
debtor’s right to
choose a prestation.
LIMITATIONS ON THE DEBTOR’S RIGHT TO CHOOSE
1) The debtor must completely perform the prestation
chosen. He cannot compel the creditor to receive part
of one and part of another undertaking. (Art. 1199. CC)

2) Debtor shall have no right to choose those prestations

which are impossible, unlawful, or which could not have
been the object of the obligation. (Art. 1200, CC)

56
YES.
 INSTANCES WHEN AN OBLIGATION CEASES TO BE
ALTERNATIVE AND BECOMES A SIMPLE OBLIGATION
1) When the debtor has communicated his choice to the
creditor. (Art. 1201. CC)
2) When among the prestations whereby the debtor is
alternatively bound, only one is practicable. (Art. 1202,
CC)
3) When the selection has been communicated to the
debtor, if the choice has been expressly given to the
58
creditor. (Art. 1205, CC)
 RULES IN CASE OF LOSS OF THINGS, OR
IMPOSSIBILITY OF SERVICES WHICH ARE
ALTERNATIVELY THE OBJECT OF THE
OBLIGATION BEFORE THE CHOICE IS
COMMUNICATED

59
RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:

1. If only one or some

WHEN RIGHT OF are lost through a
CHOICE BELONGS TO fortuitous event (FE) or
THE DEBTOR through the debtor’s
(Art. 1205, CC) fault, the debtor may
deliver any of the
remainder, or that which
remains if only one
subsists.
60
RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:

WHEN RIGHT OF
CHOICE BELONGS TO 2. If all are lost through
THE DEBTOR a fortuitous event, the
(Art. 1205, CC) obligation is
extinguished.

61
RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:

WHEN RIGHT OF 3. If all are lost through

CHOICE BELONGS TO the debtor’s fault, the
debtor shall pay the
THE DEBTOR value of the last thing
(Art. 1205, CC) that was lost plus
damages.
(VLTL + D)

62
RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:

WHEN RIGHT OF 4. If all except one are

CHOICE BELONGS TO lost through the debtor’s
fault and the remaining
THE DEBTOR item is subsequently lost
(Art. 1205, CC) through a FE, then the
obligation is
extinguished.

63
RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:

WHEN RIGHT OF 5. If all except one are

CHOICE BELONGS TO lost through a FE, and the
remaining item is
THE DEBTOR subsequently lost through
(Art. 1205, CC) the debtor’s fault, the
debtor shall be liable for
damages.

64
ILLUSTRATION:
Sue Playa is to deliver Saab
Yungero a specific
thoroughbred, a specific
rooster, or a specific pigeon.
The obligation is silent as to
who will choose the item to be
delivered. Therefore, the right
of choice belongs to?
Ans: Sue Playa
(Debtor)
If the thoroughbred is lost
through a FE, Sue Playa may
deliver the rooster or the
pigeon. The same rule applies
if the thoroughbred is lost
through the fault of Sue. In
such case, Sue will not be
liable for damages bec. she
can still deliver either the
rooster or pigeon.
ILLUSTRATION:
Sue Playa is to deliver Saab
Yungero a specific
If the rooster or the pigeon are
thoroughbred, a specific
lost through a FE or through
rooster, or a specific pigeon.
Sue Playa’s fault, the
The obligation is silent as to
obligation is converted into a
who will choose the item to be
simple obligation to deliver the
delivered. Therefore, the right
thoroughbred. There is no
of choice belongs to Sue
liability for damages on the
Playa (Debtor).
part of Sue bec. she can still
perform the obligation. It was
as if Sue chose to deliver the
thoroughbred.
ILLUSTRATION:
Sue Playa is to deliver Saab
Yungero a specific
thoroughbred, a specific
rooster, or a specific pigeon.
The obligation is silent as to
who will choose the item to be
delivered. Therefore, the right
of choice belongs to Sue
Playa (Debtor).
If all the farm animals were
lost due to a FE, Sue Playa’s
obligation is extinguished.
However, if all the farm
animals were lost due to the
fault of Sue, she shall be liable
for the Value of the Last farm
animal (thing) that was Lost +
Damages. (VLTL + D)
ILLUSTRATION:
Sue Playa is to deliver Saab
Yungero a specific
thoroughbred, a specific
If the rooster or the pigeon are
rooster, or a specific pigeon.
lost through a FE, the
The obligation is silent as to
obligation is converted into a
who will choose the item to be
simple obligation to deliver the
delivered. Therefore, the right
thoroughbred. If due to the
of choice belongs to Sue
fault of Sue the thoroughbred
Playa (Debtor).
is thereafter lost, Sue shall be
liable for damages.
ILLUSTRATION:
Sue Playa is to deliver Saab
Yungero a specific
thoroughbred, a specific
If the rooster or the pigeon are
rooster, or a specific pigeon.
lost through Sue’s fault, the
The obligation is silent as to
obligation is converted into a
who will choose the item to be
simple obligation to deliver the
delivered. Therefore, the right
thoroughbred. If due to a FE
of choice belongs to Sue
the thoroughbred is thereafter
Playa (Debtor).
lost, the obligation of Sue is
extinguished.
 RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:

1. If only one or some

WHEN RIGHT OF are lost through a FE, the
CHOICE BELONGS TO debtor shall deliver that
THE CREDITOR w/c the creditor should
(Art. 1205, CC) choose among the
remainder, or that which
remains if only one
subsists.
70
 RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:

WHEN RIGHT OF
CHOICE BELONGS TO 2. If all are lost through a
THE CREDITOR FE, the obligation shall be
extinguished.
(Art. 1205, CC)

71
 RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:
3. If only one or some
WHEN RIGHT OF are lost through the
CHOICE BELONGS TO debtor’s fault, the
creditor may claim any of
THE CREDITOR those subsisting, or the
(Art. 1205, CC) Value of Any of the thing
Lost through debtor's
Fault + Damages.
(VALF + D)
72
 RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED:

WHEN RIGHT OF 4. If all are lost through

CHOICE BELONGS TO the debtor’s fault, the
THE CREDITOR creditor may claim Value
(Art. 1205, CC) of Any of the thing Lost +
Damages.
(VAL + D)

73
ILLUSTRATION:

Sue Playa is to deliver Saab

Yungero a specific
thoroughbred, a specific
rooster, or a specific pigeon.
The parties agreed that Saab
shall have the right to choose
the item to be delivered.
If the thoroughbred is lost
through a FE, Sue Playa shall
deliver either the rooster or
the pigeon at the option of
Saab.
ILLUSTRATION:

Sue Playa is to deliver Saab

Yungero a specific
thoroughbred, a specific
rooster, or a specific pigeon. If all the farm animals are lost
The parties agreed that Saab through a FE, the obligation of
shall have the right to choose Sue Playa shall be
the item to be delivered. extinguished.
ILLUSTRATION:
Sue Playa is to deliver Saab
Yungero a specific
thoroughbred, a specific
rooster, or a specific pigeon.
The parties agreed that Saab
shall have the right to choose
the item to be delivered.
If the rooster or the pigeon are
lost through a FE, Sue Playa
shall deliver the thoroughbred
w/c is the remaining farm
animal. Here, the obligation is
converted to a simple
obligation to deliver the
thoroughbred. If the race
horse is thereafter lost due to
the fault of Sue, she shall be
liable for damages.
ILLUSTRATION:
Sue Playa is to deliver Saab
Yungero a specific
thoroughbred, a specific
rooster, or a specific pigeon.
The parties agreed that Saab
shall have the right to choose
the item to be delivered.
If the rooster or the pigeon are
lost through Sue’s fault, the
obligation does not become a
simple obligation to deliver the
thoroughbred. Saab may
choose payment of the Value
of Any of the farm animals
Lost through Sue’s Fault +
Damages, or the delivery of
the thoroughbred. (VALF+D)
ILLUSTRATION:
Sue Playa is to deliver Saab
Yungero a specific
thoroughbred, a specific
rooster, or a specific pigeon.
The parties agreed that Saab
shall have the right to choose
the item to be delivered.
If all the farm animals are lost
through the fault of Sue, Saab
may demand payment of the
Value of Any of the farm
animals Lost + Damages.
(VAL+D)
SUMMARY: RULES IN ALT. OBLIGS. BEFORE CHOICE IS COMMUNICATED

Only one or some are Only one remains and

Art. 1205, Civil Code All are Lost
Lost it is lost through
Debtor’s Debtor’s Debtor’s
Manner of Loss: FE FE FE
Fault Fault Fault
DR may deliver any of
DEBTOR the remainder, or that Oblig. Oblig.
Extinguished
VLTL + D
Extinguished
Damages
(DR) which remains if only 1
subsists
RIGHT DR shall deliver
OF that w/c the CR
CR may
CHOICE should choose claim any
CREDITOR among the of those Oblig. Oblig.
(CR) remainder, or Extinguished
VAL + D
Extinguished
Damages
subsisting,
that which or VALF +
remains if only
1 subsists
D
79
I. KINDS OF OBLIGATIONS
A. As to Plurality of Prestation

2) FACULTATIVE OBLIGATIONS
An obligation where only one prestation is due
but the debtor may render another in substitution.
Ex. D is obliged to deliver a specific car to C with the agreement
that D may deliver a specific motorcycle as a substitute.

80
 RULES IN CASE OF LOSS OF
PRINCIPAL THING AND
SUBSTITUTE.

81
 Principal thing
• If lost due to FE, obligation is
extinguished.
BEFORE • If lost due to debtor’s fault,
debtor shall pay Damages.
SUBSTITUTION Substitute
(i.e. before the debtor
has informed the creditor • If lost whether due to FE or debtor’s
of the substitution) fault, no addt’l obligation on the part
of the debtor.
• Debtor shall still deliver the principal
thing. Here, the obligation ceases to
become facultative and is converted to
a simple obligation.
8
2
 Principal thing
• If lost due to FE or debtor’s fault,
no addt’l obligation on the part
of the debtor bec. the thing due
is already the substitute.
AFTER • After the substitution has been
communicated, the thing due is
SUBSTITUTION the substitute.
• Obligation ceases to be
(i.e. after the debtor has facultative.
informed the creditor of
the substitution) Substitute
• If lost due to FE, obligation is
extinguished.
• If lost due to debtor’s fault, debtor
shall pay damages.
8
3
 Alternative vs. Facultative
AS TO NUMBER OF PRESTATIONS DUE

Several prestations are due, Only one prestation, the

but the performance of one is principal obligation, is due
sufficient to extinguish the
obligation.
 Alternative vs. Facultative
AS TO EFFECT OF A VOID PRESTATION

If there are void prestations, If the principal obligation is

the others may still be valid, void, debtor is not required to
hence, the obligation remains. give the substitute.
 Alternative vs. Facultative
AS TO WHO HAS THE RIGHT OF CHOICE

The right of choice belongs to The right of choice belongs to

the debtor, unless expressly the debtor only.
given to the creditor.
Alternative vs. Facultative
AS TO IMPOSSIBILITY OF PRESTATION

If all prestations are If the principal obligation is

impossible except one, that impossible, the debtor is not
w/c is possible must still be required to give the substitute.
given.