KINDS OF OBLIGATION

As to Sanction

Civil or perfect obligation. It is an obligation

whose sanction is law.

Natural Obligation or naturalis obligatio is

one enforceable by law but nevertheless binding on the obligor by dictate of his conscience and the basic postulates of natural law, justice and equity. Moral Obligation is a duty imposed by ethical or religious belief.

As to Subject Matter

Real Obligation. The

obligation to give

Personal Obligation. The

obligation to do or not to do.

As to Number of Persons Obliged

Unilateral Obligation. Is one

where only one party is bound. Only one party undertakes a performance. Bilateral Obligation. Is one where both parties are bound, as in the contract of sale.

As to Mode of Performance

Positive Obligation. Is an obligation to

give and to do, the essence is affirmative action Negative Obligation. Is an obligation not to give or not to do, the essence is inaction or non-action.

As to Sequence of Performance

Primary Obligation. The principal object

of the contract.

Secondary Obligation. One which is

contracted and is to be performed in case the primary obligation cannot be performed.

As to Object

Principal Obligation. One which arises

from the principal object of the engagement of the contracting parties. Accessory Obligation. One which depends upon or peripheral or collateral to the principal

Kinds of Obligations Under the Civil Code

Pure and Conditional Obligation. Obligation with a Period Alternative Obligation Joint and Solidary Obligation Divisible and Indivisible Obligation Obligation with a Penal Clause

Pure Obligation
Every obligation whose performance does not depend upon a future or uncertain event, or a past event unknown to the parties, is demandable at once and is called a pure obligation.

Conditional Obligation
Conditional obligation is one the fulfillment of which is dependent upon the happening of an event.

THE CONDITION MAY BE;

Suspensive or Condition Parecedent wherein the happening of the condition gives rise to the obligation. The obligation is not to take effect until the event happens, it is a suspensive condition Resolutory Condition or Condition Subsequent wherein the happening of the condition extinguishes the obligation, obligation with resolutory condition take effect at once, but terminate upon the happening of the event. Potestative wherein the condition depends upon the will of the debtor. (Invalid Condition, Art. 1182) Casual wherein the condition depends upon chance, or on the will of the third person Impossible Conditions those contrary to good customs or public policy and those prohibited by law, shall annul the obligation which depends upon them.

Obligations with a Period or Term

Obligations for whose fulfillment a day certain has been fixed is called an obligation with a period or term and is demandable only when that day comes. In obligation with a period, the general rule is that it is presumed that the period has been established for the benefit of both creditor and debtor

In the following instances, the court may fix the period

If the obligation does not fix a period but from its nature and circumstances it can be inferred that a period was intended When it depends on the will of the debtor When the debtor binds himself to pay when his means will permit him to do so.

Alternative Obligation
An alternative obligation is one where out of two or more prestations which may be given or performed, only one is due and the complete performance of one of them extinguishes the obligation. The Obligee or creditor cannot be compelled to receive part of one and part of the other undertaking or prestation (Article 1199, Civil Code)

As a general rule, the right to choose the alternative belongs to the debtor. However, there are four limitations to this right of choice of alternative by the debtor.

When the right of choice of the alternative is expressly granted to the creditor by mutual agreement of the parties (Art. 1200, Civil Code) The debtor has no right to choose those prestations which are impossible, unlawful or which could not have been the object of the obligation (Art. 1200, Civil Code) The choice cannot produce any legal effect until it has been communicated to the other party (Art. 1200, Civil Code) The debtor loses the right of choice among the prestations whereby he is alternatively bound when only one alternative is left that is practicableof performance

Facultative Obligation

When only one prestation has been has been agreed upon, but the obligor may render another in substitution, the obligation is facultative (Article 1206, Civil Code)

Joint and Solidary Obligation

A joint obligation may be defined as an obligation where there is a concurrence of several creditors or several debtors, by virtue which each of the creditors has a right to demand, while each of the debtors is bound to render the compliance with his proportionate part of the prestation which constitute the object of obligation.

The Right of the Creditors in Solidary Obligation

The right to demand entire payment of the debt or the entire compliance with the prestation from any one of the debtors If the debt has not been fully collected from one debtor, the creditor has the right to demand payment from the remaining debtors (Art. 1216, Civil Code) The right to file an action for compliance with the obligation against one , some all of the debtors simultaneously. The right to receive payment or compliance with the entire prestation, from one, some or all of the debtors The right to do whatever may be useful to the other creditors. The right to assign his rights with the consent of the other creditors (Art 1213, Civil Code) The right to make a novation, compensation, confusion or remission of the debt.

Obligations of a Solidary Debtor

To pay the entire debt or fulfill the entire prestation when so demanded by creditors. Payment made by one of the solidary debtors extinguishes the obligation. If two or more solidary debtors offer to pay, the creditor may choose which offer to accept. (Art. 1217, Civil Code) To pay his corresponding share in the debt in case one of the solidary debtors made full payment of the obligation, with the interest for the payment already made. If payment is made before the debt is due, no interest for the intervening period may be demanded. (Art. 1217, Civil Code) To pay for the share of the insolvent co-debtor in proportion to the debt of each when one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor paying the obligation (Art. 1217 3rd par. Civil Code) If the solidary debtor makes payment after the obligation has prescribed or become illegal, he losses the right to reimbursement from his co debtors (Art. 1218, Civil Code)

Divisible and Indivisible Obligation

An obligation to give definite things and those which are not susceptible of partial performance is deemed an indivisible obligation (Art. 1225, Civil Code) When the obligation gives rise for its object the execution of certain number of days work, the accomplishment of work by metrical units, or analogous things which by their nature are susceptible of partial performance, such obligation is called divisible obligation.

Obligation with a Penal Clause

An obligation with a penalty is one where if the obligation is not complied with, the penalty imposed shall substitute for damages and the payment of interests, unless otherwise stipulated (Art. 1226, Civil Code)

A penalty imposed for the breach of contract shall be enforced if the agreement is violated, whatever the obligee has suffered from damages or not, inasmuch as one of the primary purposes in fixing a penalty is to avoid damage.

Proof of actual damages suffered by the creditor is not necessary in order to demand penalty (Art. 1228, Civil Code)

As a general rule is that the penalty takes place of indemnity for damages and for the payment of interest, except:

when there is express agreement to the effect that damages or interest may still be recovered, despite the presence of the penalty clause (Art 1226, Civil Code) when the debtor refuses to pay the penalty imposed in the obligation (Art. 1226, Civil Code)