KINDS OF OBLIGATIONS

Simple ObligationWhere there is only one prestation

John obligates himself to deliver to Sara a car
Compound ObligationWhere there are two or more prestations. It may be:
Conjunctive ObligationWhere all the prestations are due
John obligates himself to deliver a car and give 10,000 pesos to Sara
Distributive ObligationWhere there are two or more prestations. It may
be:
An Alternative Obligation, where there are two or more prestations
but the performance of one is sufficient
John obligates himself to deliver a car , deliver a motorcycle, or
give 300,000 pesos to Sara

a Facultative Obligation, where there is one prestation but the

debtor may substitute it for another
John obligates himself to give Sara a piano but may give Sara a
T.V. as a substitute

ALTERNATIVE OBLIGATIONS
Definition of an Alternative Obligation
An alternative obligation is one wherein various prestations are due but the
complete performance of one of them is sufficient to fulfill the obligation
Example: John borrowed 10,000 pesos from Sara. It was agreed that John
could fulfill his obligation by giving Sara 10,000 pesos, giving a television, or
painting the house of Tim
Creditor cannot be compelled to receive part of one and part of another prestation
RIGHT TO CHOOSE
The general rule is that the right to choose belongs to the debtor/obligor
Exception: unless it has expressly granted by the creditor
Example of exception: John obliges himself to deliver his G-Shock Watch or
his Black Bull Dog to Sara on July 30. Sara will communicate her choice
before or on July the 15th
The debtor does not have the right to choose prestations which are impossible,
unlawful, or which could not be the object of the obligation
John borrowed 10,000 pesos from Sara. It was agreed that John can comply
with his obligation to Sara by paying her 10,000 pesos, or giving her his
cellphone, or stealing from her brother
Stealing from her brother is not a choice
EFFECT OF NOTICE
Until the choice made is communicated, the obligation remains alternative
Once the choice is made and communicated the obligations ceases to be alternative
and instead becomes simple
General rule: once a choice is made, it is irrevocable
Unless both parties agree to make a change
EFFECT WHEN ONLY ONE IS PRACTICABLE
Debtor loses the right of choice when only one is practicable
John promises to give Sara 10,000 pesos, or give Sara the moon, or steal money
from Saras brother
Transforms into: John promises to give Sara 10,000 pesos because the last
two choices are impossible

Article 1204 applies if the right of choice belongs to the debtor

If some of the objects (prestations) of the obligation have been lost or become
impossible through the debtors fault, he is not liable since he still has the right of
choice and the obligation can still be performed
If all of the objects (prestations) of the obligation have been lost or become
impossible through the debtors fault, the creditor shall have the right to indemnify
for damages since the obligation can no longer be fulfilled
Damages shall be the last thing that disappeared or that of the service which last
became impossible

Damages other than the value of the last thing or service may also be awarded

RULES IN CASE OF LOSS

General Rule: Choice of object belongs to the debtor
Article 1205 applies if the right to choose is expressly given to the creditor
(1) When a thing is lost through fortuitous event: creditor can choose from the
remainder
(2) When a thing is lost though the debtors fault: (a) creditor can choose among the
other objects with damages, or (b) or the price of the thing lost with damages
(3) When all of the things are lost through a fortuitous event: the obligation shall be
extinguished
(4) When all of the things are lost through the fault of the debtor: creditor can
demand payment for any one of the objects with right to damages
FACULTATIVE OBLIGATION

Facultative Obligation: is one where only one object (prestation) has been agreed
upon, but the obligor (debtor) may render another one in substitution
Examples:
I will give you my piano but I may give my HD Television as a substitute.
I will mortgage my land to secure my debt which shall be payable in 90 days
upon my failure to pay my debt in 30 days
Here, if the obligation to pay his debt in 30 days is not paid the debtor
will mortgage his land and payment will be made 90 days after the
agreement of the obligation
If, before substitution, the PRINCIPAL THING is lost through a fortuitous event the
obligation is extinguished; if through debtors fault the debtor is liable for
damages
The loss of the thing intended as a SUBSTITUTE with or without the fault of the
debtor does not render him liable (for the substitute)
Because the thing intended as a substitute is not due and demandable.
The effect of the loss of a substitute is merely to extinguish the facultative
character of the obligation
If, after substitution, the PRINCIPAL THING is lost whether through a fortuitous
event or through the debtors fault the debtor is not liable
Because it is no longer due and demandable
Once the substitution is made the obligation is converted into a simple one to
deliver or perform
Thus after substitution is made, if the substitute is lost through a fortuitous
the debtor is not liable; if lost through the debtors fault he is liable for
damages

JOINT AND SOLIDARY OBLIGATIONS

ARTICLES 1207-1222

Kinds of obligations according to the number of parties

Individual Obligationonly one obligor/debtor and one obligee/creditor
Collective Obligationtwo or more obligors/debtors and/or two or more
obigees/creditors
Joint and solidary obligations are collective obligations
Joint ObligationOne where the whole obligation is to be paid or fulfilled
proportionately by the different debtors and/or is to be demanded
proportionately by the different creditors
Solidary ObligationOne where each one of the debtors is bound to render,
and/or each one of the creditors has a right to demand from any of the
debtors the entire compliance with the prestation

EXAMPLES OF JOINT OBLIGATIONS

2 or more debtors and 1 creditor: A,B, and C borrowed 9,000 pesos from D
The presumption is that they are jointly (proportionately) liable
D can only demand 3,000 pesos each from A, B, and C
1 debtor and 2 or more creditors: A borrowed 9,000 pesos from B,C, and D
B, C, and D can only demand 3,000 pesos from A
2 or more debtors and 2 or more creditors: A and B borrowed 9,000 pesos from
C and D
C and D can only demand 4,500 pesos from each debtor
Important matters:
Because each debt and credit are separate and distinct, the
insolvency or non-fulfillment of one debtor shall not make the other
debtors liable for his share
Presumption is that an obligation with two or more creditors and/or debtors
is that it is a joint obligation because it is less burdensome
SOLIDARY OBLIGATIONS
Passive Solidarity (more than one debtor)solidarity on the part of the debtors,
where any one of the debtors can be made liable for the fulfillment of the entire
obligation.
A and B are solidary debtors to C in the amount of 10,000 pesos.
There is only one debt. The debt of A and B to C. There is only one
credit. The credit of C against A and B.
C can demand payment from either A or B or both of them
simultaneously for the whole payment of 10,000 pesos
He who made the payment in behalf of his co-debtor can collect
the amount corresponding to their interest (Article 1217)
Thus, if A pays the whole obligation of 10,000 pesos, he
can collect from B 5,000 pesos
Active Solidarity (more than one creditor)any one, some or all of the creditors
can demand the fulfillment of the entire obligation
A is a debtor to B and C for 10,000 pesos
If B collects the whole obligation of 10,000 pesos, he is liable to C for
Cs share in the credit according to their agreement
Mixed Solidarity (more than one debtor and more than one creditor)solidarity on
the part of the debtors and creditors. Each debtor is liable to render payment and
each one of the creditors have the right to demand
Combination of Passive and Active Solidarity

JOINT
Pro Rata
Proportionately
We Jointly
We Promise to pay signed by two or more persons

SOLIDARY
Joint and/or Severally
We Solidarily
Together and/or Separately
Individually and Collectively
I promise to pay signed by two or more persons

ACTS OF SOLIDARY CREDITORS

Solidary creditor can do anything beneficial for all the creditors but cannot do
anything prejudicial to the creditors
Thus, a creditor can make a demand on the behalf of his creditors because it is
beneficial, but if a creditor remits or condones (forgives) a debt. The obligation will
be extinguished but he will be liable to pay the shares to his co-creditors
because the act of remission or condonation of the debt prejudices the other
creditors (Article 1215)

Co-Creditor of a solidary obligation cannot assign his rights without the consent of
the others
Assignment to another co-creditor does not need consent

The debtor may pay any one of the solidary creditors but if a demand is made
payment should be made to him (the creditor that made the demand)