kinds of obligation

7/27/2019 Kinds of Obligation

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SUMMARY:• Pure Obligation

• Conditional Obligation

• Obligation with a period

• Alternative Obligation

• Facultative Obligation• Joint/Solidary Obligation

• Obligations with a Penal Clause



Pure Obligation:• An obligation whose performance is

demandable at once and does not

depend upon a condition or a period.

• Example:

I promise to deliver AVON products to

A. Signed: B



Conditional Obligation:• An obligation whose demandability or

extinguishment is subject to a condition

• Example:I promise to deliver AVON products to Aif he passed LEM1J02 under Atty. Guia.

Signed: B• Condition – a future and uncertain

event which may or may not happen



Kinds of Condition:• Suspensive Condition – the happening of

which gives rise to an obligation

• Resolutory Condition – the happening ofwhich extinguishes the obligation

• Potestative condition – where thefulfillment depends upon one’s will (either

the debtor, creditor or a third person)• Casual condition – when the fulfillment of

the condition depends upon chance



Kinds of Condition:• Mixed condition – when the fulfillment of

the condition depends partly upon one’s

will and partly upon chance.• Impossible Condition – that which is not

capable of fulfillment because it is contrary

to the law of nature or contrary to law,morals, public order or public policy.



Article 1191:• This article applies only to reciprocal

obligations and there is no express

power to rescind.• If one of the parties in reciprocal

obligations fails to comply with what

is incumbent upon him, there is aright on the part of the other torescind.



Article 1191:• Rescission (Cancellation) can be

demanded only if plaintiff is ready, willing

and able to comply with his own obligationand the other is not.

• Slight breaches will not cause rescission.

• Right to rescind needs judicial approval ifthere has been delivery. If there is nodelivery, judicial approval is not necessary.



Article 1191:• Right is presumed, need not be

express

• Choices: (These are alternative notsimultaneous)

1. Specific performance + damages2. Rescission + damages



Obligations with a Period:Definition: Those whose demandability

or extinguishment are subject to the

expiration of a term or period.Example: “I shall deliver the

determinate thing on July 8, 2003.”

Period or “a day certain” – a future andcertain event which must surely cometo pass.



Kinds of period: Suspensive period

(ex die)

Resolutory period (indiem)

Legal/Conventional

Voluntary Period

Definite Period

Indefinite Period

Judicial Period



Judicial period:This is a period which is fixed by the courts.

The courts are empowered to fix the

duration of a period in an obligation in thefollowing instances:

1. If the debtor binds himself when his meanspermit him to do so.

2. If the obligation does not fix a period but itcan be inferred that a period was intendedby the parties.



Example: Article 1687 of the New Civil Code.

Month to month – court may fix a period

if lessee occupied for more than oneyear

Weekly- if lessee occupied for more than

six monthsDaily – if lessee occupied for more thanone month.



Facultative Obligation:Obligation where only one principal

prestation is due, but the debtor may

render another in substitution.



Alternative Obligation: An obligation wherein two or more

prestations are due, and payment or

delivery of one is sufficient toextinguish the obligation.

Rules:

1.

The right of choice belongs to thedebtor unless the choice is given tothe creditor



Alternative Obligation:Rules:

2. The choice must be communicated to the

creditor, otherwise it has no effect. Oncethe choice is communicated to the creditor,the alternative obligation ceases and itbecomes a pure obligation.

3. If all the prestations are lost through afortuitous event before selection, theobligation is extinguished



Alternative Obligation:Rules:

4. If through the fault of the debtor all

the prestations are lost beforeselection, the creditor shall have aright to indemnity for damages

equivalent to the value of the thinglost plus damages.



Alternative Obligation:If the right of selection is expressly given to the

creditor, the following rules apply:

1.

The creditor must communicate to thedebtor the prestation he has selected;

2. If one thing is lost through a fortuitousevent, the creditor may choose from the

remaining prestations3. If only one prestation is left, the debtor

must deliver it even without notice from thecreditor.



Alternative Obligation:4. If one prestation is lost through

debtor’s fault, the creditor may choose

from the remaining prestations ordemand the value of the thing plusdamages;

5. If all the things are lost throughdebtor’s fault, the creditor maydemand the value of any of the thingslost.



Obligation with a penal clause:It is an obligation with an accessory

undertaking by virtue of which the

obligor assumes a greater liability incase of breach of the obligation.



Important:The penalty shall substitute the indemnity for

damages and the payment of interest in

case of non-compliance, if there is nostipulation to the contrary.

Damages (Exemplary damages) as well as thepenalty (liquidated damages) shall be

recovered if obligor refuses to pay thepenalty or when the obligor is guilty offraud.



Joint and Solidary Obligations:Joint Obligation – takes place when there is

concurrence of several debtors or creditors,by virtue of which each of the creditors hasthe right to demand, while each of thedebtor is bound to render compliance withhis proportionate part of the prestation.

Solidary Obligation – takes place where each ofthe creditors is entitled to demand or eachof the debtors is bound to rendercompliance of the entire obligation.



Problems: A, B, and C are indebted to D in the

amount of P15,000.00. How much

can D recover from C?

Answer: P5,000.00



Problems: A is indebted to B, C and D in the amount

of P15,000.00. How much can C

recover from A?

Answer: P5,000.00



Problems: A and B are indebted to C, D and E in the

amount of P15,000.00. How much

can C recover from A?

Answer: P2,500.00



Important:The contract is presumed to be joint unless the

obligation expressly states for its solidarity;or when the law expressly provides for itssolidarity

Kinds of solidarity:

1. Passive Solidarity – existing among debtors

2. Active Solidarity – existing among creditors3. Mixed Solidarity – existing among debtors

and creditors



Problems: A, B and C are jointly and solidarily liable

to D in the amount of P15,000.00.

How much can D recover from A?

Answer: P15,000.00



Problems: A is liable to B, C and D (solidary

creditors) in the amount of

P15,000.00. How much can D recoverfrom A?

Answer: P15,000.00



Problems: A and B are jointly and solidarily liable to

C, D and E in the amount of

P15,000.00. How much can C recoverfrom A?

Answer: P5,000.00



Problems: A and B are liable to C, D and E (solidary

creditors) in the amount of

P15,000.00. How much can C recoverfrom A?

Answer: P7,500.00



Problems: A and B are jointly and solidarily liable to

C, D and E (solidary creditors) in the

amount of P15,000.00. How muchcan C recover from A?

Answer: P15,000.00



Important:• Solidarity may exist although the creditors and the

debtors may not be bound in the same manner andby the same periods and conditions. (Art. 1211)

• Each one of the solidary creditors may do whatevermay be useful to the others, but not anythingwhich may be prejudicial to the latter (Art. 1212)

• Novation, compensation, confusion or remission ofthe debt, made by any of the solidary creditors orwith any of the solidary debtors shall extinguish theobligation without prejudice to the provisions of Art. 1219 (Art. 1215).



Important:• Payment by a solidary debtor shall not entitle him

to reimbursement from his co-debtors if suchpayment is made after the obligation has

prescribed or become illegal. (Art. 1218)• The remission made by the creditor of the share

which affects one of the solidary debtors does notrelease the latter from his responsibility towardsthe co-debtors, in case the debt has been totally

paid by anyone of them before remission iseffected(Art.1219)

kinds of obligation

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