DIFFERENT KINDS OF OBLIGATIONS AND THEIR LEGAL

EFFECTS
A. AS TO WHETHER THEY DEPEND UPON THE
HAPPENING OF AN EVENT
1. PURE OBLIGATION
- an obligation without a condition nor a period
Examples: I undertake pay P100,000.
I undertake to deliver to you a car.
- Immediately demandable; obligation can be
demanded anytime. (effect of pure obligation)
Examples:
Luigi obliges himself to pay Mario P1,000.00

Other Kinds of Obligation which are immediately
demandable:
1. Obligation subject to a resolutory condition
2. Obligation subject to a resolutory period.
3. Obligation not to do an impossible condition.
4. Obligation with a potestative condition which
reads - "I promise to pay anytime upon demand."
(by agreement of the parties)
5. When it is pure.

ART. 1179. Every obligation whose performance
does not depend upon a future or uncertain event,
or upon a past event unknown to the parties, is
demandable at once.

2. CONDITIONAL OBLIGATION
- one whose consequences are subject to the
fulfillment of a future and uncertain event, or
condition.
Examples :
I will deliver to you a washing machine if you pay its
price in advance.
I will support you until you graduate horn UST.
I will lend you P10,000 but fix my computer first.

Manner of Performance
1. Actual performance
2. Constructive performance

ART. 1181. In conditional obligations, the acquisition
of rights, as well as the extinguishment or loss of
those acquired, shall depend upon the happening of
the event which constitutes the condition.

ART. 1182. When the fulfilment of the condition
depends upon the sole will of the debtor, the
conditional obligation is void. If it depends upon
chance or upon chance or upon the will of a third
person, the obligation shall take effect in conformity
with the provisions of this Code. (1115)

ART 1186. The condition shall deemed FULFILLED
when the obligor VOLUNTARILY prevents its
fulfilment.

Meaning of Condition
Condition is a future and UNCERTAIN event, the
happening of which either CREATES or
EXTINGUISHES an obligation subject to it.

Characteristics of a Condition
1. Future and uncertain
2. Past but Unknown - if it refers to a future event,
both its very occurrence and the time of such
occurrence and the time of such occurrence must be
uncertain; otherwise, it is not a condition.

Kinds of Condition and their Legal Effects
1. As to whether it makes the obligation immediately
demandable
1.a Suspensive Condition
- a future and uncertain event, the happening
of which CREATES the ob1igiton subject to it.
- the demandability of the obligation is
suspended until the happening of the
uncertain event, which constitutes the
condition.
- if this takes place, the tie of the law (juridical
or legal tie) does not appear.
Examples: I promie to give you P50,000, if you
pass the CPA Board Exams this October, 2009.
I wiIl pay their prices if the goods are already
delivered to me.
I will support you once I'm already employed
abroad.
Legal Effect: As a rule, the obligation subject to it
is VALID.
EXCEPTIONS (The obligation is VOID):
(a) With a suspensive condition, which is at the
same time, Potestative depending upon the
debtors will.
Example: I will pay you if I so desire.
(b) With a suspensive condition which is
impossible to perform
Example: I will pay P100,000 if vou kill my wife.

1.b. Resolutory Condition
- An uncertain event which makes an obligation



2. As to source of its performance
2.a. Potestative Condition
2.b. Casual Condition
- one which depends upon chance or upon the
will of third person.
Examples ....
Legal Effect: VALID

Examples: I will support you so long as you are not
yet gainfully employed. (The condition is alsoa
resolutory one.)
I will pay if you want me to. ('If you want me to' is
also a suspensive and a potestative)
Legal Effect: VALID


3.b. Impossible Condition
-one which is NOT capable of fulfillment,
legally or physically.
Two Kinds of Impossible Conditions:
1. Physically Impossible Conditions - when they,
in nature of things, cannot exist or cannot be
done.
Examples: I will pay you P10,000 if it will not
rain for 1 year in the Philippines.
I will give you P1M if you can hold your
breath underwater for 24 hours.
2.Legally Impossible Conditions - when they are
contrary to law, morals, good customs, public
order, or public policy.
Examples: I will pay P10,000 if you burn my
neighbors house.
I will sell to you my land in Manila if you
become a foreigner.
Legal Effect: VOID (Both the condition and the
obligation subject to it)

- An obligation subject to a condition NOT TO DO
an impossible act is VALID and immediately
demandable. The said condition shall not he
considered as agreed upon by the parties and
the obligation becomes a Pure Obligation.
Examples: I will give you P1,000 if you don't
fly to the moon like a bird.
I will continue to support you if you don't
commit adultery while I'm away.

- If the obligation is divisible, the part thereof not
affected by the impossible condition shall be
valid. (OnIy the affected obligation is void)
Example: - I will give yOU P10,000 if you sell
my land, and a car if you kill Pedro.
(Obligation to give P10,000 is valid; while
obligation to give a car is void)
- If the obligation is a pre-existing ob1igtiou, and
therefore does not depend upon the fulfillment
of the condition which is impossible, for its
existence, only the condition is void.
Example: D borrowed P10.000 from C. If C
later agreed to kill X before D pays him, the
condition to kill X is void but not the pre-
existing obligation of D 'to pay C'.

4. As to manner of performance
4.a. Positive Condition
- one which consists in the performance of an
act; the happening of an event at a
determining time,
Legal Effect: VALID -- ART. 1184
The obligation is extinguished:
a) as soon as the time expires without the
event taking place; or
b) as soon as it has become indubitable that
the event will not take place although the
time specified has not expired.
Examples: I will pay if you deliver me the
goods.
I will give you P30,000 if you kill him. (Void)
4.b. Negative Condition
- one which consists in the omission of an act;
an event will not happen at a determinate
time.
Legal Effect: VAILD- ART. 1185.
The obligation shall become effective and
binding:
a) from the moment the time indicated has
elapsed without the event taking place; or
b)from the moment it has become evident
that the event cannot occur, although the
time indicated has not yet elapsed.
Example: I will give you P100,000 if you dont
marry before reaching 25 yrs. old.

5. As to Form
5.a. Express Condition - condition is clearly stated.
5.b. Implied Condition - condition is merely
inferred.

6. As to Numbers
6.a. Conjunctive Condition - there are several
conditions and all must be fulfilled.
6.b. Disjunctive Condition - there are several
conditions and only one or some of them be
fulfilled.

7. As to Divisibility
7.a. Divisible Condition - the condition is
susceptible of partial performance.
7.b. Indivisible Condition - the condition is not
susceptible of partial performance.

Constructive fulfiIIment of Suspensive Condition:
(1) The condition is suspenive;
(2) The obIigor actually prevents the fulfilment of the
condition; and
(3) He acts vo1untariIy.

Constructive fulfilment of Suspensive Condition:
Art. 1186 applies also to an obligation subject to a
resolutory condition with respect to the debtor who
is bound to return what he has received upon the
fulfillment of the condition. (Art. 11901

Retroactive effects of fulfillment of Suspensive
Condition
1. In obligations to give - an obligation to give subject
a suspensive condition becomes demandable only
upon the fulfilment of the condition. However,
once the condition is fulfilled, its effects shall
retroact to the day when the obligation was
constituted.
2. In obligations to do or not to do - no fixed rule is
provided.

Retroactive effects as to fruits and interests in
obligations to give
1. In reciprocal obligations - there is no retroactivity
because the fruits (natural, industrial, or civil) and
interests received during the pendency of the
condition are deemed to have been mutually
compensated.
2. In unilateral obligations - there is usually no
retroactive effect because they are gratuitous.

Rights pending fulfilment of Suspensive Condition
1. Rights of creditor - he may take or bring
appropriate actions for the preservation of his
right, as the debtor may render nugatory the
obligation upon the happening of the condition.
2. Rights of debtor - he is entitled to recover what he
has paid by mistake prior to the happening of the
suspensive condition.

ART. 1189. When the conditions have been imposed
with the intention of suspending the efficacy of an
obligation to give, the ff. rules shall be observed in
case of the improvement, loss or deterioration on
the thing during the pendency of the condition:
(1) If the thing is lost without the fault of the debtor,
the obligation shall be extinguished (As a general
rule, a person is not liable for a fortuitous event);
(2) If the thing is lost through the fault of the debtor,
he shall be obliged to pay damages;
(3)When the thing deteriorates through the fault of
the debtor, the impairment is to be borne by the
creditor (A thing deteriorates when its value is
reduced or impaired);
(4)If it deteriorates through the fault of the debtor,
the creditor may choose between the rescission of
the obligation and its fulfilment, with indemnity for
damages in either case;
(5) If the thing is improved by its nature, or by the
time, the improvement shall inure to the benefit of
the creditor (A thing is improved when its value is
increased or enhanced by nature or by time or the
expense of the debtor or creditor);
(6) If it is improved at the expense of the debtor, he
shall have no other right than that granted to the
usufructuary with respect to improvements made
on the thing held in usufruct, which is the right to
enjoy the use and fruits of a thing belonging to
another. (1122)

Article 1189 applies only if:
a) The obligation is a real obligation
b) The object is a specific or determinate thing;
c) The obligation is subject to a suspensive
condition;
d) The condition is fulfilled; and
e) There is loss, deterioration or improvement of
the thing during the pendency of the condition.

Kinds of Loss
1. Physical Loss - when a thing perishes as when a
house is burned and reduced to ashes.
2. Legal Loss - when a thing goes out of commerce
(when it is appropriated) or when a thing
heretofore legal becomes illegal.
3. Civil Loss - when a thing disappears in such a way
that its existence is unknown; or even it known it
cannot be recovered.

Effects of fulfilment of Resolutory Condition:
(1) In obligations to give - when the resolutory
condition in an obligation to give is fulfilled, the
obligation is extinguished and the parties are
obliged to return to each other what they have
received under the obligation.
(2) In obligations to do or not to do - The courts shall
determine the retroactive effect of the fulfilment
of the resolutory condition as in the case where
the condition is suspensive.

Kinds of Obligation according to the person obliged:
1. Unilateral - when only one party is obliged to
comply with a prestation.
2. Bilateral - when both parties are mutually bound
to each other.
a. Reciprocal Obligations - those which arise from
the same cause and in which each party is a
debtor and creditor of the other.
b. Non- reciprocal - The performance of one party
is not dependent upon the simultaneous
performance by the other.

Remedies in Reciprocal Obligations
(1) Choice of remedies
a. action for specific performance of the obligation
with damages; or
b. action for rescission of the obligation also with
damages
(2) Remedy for rescission for non-compliance
The remedy is granted for breach by the other
contracting party that violates the reciprocity
between them.

-Court may grant guilty party term for performance.
-The remedies of the injured or aggrieved party are
alternative and not cumulative, that is, he is
privileged to choose only one of the remedies, and
not both.

Limitations on right to demand rescission
1. Resort to courts - the injured party has to resort
to the courts to assert his rights judicially.
2. Power of the court to fix period - the court has
discretionary power to allow a period within winch
a person may be permitted to perform his
obligation.
3. Right of third person - rescission is not available as
a remedy.
4. Substantial violation - the general rule is that
rescission will not be granted for slight breaches of
contract; the violation should be substantial as to
defeat the object of the parties in making the
agreement.
5. Waiver of right - the right to rescind may be
waived expressly or impliedly.

Where both parties are guilty of breach
1. First infractor known - the liablity of the first
infractor should be equitably reduced.
2. First infractor cannot be determined - the contract
shall be deemed extinguished and each shall bear
his own damages.

3. OBLIGATIONS WITH A PERIOD
- an obligation, the creation or extinguishment of
which is subject to a future and certain event.
Examples: I will pay on January 5, 2005.
I will support you until you are 21.
I will support you until you are dead.
I will pay once I have the money
I oblige myself to pay as soon as possible
Meaning of period or term
Period is a future and CERTAIN event, the
happening of which either CREATES or
EXTINGUISHES an obligation subject to it.

Period and Condition Distinguished (Kinds of Events):
As to Fulfilment
Condition: Uncertain (may or may not happen)
Period: Certain (will happen)
As to Time
Condition: Generally refers to future events but may
also refer to past events unknown to the parties.
Period: Refers only to future events
As to Influence on the Obligation
Condition: Causes an obligation either to arise or to
cease
Period: Merely fixes the time for the efficaciousness
of the obligation
As to Effect it Left to the Debtor's Will
Condition: The obligation subject to such a condition
is VOID
Period: The obligation subject to such a period
empowers the court to fix its duration. (VALID)
As to Retroactive Effects
Condition: Has retroactive effects.
Period: Has no retroactive effects.

Test of Certainty: A period is a certain event which
must happen sooner or later at a date known
beforehand, or at a time which cannot be
determined, while a condition is an uncertain event.
Exception to the Test of Certainty (when a
condition is treated by law as a period)
RULE: When the debtor binds himself to pay when
his means permit him to do so, the obligation shall
be deemed to be one with period.





Kinds of Periods
1. As to whether it makes the obligation immediately
demandable
1. a.Suspensive Period
- a future and certain event, the happening of which
CREATES the obligation subject to it.
Examples: - I will pay 30 days from October 20,
1992.
I will pay the doctor's fees 7 days after the death of
my father who is dying of cancer.
I will support you beginning January 1

1.b. Resolutory Period
- a future and certain event, the happening of which
EXTINGUISHES the obligation subject to it.
Examples: - I will give you P500 a month until the
end of the year.
I will support you until December 31

2. According to Source
2.a. Legal Period
- when it is provided for by law
Example: Deadline for payment of taxes and for
renewal of licenses.

2.b. Conventional or Voluntary Period
- when it is agreed upon by the parties
Examples: I will pay on November 5, 2009
I will support you until you are 20.

2.c. Judicial Period
- when it is fixed by the court
Examples: - I will pay if I'm already solvent
I will pay once I'm already financially able.

3. As to Definiteness
3.a. Definite Period
- when it is fixed or it is known when it will come.
Example: I will pay on January 5, 2010
3.b. Indefinite Period - when it is not fixed or not
known when it will come
Examples: I promise to support you until you die
I will pay once I'm able to do so.

Where duration of Period depends upon the will of
the Debtor
(1) The debtor promises to pay when his means
permit him to do so - In this case, what depends
upon the debtors will is not whether he should pay
or not for indeed he binds himself to pay. What is
left only to his will is the duration of the period.
(2) Other Cases - As when the debtor binds himself
to pay:
a. "little by little
b. as soon as possible
c. from time to time
d. at any time I have the money
e. in partial payments
f. when I am in a position to pay

ART. 1195. Anything paid or delivered before the
arrival of the period the arrival of the period, the
obligor being unaware of the period or believing
that the obligation has become due and
demandable, may be recovered, with the fruits, and
interests.
> Debtor presumed aware, of period
The obligor may no longer recover the thing or
money once the period has arrived but he can
recover the fruits or interests thereof from the date
of premature performance to the date of maturity
of the obligation.
> Art. 1195 applies only to obligation to give, and
has no application to obligations to do or not to do.

Effects of Obligations with a Period
1. Gen. Rule: Benefit of the Period - intended for
BOTH the debtor and the creditor.
> Exceptions:
a) Term is for the benefit of the debtor alone - he
cannot be compelled to pay prematurely, but he
can, if desires to do so.
b) Term is for the benefit of the creditor - He may
demand fulfilment even before the arrival of the
term but the debtor cannot require him to accept
payment before the expiration of the stipulated
period.

2. ART. 1197. If the obligation does not fix a period,
but from its nature and the circumstances it can be
inferred that a period was intended, the courts may
fix the duration therefore. The courts shall also fix
the duration of the period when it depends upon
the will of the debtor. In every case, the courts shall
determine such period as may under the
circumstances have been probably contemplated by
the parties. Once fixed by the courts, the period
cannot be changed by them.

3. Gen. Rule: The obligation is not demandable
before the lapse of the period.
Exception - when the debtor losses his right to
make use of the period (Instance when the creditor
ca legally demand ahead of time):
a. D-isappearance of the guarantees or securities
after their establishment due to fortuitous event.
b) I-mpairment of the guaranty or security after
its establishment due to the debtors fault.
c) V-iolation of any undertaking in consideration
of which the creditor agreed to the period.
d) l-nsolvency of the debtor
e) Non-furnishment of the guaranty or security
which the debtor promised to give to the creditor.
f) A-ttempt of the debtor to abscond, which
means to hide, conceal, or absent oneself with
intent to frustrate just demands of his creditors.

II. AS TO THE NUMBER OF PRESTATIONS DUE
(DISTRIBUTIVE CHARACTER)
Kinds of Obligations according to object:
1. Simple Obligation - one where there is only one
prestation
2. Compound Obligation - one where there are two
or more prestations
a) Conjunctive Obligation - one where there are
several prestations and all of them are due.
b) Distributive Obligation - one where one of two
or more of the prestations is due.
(1) Alternative Obligation
(2) Facultative Obligation

No. of Prestations Due
Alternative: Several are due but performance of one
is sufficient.
Facultative: Only one is due but the debtor may
substitute another

Right of Choice
Alternative: Belongs to the debtor but may be given
to the creditor or to a third person
Facultative: Belongs to the debtor

Loss of the Thing Due Thru Fortuitous Event
Alternative: If one or more but not all of the
alternative is/are lost, the obligation is NOT
EXTINGUISHED
Facultative: Loss of the thing due EXTINGUISHES she
obligation.

Loss of the Thing Due Thru Debtor's Fault
Alternative: If one or more but not all of the
alternatives is/are lost, the debtor is NOT LIABLE
Facultative: Debtor is LIABLE

Examples
Alternative
- I promise to deliver to you a horse or a cow
- I promise to deliver a new TV set or to repair your
old TV set
Facultative
- I promise to deliver to you a horse or in
substitution, a cow.
- I promise to deliver a new TV set or in lieu
thereof if I want to repair your old TV set.

Alternative Obligation
>The right of choice of the debtor is subject to
limitations.
1. The debtor cannot choose those prestations
which are (VOID):
a. impossible
b. unlawful
c. which could not have been the object of the
obligation
Example: I undertake to deliver to Mr. Minura
of Tokyo, Japan any of the following live land
animals:
(a) 100,000 lapu-lapu fingerlings; or
(b) 500 blue nape green parrots from
Palawan; or
(c) 500 Baguio Ponies as big as an adult
giraffee; or
(d) 100,000 cans of lechons; or
(e) 10,000 locally bred hogs; or
(f) 1,000 monitor lizards (bayawalks)
The debtor cannot choose and alternatives
because they are not the object of the obligation
(live land animals). He cannot choose because it is
prohibited by law to sell Palawan green parrots
and he cannot likewise choose alternative because
it is impossible to perform. Hence, he can only
select either alternatives e or f.
1. 2. The debtor has no more right of choice
when, among the prestations whereby he is
alternatively bound, only one is practicable.
2. The debtor cannot choose part of one
prestation and part of another prestation.
Example: I promise to deliver 1 sack of rice, of
corn or beans, to Cruz. Sgd Sy.
Sy cannot compel Cruz to receive 1/2 sack of
rice and 1/2 sack of corn.

>Communication of notice that choice has been
made.
(1) Effect of notice - until the choice is made and
communicated, the obligation remains
alternative.
(2) Proof and form of notice - the burden of
proving that such communication has been made
is upon him who made the choice. The giving of
notice may be made orally or in writing, expressly
or impliedly.
ART. 1203 If through the creditors acts, the debtor
cannot make a choice according to the terms of the
obligation, the latter may rescind the contract with
damages.

>Rescission creates the obligation to return the things
which were the object of the contract together with
their fruits, and the price with its interests.

Effects of Loss of Objects of Obligations
1. Some of the objects - even through the fault of the
debtor, the latter is not liable since he has the right of
choice and the obligation can still be performed.
2. All of the objects- if lost through the fault of the
debtor, the creditor shall have the right to indemnity
for damages since the obligation can no longer be
complied with. If the cause of the loss is fortuitous
event, the obligation is extinguished.

When the right of choice belongs to Creditor
The provisions which with respect to the debtor
shall be applicable to the creditor when the right of
choice is given to him.

Rules in case of loss before Creditor has made a
choice:
1. If one of the things is lost through a fortuitous event,
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.
2. When a thing is lost through debtor's fault, the
creditor may claim any of those subsisting, or the
price of that which has disappeared, with a right to
damages.
3. When all the things are lost through the debtor's
fault, the choice of the creditor shall fall upon the
price of any one of them, also with indemnity for
damages.
4. When all the things are lost through a fortuitous
event, the obligation of the debtor shall be
extinguished.

Facultative Obligation
Effect of Loss:
1. Before substitution - If the principal thing is lost
through a fortuitous event, the obligation is
extinguished; otherwise, the debtor is liable for
damages. The loss of the thing intended as a substitute
with or without the fault of 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.
2. After substitution - If the principal thing is lost, the
debtor is not liable whatever may be the cause of the
loss, because it is no longer due. If the substitute is
lost, the liability of the debtor depends upon whether
or not the loss is due to his fault.

C. AS TO EXISTENCE OF SEVERAL DEBTORS and/or
CREDITORS (COLLECTIVE CHARACTER)
> one where there are 2 or more debtor or 2 or more
creditors, or both.
Examples: - We promise to pay Cruz 100,000 Php.
Sgd. Santos & Reyes.
I promise to pay Cruz and Reyes 100,000. Sgd. Santos
and Reyes.

Collective Obligation Presumed to be Joint
1. If Margie is liable to Lara for P9,000, there can be
no problem regarding the determination of the ff:
a. the person liable to pay;
b. the person entitled to demand payment;
c. the extent of the liability of the debtor; and
d. the extent of the right of the creditor.
2. Where there is plurality of parties and the share of
each in the obligation is specified, the correlative
rights and obligations of the parties are known.
3. If the share of each debtor is not specified, the
presumption is that the obligation is joint, and as a
consequence:
a. There are as many debts as there are debtors;
b. There are as many credits as there are creditors;
c. The debts and/or credits are considered distinct
and separate from each other;
d. Each debtor is liable only for a proportionate
part of the debt; and
e. Each creditor is entitled only to a proportionate
part of the credit.

Kinds of Obligation according to the Number of
Parties:
1. Individual Obligation - one where there is only one
obligor or one oblige.
2. Collective Obligation - one where there are two or
more debtors and/or two or more creditors.
Kinds of Collective obligation:
a. JOINT OBLIGATION - one 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.
-Principle to Apply: To each to his own.
Presumed joint in the absence of an agreement
or law to the contrary.
Example: We promise to pay Cruz P10,000. Sgd.
Reyes & Santos.
By agreement of the parties.
Example: We promise to pay Cruz P19, 000
jointly. Sgd. Reyes & Santos.
More Examples:
a. I promise to pay Cruz & Santos P50,000 on
October 24, 2005
- Once it is already Oct. 24, Cruz can legally ask
Reyes to pay him P25,000 but not P50,000
because the obligation is presumed to be joint.
b. We promise to pay Cruz P50,000 on October
24, 2004. Sgd. Reyes & Santos.
- Once it is already Oct. 24, Reyes is liale to Cruz
only 1/2 of the P50,000 and Santos the other
half.

b. SOLIDARY Obligation - one 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, entire compliance with the prestation.
(Art. 1207)
There is solidary liability only when;
(a) the obligation expressly so states; or
(b) the law requires solidarity; or
(c) the nature of the obligation requires
solidarity.
The obligation is solidary by agreement of the
parties as shown by the word "solidarily".
Example: We promise to pay Cruz P60,000
solidarily tomorrow. Sgd. Reyes and Santos
The use of the word "I" instead of "We" makes
the obligation solidary.
Example: I promise to pay Cruz P60,000
tomorrow. Sgd. Reyes and Ruiz.
The word "jointly and severally" connotes a
solidary undertaking agreed upon by the
parties
Example: We promise to pay Cruz P60,000
jointly and severally.
More Examples:
a. I promise to pay Cruz P70,000 on October
24,2005. Sgd. Reyes and Santos.
- Once it is already Oct. 24, Cruz can legally
demand and collect the entire P70,000 from
either Reyes or Santos alone.
b. We promise to pay Cruz and Santos
P50,000 solidarily. Sgd. Reyes and Sanchez.
- if Cruz decides already to collect, he can
collect the entire amount of P50,000 from
either Reyes or Sanchez.




Kinds of Solidarity
A. According to the parties bound:
1. Passive Solidarity - solidarity on the part of the
debtors, where any one of them can be made
liable for the fulfilment of the entire obligation. It
is in the nature of a mutual guaranty.
2. Active Solidarity - solidarity on the part of the
creditors, where any one of them can demand the
fulfilment of the entire obligation. There is mutual
representation among the solidary creditors with
powers to exercise the rights of others in the
same manner as their rights.
3. Mixed Solidarity - solidarity on the part of the
debtors and creditors, where each one of the
debtors is liable to render and each one of the
creditors has a right to demand, entire
compliance with the obligation.

B. According to Source
1. Conventional Solidarity - When agreed upon
by the parties.
Example: We promise to pay Montemayor
50,000 solidarily.Sgd. Montecristo, Montes and
Monteverde.
-Other words indicating a solidary obligation are
"joint and severally", "together and separately",
and "individually and collectively."
2. Legal Solidarity - when slidarity is imposed by
law
Examples:
a. Liability of two or more persons for quasi-
delict (joint-tortfeasor)
b. Liability of partners in a partnership for
crimes or quasi-delict committed by their co-
partner/s acting in the ordinary course of the
partnership business.
c. Principle, accomplices and accessories liability
for damages arising from crime.
d. When there are 2 or more bailees to whom a
thing is loaned in the same contract, they are
liable solidarily.
e. Even when the agent has exceeded his
authority, the principal is solidarily liable with
the agent if the former allowed the latter to act
as though he had full powers.
3. Real Solidarity - when solidarity is imposed by
the nature of the obligation.
Examples: -We promise to deliver a piano to
Santos. Sgd. Garcia and Dela Cruz.
- Liability of the legitimate registered operator of
a public vehicle and the owner of a public vehicle
under the "kabit system"
Joint Indivisible Obligation - it is joint as to liabilities
of the debtors or rights of the creditors but indivisible
as to compliance.
-it constitutes the middle ground between a joint
obligation and a solidary obligaton.

Indivisibility and Solidarity Distinguished
Indivisibility
-Refers to the prestation
-Only the debtor guilty of breach of obligation is
liable for damages.
-can exist although there is only one dsebtor and
creditor.
-the others are not liable in case of insolvency of one
debtor.
Solidarity
-Refers to the juridical or legal tie that bind ties.
-All of the debtors are liable for the breach of the
obligation committed by a debtor.
-There must be at least two debtors or two creditors.
-The other debtors are proportionately liable.

Kinds of Solidary Obligation according to the Legal
Tie:
1. Uniform - when the parties are bound by the same
stipulations.
2. Non-uniform or varied - when the parties are not
subject to the same stipulations.

PRINCIPLES:
1. Solidarity may exist altough the creditors and the
debtors may not be bound in the same manner and
by the same periods and conditions.
2. A solidary creditor may do any act beneficial or
useful to the others but he cannot perform any act
prejudicial to them.
3. A solidary creditor cannot assign his rights without
the consent of the others.
4. When a solidary debtor pays the obligation; he is
entitled to reimbursement from his co-debtors.
Exceptions: He cannot get any reimbursement
when the obligation:
a) has already expired ; or
b) becomes illegal.
5. The remission of the whole obligation obtained by
one of the solidary debtors, does not entitle him to
reimbursement from his co-debtors.





Rules in case thing has been lost or prestation has
become impossible:
1. Loss is without the fault and before delay the
obligation shall be extinguished.
2. Loss is due to fault on the part a solidary debtor -
all shall be responsible to the creditor, for the
price + damages + interest.
3. Loss through a fortuitous event (without fault but
after delay) - all shall be responsible to the
creditor, for the price + damages + interest.

D. AS TO WHETHER CAPABLE OR NOT OF PARTIAL
PERFORMANCE
1. DIVISBLE OBLIGATION - is one the object of which,
in its delivery or performance, is capable of partial
fulfillment.
Examples: I will pay you in 3 equal monthly
installments beginning this September, 2009.
I will construct Lee's building within 1 year from
October, 2008.
2. INDIVISIBLE OBLIGATION - is one the object of
which, in its delivery or performance, is not capable
partial fulfillment.
Examples : I will pay you tomorrow.
I will do a concert tomorrow for the Pinatubo victims.
Sgd. Gary.

Test used to determine whether Divisible or
Indivisible:
>The purpose of the obligation or intention of the
parties.

Kinds of Division:
a. Qualitative Division - based on quality, not on
number or quantity of the things which are the
object of the obligation.
b. Quantitative Division - based on quantity rather
than on quality.
c. Ideal or Intellectual Division - one which exists
only in the minds of the parties.

Kinds of Indivisibility:
a. Legal Indivisibility - when a specific provision of
law declares as indivisible, obligations which, by
their nature, are divisible.
Example: Payment of licenses must be in full and
not partially because the law requires it to be
indivisibly performed.
b. Conventional Indivisibility - when the will of the
parties makes as indivisible, obligations which, by
their nature, are divisible.
c. Natural Indivisibility - when the nature of the
object or prestation does not admit of division.
Example: To give a particuIar car, to sing a song.
Etc.

Effect of non-compliance by a debtor in a joint
indivisible obligation
If any one of the debtors does not comply with
his undertaking in a joint indivisible obligation, the
obligation is converted into one for damages. The
creditor cannot ask for specific performance or
rescission because there is no cause of action against
the other debtors who are willing to fulfil their
promises.

Obligations deemed Indivisible:
1. Obligations to give definite things.
Ex. To give a particular cloth; to deliver a specific
car.
2. 2.Obligations which are not susceptible of partial
performance.
Ex. To sing a song; to dance Tikling.
3. Obligations provided by law to be indivisible even
if thing or service is physically divisible.
Ex. Payment of Taxes
4. Obligations intended by the parties to be
indivisible even if the thing is physically divisible.
Ex. Payment of a loan in full at a given period.

Obligations deemed Divisible:
1. Obligations which have for their object the
execution of a certain number of days of work.
Ex. I promise to repair your TV within 3 days.
I undertake to construct the building within 2
years.
2. Obligations which have for their object the
accomplishment of work by metrical units.
Ex. I promise to deliver to you 30 cubic meters of
sand.
3. Obligations which by their nature are susceptible
of partial performance.
Ex. Atty. Lopez oblige himself to teach Law 1 in
Ateneo within 1 school term.
I promise to pay 100,000 in 10 equal
monthly installments beginning January,
2010.

Divisibility or indivisibility in obligations Not to Do
> In negative obligations not to do, the character of
the prestation in each particular case shall
determine their divisibility or indivisibility.
> Obligations 'to do' and 'not to do' are generally
indivisible.

E. AS TO EXISTENCE OF AN UNDERTAKING TO ASSUME
GREATER LIABILITY
1. Obligation With a Penal Clause - contains an
accessory undertaking to pay a previously stipulated
indemnity in case of breach of the principal
prestation, intended primarily to induce its
fulfillment.
- Contains an undertaking to assume greater liability
in case of breach.
2. Obligation Without a Penal Clause - contains no
undertaking to assume greater liability in case of
breach.

Principal obligation - can stand by itself and does
not depend for its validity and existence upon
another obligation.
Accessory obligation - attached to a principal
obligation and, therefore, cannot stand alone.

Penal Clause - an accessory undertaking attached
to an obligation to assume greater liability in case
of breach.
Ex. I promise to construct your house within 1
month and if I'm unable to finish, I will pay you
damages of P10,000.

Purposes of Penal Clause:
1. To ensure the performance of the obligation.
2.To sustitutre a penalty for damges to be paid.

Differences of Penalty Clause and Condition
Penalty Clause
-Constitutes an obligation by itself although an
accessory obligation.
-Becomes demandable if the principal obligation is
not performed.
Condition
-Does not constitute an obligation by itself.
-Never demandable.

Kinds of Penal Clause
A. As to its Origin
1. Legal Penal Clause - when it is provided by law.
2. Conventional Penal Clause - when it is provided
for by the stipulation of the parties.

B. As to its Purpose
1. Compensatory Penal Clause - when the penalty
takes the place of damages.
2. Punitive Penal Clause - when the penalty is
imposed merely as punishment for breach.

C. As to its Demandability or Effect
1. Subsidiary or Alternative Penal Clause - when
only the penalty can be enforced.
2. Joint or Cumulative Penal Clause - when both
the principal obligation and the penal clause.

ART. 1228. Proof of actual damages suffered by the
creditor is not necessary in order that the penalty
may be demanded.

Governing Principles
1. Proof of actual damages suffered by the creditor is
not necessary in order to enforce the penalty.
2. Unless otherwise agreed upon the debtor cannot
exempt himself from the performance of the
obligation by paying the penalty.
3. In obligation with a penal clause, the penalty takes
the place of the indemnity for damages and the
payment of interests in case of non-compliance.
4. The creditor cannot demand the fulfilment of the
obligation and the satisfaction of the penalty at the
same time.
5. Accessory follows the principal, and not vice versa.
6. Nullity of the penal clause does not affect the
validity of the principal obligation but not the
opposite.
7. If the principal obligation is void, the penal clause is
likewise void. But if the nullity of the principal
obligation is due to the fault of the debtor, the
penalty may be enforced.

Damages in addition to the penalty may be recovered
by the creditor: (ART. 1226)
a. If stipulated by the parties;
b. If the obligor refuse to pay the penalty; and
c. If the obligor is guilty of fraud.

The court may equitably reduce or lessen the penalty:
(ART. 1229)
a. When there is partial/irregular performance; and
b. When the penalty agreed upon is iniquitous or
unconscionable.