Chapter 3: Kinds of Obligations a disease is a condition not a term since death may be

caused by other circumstances.

• Primary: – I will pay you one million pesos on
– Pure vs conditional January 1, 2022 (period/term) vs I will pay
– Pure vs with a period or term you one million pesos on May 16, 2021 if
– Alternative or facultative obligations vs Manny Pacquiao will win the elections
conjunctive (this is a suspensive condition).
– Joint vs solidary
– Divisible vs indivisible • Obligation is demandable at once
– With a penal clause vs without – When it is pure (no conditions or no term)
– Or when it has a resolutory condition (I will
• Secondary give you a car now if you do not marry Nadine
– Unilateral vs Bilateral (1168, 1191) Samonte this year, this is demandable now
– Real vs personal (1164-1165) because the moment you marry, the
– Determinate vs generic (1167, 1168) obligation to give the car is extinguished.
– Positive vs negative (1167 vs 1168)
– Legal, conventional, penal (1156, 1158, 1159, Classifications of Conditions
1161). • Suspensive – the happening of the condition
– Civil (civil law) vs Natural (natural law) gives rise to the obligation

• By defect: • Resolutory – the happening of the condition

– No defect (valid) extinguishes the obligation.
– Rescissble
• Potestative – depends on the will of the debtor. (I
– Voidable
will sell you my car if I like).
– Unenforceable
– Void • Casual – depends on the chance or hazar or
the will of a third person (if I win in the lotto).
Article 1179 (Pure and Conditional)
Every obligation whose performance does not • Mixed – depends partly on the will of one of the
depend upon a future or uncertain event, or upon a parties and partly on chance or the will of a third
past event unknown to the parties, is demandable person (if I pass the bar).
at once. Every obligation which contains a
• Divisible – capable of partial performance
resolutory condition shall also be demandable,
without prejudice to the effects of the happening of • Indivisible – not capable of partial performance
the event. because of the nature of the thing, or because of the
intention of the parties.
• Pure Obligations – One without a condition or
term (demandable at once, provided it is clear and no • Positive – to perform an act.
absurdity)
– I promise to pay 1M (demandable at once) • Negative – something will be omitted.
– I will pay you 1M on demand (but not
• Express – condition is stated.
necessarily at an instance as it will absurd
and unreasonable. • Implied – the condition is merely inferred*

• Condition – It is an uncertain event which wields • Possible – capable of fulfillment in nature and law
an influence on a legal relationship
• Impossible – not capable of fulfillment due to
• Conditional Obligation – when there is a condition nature or due to operation of the law or morals or
– I’ll buy your car for P500, 000 if you pass the public policy or due to a contradiction in its terms.
bar examinations. (suspensive condition)
• Conjunctive – if all the conditions must be
– I will give you a car now but should you fail
performed.
the bar exam, your ownership will cease and
return the vehicle (Resolutory condition) • Alternative/Facultative – if only a few of the
conditions have to be performed.
Term or Period
• That which necessarily must come (like 2022) Art. 1180. When the debtor binds himself to pay
whether the parties know when it will happen or when his means permit him to do so, the obligation
not (like death, since this is also certain). Death by
shall be deemed to be one with a period, subject to • Casual – depends on chance or upon the will of a
the provisions of Article 1197. third person (lotto winning).

• If you look closely, Article 1180 speaks of a Potestative (Facultative)

condition dependent exclusively on the will of the
debtor (therefor void under 1182), the fact remains • Potestative on the part of the Debtor:
that payment does not depend on debtor’s will, – If also suspensive – both the condition and the
for indeed he had promised payment. What obligation are void since the obligation is merely
depends really on him is not payment but the time illusory* (I will give you 1M next month if I live).
when payment is made. The under 1180 considers – If also resolutory – valid. I’ll employ you now as
this obligation as one with a term or period. my superintendent in the factory, but it is
understood that if for any reason (including
Art. 1181. In conditional obligations, the acquisition my own cancellation of the order) the machinery
of rights, as well as the extinguishment or loss of which I ordered from the United States will not
those already acquired, shall depend upon the arrive, the employment will end. “A condition,
happening of the event which constitutes the both potestative and resolutory, may be valid
condition. even if the condition is made to depend upon the
will of the obligor.”)]**
• suspensive conditions — the happening of
which will give rise to the acquisition of a right (**It is submitted that although this is indeed a
(also called conditions precedent or conditions resolutory condition (because the order would be
antecedent). Be it noted that what characterizes either cancelled or not), still it has the effect of a
an obligation with a suspensive condition is the resolutory term (because the employee here would
fact that its efficacy or obligatory force is not be obliged to return wages for work already
subordinated to the happening of a future and done.)
uncertain event; if the suspensive condition does
not take place, the parties would stand as if the • Potestative on the part of the creditor – Valid (I
conditional obligation had never existed. will give you 1M if you desire to have it).

– I promise to do what you ask provided that X Art. 1183. Impossible conditions, those contrary to
condition is first complied with. good customs or public policy and those prohibited
by law shall annul the obligation which depends upon
• resolutory conditions — (also called conditions them. If the obligation is divisible, that part thereof
subsequent) — here, rights already acquired are which is not affected by the impossible or unlawful
lost once the condition is fulfilled. condition shall be valid. The condition not to do an
impossible thing shall be considered as not having
– I’ll give you my car now but should you fail the been agreed upon.
bar, you will return the car to me.
 Impossible (Physically) – to make a dead man
Conditional Perfection of a Contract live – logically, this is impossible or make a circle
• If the perfection of a contract depends upon the that is a square.
fulfillment of a condition, non-fulfillment thereof  Illegal – Prohibited by good customs, public policy,
means the non-perfection of the contract since the prohibited directly or indirectly, by law.
suspensive condition should have been first
fulfilled. • If condition is considered impossible and illegal,
both the condition and obligation are void.
Art. 1182. When the fulfillment of the condition • If the condition is negative, that is not to do the
depends upon the sole will of the debtor, the impossible, disregard the condition but the
conditional obligation shall be void. If it depends obligation remains. (I will sell you may land if you
upon chance or upon the will of a third person, the cannot bring a dead man back)
obligation shall take effect in conformity with the • If condition is negative, not to do an illegal thing,
provisions of this Code. both the condition and obligation are valid.

Potestative, Casual and Mixed Conditions Art. 1184. The condition that some event happen at a
determinate time shall extinguish the obligation as
• Potestative – depends on the exclusive will of one soon as the time expires or if it has become
of the parties (also known as facultative conditions). indubitable that the event will not take place.
– Positive conditions
Art. 1185. The condition that some event will not Art. 1188. The creditor may, before the fulfillment
happen at a determinate time shall render the of the condition, bring the appropriate actions for the
obligation effective from the moment the time preservation of his right. The debtor may recover
indicated has elapsed, or if it has become evident that what during the same time he has paid by mistake
the event cannot occur. If no time has been fixed, the in case of a suspensive condition.
condition shall be deemed fulfilled at such time as
may have probably been contemplated, bearing in Reason
mind the nature of the obligation. • To protect the interest of the creditor. If not
– Negative conditions allowed, there is a danger that the creditor will not
receive anything if the object will be deliberately
Art. 1186. The condition shall be deemed fulfilled destroyed, hidden or alienated.
when the obligor voluntarily prevents its fulfillment.* • When we say appropriate actions, this means to sue
in court.
– Constructive or presumed fulfillment. One
must not profit by his own fault. Art. 1189. When the conditions have been imposed
– Must be voluntarily made – maliciously or with the intention of suspending the efficacy of an
not, the intent to prevent must be present. obligation to give, the following rules shall be
– Actually prevents – intention without observed in case of the improvement, loss or
prevention or prevention without intention is deterioration of the thing during the pendency of the
insufficient unless it was his/her lawful right. condition:

(*This is normally applicable to suspensive condition. (1) If the thing is lost without the fault of the
But it may sometimes be applicable to resolutory debtor, the obligation shall be extinguished;
condition as in this case: year, otherwise B should (2) If the thing is lost through the fault of the
return the land. If A kills C, B does not have to return debtor, he shall be obliged to pay damages; it
the land. This is because A is at fault.) is understood that the thing is lost when it
perishes, or goes out of commerce, or
Art. 1187. The effects of a conditional obligation to disappears in such a way that its existence is
give, once the condition has been fulfilled, shall unknown or it cannot be recovered;
retroact to the day of the constitution of the (3) When the thing deteriorates without the fault
obligation. Nevertheless, when the obligation of the debtor, the impairment is to be borne by
imposes reciprocal prestations upon the parties, the the creditor;
fruits and interests during the pendency of the (4) If it deteriorates through the fault of the
condition shall be deemed to have been mutually debtor, the creditor may choose between the
compensated. If the obligation is unilateral, the rescission of the obligation and its fulfillment,
debtor shall appropriate the fruits and interests with indemnity for damages in either case;
received, unless from the nature and circumstances (5) If the thing is improved by its nature, or by
of the obligation it should be inferred that the time, the improvement shall inure to the
intention of the person constituting the same was benefit of the creditor;
different. In obligations to do and not to do, the (6) (If it is improved at the expense of the debtor,
courts shall determine, in each case, the retroactive he shall have no other right than that granted
effect of the condition that has been complied with. to the usufructuary.

Effects of fulfillment of Suspensive Conditions • Applies only to a suspensive condition that is

fulfilled and the object is specific (determinate)*
 The obligation becomes effective – retroacts to the
day the obligation was constituted (general rule). • What events that may happen while the object of
 No retroactivity with reference to: the obligation is pending the fulfillment of the
– Fruits or interest suspensive condition?
– Period of prescription
– Object may be lost
example: – Object may deteriorate (includes partial loss)
• Joberns in 2021 promised to sell Reygen his car – Object may be improved
provided Reygen passes the bar in 2022. Reygen
passed the bar in 2022. • A thing is lost when it perishes, goes out of the
– The entitlement to the selling retroacts to commerce of man, disappears that its existence
2021. cannot be recovered.
• A generic thing does not perish (genus nunquam with the payment of damages in either case. He
perit) The class never perishes. The phrase may also seek rescission, even after he has chosen
appeared in reference to a quantity of contracted- fulfillment, if the latter should become impossible.
for goods of a certain class (rather than a single The court shall decree the rescission claimed, unless
item), the destruction of which did not discharge there be just cause authorizing the fixing of a period.
the seller’s obligations. This is understood to be without prejudice to the
rights of third persons who have acquired the
Art. 1190. When the conditions have for their thing, in accordance with Articles 1385 and 1388
purpose the extinguishment of an obligation to give, and the Mortgage Law.
the parties, upon the fulfillment of said conditions,
shall return to each other what they have received.
In case of the loss, deterioration or improvement of
the thing, the provisions which, with respect to the RIGHT TO RESCIND
debtor, are laid down in the preceding article shall be
applied to the party who is bound to return. As for • Rescind means to cancel the contract or
obligations to do and not to do, the provisions of reciprocal obligations in case of non-fulfillment
the second paragraph of Article 1187 shall be on the part of the other.
observed as regards the effect of the
extinguishment of the obligation. • Rescission (should be considered as resolution) is
not based on economic interest as mentioned in
“What happens when the resolutory condition is Article 1380-1381 but on the breach of faith by the
fulfilled?” other party which breach is violative of the
reciprocity to perform their obligation between the
• The obligation is extinguished (Art. 1181*) parties.
• Restoration – after obligation is extinguished and
considered to have no legal effect, the parties • Applies to reciprocal obligations.
should restore to each other what they have
• It can be demanded only if one party is ready,
received.
willing, and able to comply with his own obligation
• Including fruits and interests and deduct the
expenses for the production and preservation. • Right to rescind is not absolute. Trivial matters or
slight breaches will not cause rescission.
*Art. 1181. In conditional obligations, the acquisition
of rights, as well as the extinguishment or loss of • Impliedly available but may be waived.
those already acquired, shall depend upon the
happening of the event which constitutes the *Art. 1380. Contracts validly agreed upon may be
condition. rescinded in the cases established by law.

(a) A gave B a parcel of the land on the condition *Art. 1381. The following contracts are rescissible:
that B will never go to the casino. A month later, 1) Those which are entered into by the guardians
B, went to the casino. What happens to A’s whenever the wards whom they represent suffer
obligation? lesion by more than one-fourth of the value of the
ANS: A’s obligation is extinguished, and therefore it is things which are the object thereof;
as if there was an obligation at all. B will therefore 2) Those agreed upon in representation of
have to return both the land and the fruits he had absentees, if the latter suffer the lesion stated in
received therefor from the moment A had given him the preceding number;
the land. 3) Those undertaken in fraud of creditors when the
(b) Suppose in the meantime, the land has been latter cannot in any other manner collect the
improved through its nature or by time, who claims due them;
benefits from such improvements? 4) Those which refer to things under litigation if
ANS: A gets the benefit because he is now the creditor they have been entered into the defendant
with respect to the recovery of the land. (Art. 1198, without the knowledge and approval of the
par. 5, Civil Code) litigants or of competent judicial authority;
5) All other contracts specially declared by law to be
Art. 1191. The power to rescind obligations is subject to recission.
implied in reciprocal ones, in case one of the obligors
should not comply with what is incumbent upon him. Injured party may:
The injured party may choose between the – Demand fulfillment (specific performance +
fulfillment and the rescission of the obligation, damages)
 – The right is alternative and alternative prayer
may be made in court. Period vs Condition
– Not conjunctive, plaintiff cannot ask for both • A condition is uncertain, a period is an event which
– If specific performance was demanded and it has must happen sooner or later at a date known
become impossible, rescission is still possible beforehand, or a time which cannot be
based on Art. 1191. determined.
• Period always refers to the future; a condition may
Rescission under Art. 1191 (resolution) under the law refer even to the past.
• A condition causes an obligation to arise
a) is based on non-performance or non-fulfillment (suspensive) or to cease (resolutory) but a period
of the obligation; fixes the time or the efficaciousness of an
b) here, the action may be instituted only by the obligation.
injured party to the contract;
c) here, in some cases, the courts may grant a term;
d) here, non-performance by the other party is Kinds of Period
important. • Definite – exact date or time is known and given

Rescission in general (Art. 1380) • Indefinite – something that will surely happen,
but the date of happening is unknown.
a) is based on lesion or fraud upon creditors; • Legal – provided for by law
b) here, the action is instituted by either of the
contracting parties or by third persons; • Conventional/Voluntary – period agreed upon
c) here, the courts cannot grant a period or term by the parties
within which to comply;
d) here, non-performance by the other party is • Judicial – period or term fixed by the courts for
immaterial. the performance of an obligation or for its
termination.
Art. 1192. In case both parties have committed a
• Ex die* – a period with suspensive effect. Here the
breach of the obligation, the liability of the first
obligation begins only from a day certain, in other
infractor shall be equitably tempered by the courts. If
words, upon the arrival of the period.
it cannot be determined which of the parties first
 I will support you, beginning the first day of
violated the contract, the same shall be deemed
the next year.
extinguished, and each shall bear his own damages.
• In diem** – A period or term with a resolutory
Section 2: Obligations with a Period effect. Up to a time certain, the obligation remains
valid, but upon the arrival of the said period, the
Art. 1193. Obligations for whose fulfillment a day obligation terminates.
certain has been fixed, shall be demandable only  I will support you until January next year. –
when that day comes. Obligations with a resolutory Here, the obligation is immediately
period take effect at once, but terminate upon arrival demandable and will end only on Jan. 1 of
of the day certain. A day certain is understood to be next year.
that which must necessarily come, although it may
not be known when. If the uncertainty consists in 1. “I will support you from the time X marries.”
whether the day will come or not, the obligation is Is this an obligation with a term or a
conditional and it shall be regulated by the rules of conditional obligation?
the preceding Section.  Conditional
2. “I will begin supporting you if your father
• Period - a certain length of time which determines dies.” Is this a conditional obligation or an
the effectivity or the extinguishments of obligation with a term?
obligations.  Period
• A term or period consists in a space of time 3. “I will begin supporting you from the time
which has an influence on obligations as a result your father dies of malaria.” Is this an
of a juridical act, either suspends their obligation with a term?
demandableness, or produces their  Conditional
extinguishment. Obligations with a period are, 4. “I will pay you my debt when my means
therefore, those whose consequences are subjected permit me to do so.” Is this an obligation with
in one way or another to the expiration of said a condition or an obligation with a term?
term.  Period 91197 in relation to 1180)
 circumstances it should appear that the period has
• A day certain been established in favor of one or of the other.
– Is understood to be that which must necessarily
come, although it may not be known when • General Rule – Term is for the benefit of debtor or
– When we know that something will happen but creditor. Debtor cannot pay in advance and creditor
we are uncertain as to the time it will happen, cannot demand in advance too. Applies only when
this is a period. the parties fixed a period.
– When we are not even sure if something will
happen as a fact or not, this is a condition. • Exceptions – Term is for the benefit of debtor
alone. He is required to pay only at the end of the
Requisites for a Valid Period/Term period but may do so beforehand. Ex. D will pay C
• Refer to the future within 5 years. Term is for the benefit of the
• It must be certain (sure to come) but can be creditor alone. Creditor can demand at any time,
extended. even before expiration. D promised to pay 10000
• It must be physical and legally possible, otherwise on Dec. 1, 2021 with the creditor given the right to
the obligation is void. demand performance prior said date.

Art. 1194. In case of loss, deterioration or For the benefit of both

improvement of the thing before the arrival of the • When interest is stipulated, the term is for the
day certain, the rules in Article 1189 shall be benefit of both.
observed. • When creditor is interested in keeping his money
• In case of loss: take note of Art. 1189. safely invested and creditor wants to protect
himself from the dangers of currency depreciation
Ex. If A is supposed to deliver B a particular car on
Mar. 1, 2022 but the car is destroyed by a fortuitous a) For the benefit of the debtor
event on December 22, 2021, the obligation is – When loan is without interest
extinguished. – When payment is made within a certain period
Art. 1195. Anything paid or delivered before the from date of contract.
arrival of the period, the obligor being unaware of the
period or believing that the obligation has become b) For the benefit of the creditor
due and demandable, may be recovered, with the
– If no payment is to be made until after a certain
fruits and interests.
given period.

Payment or Delivery Made Before the Arrival of

Art. 1197. If the obligation does not fix a period, but
the Period
from its nature and the circumstances it can be
A was supposed to pay B P1, 000, 000 on Dec. 31,
inferred that a period was intended, the courts may
2021. But believing that the obligation was due and
fix the duration thereof. The courts shall also fix the
demandable already on Dec. 31, 2020, A paid B the
duration of the period when it depends upon the will
P1, 000, 000 on said date. How much may A recover
of the debtor. In every case the courts shall
from B, say on Jun. 30, 2021?
determine such period as may under the
circumstances have been probably contemplated by
• A may recover from B on Jun. 30, 2021, the
the parties. Once fixed by the courts, the period
amount of P1,000,000 which had been
cannot be changed by them.
prematurely paid plus of course interest at the
legal rate from Jan. 1, 2021, to Jun. 30, 2021, 6% of
 The court may fix the period
P1,000,000 = P60,000 (interest for one year). P60,
– When the duration depends upon the will of the
000 ÷ 2 = P30, 000 (interest for the half-year
debtor (when my means permit me to do so Art.
period from Jan. 1, 2021, to June 30, 2021). So A
1180)
may recover a total of P1, 000, 000 from B. Of
 Little by little
course, when Dec. 31, 2021 finally arrives, A is
 A soon as possible
supposed to give B the P1, 000, 000. Here A is
– When there was no period but it can be inferred
allowed to recover what had been in good faith
that a period was intended
prematurely paid, plus interest of course.
 To build a house but no period was stated

Art. 1196. Whenever in an obligation a period is

 When the court cannot fix the term
designated, it is presumed to have been established
– When no term was specified by the parties
for the benefit of both the creditor and the debtor,
because no term was intended, and obligation is a
unless from the tenor of the same or other
 pure one and demandable at once, unless absurd Art. 1200. The right of choice belongs to the
consequences would arise. debtor, unless it has been expressly granted to the
– When payable on demand creditor. The debtor shall have no right to choose
– When periods are provided for by law. those prestations which are impossible, unlawful or
which could not have been the object of the
(You can file an action to fix the period within 10 obligation.
years.)
• Debtor cannot choose prestations that are:
Art. 1198. The debtor shall lose every right to – Impossible
make use of the period: – Unlawful
– Or which could not have been the object of the
(1) When after the obligation has been contracted, obligations
he becomes insolvent, unless he gives a
guaranty or security for the debt; Art. 1201. The choice shall produce no effect except
(2) When he does not furnish to the creditor the from the time it has been communicated.
guaranties or securities which he has promised; • May be communicated either oral or in writing.
(3) When by his own acts he has impaired said • Once notice on the choice is made, the obligation
guaranties or securities after their becomes a simple obligation to do or deliver the
establishment, and when through a fortuitous object selected.
event they disappear, unless he immediately
gives new ones equally satisfactory; Art. 1202. The debtor shall lose the right of
(4) When the debtor violates any undertaking, in choice when among the prestations whereby he is
consideration of which the creditor agreed to alternatively bound, only one is practicable.
the period;
(5) When the debtor attempts to abscond. Art. 1203. If through the creditor’s acts the
debtor cannot make a choice according to the
o Debtor loses every right to make sure of the terms of the obligation, the latter may rescind the
period and the term is extinguished and the contract with damages.
obligation becomes demandable at once.

 Terms are computed by: Art. 1204. The creditor shall have a right to
– Years = 365 days each indemnity for damages when, through the fault of
– Months = 30 days the debtor, all the things which are alternatively the
 If designated by name then compute number object of the obligation have been lost, or the
of days which they have. compliance of the obligation has become impossible.
– Days = 24 hours The indemnity shall be fixed taking as a basis the
– Nights = sunset to sunrise value of the last thing which disappeared, or that of
the service which last become impossible. Damages
o In computing period, exclude the first day and other than the value of the last thing or service may
include the last day. also be awarded.

Alternative Obligations • This applies when:

– The right to choose belonged to the debtor
Art. 1199. A person alternatively bound by different – And the loss or impossibility happened before
prestations shall completely perform one of them. selection was made.
The creditor cannot be compelled to receive part of
one and part of the other undertaking.  D is obliged to give C, at D’s option, either object No. 1,
object No. 2 or object No. 3. If all objects were lost
• Alternative obligation – or facultative, is one thru D’s fault, the value of the last thing lost with
where out of the two or more prestations damages must be given to C. This is because if objects
(obligation), which may be given, only one is due. Nos. 1, 2, and 3 disappeared in that order, upon the
• A will give this or or this ring or this fountain pen. loss of objects 1 and 2, the obligations were converted
A does not need to give all three but one is into a simple one, namely to give object No. 3. Thus, it
is object No. 3’s value which should be taken as a
sufficient to satisfy the obligation.
basis.
• Creditor however, cannot be forced to accept
partial performance of each prestation.
*In the above example, if objects nos. 1 and 2 were does not render him liable. But once the
destroyed by a fortuitous event, and later object no. 3 is substitution has been made, the obligor is liable for
destroyed by D’s fault, would D be liable? the loss of the substitute on account of his delay,
ANS: Yes, because loss of objects nos. 1 and 2 converted negligence or fraud.
the obligation into a simple one, and D is liable for
object no. 3. • Facultative – where only one prestation has been
agreed upon but the obligor may render another in
*If instead, objects nos. 1 and 2 were destroyed by D’s substitution.
own fault, and later object no.3 is lost by a fortuitous
– D promised to give C a diamond right but it was
event, should D be held liable?
stipulated that D could give his BMW as a
ANS: It is believed that D should not be held liable. D
substitute.
had all the right in the world to destroy objects nos. 1
• Alternative – D will give object 1 or object 2. If
and 2, since he was free not to select them. In
object 1 is lost by a fortuitous event, D will give
destroying, nos. 1 and 2, he really made his choice and
object 2.
the obligation to give has become a simple one – to give
• Facultative – D will give object 1 but if D wants, he
no. 3. Loss of the object of a simple obligation by
fortuitous event should as a rule extinguish any liability.
may give object 2. If object 1 is lost due to
(To avoid unfairness, however, it would seem that fortuitous event, obligation is extinguished because
immediately after the loss of object nos. 1 and 2, the the principal object has been lost. D does not need
debtor must inform the creditor of this fact.) to give object 2.

Art. 1205. When the choice has been expressly given

to the creditor, the obligation shall cease to be
alternative from the day when the selection has been
communicated to the debtor. Until then the
responsibility of the debtor shall be governed by the
following rules:

(1) If one of the things is lost through a fortuitous

event, he 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) If the loss of one of the things occurs through the
fault of the debtor, the creditor may claim any of
those subsisting, or the price of that which,
through the fault of the former has disappeared,
with a right to damages;
(3) If all the things are lost through the fault of the
debtor, the choice by the creditor shall fall upon
the price of any one of them, also with indemnity JOINT AND SOLIDARY OBLIGATIONS
for damages. The same rules shall be applied to
obligations to do or not to do in case one, some or Art. 1207. The concurrence of two or more creditors
all of the prestations should become impossible. or of two or more debtors in one and the same
obligation does not imply that each one of the former
o If the creditor delays in choosing, he cannot yet has a right to demand or that each one of the latter is
hold the debtor in default, notwithstanding the bound to render, entire compliance with the
lapse of maturity, for the debtor does not know prestation.
what to deliver. Upon the other hand, if the debtor
wants to relieve himself, he may petition the court There is a solidary liability only when the obligation
to compel creditor to accept, in the alternative, expressly so states, or when the law or the nature of
at the creditor’s option, with resultant damages if the obligation requires solidarity.
any.
• Joint – each obligor answers only for a part of the
Art. 1206. When only one prestation has been agreed whole liability and to each oblige belongs only a
upon, but the obligor may render another in part of the correlative rights.
substitution, the obligation is called facultative. The – A and B are joint debtors of C in the amount of
loss or deterioration of the thing intended as a P1M. C can demand 500k from A and only 500k
substitute, through the negligence of the obligor, from B.
 – A and B are joint debtors of C, D, E and F, who Art. 1208. If from the law, or the nature or the
are joint creditors to the amount of P1M. C may wording of the obligations to which the preceding
demand only P125k from A and 125k from B. D, article refers the contrary does not appear, the credit
E, and F have the same rights as C. or debt shall be presumed to be divided into as many
equal shares as there are creditors or debtors, the
• Solidary or joint and several – creditor may credits or debts being considered distinct from one
demand to any debtor fulfillment of the whole another, subject to the Rules of Court governing the
obligation. multiplicity of suits.
– A and B are solidary debtors of C in the amount
of P1M. C can demand the whole P1M from A. A This Article gives us the presumption that when there
in turn, after paying C, can ask reimbursement are two or more debtors, or two or more creditors,
from B to the amount of 500k the obligation is joint and as a consequence:
– A and B are solidary debtors of C, D, E, F,
solidary creditors, to the amount of P1M. Any a) The debt shall be divided into as many shares as
credtiro , like C, can demand from any debtor there are creditors or debtors.
like A, the whole P1M in turn, C has to give b) The credits or the debts will be distinct from one
P250k each to D, E, and F. B has to reimburse A another, BUT regarding the bringing of the action
for 500k which is really B’s share of the in court, the Rules of Court governing the
obligation. multiplicity of suits will be followed.
• General Rule – Where there are two or more
debtors or two or more creditors, the obligation is: • In joint obligations, the different shares of the debt
Joint or the credit are considered distinct from one
another. But they are subject to the Rules of Court
Except governing the multiplicity of suits. This means that
– When there is a stipulation in the contract that ordinarily one creditor may sue one of the debtors
the obligation is solidary. for the latter’s share of the obligation. But, in view
– When the nature of the obligation requires of the fact that the aim of the Rules of Court is to
liability to be solidary. obtain a just, speedy, and inexpensive
– When the law declares the obligation to be determination of every action or proceeding, it
solidary. would be much better to sue all the necessary
parties at the same time.
• Obligation may be joint on the side of creditors and
solidary on the side of debtors and vice versa. “In • Other term for Joint Obligations:
such cases, the rules applicable to each subject of – mancomunada
the obligation should be applied, the character of – mancomunada simple
the creditors or the debtors determining their – proportionate
respective rights and liabilities. – pro rata

1. A and B are joint debtors of C, D, E, and F, solidary  Other term for Solidary Obligations :
creditors to the amount of P1, 000, 000. How much – Joint and several
can C collect from A? – In solidum -Each will pay the whole value
ANS: C is a solidary creditor, so presumably he can – Mancumunada solidaria
collect the whole debt. But since A is only a joint – Juntos o separadamente
debtor, C is entitled to collect only P500, 00 from A. – Individually and collectively

2. A and B are solidary debtors of C, D, E, and F, joint  We promise to pay – two or more signatures =
creditors to the amount of P1, 000, 000. How much joint liability
can C recover from A?
ANS: Since C is only a joint creditor, he can only  I promise to pay – when there are two or more
recover his share which is P250, 000 from A, a signatures = solidary liability
solidary debtor.
Consequences of Joint Liability
(NOTE: Had C been solidary creditor, he could have 1. Vitiated consent on the part of one debtor does
recovered P1, 000, 000 from A; had A been a joint not affect the others.
debtor, and C, also a joint creditor, C could have 2. Insolvency of one debtor does not make others
recovered only P125, 000 from A.) responsible for his share.
 3. Demand by creditor on one joint debtor puts this is a joint obligation, each debtor is
him in default, but not the others since the debts proportionately liable and each creditor is only
are distinct. entitled to his proportional credit. P1.2M divided by 3
= P400, 000 (the total debt of each debtor) P 400,000
• Liabilities of Partners – if it arises out of a contract, divided by 4 = P100, 000 (the credit belonging to
liability is joint. If from a crime, solidary. each joint creditor, not from each joint debtor). A is
• Liabilities of Agents – Joint unless solidary has been insolvent, and his share will not be included in the
agreed. liability of B and C.
• Liabilities of co-principals – solidary
• Liabilities of Spouses – Jointly Therefore:
• If a contract states “Jose or Maria will pay you P1, (a) D and E having renounced their rights, they get
000, 000” (disjunctive obligations), should this be nothing.
considered alternative, joint, or solidary? (b) F has not renounced his right, so he can get P100,
ANS: It really depends upon the intention of the 000 from B and P100, 000 from C. Over A, F has
parties. Hence, if what is intended is to have the the rights of creditor over an insolvent debtor. (c)
obligation satisfied in full, the payer being G has exactly the same rights as F.
immaterial, the courts mat be inclined to consider
the same as solidary, with the creditor being given “Demand by one joint creditor is not a demand by
the right to select who would pay, and in case of the others”
partial performance merely, he can still ask the
other for the balance. • In a joint indivisible obligation, if one of the joint
creditors makes a demand upon one of the debtors,
Art. 1209. If the division is impossible, the right of there is no doubt that the debtor is in default with
the creditors may be prejudiced only by their reference to the demanding creditor’s share. Is she
collective acts, and the debt can be enforced only by also in default with reference to the others?
proceeding against all the debtors. If one of the latter
should be insolvent, the others shall not be liable for  Although it would seem that the answer is
his share. YES, because this act benefits, and does not
prejudice the others, and is therefore
Indivisible Joint Obligation implicitly what the law provides, still it
• This Article speaks of an indivisible joint obligation should be borne in mind that the credits are
(indivisible — referring to the OBJECT; joint — still independent of one another
referring to the TIE between the parties, who are
merely proportionately liable, unless solidarity has Art. 1210. The indivisibility of an obligation does not
been stipulated by the parties or the law, in which necessarily give rise to solidarity. Nor does solidarity
case, it is called a solidary indivisible obligation). of itself imply indivisibility.

Example:  Indivisble – refers to the subject matter

Indivisible Obligation: A and B are jointly liable to  Solidarity – refers to the tie between the parties
give C this particular car.
• Joint divisible obligation – A and B are jointly liable
- The obligation is still joint but since the object is to X for P1M
indivisible, the creditor must proceed against all • Joint indivisible obligation – A and B are jointly
the joint debtors. liable to give X this Car.
- Demand is to be addressed to all joint debtors. • Solidary divisible obligation – A and B are solidarily
- If any of the joint debtors be insolvent, the others bound to give X P1M.
will not be liable for his/her share. • Solidary indivisible Obligation – A and B are
solidarily bound to give X this car.
A, B, and C are jointly liable to give a particular car
worth P1.2 million in favor of D, E, F, and G. A is Kinds of Solidarity
insolvent and the debtors, therefore, cannot purchase • Active solidarity – on the part of the creditors or
the car to give to the creditors. D and E have obliges
renounced their rights. The debtors are not in • Passive Solidarity – on the part of the debtors or
default. How much can each of the creditors get from obligors
each of the debtors? • Mixed Solidarity – on the part of the obligors and
ANS: Since this is a joint and indivisible obligation obliges, or on the part of the debtors and the
and since the car cannot be given, it is converted into creditors.
an obligation to give indemnity for damages. Since
• Conventional Solidarity – agreed upon by the
parties Art. 1213. A solidary creditor cannot assign his
• Legal Solidarity – that imposed by the law rights without the consent of the others.

Art. 1211. Solidarity may exist although the creditors Art. 1214. The debtor may pay any one of the
and the debtors may not be bound in the same solidary creditors; but if any demand, judicial or
manner and by the same periods and conditions. extrajudicial, has been made by one of them, payment
should be made to him.
• Solidarity despite different terms or conditions:
 Uniform – when the debtors are bound by the a) A and B are solidary debtors of C, D, and E,
same stipulations and clauses; solidary creditors. May A pay C the whole
 Otherwise – where the obligors though liable obligation?
for the same prestation, are nevertheless not ANS: Yes, provided, no judicial or extrajudicial
subject to the same secondary stipulations and demand had been made by either D or E.
clauses.
b) A and B are solidary debtors of C, D, and E,
Example of a case when solidarity may exist even solidary creditors E makes judicial demand. There
when the creditors and debtors are not bound: is no extrajudicial demand upon A. To whom
should A pay?
A and B solidarily bound themselves to pay a total of ANS: Only E, who had made the judicial demand..
P1, 000, 000 to C, D, and E subject to the following Payment to any other creditor will not extinguish the
conditions and terms: C’s share will be due at the end obligation except insofar as the payee’s share is
of the year; D will get his share only if he passes the concerned,
bar; and E will get his share only after he (E) has
painted the house of X. Here, the obligation is still c) A and B are solidary debtors of C, D, and E,
solidary. solidary creditors. C makes a judicial demand on A.
Can D and E sue A?
ANS: In the meantime, no, because C is supposed to
In the example given, when will this solidary
be representing already D and E. If judgement is
obligation be due and demandable?
rendered against A, and A does not have enough
ANS: The obligation is still solidary but C’s share will
money, then D, E, or C (individually or collectively)
only be due and demandable at the end of the year,
may still sue B for the remainder. But it is essential
and E and D’s shares will be due and demandable
that the first action be first terminated.
only upon the fulfillment of the condition.
d) A and B are solidary debtors of C, D, and E. C
Supposing the obligation is to be subject to different
makes an extrajudicial demand upon A, who does
terms and conditions, the following is the solution:
not pay. Can D and E sue (judicial demand) A?
the creditor may recover that part which is pure and ANS: Although strictly speaking, the answer may be
unconditional, and should leave in suspense or in the NEGATIVE since under the law payment must
pending, the right to demand the payment of the be made to C, who had made the extrajudicial
remainder until the expiration of the term or the demand, still the law should not be construed to
fulfillment of the condition. Solidarity is still effect an absurdity in that D and E would be
preserved by recognizing in the creditor the power, compelled to just stand by idly, since C does not
upon the fulfillment of the condition or the expiration institute any judicial action. Since C’s act (or
of the term, of claiming from any of the condition or inaction) is prejudicial to D and E, the two (D and E)
the expiration of the term, of claiming from an or all should be allowed to make the judicial demand. (See
of the debtors, that part of the obligations effected by Art. 1212, Civil Code).
these conditions.
e) A and B, solidarily debtors, are indebted to C, D,
Art. 1212. Each one of the solidary creditors may do and E, solidary creditors. C extrajudicially
whatever may be useful to the others, but not demands from A, but B (upon whom no demand
anything which may be prejudicial to the latter. has been made), pays the whole debt to E. Is B
allowed to do that, and is the solidary obligation
 Example of beneficial – To interrupt the running of extinguished?
prescription, the act of one solidary creditor in ANS: Yes, for after all no demand had been made by C
making a judicial demand upon any of the solidary upon B. It is only A that is bound, not B. (See 8
debtors is sufficient. Manresa 210)
 Example of prejudicial – Remission or condonation.
Allowed but he will be liable to his co-creditors.
Art. 1215. Novation, compensation, confusion or endorsed the note in favor of E; E in favor of F; F in
remission of the debt, made by any of the solidary favor of A. Notice that A, who is a debtor, now
creditors or with any of the solidary debtors, shall becomes a creditor. There is merger or confusion of
extinguish the obligation, without prejudice to the rights here; the solidary obligation is extinguished;
provision of Article 1219. The creditor who may have but B is indebted to A for his (B’s) share of the debt.
executed any of these acts, as well as he who collects Remission (waiver) – act of liberality whereby
the debt, shall be liable to the others for the share in creditor condones the obligation of the debtor; that
the obligation corresponding to them. where the creditor tells the debtor to “forget about
the whole thing”
 Novation – modification of an obligation by
changing its object or principal conditions, or by A and B are solidary debtors of X and Y, solidary
substituting the person of the debtor, or by creditors to the amount of P4 million. X tells A that he
subrogating the person of the debtor, or by was waiving the whole obligation. Here, the total
subrogating a third person in the rights of creditor. remission completely extinguishes the whole
obligation, without prejudice to Y collecting from X
A and B are solidarily liable to X and Y, solidary his (Y’s) share of the credit of P2 million, otherwise
creditors, for the payment of P800,000. A and X X’s remission would prejudice Y. Upon the other
agreed that instead of paying P800,000, A will just hand, B does not have to reimburse A for anything,
paint X’s house (including costs of the points to be for after all the remission was a gratuitous act, and A
used). Here the solidary obligation of paying did not have to give anything to the creditors. (See 8
P800,000 is extinguished but a new one, that of Manresa, pp. 225-226).
painting X’s house, has arisen. If B did not consent to
the novation, B will not be bound to X and Y in any Art. 1216. The creditor may proceed against any one
way, and moreover, will not be obliged to give A of the solidary debtors or some or all of them
anything except insofar as he (B) has been benefi ted. simultaneously. The demand made against one of
them shall not be an obstacle to those which may
Upon the other hand only X will be allowed to
subsequently be directed against the others, so long
prejudice his co-creditor Y, so X must reimburse Y for as the debt has not been fully collected.
P400,000 (which is really Y’s shareof the credit).
(Art. 1215, par 2). • Applies only to solidary obligations and not joint
ones.
 Compensation – that which takes place when two • Applies to passive solidarity and mixed solidarity
• Passive Solidarity vs Suretyship – Both guarantee
persons, in their own right, are creditors and
for another person. Both can demand
debtors of each other. Compensation may be total reimbursement.
or partial, depending upon the amount involved.
Total compensation of course automatically Art. 1217. Payment made by one of the solidary
extinguishes the obligation, whether known or debtors extinguishes the obligation. If two or more
unknown to the parties. solidary debtor offer to pay, the creditor may choose
which offer to accept.
A and B are solidary debtors of X and Y, solidary
He who made the payment may claim from his co-
creditors to the amount of P400,000. But X owes A debtors only the share which corresponds to each,
P400,000 on account of a different obligation. Here with the interests for the payment already made. If
we have a case of automatic extinguishment of the the payment is made before the debt is due, no
obligation by virtue of total compensation. But B interest for the intervening period may be demanded.
should not benefit completely since it was A’s credit When one of the solidary debtors cannot, because of
that was used to compensate. So B owes A P200, 000 his insolvency, reimburse his share to the debtor
paying the obligation, such share shall be borne by all
(his share of the debt). Upon the other hand, Y should
his co-debtors, in proportion to the debt of each.
not be prejudiced, so Y can recover P200, 000 (his
credit) from X. (Art. 1215, par. 2). • Payment – is one of the ways by which an
obligation is extinguished and consists in the
 Confusion or Merger – that which takes place delivery of the thing or the rendition of the service
when the characters of creditor and debtor are which is the object of the obligation.
• If one solidary debtor pays the obligation, the
merged in the same person, as when my check in
obligation is extinguished.
the course of negotiation, is eventually endorsed to
me.  A, B, and C are solidary debtors of D. A pays the
debt. A is entitled to reimbursement from B and C.
A and B made a negotiable promissory note in favor What is the nature of the obligation of B and C to A?
of C and D, whereby A and B bound themselves B and C will be liable to A as a joint obligation.
solidarily to C and D, solidary creditors. C and D
Art. 1218. Payment by a solidary debtor shall not event, and without any fault on the part of the
entitle him to reimbursement from his co-debtors if debtors. What happens to the obligation? The
such payment is made after the obligation has obligation is extinguished (but debtors should not
prescribed or become illegal.
be in default).
Art. 1219. The remission made by the creditor of the
share which affects one of the solidary debtors does
not release the latter from his responsibility towards
the co-debtors, in case the debt had been totally paid
by anyone of them before the remission was effected.

 A and B solidarily owe X P1,000,000. A paid X the

whole amount. Later, X remitted B’s share. Can A
still recover reimbursement of P500,000 from B?
 Yes.
 A, B, and C solidarily owe X P3 million. X remitted
C’s share. A, therefore, paid later only P2 million.
Can A recover reimbursement?
 Yes, but only from B and not from C, whose
share had previously been remitted. Here,
remission was previous to the payment.

(*Since payment extinguishes the obligation, there is

nothing more to remit.)

Art. 1220. The remission of the whole obligation,

obtained by one of the solidary debtors, does not
entitle him to reimbursement from his co-debtors.

 A and B are solidary debtors of C to the amount of

P1, 000, 000. C remitted the whole obligation when
A offered to pay. A here cannot get any
reimbursement from B since after all, A did not pay
anything to C. To allow the contrary would be to
induce fraud and to countenance partiality.

Art. 1221. If the thing has been lost or if the

prestation has become impossible without the fault
of the solidary debtors, the obligation shall be
extinguished.

If there was fault on the part of any one of them, all

shall be responsible to the creditor for the price and
the payment of damages and interest, without
prejudice to their action against the guilty or
negligent debtor.

If through a fortuitous event, the thing is lost or the

performance has become impossible after one of the
solidary debtors has incurred in delay through the
judicial or extrajudicial demand upon him by the
creditor, the provisions of the preceding paragraph
shall apply.

Effect or Loss or Impossibility

• If without fault – no liability
• If with fault – there is liability (also for damages
and interest).
• Loss because of fortuitous event AFTER default –
here, there will be liability because of the default.

 A and B are solidarily obliged to give C this

particular car. The car was lost by a fortuitous