ART.

1200-1229 OBLIGATIONS AND CONTRACTS

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remainder, or that which remains if only

one subsists;
ARTICLE 1200
(2) If the loss of one of the things occurs
The right of choice belongs to the debtor, through the fault of the debtor, the creditor
unless it has been expressly granted to may claim any of those subsisting, or the
the creditor. The debtor shall have no right price of that which, through the fault of the
to choose those prestations which are former, has disappeared, with a right to
impossible, unlawful or which could not damages;
have been the object of the obligation. (3) If all the things are lost through the
fault of the debtor, the choice by the
Right of choice, as a rule, given to debtor creditor shall fall upon the price of any one
As a general rule, the right to choose the of them, also with indemnity for damages.
prestation belongs to the debtor. By way The same rules shall be applied to
of exception, it may be exercised by the obligations to do or not to do in case one,
some or all of the prestations should
creditor but only when expressly granted
become impossible.
to him (Art. 1205.), or by a third person
when the right is given to him by common
ARTICLE 1206
agreement. (Art. 1306.)
When only one prestation has been
agreed upon, but the obligor may render
ARTICLE 1201 another in substitution, the obligation is
The choice shall produce no effect except called facultative.
from the time it has been communicated. The loss or deterioration of the thing
intended as a substitute, through the
negligence of the obligor, does not render
ARTICLE 1204 him liable. But once the substitution has
The creditor shall have a right to indemnity been made, the obligor is liable for the
for damages when, through the fault of the loss of the substitute on account of his
debtor, all the things which are delay, negligence or fraud.
alternatively the object of the obligation
have been lost, or the compliance of the Meaning of facultative obligation
obligation has become impossible. A facultative obligation is one where only
The indemnity shall be fixed taking as a one prestation has been agreed upon but
basis the value of the last thing which the obligor may render another in
disappeared, or that of the service which substitution.
last became impossible.
Damages other than the value of the last
thing or service may also be awarded. ARTICLE 1207-1208
ART. 1207. The concurrence of two or
ARTICLE 1205 more creditors or of two or more debtors in
one and the same obligation does not
When the choice has been expressly
imply that each one of the former has a
given to the creditor, the obligation shall
right to demand, or that each one of the
cease to be alternative from the day when
latter is bound to render, entire
the selection has been communicated to
compliance with the prestations. There is
the debtor.
a solidary liability only when the obligation
Until then the responsibility of the debtor
expressly so states, or when the law or the
shall be governed by the following rules:
nature of the obligation requires solidarity.
(1) If one of the things is lost through a
(1137a)
fortuitous event, he shall perform the
ART. 1208. If from the law, or the nature
obligation by delivering that which the
or the wording of the obligations to which
creditor should choose from among the

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the preceding article refers the contrary the debtors. If one of the latter should be
does not appear, the credit or debt shall insolvent, the others shall not be liable for
be presumed to be divided into as many his share.
equal shares as there are creditors or
debtors, the credits or debts being Joint indivisible obligation.
considered distinct from one another, This article speaks of a joint indivisible
subject to the Rules of Court governing obligation. The obligation is joint because
the multiplicity of suits. the parties are merely proportionately
liable. It is indivisible because the object or
Kinds of obligation according to the number subject matter is not physically divisible
of parties. into different parts. (see Art. 1225, par. 1.)
They are: In other words, it is joint as to liabilities of
(1) Individual obligation. — one where the debtors or rights of the creditors but
there is only one obligor and one obligee; indivisible as to compliance. (see Art.
and 1224.)
(2) Collective obligation. — one where
there are two or more debtors and/or two
ARTICLE 1211
or more creditors. It may be joint or
solidary. Solidarity may exist although the creditors
In a collective obligation, there are two and the debtors may not be bound in the
relations involved: that between the same manner and by the same periods
creditor and the debtors (or the creditors and conditions.
and the debtor, or the creditors and the
debtors) and that among the creditors Kinds of solidary obligation according to the
and/or debtors themselves. legal tie.
They are:
Meaning of joint and solidary obligations. (1) Uniform. — when the parties are
(1) A joint obligation is one where the bound by the same stipulations or
whole obligation is to be paid or fulfilled clauses; or
proportionately by the different debtors (2) Non-uniform or varied. — when the
and/or is to be demanded proportionately parties are not subject to the same
by the different creditors. (Art. 1208.) stipulations or clauses. (see 4 Sanchez
(2) A solidary obligation is one where each Roman 50.)
one of the debtors is bound to render,
and/or each one of the creditors has a
right to demand entire compliance with the ARTICLE 1215
prestation. Novation, compensation, confusion or
remission of the debt, made by any of the
Words used to indicate joint liability. solidary creditors or with any of the
Other words used for joint obligations are: solidary debtors, shall extinguish the
mancum, mancomunada; obligation, without prejudice to the
mancomunadamente; pro rata; provisions of Article 1219.
proportionately; pro rata, jointly; conjoint; The creditor who may have executed any
“we promise to pay” signed by two or more of these acts, as well as he who collects
persons. the debt, shall be liable to the others for
the share in the obligation corresponding
to them.
ARTICLE 1209
If the division is impossible, the right of the
ARTICLE 1218
creditors may be prejudiced only by their
collective acts, and the debt can be Payment by a solidary debtor shall not
enforced only by proceeding against all entitle him to reimbursement from his

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co-debtors if such payment is made after

the obligation has prescribed or become Meaning of penal clause.
illegal. A penal clause is an accessory
undertaking attached to an obligation to
ARTICLE 1220 assume greater liability on the part of the
obligor in case of breach of the obligation,
The remission of the whole obligation, i.e., the obligation is not fulfilled or is partly
obtained by one of the solidary debtors, or irregularly complied with.
does not entitle him to reimbursement
from his co-debtors. Penalty generally resolves question of
damages.
In the second case, i.e., when the purpose
ARTICLE 1223 is reparation or compensation, the matter
The divisibility or indivisibility of the things of damages is generally resolved and the
that are the object of obligations in which creditor is not obliged to prove them, the
there is only one debtor and only one penalty being considered an anticipated
creditor does not alter or modify the valuation of the damages which may be
provisions of Chapter 2 of this Title. suffered by the creditor if the obligation is
not complied with; in the third, i.e., when
Meaning of divisible and indivisible the purpose is punishment, the penalty
obligations. does not resolve the question of damages,
(1) A divisible obligation is one the object which it leaves intact (8 Manresa
of which, in its delivery or performance, is 245-246.), that is to say, damages may be
capable of partial fulfillment. recovered in addition to the penalty.
(2) An indivisible obligation is one the
object of which, in its delivery or ARTICLE 1227
performance, is not capable of partial
fulfillment. The debtor cannot exempt himself from
the performance of the obligation by
paying the penalty, save in the case where
ARTICLE 1226 this right has been expressly reserved for
In obligations with a penal clause, the him. Neither can the creditor demand the
penalty shall substitute the indemnity for fulfillment of the obligation and the
damages and the payment of interests in satisfaction of the penalty at the same
case of noncompliance, if there is no time, unless this right has been clearly
stipulation to the contrary. Nevertheless, granted him. However, if after the creditor
damages shall be paid if the obligor has decided to require the fulfillment of the
refuses to pay the penalty or is guilty of obligation, the performance thereof should
fraud in the fulfillment of the obligation. become impossible without his fault, the
The penalty may be enforced only when it penalty may be enforced.
is demandable in accordance with the
provisions of this Code. ARTICLE 1229
The judge shall equitably reduce the
Meaning of principal and accessory
penalty when the principal obligation has
obligations.
been partly or irregularly complied with by
(1) Principal obligation is one which can
the debtor. Even if there has been no
stand by itself and does not depend for its
performance, the penalty may also be
validity and existence upon another
reduced by the courts if it is iniquitous or
obligation.
unconscionable.
(2) Accessory obligation is one which is
attached to a principal obligation and,
therefore, cannot stand alone.