Professional Documents
Culture Documents
Obligations and Contracts
Obligations and Contracts
2.) Contracts
Obligations from contracts shall have the force of law
between the contracting parties and shall be complied
with in good faith. This means that neither party may
escape his obligations under the contract, unless the
other party assented thereto, or unless for causes
sufficient in law.
3.) Quasi-contracts
Is a juridical relation resulting from certain lawful, voluntary and
unilateral acts by virtue of which the parties become bound to each
other to the end that no one will be unjustly enriched or benefited
at the expense of another.
Donatello sold his dog to Leonardo for P 30,000.00. No date or condition was
stipulated for the delivery of the dog. While still in the possession of Donatello,
the dog gave birth to 5 puppies.
Example:
the car with plate number ABC 123; or
a notebook owned by Mr. X
Example:
a book;
the sum of P5,000.00; or
a kilo of sugar.
Example:
If I am obliged to deliver a particular car, I must also give the
accessories, like the jack; or
If I am obliged to deliver a piece of land, I must give also the
accessions, like a building constructed thereon.
Example
B bought a farm lot from S. It was stipulated
that S would not construct a fence on a certain
portion of his land adjoining that sold to B.
Nature and Effects of
Obligations
ART. 1169
Those obliged to deliver or to do something incur in delay from the time the obligee
judicially or extra-judicially demands from them the fulfillment of their obligation.
However, the demand by the creditor shall not be necessary in order that delay may
exists:
(1) When the obligation or the law expressly so declares; or
(2) When from the nature and the circumstances of the obligation it appears that the
designation of the time when the thing is to be delivered or the service is to be
rendered was a controlling motive for the establishment of the contract; or
(3) When demand would be useless, as when the obligor has rendered it beyond his
power to perform.
In reciprocal obligations, neither party incurs in delay if the other does not comply or
is not ready to comply in a proper manner with what is incumbent upon him. From the
moment one of the parties fulfills his obligation, delay by the other begins.
General Rule: No Demand, No Delay
Two kinds of delays:
1. Ordinary delay - merely non-
performance at the stipulated time
ex.
In the same example, A, a pedestrian, was
hit by the bus when it crashed.
3. Culpa Criminal (Criminal Negligence)
- negligence that results in the commission of a crime
ex.
In the same example, the passenger may bring a court
action not only for culpa contractual against the bus
owner, but also culpa criminal against the bus driver
for physical injuries through reckless imprudence.
The pedestrian may bring not only a suit for culpa
aquiliana against the bus driver and the owner but
also culpa criminal against the bus driver for physical
injuries through reckless imprudence.
CULPA CULPA CULPA
CONTRACTUA AQUILIANA CRIMINAL
L
There is a pre-existing There is no pre- There is no pre-
contract existing contract existing contract
Preponderance of Preponderance of The crime must be
evidence is required evidence is needed proved beyond
reasonable doubt
Defense of a good Defense of a good This defense cannot
father of a family in father of a family in be interposed. If the
the selection and the selection of employee is insolvent
supervision of employees is a proper or incapable to pay
employees is not defense of the the civil aspect or
proper and complete employer liability, the employer
defense but can is subsidiarily liable.
3. Delay (Art. 1169)
4. Contravention of the terms of the obligation
- a violation to the stipulation in the obligation
ex.
E leased the apartment of R for P10,000 a
month to be paid in advance during the first
week of every month. E failed to pay his rent as
stipulated in the contract. R is entitled to eject
him from the premises.
Nature and Effects of
Obligations
ART. 1171
Responsibility arising from fraud is
demandable in all obligations. Any
waiver of an action for future fraud is
void.
This article refers to incidental fraud
which is employed in the fulfillment
of an obligation.
EXAMPLE:
Assume now, that the horse belongs to and is in
the possession of B. The negligence of S which
results in the death of the horse is culpa aquiliana.
In this case, there is no pre-existing contractual
relation between S and B. The negligence itself is
the source of liability.
(3) Criminal negligence (culpa
criminal)
- Negligence resulting in the
commission of a crime. The same
negligent act causing damages may
produce civil liability arising from a
crime or create an action for quasi-
delict
- In negligence cases, the aggrieved
party may choose between a criminal
EXAMPLE:
A crime can be committed by negligence. If
B wants, he can bring an action for culpa
criminal (damage to property through simple
or reckless imprudence). Here, the crime is the
source of the obligation of S to pay damages.
But B cannot recover damages twice for the
same act or omission of S. In other words,
responsibility for quasi-delict is not
demandable together with the civil liability
arising from a criminal offense.
Effect of negligence on the part of the
injured party.
Article 2179 of the Civil Code provides:
When the plaintiffs own negligence was the
immediate and proximate cause of his injury,
he cannot recover damages. But if his
negligence was only contributory, the
immediate and proximate cause of the injury
being the defendants lack of due care, the
plaintiff may recover damages, but the courts
shall mitigate the damages to be awarded.
EXAMPLES:
P is a passenger in a carefully driven
bus. Without any warning, he jumped
off the bus, as a result of which, he
suffered injuries.
Can P recover damages?
Answer: NO
The bus company is not liable for damages
because the cause of Ps injuries is his own
negligence .
Now, suppose P was standing on the running
board of the bus and was repeatedly told by the
conductor to go inside but he did not pay any
attention. Suddenly, the bus swerved to the left to
avoid collision with another vehicle, as a result of
which, P was thrown off the bus. At the time of
mishap, the driver was intoxicated and was driving
recklessly at a very high rate of speed.
Can P recover damages?
In this case, P did not observe the
diligence of a good father of a family
to avoid injury to himself. But his
contributory negligence does not bar
recovery for damages for his death or
injuries since the proximate or direct
cause thereof is the negligence of the
common carrier. However, the amount
of damages shall be equitably
reduced.
Nature and Effects of
Obligations
ART. 1173
The fault or negligence of the obligor consists in the
omission of that diligence which is required by the nature
of the obligation and corresponds with the circumstances
of the person, of the time and of the place. When
negligence shows bad faith, the provisions of articles 1171
and 2201, paragraph 2, shall apply.
If the law or contract does not state the diligence which is
to be observed in the performance, that which is expected
of a good father of a family shall be required.
Factors to be considered:
Nature of obligation
Circumstances of the person
Circumstance of time
Circumstance of the place
Kinds of diligence required:
Agreed upon by parties, orally or in
writing
Absence of stipulation, that required
by law in the particular case (like the
extraordinary diligence required of
common carriers)
If both the contract and law are
silent, diligence expected is that of a
Nature and Effects of
Obligations
ART. 1174
Except in cases expressly specified by the law,
or when it is otherwise declared by stipulation,
or when the nature of the obligation requires
the assumption of risk, no person shall be
responsible for those events which could not
have been foreseen, or which though
foreseen, were inevitable.
Kinds of fortuitous events:
Ordinary fortuitous events
Extra-ordinary fortuitous events
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.
Every obligation which contain a resolutory condition
shall also be demandable, without prejudice to the
effects of the happening of the event.
A pure obligation is one which is not
subject to any condition and no
specific date is mentioned for its
fulfillment and is, therefore,
immediately demandable.
Characteristics of a condition.
1. Future and uncertain. In order to constitute an event a condition, it is not
enough that it be future; it must also be uncertain.
The first paragraph of Article 1179 obviously uses the disjunctive or between
future and uncertain to distinguish pure obligation from both the conditional
obligation and one with a period. Be that as it may, the word or should be and.
2. Past but unknown. A condition may refer to a past event unknown to the
parties. (infra.) If it refers to a future event, both its very occurrence and the time
of such occurrence must be uncertain; otherwise, it is not a condition.
Sale of vessel is conditioned upon proof that seller is, in fact, owner of
property.
Facts: S, owner, and B, purchaser, agreed upon the sale of a vessel provided
that the title papers to the same were in proper form. The title was in the
name of another and S promised to perfect his title to the vessel. Before
compliance by S with the condition exacted by B, and while the vessel was
in Ss possession, it sank due to a severe storm.
Held: No. The sale of the vessel was not perfected, because of the non-
compliance by S of a condition precedent to its perfection, to wit: the
production of the proper papers showing that he was, in fact, the owner of
the vessel in question. Consequently, the loss of the vessel must be borne
by S, the owner, and not by B who only intended to purchase it and was
unable to do so because of failure of S to comply with the said condition.
(2) Resolutory condition (condition
subsequent) or one the fulfillment of
which will extinguish an obligation
(or right) already existing.
Past event unknown to the parties.
EXAMPLE:
S is the owner of a parcel of land which is being claimed by X.
Last week, the Supreme Court has rendered a fi nal decision
upholding the right of S. However, S has not yet received the
notice that he had won the case. Now, S obliged himself to sell the
land to B for a definite price, should he win the case against X.
ART. 1180
When the debtor binds himself to
pay when his means permit him to
do so, the obligation shall be deemed
to be one with a period, subject to
the provisions of article 1197.
A period is a future and certain event upon the
arrival of which the obligation subject to it
either arises or is extinguished.
(1) The debtor promises to pay when his means
permit him to do so.
(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) as soon as I have the money
(e) at any time I have the money
(f) in partial payments
Different Kinds of Obligation :
Pure and Conditional
ART. 1181
In conditional obligations, the
acquisition of rights, as well as the
extinguishment or loss of those
already acquired, shall depend upon
the happening of the event which
constitutes the condition.
Effect of happening of condition.
This article reiterates the distinction between a suspensive (or
antecedent) condition and a resolutory (or subsequent)
condition.
ART. 1182
When the fulfillment of the condition depends
upon the sole will of the debtor, the
conditional obligation shall be void. If it
depends upon chance or upon the will of a
third person, the obligation shall take effect in
conformity with the provisions of this Code.
Classifications of conditions.
(1) As to effect.
(a) Suspensive. the happening of which gives
rise to the obligation; and
(b) Resolutory. the happening of which
extinguishes theobligation.
(2) As to form.
(a) Express. the condition is clearly stated;
and
(b) Implied. the condition is merely inferred.
(3) As to possibility.
(a) Possible. the condition is capable of fulfillment, legally and
physically; and
(b) Impossible. the condition is not capable of fulfillment, legally
or physically.
(4) As to cause or origin.
(a) Potestative. the condition depends upon the will of one of
the contracting parties; is a condition suspensive in nature and
which depends upon the sole will of one of the contracting parties.
(b) Casual. the condition depends upon chance or upon the will
of a third person; and
(c) Mixed. the condition depends partly upon chance and partly
upon the will of a third person.
(5) As to mode.
(a) Positive. the condition consists in the performance of an act;
and
(b) Negative. the condition consists in the omission of an act.
(6) As to number.
(a) Conjunctive. there are several conditions and all must be
fulfilled; and
(b) Disjunctive. there are several conditions and only one or
some of them must be fulfilled.
(7) As to divisibility.
(a) Divisible. the condition is susceptible of partial performance;
and
(b) Indivisible. the condition is not susceptible of partial
performance.
Different Kinds of Obligation :
Pure and Conditional
ART. 1183
Impossible conditions, those contrary to good customs
or public policy and those prohibited by law shall annul
the obligation which depends upon them. If the
obligation is divisible, that part thereof which is not
affected by the impossible or unlawful condition shall
be valid.
The condition not to do an impossible thing shall be
considered as not having been agreed upon.
When Article 1183 applies.
Article 1183 refers to suspensive
conditions. It applies only to cases
where the impossibility already
existed at the time the obligation
was constituted. If the impossibility
arises after the creation of the
obligation, Article 1266 governs.
Two kinds of impossible
conditions.
They are:
(1) Physically impossible conditions.
when they, in the nature of things,
cannot exist or cannot be done; and
(2) Legally impossible conditions.
when they are contrary to law,
morals, good customs, public order,
Effect of impossible conditions.
Conditional obligation void. C = Void makes
O = Void
Conditional obligation valid. C = Valid
makes O = Valid, given C is not to do an
impossible thing.
Only the affected obligation void. C+(-C)= O
is Valid for C, Void for (-C).
Only the condition void. C = void, O = valid.
Different Kinds of Obligation :
Pure and Conditional
ART. 1184
The condition that some event
happen at a determinate time shall
extinguish the obligation as soon as
the time expires or if it has become
indubitable that the event will not
take place.
The above article refers to a positive
(suspensive) condition the happening of an
event at a determinate time. 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 yet expired.
Different Kinds of Obligation :
Pure and Conditional
ART. 1185
The condition that some event will not happen at a
determinate time shall render the obligation effective
from the moment the time indicated has elapsed, or if
it has become evident that the event cannot occur.
If no time has been fixed, the condition shall be
deemed fulfilled at such time as may have probably
been contemplated, bearing in mind the nature of the
obligation.
The above provision speaks of a negative condition that an
event will not happen at a determinate time. (see Art.
879.) The obligation shall become effective and binding:
ART. 1186
The condition shall be deemed
fulfilled when the obligor voluntarily
prevents its fulfillment.
Constructive fulfillment of suspensive
condition.
There are three (3) requisites for the
application of this article:
ART. 1187
The effects of a conditional obligation to give, once the condition has
been fulfilled, shall retroact to the day of the constitution of the
obligation. Nevertheless, when the obligation imposes reciprocal
prestations upon the parties, the fruits and interests during the pendency
of the condition shall be deemed mutually compensated. If the obligation
is unilateral, the debtor shall appropriate the fruits and interests
received, unless from the nature and circumstances of the obligation it
should be inferred that the intention of the person constituting the same
was different.
In obligations to do and not to do, the courts shall determine, in each
case, the retroactive effect of the condition that has been complied with.
First sentence:
The first sentence means that once the condition
has been fulfilled, the obligation becomes effective
to the day it was constituted.
Example:
J in 2004 promised to sell to M his land provided
that M passes the bar in 2006. M passed the bar in
2006. It is as if M was entitled to the land
beginning 2004. Therefore any donation or
mortgage made by M in 2004 (before passing) will
be considered valid.
No Retroactive Effects as to Fruits and
Interests
a.)In unilateral obligations, debtor gets the
fruits and interests.
Example:
In 2005, A promised to give his land to B,
if the latter passes the bar in 2006. If the
condition is fulfilled, A does not have to
give the fruits for the period of 1 year.
b.) In reciprocal obligations, the fruits and
interests during the pendency of the condition
shall be deemed to compensate each other.
Example:
In 2005, A agreed to sell B his land and B agreed
to pay if C passes the bar of 2006. C passed. A
must now give the land, and B must pay.
The fruits of the land for the one-year period will
remain with A, while B will keep the 6% legal
interest on his money.
Different Kinds of Obligation :
Pure and Conditional
ART. 1188
The creditor may, before the fulfillment of
the condition, bring the appropriate
actions for the preservation of his right.
The debtor may recover what during the
same time he has paid by mistake in case
of a suspensive condition.
Bring appropriate actions" means to sue in
court. The reason is that if the creditor is not
allowed to take the appropriate actions, there is
a danger that he will receive nothing, as when
the object is deliberately destroyed, or hidden,
or alienated.
Example:
Phil. Long Distance Telephone Co. v. Jeturian
FACTS: The Phil. Long Distance Telephone Co. operated a pension plan prior
to the last Pacific War, whereby, subject to certain conditions (such as
age and length of service), employees who retire would be given pensions.
After the war, the plan was abolished because of losses sustained during
the Japanese occupation.
ART. 1189
When the conditions have been imposed with
the intention of suspending the efficacy of an
obligation to give, the following rules shall be
observed in case of the improvement, loss or
deterioration of the thing during the pendency
of the condition:
Lost:
(1) If the thing is lost without the fault of the debtor, the
obligation shall be extinguished;
Example:
A promised to give B his car if B passes the bar. Pending the
results of the bar exams, the car is destroyed by a fortuitous
event, without any fault at all on the part of the debtor. When B
passes the bar, does A have to give B anything?
ANS: No, A does not have to give B anything. If the thing is lost
without the fault of the debtor, the obligation shall be
extinguished. The reason is that as a general rule, no one should
be liable for a fortuitous event unless otherwise provided by law
or contract.
(2) Fault of the debtor:
Suppose the loss occurred through the
fault of the debtor, is the debtor
liable?
ANS: Yes. If the thing is lost through
the fault of the debtor, he shall be
obliged to pay damages.
Deteriorates:
(3) When the thing deteriorates without the fault of the
debtor:
Suppose pending the fulfillment of the suspensive condition,
the object, say a particular car, deteriorates without the fault
of the debtor, is the debtor bound to make up for the
depreciation, or should the creditor bear the deterioration
suffered?
ART. 1191
The power to rescind obligations is implied in reciprocal
ones, in case one of the obligors should not comply
with what is incumbent upon him.
The injured party may choose between the fulfillment
and the rescission of the obligation, with the payment
of damages in either case. He may also seek rescission,
even after he has chosen fulfillment, if the latter should
become impossible.
The court shall decree the
rescission claimed, unless there be
just cause authorizing the fixing of a
period.
This is understood to be without
prejudice to the rights of third
persons who have acquired the thing,
in accordance with Articles 1385 and
1388 and the Mortgage Law.
Reciprocal Obligations:
- Refers to obligations where two
parties are reciprocally obliged to do
or give something. The cause must
be IDENTICAL and the obligations
should arise simultaneously. (ex.
Contract of Sale)
Right to Rescind:
The power to rescind, as used in this Article,
means the right to cancel (or resolve) the
contract or reciprocal obligations in case of
non-fulfillment on the part of one.
Example:
In a contract of sale, the buyer can rescind if
the seller does not deliver, or the seller can
rescind if the buyer does not pay. (This is all
right for this is a reciprocal obligation.)
Choice by the Injured Party:
The injured party may choose between:
1) fulfillment (specific performance) (plus damages);
2) or rescission (plus damages).
The right is not conjunctive, that is, the plaintiff cannot ask for
BOTH remedies. Thus, if the plaintiff elects fulfillment of a
reciprocal obligation, rescission thereof may not be declared at
the same time.
ART. 1192
In case both parties have committed a breach of
the obligation, the liability of the first infractor
shall be equitably tempered by the courts. If it
cannot be determined which of the parties first
violated the contract, the same shall be deemed
extinguished, and each shall bear his own
damages.
The first one is fair to both parties because
the second infractor also derived or thought he
would derive some advantage by his own act or
neglect.
ART. 1194
In case of loss, deterioration or
improvement of the thing before the
arrival of the day certain, the rules in
Article 1189 shall be observed.
Different Kinds of Obligation :
Obligations with a Period
ART. 1195
Anything paid or delivered before 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.
Different Kinds of Obligation :
Obligations with a Period
ART. 1196
Whenever in an obligation a period is
designated, it is presumed to have been
established for the benefit of both the creditor
and the debtor, unless from the tenor of the
same or other circumstances, it should appear
that the period has been established in favor
of one of the other.
Different Kinds of Obligation :
Obligations with a Period
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 thereof.
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.
Different Kinds of Obligation :
Obligations with a Period
ART. 1198
The debtor shall lose every right to make use of the period:
(1) When after the obligation has been contracted, he becomes insolvent,
unless he give a guaranty or security for the debt;
(2) When he does not furnish to the creditor the guaranties or securities
which he has promised;
(3) When by his own acts he has impaired said guaranties or securities
after their establishment, and when through a fortuitous event they
disappear, unless he immediately gives new ones equally satisfactory:
(4) When the debtor violates any undertaking, in consideration of which
the creditor agreed to the period;
(5) When the debtor attempts to abscond.
Different Kinds of Obligation :
Alternative Obligations
ART. 1199
A person alternatively bound by different
prestations shall completely perform one
of them.
The creditor cannot be compelled to
receive part of one and part of the other
undertaking.
ART. 1200
The right of choice belongs to the
debtor, unless it has been expressly
granted to the creditor.
The debtor shall have no right to
choose those prestations which are
impossible, unlawful or which could not
have been the object of the obligation.
Alternative Obligations
various prestations are due but the
performance of one of them is sufficient
Ex.
D is obliged to give a specific ring, a specific
watch or a specific bracelet to C.
General Rule:
The right of choice belongs to the debtor.
Limitations:
a. Right has been EXPRESSLY given to the creditor
b. He cannot choose prestations which are
impossible, unlawful or which could not have
been the object of the obligation.
Examples:
a. Impossible
S promised to deliver to B 10 sacks of rice, or a Rolex watch,
or soil from Jupiter.
b. Unlawful
S obliged himself to deliver to B a kilo of shabu, or a horse, or
a diamond ring, or to kill C.
c. Could not have been the object of the obligation
D borrowed from C P30,000. It was agreed that D would give C
his horse, or P30,000, or his German piano. Now D has 2
horses, a race horse worth P30,000 and a horse for calesa that
is worth P5,000.
Different Kinds of Obligation :
Alternative Obligations
ART. 1201
The choice shall produce no effect
except from the time it has been
communicated.
Effect of notice
a. No notice of choice alternative
b. Notice of choice given to creditor
simple
Is the concurrence of the creditor to
the choice made by the debtor
required?
No, because as a general rule, the
choice belongs to the debtor.
Different Kinds of Obligation :
Alternative Obligations
ART. 1202
The debtor shall lose the right of choice when
among the prestations whereby he is
alternatively bound, only one is practicable.
Ex.
S will deliver to B his horse, or his carabao, or his
refrigerator. The horse and the carabao were lost
without the fault of S.
Different Kinds of Obligation :
Alternative Obligations
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.
Ex.
D borrowed from C P10,000. It was
agreed that instead of P10,000 D
could deliver item A, item B or item
C.
Through the fault of C, item A was
destroyed. What are the remedies
available for D?
a. Rescission
D must return the amount of P10,000 with
interest. C, in turn, must pay D the value
of item A plus damages.
ART. 1204
The creditor shall have the right to indemnity for damages
when, through the fault of the debtor, all the things which are
alternatively the object of the obligation have been lost, or the
compliance of the obligation has become impossible.
The indemnity shall be fixed taking as a basis the value of the
last thing which disappeared, or that of the service which last
became impossible.
Damages other than the value of the last thing or service may
also be awarded.
Effect of loss of object of obligation (Right of choice
belongs to debtor)
a. If only one or some are lost through a fortuitous
event or through the debtors fault, the debtor
may deliver any of the remainder, or that which
remains. NO LIABILITY
b. If all are lost through a fortuitous event, the
obligation is extinguished.
c. If all are lost through the debtors fault, the
debtor shall pay the value of the last thing that
was lost plus damages.
D is to give C a specific ring, a specific
bracelet or a specific wristwatch.
a. The ring is lost through fortuitous event. What
is the obligation of D?
D may deliver the bracelet or wristwatch. D
have no liability for damages.
b. The ring is lost through the fault of D. What is
the obligation of D?
D may deliver the bracelet or wristwatch. D
have no liability for damages.
c. The ring and the bracelet are lost through fortuitous
event or through the fault or D. What is the obligation of
D?
The obligation of D is converted into a simple obligation
to deliver the wristwatch. D has no liability for damages.
d. All things are lost due to fortuitous event. What is the
obligation of D?
Ds obligation is extinguished.
e. The ring and bracelet are lost due to fortuitous event.
What is the obligation of D?
Ds obligation becomes simple, to deliver the wristwatch.
f. The ring, the bracelet and the wristwatch are
lost one after the other due to Ds fault. What is
the obligation of D?
D shall pay the value of the wristwatch, the
last item that was lost, plus damages.
g. The ring and the bracelet are lost due to Ds
fault. What is the obligation of D?
The obligation of D becomes simple, to
deliver the wristwatch.
Different Kinds of Obligation :
Alternative Obligations
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.
Different Kinds of Obligation :
Alternative Obligations
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 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 for
damages.
The same rule shall be applied to obligations to do or not to do in case one,
some or all of the prestations should become impossible.
D is to give C a specific ring, a specific bracelet
or a specific wristwatch. The parties agreed that C
shall have the right of choice.
a. The ring is lost through fortuitous event. What is
the obligation of D?
To deliver either the bracelet or the wristwatch
at the choice of C.
b. All are lost through fortuitous event. What is the
obligation of D?
Ds obligation is extinguished.
c. The ring and the bracelet are lost through fortuitous
event. What is the obligation of D?
D shall deliver the wristwatch which is the remaining
item. The obligation becomes simple.
d. The ring and the bracelet are lost due to the fault or D.
What is the obligation of D?
C can choose from the payment of the price of the ring or
the bracelet with damages, or the delivery of the
wristwatch.
e. All are lost due to the fault of D. What is the obligation of
D?
C may claim the price of any of them plus damages.
Different Kinds of Obligation :
Alternative Obligations
ART. 1206
When only one prestation has been agreed upon, but
the obligor may render another in substitution, the
obligation is called facultative.
The loss or deterioration of the thing intended as a
substitute, through the negligence of the obligor, does
not render him liable. But once the substitution has
been made, the obligor is liable for the loss of the
substitute on account of his delay, negligence or fraud.
Facultative Obligation
one prestation has been agreed upon but may
be substituted
Ex.
I will give you my piano but I may give my
LCD television set as a substitute.
Rules in case of loss of principal thing and
substitute
Before substitution
a. Principal thing
1. If lost due to fortuitous event, the obligation is
extinguished.
2. If lost due to the debtors fault, debtor shall pay for
damages.
b. Substitute
The loss of the substitute, whether through fortuitous
event or debtors fault imposes no additional obligation
on the debtor because it is not yet due.
Example:
I will give you my only car but I may give my house as a
substitute.
a. The car was lost due to fortuitous event. What is my
obligation?
My obligation is extinguished.
b. The car was lost due to my fault. What is my obligation?
I am liable for damages.
c. The house was lost due to fortuitous event or my fault.
I am not liable since the house is not due.
After substitution
a. Principal thing
The loss of the principal thing whether through
fortuitous event or debtors fault imposes no
additional obligation on the debtor because the thing
due is already the substitute.
b. Substitute
1. If lost through a fortuitous event, the obligation is
extinguished.
2. If lost due to debtors fault, the debtor shall pay
damages.
Example:
I will give you my only car but I may give my house as a
substitute. After the substitution:
a. The car was lost due to fortuitous event or through my
fault. What is my obligation?
I am not liable since my obligation is to give the house.
b. The house was lost due fortuitous event. What is my
obligation?
My obligation is extinguished.
c. The house was lost due to my fault. What is my
obligation?
I am liable for damages.
Difference
Alternative Facultative
Several prestations are due, but Only one prestation, the
performance of one is sufficient to principal obligation, is due.
extinguish the debt. if the principal obligation is
If there are void prestations, the void, the debtor is not required
others may still be valid, hence the to give the substitute.
obligation remains.
The right of choice belongs to
The right of choice is with the debtor,
the debtor only.
unless expressly given to creditor.
If all prestations are impossible If the principal obligation is
except one, that which is possible impossible, the debtor is not
must still be given. required to give the substitute.
Different Kinds of Obligation :
Joint and Solidary
ART. 1207.
The concurrence of two or more creditors or of two or more debtors in one
and the same obligation does not imply that each one of the former has a
right to demand, or that each one of the latter is bound to render, entire
compliance with the prestations. There is a solidary liability only when the
obligation expressly so states, or when the law or the nature of the
obligation requires solidarity. (1137a)
ART. 1208.
If from the law, or the nature or the wording of the obligations to which the
preceding article refers the contrary does not appear, the credit or debt shall
be presumed to be divided into as many equal shares as there are creditors
or debtors, the credits or debts being considered distinct from one another,
subject to the Rules of Court governing the multiplicity of suits. (1138a)
Different Kinds of Obligation :
Joint and Solidary
Individual obligation
Collective obligation
A joint obligation is 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. (Art. 1208.)
A solidary obligation is one where each
one of the debtors is bound to render,
and/or each one of the creditors has a right
to demand entire compliance with the
prestation. (Art. 1207.)
Kinds of solidarity.
ART. 1211.
Solidarity may exist although the creditors and
the debtors may not be bound in the same
manner and by the same periods and conditions.
Kinds of solidary obligation according to the legal tie.
ART. 1223
The divisibility or indivisibility of
the things that are the object of
obligations in which there is only one
debtor and only one creditor does
not alter or modify the provisions of
Chapter 2 of this Title.
Definition
1. Divisible obligation - one whose object, in its
delivery or performance, is capable of partial
fulfillment