SECTION 3 made is upon him who made the choice.

It may,
ALTERNATIVE OBLIGATIONS therefore, be made orally or in writing, expressly
or impliedly.
1199. A person alternatively bound by different
1202. The debtor shall lose the right of choice
prestations shall completely perform one of them.
when among the prestations whereby he is
The creditor cannot be compelled to receive part of
alternatively bound, only one is practicable.
one and part of the other undertaking

1203. If through the creditor’s acts the debtor

KINDS OF OBLIGATION ACCORDING TO OBJECT
cannot make a choice according to the terms of the
1. Simple obligation. — one where there is only obligation, the latter may rescind the contract with
one prestation damages.
2. Compound obligation. — one where there are
two or more prestations WHEN DEBTOR MAY RESCIND CONTRACT
a) Conjunctive obligation. — one where It is the very nature of an alternative obligation that
there are several prestations and all of the debtor can make his choice without the consent
of the creditor. Hence, the right given the debtor to
them are due
rescind the contract and recover damages if,
b) Distributive obligation. — one where one through the creditor’s fault, he cannot make a
of two or more of the prestations is due. choice according to the terms of the obligation. The
i. Alternative Obligation – several debtor, however, is not bound to rescind.
prestations are due but the
performance of one is sufficient 1204. The creditor shall have a right to indemnity
ii. Facultative Obligation – only one for damages when, through the fault of the debtor,
prestation is due but the debtor all the things which are alt alternatively the object
of the obligation have been lost, or the compliance
may substitute another (1206)
of the obligation has become impossible.
The indemnity shall be fixed taking as a basis the
1200. The right of choice belongs to the debtor,
value of the last thing which disappeared, or that of
unless it has been expressly granted to the creditor.
the service which last became impossible. Damages
The debtor shall have no right to choose those other than the value of the last thing or service may
prestations which are impossible, unlawful or which also be awarded.
could not have been the object of the obligation.
EFFECT OF LOSS OR BECOMING IMPOSSIBLE OF
1201. The choice shall produce no effect except OBJECTS OF OBLIGATION.
from the time it has been communicated. 1. Some of the objects. — If some of the objects of
the obligation have been lost or have become
COMMUNICATION OF NOTICE THAT CHOICE HAS impossible even through the fault of the debtor,
BEEN MADE the latter is not liable since he has the right of
choice and the obligation can still be performed.
1. Effect of notice. — Until the choice is made and 2. All of the objects - the creditor shall have a right
communicated, the obligation remains to indemnity for damages since the obligation
alternative can no longer be complied with.
Once the notice of the election has been given Of course, if the cause of the loss is a fortuitous
to the creditor, the obligation ceases to be event, the obligation is extinguished. The phrase
alternative and becomes simple. “or the compliance of the obligation has become
2. Proof and form of notice. — The burden of impossible” refers to obligations “to do.”
proving that such communication has been
 1205. When the choice has been expressly given 2. After substitution. — If the principal thing is lost,
to the creditor, the obligation shall cease to be the debtor is not liable whatever may be the
alternative from the day when the selection has cause of the loss, because it is no longer due. If
been communicated to the debtor. the substitute is lost, the liability of the debtor
Until then the responsibility of the debtor shall depends upon whether or not the loss is due
be governed by the following rules: through his fault.
(1) If one of the things is lost through a fortuitous
event, he shall perform the obligation by
ALTERNATIVE FACULTATIVE
delivering that which the creditor should
choose from among the remainder, or that Number of Prestations
which remains if only one subsists; - several is due but - one prestation is
(2) If the loss of one of the things occurs through compliance w/ one is due although the
the fault of the debtor, the creditor may claim sufficient debtor is allowed to
any of those subsisting, or the price of that substitute it
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 Right of Choice
the debtor, the choice by the creditor shall fall - may be given to the - right to make a
upon the price of any one of them, also with creditor or the 3rd person substitution is given
indemnity for damages. only to the debtor
The same rules shall be applied to obligations to
do or not to do in case one, some or all of the Loss through a FE
prestations should become impossible. - loss of one or more doesn’t - loss of thing due
extinguish the obli extinguishes the
1206. When only one prestation has been obligation
agreed upon, but the obligor may render
another in substitution, the obligation is called
facultative. Loss through Fault of Debtor
The loss or deterioration of the thing intended
as a substitute, through the negligence of the - loss of one of the - loss of thing due
obligor, does not render him liable. But once the alternatives doesn’t render makes him liable
substitution has been made, the obligor is liable him liable
for the loss of the substitute on account of his - choice belongs to the - loss of the sub
delay, negligence or fraud. creditor, loss of one before the sub does
alternative gives rise to not render him liable
FACULTATIVE OBLIGATION liability
Loss by fortuitous event, obligation will be
extinguished.
1. Before substitution. — If the principal thing is
lost through a fortuitous event, the obligation is
extinguished; otherwise, the debtor is liable for
damages. The loss of the thing intended as a
substitute with or without the fault of the debtor
does not render him liable. The reason is that
the thing intended as a substitute is not due. The
effect of the loss is merely to extinguish the
facultative character of the obligation.
 SECTION 4 2. ACTIVE SOLIDARITY or solidarity on the part of
JOINT & SOLIDARY OBLIGATIONS the creditors, where anyone of them can
demand the fulfillment of the entire obligation.
1207. The concurrence of two or more creditors or Its essential feature is that of mutual
of two or more debtors in one and the same representation among the solidary creditors
obligation does not imply that each one of the with powers to exercise the rights of others in
former has a right to demand, or that each one of the same manner as their rights
the latter is bound to render, entire compliance 3. MIXED SOLIDARITY or solidarity on the part of
with the prestations. There is a solidary liability the debtors and creditors, where each one of the
only when the obligation expressly so states, or debtors is liable to render, and each one of the
when the law or the nature of the obligation creditors has a right to demand, entire
requires solidarity. compliance with the obligation.

1208. If from the law, or the nature or the wording According to source
of the obligations to which the preceding article
1. Conventional Solidarity – agreed by parties
refers the contrary does not appear, the credit or
2. Legal Solidarity – imposed by law
debt shall be presumed to be divided into as many
3. Real Solidarity – imposed by nature of
equal shares as there are creditors or debtors, the
obligation
credits or debts being considered distinct from one
another, subject to the Rules of Court governing
1211. Solidarity may exist although the creditors
the multiplicity of suits.
and the debtors may not be bound in the same
KINDS OF OBLIGATION ACCORDING TO THE manner and by the same periods and conditions.
NUMBER OF PARTIES
1. Individual obligation. — one where there is only KINDS OF SOLIDARY OBLIGATION ACCORDING TO
one obligor and one oblige THE LEGAL TIE
2. Collective obligation. — one where there are 1. Uniform. — when the parties are bound by the
two or more debtors and/or two or more same stipulations or clauses
creditors. It may be joint or solidary 2. Non-uniform or varied. — when the parties are
JOINT OBLIGATION is one where the whole not subject to the same stipulations or clauses.
obligation is to be paid or fulfilled
proportionately by the different debtors and/or is to “I” – indicates that the debtors are solidary debtors
be demanded proportionately by the different “We” – Indicates that the debtors are joint debtors
creditors.
1209. If the division is impossible, the right of the
SOLIDARY OBLIGATION is one where each one of
/creditors may be prejudiced only by their collective
the debtors is bound to render, and/or each one of
acts, and the debt can be enforced only by
the creditors has a right to demand entire
proceeding against all the debtors. If one of the
compliance with the prestation.
latter should be insolvent, the others shall not be
liable for his share.
KINDS OF SOLIDARITY
According to the parties bound JOINT INDIVISIBLE OBLIGATION
1. PASSIVE SOLIDARITY or solidarity on the part of (indivisible – not susceptible to partial performance)
the debtors, where anyone of them can be *creditors must all sue the debtors
made liable for the fulfillment of the entire “creditors may be prejudiced only by their collective
obligation. Its characteristics are plurality of acts.
debtors and unity of prestation. It is in the
nature of a mutual guaranty. (Art. 1210 p. 161)
 * CONDONE (condone) – to forgive (abandonment
of obli)

1224. A joint indivisible obligation gives rise to 1215. Novation, compensation, confusion or
indemnity for damages from the time anyone of remission of the debt, made by any of the solidary
the debtors does not comply with his undertaking. creditors or with any of the solidary debtors, shall
The debtors who may have been ready to fulfill extinguish the obligation, without prejudice to the
their promises shall not contribute to the provisions of Article 1219.
indemnity beyond the corresponding portion of the The creditor who may have executed any of these
price of the thing or of the value of the service in acts, as well as he who collects the debt, shall be
which the obligation consists. liable to the others for the share in the obligation
corresponding to them.

*modes of extinguishing obli: Novation,

Compensation, Confusion, Remission

1212. Each one of the solidary creditors may do

whatever may be useful to the others, but not
anything which may be prejudicial to the latter.

Act of solidary creditor useful/prejudicial to

others
1217. Payment made by one of the solidary debtors
extinguishes the obligation. If two or more solidary 1220. The remission of the whole obligation,
debtors offer to pay, the creditor may choose which obtained by one of the solidary debtors, does not
offer to accept. entitle him to reimbursement from his co-debtors.

He who made the payment may claim from his co- No right to reimbursement in case of remission
debtors only the share which corresponds to each,
with the interest forthe payment already made. If
the payment is made before the debt is due, no 1214. The debtor may pay any one of the solidary
interest for the intervening period may be creditors; but if any demand, judicial or
demanded. extrajudicial, has been made by one of them,
When one of the solidary debtors cannot, because payment should be made to him.
of his insolvency, reimburse his share to the debtor
paying the obligation, such share shall be borne by Payment to any of the solidary creditors
all his co-debtors, in proportion to the debt of each.
 SECTION 5
1216. The creditor may proceed against any one of DIVISIBLE & INDIVISIBLE OBLIGATIONS
the solidary debtors or some or all of them
simultaneously. The demand made against one of 1223. The divisibility or indivisibility of the things
them shall not be an obstacle to those which may that are the object of obligations in which there is
subsequently be directed against the others, so long only one debtor and only one creditor does not alter
as the debt has not been fully collected. or modify the provisions of Chapter 2 of this Title.

Right of creditor to proceed against any solidary DIVISIBLE OBLIGATION is one the object of which, in
debtor its delivery or performance, is capable of partial
fulfillment.
INDIVISIBLE OBLIGATION is one the object of which,
in its delivery or performance, is not capable of
Undiscussed: partial fulfillment.
Art. 1210 (Indivisibility & Solidarity Distinguished)
p. 161 The purpose of the obligation or the intention of the
parties is the determination whether an obligation
Art. 1213 (Assignment by solidary creditor of his is divisible or not. Hence, even though the object or
rights) p. 165 service may be physically divisible, an obligation is
indivisible if so provided by law or intended by the
Art. 1218 (Effect of payment after obligation has parties.
prescribed or become legal) p. 170 However, if the object is not physically divisible or
the service is not susceptible of partial performance
Art. 1219 (Effect of remission of share after (Art. 1225, par. 1.), the obligation is always
payment) p. 172 indivisible, the intention of the parties to the
contrary notwithstanding.
Art. 1221 (Rules in case thing has been lost or This rule is absolute.
prestation has become impossible) p. 174 An obligation is presumed indivisible where there is
only one creditor and only one debtor.
Art. 1222 (Defenses available to a solidary debtor)
p. 176 KINDS OF DIVISION
1. Qualitative division or one based on quality, not
on number or quantity of the things that are the
object of the obligation.
2. Quantitative division or one based on quantity
rather than on quality.

KINDS OF INDIVISIBILITY
1. Legal indivisibility. — where a specifi c provision
of law declares as indivisible, obligations which,
by their nature, are divisible
2. Conventional indivisibility. — where the will of
the parties makes as indivisible, obligations
which, by their nature, are divisible
3. Natural indivisibility. — where the nature of the
object or prestation does not admit of division,
e.g., to give a particular car, to sing a song, etc.
1224. A joint indivisible obligation gives rise to SECTION 6
indemnity for damages from the time anyone of the OBLIGATIONS W/ A PENAL CLAUSE
debtors does not comply with his undertaking. The
debtors who may have been ready to fulfill their 1226. In obligations with a penal clause, the
promises shall not contribute to the indemnity penalty shall substitute the indemnity for damages
beyond the corresponding portion of the price of and the payment of interests in case of
the thing or of the value of the service in which the noncompliance, if there is no stipulation to the
obligation consists. contrary. Nevertheless, damages shall be paid if the
obligor refuses to pay the penalty or is guilty of
1225. For the purposes of the preceding articles, fraud in the fulfillment of the obligation.
obligations to give definite things and those which The penalty may be enforced only when it is
are not susceptible of partial performance shall be demandable in accordance with the provisions of
deemed to be indivisible. this Code.
When the obligation has for its object the execution
of a certain number of days of work, the PRINCIPAL OBLIGATION is one which can stand by
accomplishment of work by metrical units, or itself and does not depend for its validity and
analogous things which by their nature are existence upon another obligation.
susceptible of partial performance, it shall be
ACCESSORY OBLIGATION is one which is attached to
divisible.
a principal obligation and, therefore, cannot stand
However, even though the object or service may be alone.
physically divisible, an obligation is indivisible if so
provided by law or intended by the parties.
An obligation with a penal clause is one which
In obligations not to do, divisibility or indivisibility contains an accessory undertaking to pay a
shall be determined by the character of the previously stipulated indemnity in case of breach of
prestation in each particular case. the principal prestation intended primarily to induce
its fulfillment.
OBLIGATIONS DEEMED INDIVISIBLE
1. Obligations to give definite things (par. 1.) A PENAL CLAUSE is an accessory undertaking
2. Obligations which are not susceptible of partial attached to an obligation to assume greater liability
performance on the part of the obligor in case of breach of the
3. Obligations provided by law to be indivisible obligation, i.e., the obligation is not fulfi lled, or is
even if thing or service is physically divisible partly or irregularly complied with.
(par. 3.)
4. Obligations intended by the parties to be PURPOSES OF PENAL CLAUSE
indivisible even if thing or service is physically • {REPARATION}
divisible (par. 3.) to insure their performance by creating an
effective deterrent against breach, making the
OBLIGATIONS DEEMED DIVISIBLE consequences of such breach as onerous as it
1. Obligations which have for their object the may be possible.
execution of a certain number of days of work
(par. 1.) • {PUNISHMENT}
2. Obligations which have for their object the to substitute a penalty for the indemnity for
accomplishment of work by metrical units damages and the payment of interests in case of
3. Obligations which by their nature are non-compliance or to punish the debtor for the
susceptible of partial performance non-fulfillment or violation of his obligation.
 KINDS OF PENAL CLAUSE
As to its origin
a. Legal penal clause. — when it is provided for
by law
b. Conventional penal clause. — when it is
provided for by stipulation of the parties

purpose
a. Compensatory penal clause. — when the
penalty takes the place of damages
b. Punitive penal clause. — when the penalty
is imposed merely as punishment for breach.

dependability or effect
a. Subsidiary or alternative penal clause. —
when only the penalty can be enforced
b. Joint or cumulative penal clause. — when
both the principal obligation and the penal
clause can be enforced.

As a general rule, in an obligation with a penal

clause, the penalty takes the place of the indemnity
for damages and the payment of interests in case of
non-compliance (1226). Proof of actual damages
suffered by the creditor is not necessary in order
that the penalty may be enforced.

WHEN CREDITOR MAY RECOVER DAMAGES

1. When so stipulated by the parties
2. When the obligor refuses to pay the penalty,
in which case the creditor may recover legal
interest thereon
3. When the obligor Is guilty of fraud in the
fulfillment of the obligation (1226), in which
case the creditor may recover damages
caused by such fraud

Undiscussed:
Art. 1227 (Penalty not substitute for performance)
p. 194
Art. 1228 (Penalty demandable without proof of
actual damages) p. 196
Art. 1229 (When penalty may be reduced by the
courts) p. 197
Art. 1230 (Effect of nullity of the penal clause)