CHAPTER 3 ◦ Conditions fulfilled produces the extinguishment or loss of

2 Principal Kinds Of Condition rights already acquired 

DIFFERENT KINDS OF OBLIGATIONS ◦ Suspensive condition – its fulfillment gives rise to ◦ Resolutory Condition
the obligation, if not fulfilled, no obligation will
Classifications of obligations.  arise.  ARTICLE 1182 
◦ Resolutory condition – extinguishes the obligation
(1) Primary  When the fulfillment of the condition depends upon
which is already existing. 
A. Pure and conditional obligations. the sole will of the debtor, the conditional obligation shall
B. Obligations with a period.  ARTICLE 1180  be void. If it depends upon chance or upon the will of a
C. Alternative and Facultative obligations.  third person, the obligation shall take effect in conformity
D. Joint and solidary obligations.  When the debtor binds himself to pay with the provisions of this Code.
E. Obligations with penal clauses.  when his means permit him to do so, the obligation
shall be deemed to be one with a period, subject to  Potestative Condition 
(2) Secondary  the provisions of Article 1197. ◦ Depends upon the sole will of the contracting parties 
A. Unilateral and bilateral obligations  Where SUSPENSIVE CONDITION depends upon will of
B. Real and personal obligations  When duration of period depends upon the will debtor 
C. Determinate and generic obligations  of debtor  1. Conditional obligation is VOID – because its validity and
D. Civil and natural obligations  compliance is left to the debtor
E. Legal, conventional, and penal obligations  Other Cases:  2. Only the condition is VOID – if the obligation is pre –
existing
SECTION 1 - PURE AND CONDITIONAL “Little by little” 
OBLIGATIONS  “As soon as possible”  WHERE SUSPENSIVE CONDITION DEPENDS
ARTICLES 1179 - 1192 “From time to time”  UPON WILL OF CREDITOR 
“At any time I have the money”  Obligation is VALID, if the condition depends exclusively
ARTICLE 1179 “In partial payment”  upon the will of the creditor. 
“When I am in a position to pay” 
Every obligation whose performance does not Where RESOLUTORY CONDITION depends upon
depend upon a future or uncertain event, or upon a past ARTICLE 1181  will of debtor 
event unknown to the parties, is demandable at once. Obligation is VALID, if the position of the debtor when it
Every obligation which contains a resolutory In conditional obligations, the acquisition comes to resolutory is the same as the creditor when it
condition shall also be demandable, without prejudice to the of rights, as well as the extinguishent or loss of comes to suspensive condition.
effects of the happening of the event.  those already acquired, shall depend upon the
happening of the event which constitutes the Casual Condition - Depends upon chance or will of a third
A pure obligation is one which is not subject to any condition.  person. Suspensive Condition – VALID 
condition and no specific date is mentioned for its
fulfillment and is, therefore, immediately demandable. Acquisition of rights  Mixed Condition 
◦ Depends upon the happening which constitutes • Suspensive condition – depends partly upon chances or
A conditional obligation is one whose consequences are the condition  partly upon the will of third person= Valid 
subject in one way or another to the fulfillment of a ◦ Its efficacy or obligatory force is subordinate to • Obligation still depends upon that part of the condition
condition. the happening of a future and uncertain event ◦ whose fulfillment depends upon
Suspensive 
Condition is a future and uncertain event, upon the ARTICLE 1183 
happening of which, the effectivity or extinguishent of an Condition Loss of rights already acquired 
obligation (or rights) subject to it depends. 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 ARTICLE 1185  3. He acts VOLUNTARILY *as long as the acts of the
obligation is divisible, that part thereof which is not affected obligor is not malice or fraud. 
by the impossible or unlawful condition shall be valid  The condition that some event will not
happen at a determinate time shall render the EXAMPLE: X agreed to give Y commission if he sells X’s
Two kinds of Impossible Conditions  obligation effective from the moment the time land based on its terms as Y found a buyer who sold the
1. Physically impossible conditions – Nature of things: indicated has elapsed, or if it has become evident land to a buyer on a much lower price without the aid of Y.
cannot exist / cannot be done  that the event cannot occur. If no time has been - Condition of commission payment was prevented by X 
2. Legally impossible conditions – contrary to law, morals, fixed, the condition shall be deemed fulfilled at
good customs, public order or public policy.  such time as may have probably been Constructive Fulfillment of Resolutory Condition 
contemplated, bearing in mind the nature of the - Debtor is bound to return what he has received upon the
Effect of Impossible Condition.  obligation.  fulfillment of the condition
A. Conditional obligation is VOID – impossible conditions
annul the obligation which depends upon them and the Negative Condition  ARTICLE 1187 
reason behind why it is void is that the obligor knows his ◦ Event will not happen at a determinate time 
obligation cannot be fulfilled  ◦ Obligation shall become effective and binding:  The effects of a conditional obligation to give, once
B. Conditional obligation is VALID – if the condition is an 1. Time indicated has elapsed w/o the event taking the condition has been fulfilled, shall retroact to the day of
act of not to do, it is disregarded, and the obligation is place  the constitution of the obligation. Nevertheless, when the
rendered pure and valid.  2. Become evident that event cannot occur although obligation imposes reciprocal prestations upon the parties,
time has not yet elapsed  the fruits and interests during the pendency of the condition
C. Only the affected obligation is VOID Not affected by 3. No time fixed – considered to arrive at the shall be deemed to have been mutually compensated. If the
impossible condition = VALID  intention of the parties obligation is unilateral, the debtor shall appropriate the
D. Only the condition is VOID – if the obligation is pre- fruits and interests received, unless from the nature and
existing and do not depend on impossible condition EXAMPLE: - X obliges to give B 10k if B is not circumstances of the obligation it should be inferred that the
yet married to C on December 30  intention of the person constituting the same was different. 
ARTICLE 1184  i. X is not liable if B marries C on or prior In obligations to do and not to do, the courts shall
December 30  determine, in each case, the retroactive effect of the
The condition that some event happen at a ii. X is liable if B marries C after December 30  condition that has been complied with. 
determinate time shall extinguish the obligation as soon as iii. X is liable if C dies on or prior December 30
the time expires or if it has become indubitable that the since the obligation becomes effective and is Retroactive effect of fulfillment of suspensive condition. 
event will not take place.  evident to be effective automatically  i. To Give – demandable only upon the fulfillment of the
condition 
Positive Condition  ARTICLE 1186  - Condition is fulfilled – effect shall retroact to the day
◦ The happening of an event at a determinate time  when obligation was constituted 
◦ Obligation is extinguished:  The condition shall be deemed fulfilled ii. To do / Not to do – no fixed rule provided 
1. As time expires without the event taking place  when the obligor voluntarily prevents its - Retroactivity is still applicable 
2. If it becomes indubitable although time has not yet fulfilment.  iii. Courts are empowered by the use of sound discretion
expired  and bearing in mind the intent of the parties and to
Constructive Fulfillment of Suspensive determine the retroactive effect of the suspensive condition
EXAMPLE: - X obliges to give B 10k if B marries C before Condition  that has been complied with.
he reaches 23 yrs. Old  3 Requisites – the actual prevention of debtor and
i. X is liable if B marries C before 23.  not another cause  Retroactive effect as to fruits and interest 
ii. Not liable if B marries C on or after 23.  1. Condition is SUSPENSIVE  i. Reciprocal Obligation 
iii. Not liable if B dies or if no marriage took place 2.Obligor actually PREVENTS THE ◦ No retroactivity – because it is mutually compensated 
FULFILLMENT of the condition 
◦ Once the condition is not yet fulfilled – no right on fruits (2) If the thing is lost through the fault of 2) Loss through debtor’s fault - Debtor is entitled to pay
and interests  the debtor, he shall be obliged to pay damages; it is damages 
ii. Unilateral Obligation  understood that the thing is lost when it perishes, or 3) Deterioration w/o debtor’s fault – value is reduced or
◦ No retroactive effect because they are gratuitous  goes out of commerce, or disappears in such a way impaired Creditor will suffer deterioration or impairment
- Example: Donation – debtor must deliver the thing and has that its existence is unknown or it cannot be 4) Deterioration through debtor’s fault 
the right to keep the fruits and interest as long as the period recovered;  - Rescission with damages – Value of the thing + Incidental
of which is during the pendency and unless a contrary (3) When the thing deteriorates without the fee 
intention by the debtor may be inferred.  fault of the debtor, the impairment is to be borne by - Fulfillment with damages – thing / obligation +
the creditor; impairment amount +incidental damages 
ARTICLE 1188  (4) If the deteriorates through the fault of 5) Improvement by nature or time 
the debtor, the creditor may choose between the - Benefits the creditor in as much as the creditor would
The creditor may, before the fulfillment of the rescission of the obligation and its fulfillment; with suffer deterioration through fortuitous event. 
condition, bring the appropriate actions forth the indemnity for damages in either case;  - Compensated in case of impairment 
preservation of his right.  (5) If the thing is improved by its nature, 6) Improvement at the expense of debtor 
The debtor may recover what during the same time or by time, the improvement shall inure to the - Has the right granted to usufructuary with respect to
he has paid by mistake in case of suspensive condition.  benefit of the creditor;  improvements. 
(6) If it is improved at the expense of the - Usufruct – right to enjoy the use and fruits of the thing. 
Rights pending fulfillment of suspensive condition 
debtor, he shall have no other right than that
I. Right of Creditor  ARTICLE 1190 
granted to the usufructuary. 
- May take or bring appropriate action for the preservation
his right  Improvement, Loss or Deterioration of the When the conditions have for their purpose the
- Paragraph 1: analogy to obligations subject to resolutory Thing  extinguishment of an obligation to give, the parties, upon
condition where both parties must return what both have Requisites:  the fulfillment of said conditions, shall return to each other
received. 1) Real obligation – obligation to give  what they received.
2) Specific or determinate thing  In case of loss, deterioration or improvement of the
II. Right of Debtor  3) Subject to Suspensive condition  thing, the provisions which, with respect to the debtor, are
◦ Solutio Indebiti – to recover what he has paid by mistake  4) Condition is fulfilled  laid down in the preceding article shall be applied to the
◦ Based on the Principle: “no one shall enrich himself at the 5) Loss, deterioration, or improvement of thing party who is bound to return. 
expense of others”  during pendency of condition  As for obligation to do and not to do, the provisions
◦ Note: payment before fulfillment of condition must be “by of the second paragraph of article1187 shall be observed as
mistake”, the debtor is deemed to have impliedly waived the Kinds of Loss  regards the effect of the extinguishment of the obligation.
condition = no recovery  1) Physical loss – thing perishes 
2) Legal loss – goes out of commerce / legal ARTICLE 1191: Reciprocal Obligation & Juridical
becomes illegal  Rescission 
ARTICLE 1189  3) Civil loss – disappears in a way that its existence
is unknown  The power to rescind obligations is implied in
When the conditions have been imposed with the reciprocal ones, in case one of the obligors should not
intention of suspending the efficacy of an obligation to give, Rules in case of loss, deterioration, or comply with what is incumbent upon him. 
the following rules shall be observed in case of the improvement of thing during pendency of The injured party may choose between the
improvement, loss, or deterioration of the thing during the suspensive condition:  fulfillment and the rescission of the obligation, with the
pendency of the condition.  1) Loss w/o debtor’s fault (fortuitous event)  payment of damages in either case. He may also seek
(1) If the thing is lost without the fault of the - General Rule: obligation is extinguished, and rescission, even after he has chosen fulfillment, if the latter
debtor, the obligation shall be extinguished;  debtor is not liable  should become impossible 
 The court shall decree the rescission claimed,  Exception: guilty party is willing to comply - If there is a just cause reason and where the default
unless there be just cause authorizing the fixing of a period.  with his obligation.  incurred was not willful or could be excused in view of
This is understood to be without prejudice to the circumstances.
rights of third persons who have acquired the thing, in Remedies are alternatives 
accordance with articles 1385 and 1388 and the Mortgage
Law.   Only one remedy can be chosen and not both  SECTION 2 - OBLIGATIONS WITH A PERIOD 
Art 1191 governs where there is non – compliance  If fulfillment is chosen, he may also seek ARTICLES 1193 – 1198 
by one of the parties in case of reciprocal obligation  rescission if the latter should become
impossible  ARTICLE 1193. 
Kinds of Obligation according to person obliged:   But if rescission is chosen, he cannot demand Obligations for whose fulfillment a day certain has
fulfilment been fixed, shall be demandable only when that day comes. 
1. Unilateral – only one party is obliged to comply with the
presumption.  Obligations with a resolutory period take effect at
b) Contract still executory - Art 1169, last once, but terminate upon arrival of the day certain. 
2. Bilateral – mutually bound to each other and may be paragraph – delay 
reciprocal or non – reciprocal  A day certain is understood to be that which must
 It is not necessary that there be a stipulation necessarily come, although it may not be known when. 
- Reciprocal Obligation – arise from the same cause and in where automatic rescission is allowed
which each party is debtor and creditor of each other.  If the uncertainty consists in whether the day will
 Extrajudicial rescission = final decision of the come or not, the obligation is conditional and it shall be
*Fulfillment = as of suspensive condition  court can finally settle whether the rescission
*Non – Fulfillment = tacit or implied resolutory condition / regulated by the rules of the preceding Section. 
was proper or not. 
giving a right to demand rescission
*Example: Contract of Sale WHAT IS A PERIOD? 
ARTICLE 1192 
Non – Reciprocal Obligation – do not impose / do not - Length of time which determines the effectivity or
depend simultaneous and correlative performance on both In case both parties have committed a extinguishment of an obligation. 
parties  breach of the obligation, the liability of the first
PERIOD VS. CONDITION 
*Obligations are not related to the other party’s obligation  infractor shall be equitably tempered by the courts.
- Former: Future and Certain event 
Example: Contract of loan or contract of commodatum.  If it cannot be determined which of the parties first
- Later: Future and Uncertain event 
violated the contract, the same shall be deemed
Remedies in reciprocal obligation  extinguished, and each shall bear his own KINDS OF PERIOD  
1. Choice of remedies  damages.  According to source  
-Specific performance or fulfillment with damages  Legal 
-Action for rescission with damages  Where both parties are guilty of breach 
Voluntarily  
2. Remedy of rescission for non – compliance = Breach  7) First infractor known
Judicial  
- Principal action must be distinguished from subsidiary Liability of the 1st should be equitably reduced 
According to definiteness  
action by reason of lesion or damage under article 1381 and 8) First infractor cannot be determined 
Definite 
from cancellation of a contract based  Deemed extinguished and each shall bear own
Example: I will give you a car on February 14, 2022.  
- When a party demands rescission = treats the non – damages 
Indefinite 
fulfillment by the other party's obligation as a resolutory Example: I will give you a house when Juan dies.
condition.  Limitations on right to demand rescission 
1) Resort to the courts – judicial rescission  According to effect 
Court may grant guilty party term for performance  - “no person can take justice or the law in his own Ex-die (Suspensive period) 
hands and decide by himself what are his rights in Example: I will give you a car on February 14, 2022. 
 The court shall order the rescission claimed unless the matter.  In-diem (Resolutory period) 
there should be “just cause” for granting the party in 2) Power of court to fix period  Example: I will provide your foods for a whole year until
default.  December 31, 2021 
 - May validly pay at any time before the period (4) When the debtor violates any undertaking, in
REQUISITES OF A PERIOD  expires.  consideration of which the creditor agreed to the period; 
It must refer to the future. Example: Alyssa (C) oblige herself to pay Danica (5) When the debtor attempts to abscond. (1129a) 
It must be certain.  (D) ”within 5 years.”
It must be possible.  (1) When the debtor becomes insolvent 
ARTICLE 1197  Example: D owes C P10,000 due and payable in December.
ARTICLE 1194  If D becomes insolvent, say September 10, C can demand
If the obligation does not fix a period, but immediate payment from D even before maturity unless
In case of loss, deterioration or improvement of the from its nature and the circumstances it can be gives sufficient guarantee or security. 
thing before the arrival of the day certain, the rules in inferred that a period was intended, the courts may (2) When the debtor does no furnish guaranties or
Article 1189 shall be observed. (n) fix the duration thereof.  securities promised. 
The courts shall also fix the duration of the Example: D promised to mortgage his house to secure the
ARTICLE 1195  period when it depends upon the will of the debtor.  debt. If he fails to furnish said security as promised, he shall
In every case, the courts shall determine lose his right to the period.
Anything paid or delivered before the arrival of the such period as may under the circumstances have (3) When guaranties or securities given have been impaired
period, the obligor being unaware of the period or believing been probably contemplated by the parties. Once or have disappeared. 
that the obligation has become due and demandable, may be fixed by the courts, the period cannot be changed Example: If the debt is secured by a mortgage on the house
recovered, with the fruits and interests. (1126a) by them. (1128a) of D, but the house was burned through his fault, the
Example: D owes C P10,00 which was supposed to be paid obligation also becomes demandable unless D gives new
WHEN CAN THE COURT FIXED THE security equally satisfactory. 
on December 31 this year. by mistake, paid his obligation PERIOD?
on December 31 last year.  (4) When debtor violates an undertaking. 
It is presumed that the debtor does not know that his Example: Now, suppose that C agreed to the period in
WHEN COURT MAY NOT FIX THE
obligation is not yet due or demandable. consideration of the promise of D to repair the piano of C.
PERIOD? 
The violation of this undertaking by D gives C the right to
1. When no term was intended. 
ARTICLE 1196  demand immediate payment of the loan.
2. Payable on demand. 
(5) When debtor abscond. 
3. When period is specified.
Whenever in an obligation a period is designated, it Example: Before the due date of the obligation, D changed
is presumed to have been established for the benefit of both ARTICLE 1198  his address without informing C and with the intention of
the creditor and the debtor, unless from the tenor of the escaping from his obligation. This act of D is a sign of a bad
same or other circumstances it should appear that the period The debtor shall lose every right to make faith which results in the loss of his right to the benefit of
has been established in favor of one or of the other. (1127)  use of the period:  the period stipulated.
Example: Angelyn issues a promissory note to Mark (1) When after the obligation has been contracted,
demandable on February 20.  he becomes insolvent, unless he gives a guaranty or
- Angelyn cannot insist on prepayment and Mark cannot security for the debt;  SECTION 3 - ALTERNATIVE OBLIGATIONS 
insist that he be paid.  (2) When he does not furnish to the creditor the ARTICLES 1199 – 1206
guaranties or securities which he has promised; 
If the period is for the benefit of the CREDITOR ONLY  ARTICLE 1199 
(3) When by his own acts he has impaired said
- Creditor can demand performance of an obligation guaranties or securities after their establishment,
anytime  A person alternatively bound by different
and when through a fortuitous event they disappear, prestations shall completely perform one of them. 
- Debtor cannot insist on prepayment.  unless he immediately gives new ones equally The creditor cannot be compelled to receive part of
satisfactory;  one and part of the other undertaking. (1131) 
If the period is for the benefit of the DEBTOR ONLY 
- Debtor can oppose a premature demand for payment. 
KINDS OF OBLIGATION ACCORDING TO The choice shall produce no effect except from the the obligation have been lost, or the compliance of the
OBJECT  time it has been communicated. (1133)  obligation has become impossible. 
(1) Simple obligation. – only one prestation.  (1) Effect of Notice  The indemnity shall be fixed taking as a basis the
Example: Rio promise to repair the car of Rain.  - Converts alternative obligation to simple value of the last thing which disappeared, or that of the
(2) Compound obligation – Two or more prestations.  obligation.  service which last became impossible. 
Conjunctive obligation – All of the prestations are due.  (2) Proof and form of notice.  Damages other than the value of the last thing or
Distributive obligation – Two or more obligation but only - No particular form required.  service may also be awarded. 
one is due; either Alternative or facultative.  - Choice properly made and communicated is
irrevocable.  EFFECT IF ONE OR MORE OR ALL OF THE
ALTERNATIVE OBLIGATION  THINGS THE DEBTOR PROMISED TO DELIVER
Is one wherein various prestations are due but the ARTICLE 1202  GOT LOST.
performance of one of them is sufficient. 
The debtor shall lose the right of choice (1) Some of the objects – Debtor not liable; he has the right
Example: Carlo promise Trixia to deliver his car, or his when among the prestations whereby he is of choice and the obligation can still be performed. 
ring, or his house on March 1.  alternatively bound, only one is practicable. (1134) (2) All of the objects – Creditor will have the right to
Q: In the example, may Carlo compel Trixia to accept half indemnity for damages. If loss is because of a fortuitous
of the house? Half of the Car? HE CANNOT.  WHEN THE DEBTOR LOSE THE RIGHT OF event, the obligation is extinguished. 
CHOICE? 
ARTICLE 1200  BASIS OF INDEMNITY 
WHAT IS THE EFFECT WHEN ONLY ONE The indemnity shall be fixed taking as basis the value of the
The right of choice belongs to the debtor, unless it PRESTATION IS PRACTICABLE.  last thing which disappeared or that of the service which last
has been expressly granted to the creditor.  - The obligation is converted into a simple became impossible. 
The debtor shall have no right to choose those obligation. 
prestations which are impossible, unlawful or which could ARTICLE 1205 
not have been the object of the obligation. (1132) Example: Kathrina promise Noella to deliver her
Car, or her house, or 1 Kilo Shabu, or Star in the When the choice has been expressly given to the
WHO HAS THE RIGHT OF CHOICE?  sky.  creditor, the obligation shall cease to be alternative from the
General rule it belongs to the debtor, UNLESS expressly Only one is left, and can deliver only what is left. day when the selection has been communicated to the
granted to the Creditor.  In that case the debtor lose the right of choice.  debtor. 
Until then the responsibility of the debtor shall be
Example: Carlo (D) promise Trixia to deliver his car, or his ARTICLE 1203  governed by the following rules: 
ring, or his house on March 1.  (1) If one of the things is lost through a fortuitous
- No indicated right of choice, however, Trixia demands If through the creditor’s acts the debtor event, he shall perform the obligation by delivering that
Carlo to deliver the Car. Is Carlo bound by the choice of cannot make a choice according to the terms of the which the creditor should choose from among the
Trixia? OF COURSE NOT. As Carlo has the right of obligation, the latter may rescind the contract with remainder, or that which remains if only one subsists; 
choice.  damages.  (2) If the loss of one of the things occurs through
Example: Mary promise to teach Eira, OBLICON the fault of the debtor, the creditor may claim any of those
The law also provide the limitations as to the debtor’s right for the year 2021 or to buy her a car or a house. subsisting, or the price of that which, through the fault of
of choice. (1) Impossible (2) Unlawful (3) Could not have the former, has disappeared, with a right to damages;
been the object.  ARTICLE 1204 
(3) If all the things are lost through the fault of the
Example: Angelo promise Ericka to deliver his Car, or his debtor, the choice by the creditor shall fall upon the price of
The creditor shall have a right to indemnity
house, or 1 Kilo Shabu, or Star in the sky.  any one of them, also with indemnity for damages. The
for damages when, through the fault of the debtor,
all the things which are alternatively the object of same rules shall be applied to obligations to do or not to do
ARTICLE 1201 
in case one, some or all of the prestations should become
be given. given.
impossible. (1136a) 

WHEN RIGHT OF CHOICE BELONGS TO

CREDITOR.  SECTION 4 – JOINT AND SOLIDARY
Alternative Facultative
- The debtor may expressly give the right of choice to the OBLIGATIONS 
creditor.  Number of Various things Only one thing is ARTICLES 1207 - 1222
(1) When a thing is lost though fortuitous event.  prestations  are due but principally due,
- Choose among from the remainder.  ARTICLE 1207 
giving of one but the other may
(2) When a thing is lost through debtors fault.  is sufficient. be given to
- Choose among from the remainder with a right to damages The concurrence of two or more creditors or of two
render payment or more debtors in one and the same obligation does not
or the price of the lost object with a right to damages.  or to fulfill
(3) When all the things are lost through debtors fault. imply that each one of the former has a right to demand, or
obligation. that each one of the latter is bound to render, entire
 - Demand payment of the price of any of the objects with a
right to indemnity for damages.  compliance with the prestation. There is a solidary liability
Right of Either debtor Only to the only when the law or the nature of the obligation requires
(4) When all the things are lost through fortuitous event.  choice or creditor. debtor
- Article 1174 shall apply. The obligation is extinguished.  solidarity. 
Loss through The loss of one The loss of the Kinds of Obligations according to the number of parties.
ARTICLE 1206  fortuitous or more of the thing due They are: 
event alternatives extinguishes the 1. Individual obligation - one where there is only one (1)
When only one prestation has been agreed upon,
does not obligation.  obligor or one (1) obligee; and 
but the obligor may render another in substitution, the
extinguish the 2. Collective obligation - one where there are two (2) or
obligation is called facultative. 
obligation. more debtors and/ or two (2) or more creditors. It may be
The loss or deterioration of the thing intended as a
substitute, through the negligence of the obligor, does not joint or solidary. 
Loss through If the right of Render him
render him liable. But once the substitution has been made,
fault of choice belongs liable. What is the meaning of joint and solidary obligation? 
the obligor is liable for the loss of the substitute on account
debtor to the debtor, 1. Joint obligation or one where the whole obligation is to
of his delay, negligence or fraud. (n)
does not render be paid or fulfilled proportionately by the different debtors
Facultative obligation – One prestation has been agreed him liable. and/or is to be demanded proportionately by the different
upon but the obligor may render another in substitution.  creditors. 
If one of the The other The nullity of the 2. Solidary obligation or one where each one of the debtors
Example: Honeylet promise to give Lorianne a car, but it
prestations is prestations prestation agreed is bound to render, and/or each one of the creditors has a
was also stipulated that Honeylet could give her house as a
illegal may be valid upon invalidates right to demand from any of the debtors, entire compliance
substitute. 
and the the obligation/ with the prestation.
Effect of loss  obligations the debtor is not
(1) Before substitution – The loss or deterioration of the remain. bound to choose ARTICLE 1208
thing intended as a substitute, through the negligence of the substitute. 
obligor, does not render him liable.  If from the law, or the nature or the wording of the
(2) After substitution - the obligor is liable for the loss of If it is If it is If impossible to obligations to which the preceding article refers, the
the substitute on account of his delay, negligence or fraud. impossible to impossible to give the contrary does not appear, the credit or debt shall be
(n) give. give all except principal, the presumed to be divided into as many equal shares as there
one, the last substitute does are creditors or debtors, the credits or debts being
one must still not have to be
considered distinct from one another, subject to the rules of If the division is impossible, the right of - A solidary creditor may do any act beneficial or useful to
court governing the multiplicity of suits.  the creditors may be prejudiced only by their the others but he cannot perform any act prejudicial to
collective acts, and the debt can be enforced only them. 
Collective obligation presumed to be joint.  by proceeding against all the debtors. If one of the Example: A owes B and C, solidary creditors, the sum of
1.) If A is liable to B for P9,000, there can be no problem latter should be insolvent, the others shall not be P10,000. B may make a demand for the payment of the
regarding the determination of the following:  liable for his share. obligation for this will benefit C. 
(a) The person liable to pay; 
(b) The person entitled to demand payment;  Joint indivisible obligation. ARTICLE 1213 
(c) The extent of the liability of the debtor; and  - It is indivisible because the object or subject
(d) The extent of the right of the creditor.  matter is not physically divisible into different A solidary creditor cannot assign his right without
2.) Where there is a plurality of parties (two [2] or debtors parts. the consent of the others.
and/or two [2] or more creditors) and the share of each in Example: A, B, and C are jointly liable to give D a
the obligation is specified, the correlative rights and car valued at P240,000. On the date of delivery, A ARTICLE 1214 
obligations of the parties are known, and B are willing to deliver but C is not.
The debtor may pay any one of the solidary
Example: A, B, and C are liable to D in the amount of
ARTICLE 1210  creditors: but if any demand, judicial or extrajudicial, has
P9,000, and it is stated that the corresponding share of each
been made by one of them, payment should be made to
debtor is P3,000 (it may be unequal amount) 
The indivisibility of an obligation does not him. 
3.) On the other hand, let us suppose that in the same
obligation, the share of each debtor (or the share of each necessarily give rise to solidarity. Nor does
solidarity of itself imply indivisibility.  ARTICLE 1215 
creditor, if there are two or more creditors) is not specified. 
ARTICLE 1211  Novation, compensation, confusion or remission of
When obligation is solidary.  the debt made by any of the solidary creditors or with any of
There is solidary liability only when:  the solidary debtors, shall extinguish the obligation, without
Solidarity may exist although the creditors
(1) The obligation expressly so states: or  prejudice to the provisions of article. 
and the debtors may not be bound in the same
(2) The law requires solidarity; or The creditor who may have executed any of these
manner and by the same periods and conditions. 
(3) The nature of the obligation requires solidarity. acts, as well as he who collects the debt, shall be liable to
Kinds of solidary obligation according to the the others for the share in the obligation corresponding to
Kinds or solidarity
legal tie. They are:  them. 
1. According to the parties bound:
1. Uniform – when the parties are bound by the
(a) Passive solidarity – solidarity on the part of the debtors. ARTICLE 1216 
same stipulations: 
(b) Active solidarity – solidarity on the part of the creditors.
2. Non-uniform or varied – when the parties are not
(c) Mixed solidarity – solidarity on the part of the debtors The creditor may proceed against any one of the
subject to the same stipulations. 
and creditors. solidary debtors or some or all of them simultaneously. The
2. According to source: demand made against one of them shall not be an obstacle
ARTICLE 1212 
(a) Conventional solidarity – where solidarity is agreed to those which may subsequently be directed against the
upon by the parties. If nothing is mentioned in the contract Each one of the solidary creditors may do others, so long as the debt has not been fully paid. 
relating to solidarity, the obligation is only joint. whatever may be useful to the others, but not
(b) Legal solidarity – where solidarity imposed by the law. anything which may be prejudicial to latter.  ARTICLE 1217 
(c) Real solidarity – where solidarity is imposed by the
nature of the obligation. Act of solidary creditor useful/prejudicial to The payment made by one of the solidary debtors
others.  extinguishes the obligation. If two or more solidary debtors
ARTICLE 1209 offer to pay the creditor may choose which offer to accept. 
He who made the payment may claim from his co-
debtors only the share which corresponds to each, with the
interest for the payment already made. If the payment is Ruled in case thing has been lost or prestation 2. Indivisible obligation 
made before the debt is due, no interest for the intervening has become impossible. 
period may be demanded.  - If the thing is lost or the prestation becomes Kinds of division 
When one of the solidary debtors cannot, because impossible, the liability of the solidary debtors 1. Qualitative 
of his insolvency, reimburse his share to the debtor paying depends upon whether or not there is fault or 2. Quantitative 
the obligation, such share shall be borne by all his delay.  3. Ideal 
codebtors, in proportion to the debt of each. (1) Loss is without fault and before delay. 
(2) Loss is due to fault on the part of a solidary Kinds of indivisibility 
ARTICLE 1218  debtor.  1. Legal indivisibility 
(3) Loss is without fault but after delay.  2. Conventional indivisibility 
Payment by a solidary debtor shall not entitle him 3. Natural indivisibility 
to reimbursement from his co-debtors if such payment is ARTICLE 1222 
made after the obligation has prescribed or become illegal.  ARTICLE 1224 
A solidary debtor may, in actions filed by
ARTICLE 1219 the creditor, avail himself of all defenses which are A joint indivisible obligation gives the rise to
derived from the nature of the obligation and of indemnity for damages from the time anyone of the debtors
The remission made by the creditor of the share those which are personal to him, or pertain to his does not comply with his undertaking. The debtors who
which affects one of the solidary debtors does not release own share. With respect to those which personally may have been ready to fulfill their promises shall not
the latter from his responsibility towards the co-debtors, in belong to the others, he may avail himself thereof contribute to the indemnity beyond the corresponding
case the debt had been totally paid by anyone of them only as regards that part of the debt for which the portion of the price of the thing or of the value of the service
before the remission was effected.  latter are responsible. in which the obligation consists.

ARTICLE 1220  Defenses available to a solidary debtor  ARTICLE 1225 

1. Defenses derived from the nature of the
The remission of the whole obligation obtained by For the purpose of the preceding articles, obligation
obligation. 
one of the solidary debtors, does not entitle him to to give definite things and those which are not susceptible
2. Defenses personal to, or which pertain to share
reimbursement from his co-debtors.  of partial performance shall be deemed to be indivisible. 
of, debtor sued. 
When the obligation has for its object the execution
ARTICLE 1221  3. Defenses personal to other solidary debtors.
of a certain number of days of work, the accomplishment of
work by metrical units, or analogous things which by their
If the thing has been lost or if the prestation has nature are susceptible of partial performance, it shall be
become impossible without the fault of the solidary debtors, SECTION 5 – DIVISIBLE AND INDIVISIBLE
OBLIGATIONS  divisible. 
the obligation shall be extinguished.  However, even though the object or service may be
If there was fault on the part of any one of them, all ARTICLES 1223 - 1225
physically divisible, an obligation is indivisible if so
shall be responsible to the creditor, for the price and the provided by law or intended by the parties. 
ARTICLE 1223 
payment of damages ad interest, without prejudice to their In obligations not to do, divisibility or indivisibility
action against the guilty or negligent debtor.  The divisibility or indivisibility of the shall be determined by the character of the prestation in
If through a fortuitous event, the thing is lost or the things that are the object of obligations in which each particular case. (1151a) 
performance has become impossible after one of the there is only one debtor and only one creditor does
solidary debtors has incurred in delay through the judicial or not alter or modify the provisions of Chapter 2 of Obligation deemed indivisible 
extra-judicial demand upon him by the creditor, the this Title. (1149)  1. Obligations to give definite things
provisions of the preceding paragraph shall apply. 2. Obligations which are not susceptible of partial
Meaning of divisible and indivisible obligation  performance 
1. Divisible obligation 
3. Obligations provided by law to be indivisible even if 2. To substitute a penalty for the indemnity for Penalty demandable without proof of actual
things or service is physically divisible  damages and the payment of interests in case of damages 
4. Obligations intended by the parties to be indivisible even non-compliance.  Damages recoverable in addition to penalty must be
if things or service is physically divisible  proved
Kinds of penal clause 
Obligation deemed divisible  1. As to its origin  ARTICLE 1229 
1. Obligations which have for their object the execution of a a) Legal penal clause 
certain number of days of work  b) Conventional penal clause  The judge shall equitably reduce the penalty when
2. Obligations which have for their object the 2. As to its purpose   the principal obligation has been partly or irregularly
accomplishment of work by metrical units  a) Compensatory penal clause complied with by the debtor. Even if there has been no
3. Obligations which by their nature are susceptible of b) Punitive penal clause  performance, the penalty may also be reduced by the courts
partial performance 3. As to its demand ability or effect  if it is iniquitous or unconscionable. 
a) subsidiary or alternative penal clause 
Divisibility or indivisibility in obligations not to do  b) Joint or cumulative penal clause When penalty may be reduced by the courts 
1. Divisible obligation  1.When there is partial or irregular performance. 
2. Indivisible obligation • Penalty substitutes for damages and interests  2. When the penalty agreed upon is iniquitous or
• When creditors may recover damages  unconscionable. 
• When penalty may be enforced 
SECTION 6 – OBLIGATIONS WITH A PENAL ARTICLE 1230 
CAUSE  ARTICLE 1227 
ARTICLES 1226 - 1230 The nullity of the penal clause does not carry with
The debtor cannot exempt himself from it that of the principal obligation. The nullity of the principal
ARTICLE 1226  the performance of the obligation by paying the obligation carries with it that of the penal clause. (1155) 
penalty, save in the case where this right has been
In obligations with a penal clause, the penalty shall expressly reserved for him. Neither can the creditor Effect of nullity of the penal clause. 
substitute the indemnity for damages and the payment of demand the fulfillment of the obligation and the The general principle that the accessory follows the
interest in case of noncompliance, if there is no stipulation satisfaction of the penalty at the same time, unless principal and not vice versa is illustrated in the above
to the contrary. Nevertheless, damages shall be paid if the this right has been clearly granted him. However, if article. 
obligor refuses to pay the penalty or is guilty of fraud in the after the creditor has decided to require the If only the penal clause is void, the principal
fulfilment of the obligation.  fulfillment of the obligation, the performance obligation remains valid and demandable. The penal clause
The penalty may be enforced only when it is thereof should become impossible without his fault, is just disregarded. The injured party may recover indemnity
demandable in accordance with the provisions of this Code. the penalty may be enforced. (1153a)  for damages in case of non-performance of the obligation as
(1152a)  if no penalty had been stipulated.
“Penalty is not substitute for performance” 
Meaning of obligation with a penal clause  Penalty clause presumed subsidiary  Effects of nullity of the principal obligation.
1. Principal obligation  1. Where there is performance  If the principal obligation is void, the penal clause is
2. Accessory obligation  2. Where there is no performance  likewise void. The reason is that the clause cannot stand
3. When penal clause joint  alone without the principal obligation to which it is
Penal Clause  subordinated. 
ARTICLE 1228  But if the nullity of the principal obligation is due
Purpose of Penal Clause  to the fault of the debtor who acted in bad faith, by reason
1. To insure their performance by creating an effective Proof of actual damages suffered by the of which the creditor suffered damages on equitable
deterrent against breach, making the consequences of such creditor is not necessary in order that the penalty grounds, the penalty may be enforced.
breach as onerous as it may be possible.  may be demanded. (n)