Kinds of Obligation
Kinds of Obligation
Kinds of Obligation
when the condition is dependent upon the will of the creditor, regardless
whether the condition is suspensive or resolutory, the conditional obligation
remains valid.
There is casual condition when the condition depends upon chance or upon the
will of a third person (a person who is not a party to the obligation, he is neither the
debtor nor the creditor), the effect of which is valid.
Example: Turibio obliged himself to give Leonard a car if Lenin will enter the
vocation of priesthood. Here, the conditional obligation of Turibio is dependent
upon Lenin, who is not a party to the agreement of Turibio and Leonart.
This happens when the condition depends partly upon the will of one of
the parties and partly upon chance or upon the will of a third person.
F. IMPOSSIBLE CONDITION
Impossible conditions are those that are contrary to good customs or public policy or those that
are prohibited by law. The effect of this condition shall render the obligation void if the same is
dependent on the said condition.
Example: Kelvin obliged himself to give P25,000.00 to Turibio if the latter will marry Kristine
despite the existence of the first marriage of Turibio to Marian. This obligation of Kelvin is void
because the condition where the obligation depends upon is contrary to law. Marrying another
during the subsistence of the first marriage is not allowed.
Note: If the obligation of the debtor does not depend upon an impossible condition, only the
condition is void but the obligation shall remain to be effective such as when there is pre-
existing obligation.
G. POSITIVE CONDITION
Example: Paolo is to give Justine P25,000,00 if Justine will finish his law degree
on March 15, 2016. Justine was not able to finish his degree on March 15, 2016,
Paolo has no more obligations to Justine.
In the same vein, if it has become evident that the event will not take place, the
debtor’s obligation likewise extinguished.
H. NEGATIVE CONDITION
Reciprocal obligations are those which arise from the same cause, and in
which each party is a debtor and a creditor of the other, such that the
obligation of one is dependent upon the obligation of the other. They are to be
performed simultaneously such that the performance of one is conditioned
upon the simultaneous fulfillment of the other.
4. OBLIGATION WITH A PERIOD
Concept of Period
Period is one that has a fixed day certain for its fulfillment. This obligation
is demandable only when that day comes.
Kinds of Period
1. 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.
2. The courts shall also fix the duration of the period when it depends upon
the will of the debtor.
1. When the debtor becomes insolvent, unless he gives
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 fortuitous event they disappear,
Instances when the unless he immediately gives new ones equally
satisfactory;
debtor will lose the 4. When the debtor violates any undertaking, in
benefit of the period consideration of which the creditor agreed to the
period;
5. When the debtor attempts to abscond.
In an alternative obligation, there is more than
one object, and the fulfillment of one is
sufficient to extinguish the obligation.
Rules in case of loss of things or • If all the things which are alternatively the object of the
obligation are lost through fortuitous event, the obligation is
impossibility of services in alternative
extinguished and the debtor will not be held liable for
obligation when the right of choice damaged. This is based on the rule that no person shall be
belongs to the debtor liable for fortuitous event.
Joint Obligation is one in which each debtor is liable only for a proportionate
part of the debt, and the creditor is entitled to demand only a proportionate
part of the credit from each debtor.
In joint obligation each obligor answers only part of the whole liability
and to each oblige belongs only a part of the correlative rights.
The creditor cannot compel one of the debtors to satisfy in full the
whole obligation.
ILLUSTRATION
A, B and C are creditors of X in the amount of P9000,00. Since this is a joint
obligation, there are 3 obligations, specifically:
1) the obligation of X to A;
2) The obligation of X to B; and
3) The obligation of x to C.
Since, this a joint obligation there are 6 different and distinct obligations to wit:
1. The obligation of John to Pon-pon;
2. The obligation of John to Mark;
3. The obligation of Aldwin to Pon-pon
4. The obligation of Aldwin to Mark
5. The obligation of Leonard to Pon-pon
6. The obligation of Leonad to Mark
• The presumption is that the obligation
is always joint unless it is clearly stated
that the obligation is solidary.
Solidary Obligation is one in which each of the debtors is liable for the entire
obligation, and each of the creditors is entitled to demand the satisfaction of the
whole obligation from any or all of the debtors.
In this case, it is expressly agreed upon that the obligation is solidary, thus, we
treat the obligation of Mark and Kelvin as one. Thus, Danna can collect the
entire amount of P1500 form Mark alone or from Kelvin alone.
a. In solidum
b. Jointly and Severally
c. Individually and Collectively
d. Mancomunada Solidaria
OTHER TERMS e. If the contract states that the persons are
liable “together or separately”
FOR SOLIDARY
f. When the promissory note states “ I
OBLIGATION promise to pay” but it was signed by
several persons, the obligation is solidary.
Example 1: A, B and C are solidary debtors of
X, Y and Z, solidary creditors, in the amount
of P9000.00. Here, considering that the
obligation of A, B and C is solidary, we treat
Mixed Solidarity their obligation as one.
Here, any of the creditors may demand
There are multiple payment the whole obligation to any of A, B
creditors and and C. If C pays X the whole amount, X has
debtors the obligation to give to Y and Z P3000.00
each.
Example 2:
Jose, Margo and Perry are solidary debtors of Mark, Justin and Renz, joint creditors, in
the amount of P90,000.00. How much can Mark collect from Jose?
In this case, note that the obligation of the debtors here is solidary, hence, we treat them as one
debt. On the other hand, the creditors here is joint, thus, there are independent and separate
credits extended (3 joint creditors x 1 debtor =3) therefore, P90,000.00/3 = P30,000.00. Thus,
Mark can only collect P30,000.00 from Jose.
Example: In a contract of loan, Joanna, Danna and Tin oblige
themselves in solidum to Luke, Mark and John in the amount of
P300,000.00 to be paid on or before March 6, 2018. When the
ENFORCEMENT OF SOLIDARY maturity date arrived, Mark demanded payment of the whole
OBLIGATIONS obligation. However, despite repeated demand, the debtors failed
to pay. Unfortunately, Mark and his co-debtors did not file a case
immediately. Two days before the prescriptive period to file a
1. Each one of the solidary creditors case, Luke filed a complaint of sum of money against Joanna,
Danna and Tin.
may do whatever may be useful to the
others, but not anything which may be
Is the filing of the case made by Luke alone binds Mark and John?
prejudicial to the latter. Consent of
other creditors is not necessary. Yes, because the filing of the case before the prescriptive period to
file the case is beneficial on the part of Mark and John. Otherwise,
if none of them filed the case before the prescriptive period, the
creditors can no longer file and collect their credits to their
debtors.
Example: Lenin, Gene and TJ are solidary creditors
in the amount of P27, 000.00 of Jedi, Lizel and
ENFORCEMENT OF SOLIDARY Karen, joint debtors.
OBLIGATIONS
In this case, each of the solidary creditors has a
2. A solidary creditor cannot assign his share in the credit such that Lenin has P9,000.00
rights without the consent of the others. share in the P27,000.00 credit.
3. The debtor may pay any one of the solidary Supposed, after maturity date, none of the solidary debtors
creditors; but if any demand, judicial or paid their obligation. Aldwin wrote a demand letter
extrajudicial, has been made by one of them,
payment should be made to him.
against the three debtors, to whom must the payment be
made?
Note that in solidary obligation, the whole
amount is demandable against any of the solidary
debtors, thus, it follows that any of the solidary
If any of the creditors demanded payment, the payment
debtors can pay the whole amount to any of the must be paid to the creditor who demanded the payment.
solidary creditors. But if one of the creditors In this case the solidary debtors should pay the whole
demanded payment, the debtor should pay the
creditor who demanded the same. amount to Aldwin because he was the one who made the
demand.
Novation, compensation, confusion or remission
extinguishes an obligation, thus, if Jolord and
Grace are solidary debtors of Erick and Edward in
the amount of P10,000, and if Erick made any of
ENFORCEMENT OF SOLIDARY the acts mentioned shall extinguish the obligation.
OBLIGATIONS
However, it is worthy to note that the
3. Novation, compensation, confusion or extinguishment may be total or partial. If Erick
remission of the debt, made by any of the only condoned P5000,00 out the P10,000.00 then
solidary creditors or with any of the the obligation is partly extinguished.
solidary debtors, shall extinguish the
obligation. The creditor who may have
executed any of these acts, as well as he The creditor who is responsible in the
who collects the debt, shall be liable to the extinguishment of the obligation shall be liable to
others for the share in the obligation his co-creditor for the share in the obligation
corresponding to them. corresponding to them.
EFFECT IF ONE OF THE SOLIDARY
DEBTORS IS INSOLVENT
When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the
debtor paying the obligation, such share shall be borne by all his co-debtors, in proportion to
the debt of each.
Example: Robie, Lenin and Mark are solidary liable to Paolo the amount of P3,000,00 to be
paid on January 20, 2020. At the time of payment, Robie becomes insolvent. Paolo demanded
payment from Mark. In this case, Mark is obliged to pay the whole amount of P3,000.00, since
the insolvency of one of the solidary debtors do not affect the right of the creditor to enforce
the whole obligation.
Mark, however, may demand from Lenin a reimbursement in the amount of P1500.
(P1000 Lenin’s share plus P500, portion of the share of the insolvent debtor).
EFFECT OF REMISSION MADE BY THE CREDITOR THAT AFFECTS
ONE SOLIDARY DEBTOR
The remission or condonation obtained by one of the solidary debtors does not give him the
right to reimbursement from his co-debtors. This is logical because the debtor who obtained
the condonation did not pay anything.
Example: Marie, Ange and Faith are solidary debtors of Gege the amount of P9,000.00. Since
Gege and Ange are best of friends, Ange asks Gege to condone their indebtedness from her.
Gege, out of friendship and soft-hearted fellow, condoned the entire obligation.
Can Ange demand from Marie and Faith for reimbursement because the obligation was
extinguished through her effort?
The answer is no. While she was instrumental in the extinguishment of the entire obligation,
she did not give any money to the creditor which will give her the right for reimbursement.
9. DIVISIBLE
OBLIGATION Example: Jose obliged himself to pay James
the amount of P10,000.00 payable in two equal
Divisible Obligation – is one capable installments. Here the obligation of Jose is
of partial performance.
divisible considering the fact that he can
partially fulfill his obligation.
10. INDIVISIBLE OBLIGATION
2) According to
demandability: (b) complementary (when both the principal
obligation and the penalty may be enforced)
CLASSIFICATION OF
PENAL CLAUSE
(a) cumulative (when damages may be collected in
addition to penalty) and
(b) reparatory (when the penalty substitutes indemnity
(3) According to for damages).
purpose:
EFFECT TO THE PRINCIPAL OBLIGATION IF THE PENAL CLAUSE IS VOID
• If the penal clause is void the principal obligation of the debtor remains valid
and demandable. The reason is that the penal clause is only an accessory
obligation in which case it can be disregarded.
EFFECT TO THE PENAL CLAUSE IF THE PRINCIPAL OBLIGATION
IS VOID OR A NULLITY
• The nullity of the principal obligation carries with it that of the penal clause.
This means that the penalty clause is likewise void. And therefore, there is no
obligation to pay.