Different Kinds Of Obligations And Their Legal Effects 167371

DIFFERENT KINDS OF OBLIGATIONS AND THEIR LEGAL EFFECTS A. AS TO WHETHER THEY DEPEND UPON THE HAPPENING OF AN EVENT 1. PURE OBLIGATION - an obligation without a condition nor a period Examples: I undertake pay P100,000. I undertake to deliver to you a car. - Immediately demandable; obligation can be demanded anytime. (effect of pure obligation) Examples: Luigi obliges himself to pay Mario P1,000.00  Other Kinds of Obligation which are immediately demandable: 1. Obligation subject to a resolutory condition 2. Obligation subject to a resolutory period. 3. Obligation not to do an impossible condition. 4. Obligation with a potestative condition which reads - "I promise to pay anytime upon demand." (by agreement of the parties) 5. When it is pure.  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. 2. CONDITIONAL OBLIGATION - one whose consequences are subject to the fulfillment of a future and uncertain event, or condition. Examples : I will deliver to you a washing machine if you pay its price in advance. I will you until you graduate horn UST. I will lend you P10,000 but fix my computer first.  Manner of Performance 1. Actual performance 2. Constructive performance  ART. 1181. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those acquired, shall depend upon the happening of the event which constitutes the condition.  ART. 1182. When the fulfilment of the condition depends upon the sole will of the debtor, the conditional obligation is void. If it depends upon chance or upon chance or upon the will of a third

person, the obligation shall take effect in conformity with the provisions of this Code. (1115)  ART 1186. The condition shall deemed FULFILLED when the obligor VOLUNTARILY prevents its fulfilment. Meaning of Condition Condition is a future and UNCERTAIN event, the happening of which either CREATES or EXTINGUISHES an obligation subject to it. Characteristics of a Condition 1. Future and uncertain 2. Past but Unknown - if it refers to a future event, both its very occurrence and the time of such occurrence and the time of such occurrence must be uncertain; otherwise, it is not a condition. Kinds of Condition and their Legal Effects 1. As to whether it makes the obligation immediately demandable 1.a Suspensive Condition - a future and uncertain event, the happening of which CREATES the ob1igiton subject to it. - the demandability of the obligation is suspended until the happening of the uncertain event, which constitutes the condition. - if this takes place, the tie of the law (juridical or legal tie) does not appear. Examples: I promie to give you P50,000, if you the A Board Exams this October, 2009. I wiIl pay their prices if the goods are already delivered to me. I will you once I'm already employed abroad. Legal Effect: As a rule, the obligation subject to it is VALID. EXCEPTIONS (The obligation is VOID): (a) With a suspensive condition, which is at the same time, Potestative depending upon the debtor’s will. Example: I will pay you if I so desire. (b) With a suspensive condition which is impossible to perform Example: I will pay P100,000 if vou kill my wife. 1.b. Resolutory Condition - An uncertain event which makes an obligation

2. As to source of its performance 2.a. Potestative Condition 2.b. Casual Condition - one which depends upon chance or upon the will of third person. Examples .... Legal Effect: VALID Examples: I will you so long as you are not yet gainfully employed. (The condition is alsoa resolutory one.) I will pay if you want me to. ('If you want me to' is also a suspensive and a potestative) Legal Effect: VALID

3.b. Impossible Condition -one which is NOT capable of fulfillment, legally or physically. Two Kinds of Impossible Conditions: 1. Physically Impossible Conditions - when they, in nature of things, cannot exist or cannot be done. Examples: I will pay you P10,000 if it will not rain for 1 year in the Philippines. I will give you P1M if you can hold your breath underwater for 24 hours. 2.Legally Impossible Conditions - when they are contrary to law, morals, good customs, public order, or public policy. Examples: I will pay P10,000 if you burn my neighbor’s house. I will sell to you my land in Manila if you become a foreigner. Legal Effect: VOID (Both the condition and the obligation subject to it) -

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An obligation subject to a condition NOT TO DO an impossible act is VALID and immediately demandable. The said condition shall not he considered as agreed upon by the parties and the obligation becomes a Pure Obligation. Examples: I will give you P1,000 if you don't fly to the moon like a bird. I will continue to you if you don't commit adultery while I'm away. If the obligation is divisible, the part thereof not affected by the impossible condition shall be valid. (OnIy the affected obligation is void) Example: - I will give yOU P10,000 if you sell my land, and a car if you kill Pedro.

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(Obligation to give P10,000 is valid; while obligation to give a car is void) If the obligation is a pre-existing ob1igtiou, and therefore does not depend upon the fulfillment of the condition which is impossible, for its existence, only the condition is void. Example: D borrowed P10.000 from C. If C later agreed to kill X before D pays him, the condition ‘to kill X’ is void but not the preexisting obligation of D 'to pay C'.

4. As to manner of performance 4.a. Positive Condition - one which consists in the performance of an act; the happening of an event at a determining time, Legal Effect: VALID -- ART. 1184 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 expired. Examples: I will pay if you deliver me the goods. I will give you P30,000 if you kill him. (Void) 4.b. Negative Condition - one which consists in the omission of an act; an event will not happen at a determinate time. Legal Effect: VAILD- ART. 1185. The obligation shall become effective and binding: a) from the moment the time indicated has elapsed without the event taking place; or b)from the moment it has become evident that the event cannot occur, although the time indicated has not yet elapsed. Example: I will give you P100,000 if you don’t marry before reaching 25 yrs. old. 5. As to Form 5.a. Express Condition - condition is clearly stated. 5.b. Implied Condition - condition is merely inferred. 6. As to Numbers 6.a. Conjunctive Condition - there are several conditions and all must be fulfilled. 6.b. Disjunctive Condition - there are several conditions and only one or some of them be fulfilled.

7. As to Divisibility 7.a. Divisible Condition - the condition is susceptible of partial performance. 7.b. Indivisible Condition - the condition is not susceptible of partial performance. Constructive fulfiIIment of Suspensive Condition: (1) The condition is suspenive; (2) The obIigor actually prevents the fulfilment of the condition; and (3) He acts vo1untariIy. Constructive fulfilment of Suspensive Condition: Art. 1186 applies also to an obligation subject to a resolutory condition with respect to the debtor who is bound to return what he has received upon the fulfillment of the condition. (Art. 11901 Retroactive effects of fulfillment of Suspensive Condition 1. In obligations to give - an obligation to give subject a suspensive condition becomes demandable only upon the fulfilment of the condition. However, once the condition is fulfilled, its effects shall retroact to the day when the obligation was constituted. 2. In obligations to do or not to do - no fixed rule is provided. Retroactive effects as to fruits and interests in obligations to give 1. In reciprocal obligations - there is no retroactivity because the fruits (natural, industrial, or civil) and interests received during the pendency of the condition are deemed to have been mutually compensated. 2. In unilateral obligations - there is usually no retroactive effect because they are gratuitous. Rights pending fulfilment of Suspensive Condition 1. Rights of creditor - he may take or bring appropriate actions for the preservation of his right, as the debtor may render nugatory the obligation upon the happening of the condition. 2. Rights of debtor - he is entitled to recover what he has paid by mistake prior to the happening of the suspensive condition.  ART. 1189. When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give, the ff. rules shall be observed in case of the improvement, loss or deterioration on the thing during the pendency of the condition:

(1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished (As a general rule, a person is not liable for a fortuitous event); (2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; (3)When the thing deteriorates through the fault of the debtor, the impairment is to be borne by the creditor (A thing deteriorates when its value is reduced or impaired); (4)If it deteriorates through the fault of the debtor, the creditor may choose between the rescission of the obligation and its fulfilment, with indemnity for damages in either case; (5) If the thing is improved by its nature, or by the time, the improvement shall inure to the benefit of the creditor (A thing is improved when its value is increased or enhanced by nature or by time or the expense of the debtor or creditor); (6) If it is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary with respect to improvements made on the thing held in usufruct, which is the right to enjoy the use and fruits of a thing belonging to another. (1122) Article 1189 applies only if: a) The obligation is a real obligation b) The object is a specific or determinate thing; c) The obligation is subject to a suspensive condition; d) The condition is fulfilled; and e) There is loss, deterioration or improvement of the thing during the pendency of the condition. Kinds of Loss 1. Physical Loss - when a thing perishes as when a house is burned and reduced to ashes. 2. Legal Loss - when a thing goes out of commerce (when it is appropriated) or when a thing heretofore legal becomes illegal. 3. Civil Loss - when a thing disappears in such a way that its existence is unknown; or even it known it cannot be recovered. Effects of fulfilment of Resolutory Condition: (1) In obligations to give - when the resolutory condition in an obligation to give is fulfilled, the obligation is extinguished and the parties are obliged to return to each other what they have received under the obligation. (2) In obligations to do or not to do - The courts shall determine the retroactive effect of the fulfilment

of the resolutory condition as in the case where the condition is suspensive. Kinds of Obligation according to the person obliged: 1. Unilateral - when only one party is obliged to comply with a prestation. 2. Bilateral - when both parties are mutually bound to each other. a. Reciprocal Obligations - those which arise from the same cause and in which each party is a debtor and creditor of the other. b. Non- reciprocal - The performance of one party is not dependent upon the simultaneous performance by the other. Remedies in Reciprocal Obligations (1) Choice of remedies a. action for specific performance of the obligation with damages; or b. action for rescission of the obligation also with damages (2) Remedy for rescission for non-compliance The remedy is granted for breach by the other contracting party that violates the reciprocity between them. -Court may grant guilty party term for performance. -The remedies of the injured or aggrieved party are alternative and not cumulative, that is, he is privileged to choose only one of the remedies, and not both. Limitations on right to demand rescission 1. Resort to courts - the injured party has to resort to the courts to assert his rights judicially. 2. Power of the court to fix period - the court has discretionary power to allow a period within winch a person may be permitted to perform his obligation. 3. Right of third person - rescission is not available as a remedy. 4. Substantial violation - the general rule is that rescission will not be granted for slight breaches of contract; the violation should be substantial as to defeat the object of the parties in making the agreement. 5. Waiver of right - the right to rescind may be waived expressly or impliedly. Where both parties are guilty of breach 1. First infractor known - the liablity of the first infractor should be equitably reduced.

2. First infractor cannot be determined - the contract shall be deemed extinguished and each shall bear his own damages. 3. OBLIGATIONS WITH A PERIOD - an obligation, the creation or extinguishment of which is subject to a future and certain event. Examples: I will pay on January 5, 2005. I will you until you are 21. I will you until you are dead. I will pay once I have the money I oblige myself to pay as soon as possible Meaning of period or term Period is a future and CERTAIN event, the happening of which either CREATES or EXTINGUISHES an obligation subject to it. Period and Condition Distinguished (Kinds of Events): As to Fulfilment Condition: Uncertain (may or may not happen) Period: Certain (will happen) As to Time Condition: Generally refers to future events but may also refer to past events unknown to the parties. Period: Refers only to future events As to Influence on the Obligation Condition: Causes an obligation either to arise or to cease Period: Merely fixes the time for the efficaciousness of the obligation As to Effect it Left to the Debtor's Will Condition: The obligation subject to such a condition is VOID Period: The obligation subject to such a period empowers the court to fix its duration. (VALID) As to Retroactive Effects Condition: Has retroactive effects. Period: Has no retroactive effects.  Test of Certainty: A period is a certain event which must happen sooner or later at a date known beforehand, or at a time which cannot be determined, while a condition is an uncertain event.  Exception to the Test of Certainty (when a condition is treated by law as a period) RULE: When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with period.

Kinds of Periods 1. As to whether it makes the obligation immediately demandable 1. a.Suspensive Period - a future and certain event, the happening of which CREATES the obligation subject to it. Examples: - I will pay 30 days from October 20, 1992. I will pay the doctor's fees 7 days after the death of my father who is dying of cancer. I will you beginning January 1 1.b. Resolutory Period - a future and certain event, the happening of which EXTINGUISHES the obligation subject to it. Examples: - I will give you P500 a month until the end of the year. I will you until December 31 2. According to Source 2.a. Legal Period - when it is provided for by law Example: Deadline for payment of taxes and for renewal of licenses. 2.b. Conventional or Voluntary Period - when it is agreed upon by the parties Examples: I will pay on November 5, 2009 I will you until you are 20. 2.c. Judicial Period - when it is fixed by the court Examples: - I will pay if I'm already solvent I will pay once I'm already financially able. 3. As to Definiteness 3.a. Definite Period - when it is fixed or it is known when it will come. Example: I will pay on January 5, 2010 3.b. Indefinite Period - when it is not fixed or not known when it will come Examples: I promise to you until you die I will pay once I'm able to do so. Where duration of Period depends upon the will of the Debtor (1) The debtor promises to pay when his means permit him to do so - In this case, what depends upon the debtor’s will is not whether he should pay or not for indeed he binds himself to pay. What is left only to his will is the duration of the period. (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. “at any time I have the money” e. “in partial payments” f. “when I am in a position to pay”  ART. 1195. Anything paid or delivered before the arrival of the period 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. > Debtor presumed aware, of period The obligor may no longer recover the thing or money once the period has arrived but he can recover the fruits or interests thereof from the date of premature performance to the date of maturity of the obligation. > Art. 1195 applies only to obligation to give, and has no application to obligations to do or not to do. Effects of Obligations with a Period 1. Gen. Rule: Benefit of the Period - intended for BOTH the debtor and the creditor. > Exceptions: a) Term is for the benefit of the debtor alone - he cannot be compelled to pay prematurely, but he can, if desires to do so. b) Term is for the benefit of the creditor - He may demand fulfilment even before the arrival of the term but the debtor cannot require him to accept payment before the expiration of the stipulated period. 2. 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 therefore. 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. 3. Gen. Rule: The obligation is not demandable before the lapse of the period. Exception - when the debtor losses his right to make use of the period (Instance when the creditor ca legally demand ahead of time): a. D-isappearance of the guarantees or securities after their establishment due to fortuitous event.

b) I-mpairment of the guaranty or security after its establishment due to the debtor’s fault. c) V-iolation of any undertaking in consideration of which the creditor agreed to the period. d) l-nsolvency of the debtor e) Non-furnishment of the guaranty or security which the debtor promised to give to the creditor. f) A-ttempt of the debtor to abscond, which means to hide, conceal, or absent oneself with intent to frustrate just demands of his creditors. II. AS TO THE NUMBER OF PRESTATIONS DUE (DISTRIBUTIVE CHARACTER) Kinds of Obligations according to object: 1. Simple Obligation - one where there is only one prestation 2. Compound Obligation - one where there are two or more prestations a) Conjunctive Obligation - one where there are several prestations and all of them are due. b) Distributive Obligation - one where one of two or more of the prestations is due. (1) Alternative Obligation (2) Facultative Obligation No. of Prestations Due Alternative: Several are due but performance of one is sufficient. Facultative: Only one is due but the debtor may substitute another Right of Choice Alternative: Belongs to the debtor but may be given to the creditor or to a third person Facultative: Belongs to the debtor Loss of the Thing Due Thru Fortuitous Event Alternative: If one or more but not all of the alternative is/are lost, the obligation is NOT EXTINGUISHED Facultative: Loss of the thing due EXTINGUISHES she obligation. Loss of the Thing Due Thru Debtor's Fault Alternative: If one or more but not all of the alternatives is/are lost, the debtor is NOT LIABLE Facultative: Debtor is LIABLE Examples Alternative - I promise to deliver to you a horse or a cow - I promise to deliver a new TV set or to repair your old TV set

Facultative - I promise to deliver to you a horse or in substitution, a cow. - I promise to deliver a new TV set or in lieu thereof if I want to repair your old TV set. Alternative Obligation >The right of choice of the debtor is subject to limitations. 1. The debtor cannot choose those prestations which are (VOID): a. impossible b. unlawful c. which could not have been the object of the obligation Example: I undertake to deliver to Mr. Minura of Tokyo, Japan any of the following live land animals: (a) 100,000 lapu-lapu fingerlings; or (b) 500 blue nape green parrots from Palawan; or (c) 500 Baguio Ponies as big as an adult giraffee; or (d) 100,000 cans of lechons; or (e) 10,000 locally bred hogs; or (f) 1,000 monitor lizards (bayawalks) The debtor cannot choose and alternatives because they are not the object of the obligation (live land animals). He cannot choose because it is prohibited by law to sell Palawan green parrots and he cannot likewise choose alternative because it is impossible to perform. Hence, he can only select either alternatives e or f. 1. 2. The debtor has no more right of choice when, among the prestations whereby he is alternatively bound, only one is practicable. 2. The debtor cannot choose part of one prestation and part of another prestation. Example: I promise to deliver 1 sack of rice, of corn or beans, to Cruz. Sgd Sy. Sy cannot compel Cruz to receive 1/2 sack of rice and 1/2 sack of corn. >Communication of notice that choice has been made. (1) Effect of notice - until the choice is made and communicated, the obligation remains alternative. (2) Proof and form of notice - the burden of proving that such communication has been made is upon him who made the choice. The giving of notice may be made orally or in writing, expressly or impliedly.

 ART. 1203 If through the creditor’s acts, the debtor cannot make a choice according to the of the obligation, the latter may rescind the contract with damages. >Rescission creates the obligation to return the things which were the object of the contract together with their fruits, and the price with its interests. Effects of Loss of Objects of Obligations 1. Some of the objects - even through the fault of the debtor, the latter is not liable since he has the right of choice and the obligation can still be performed. 2. All of the objects- if lost through the fault of the debtor, the creditor shall have the right to indemnity for damages since the obligation can no longer be complied with. If the cause of the loss is fortuitous event, the obligation is extinguished. When the right of choice belongs to Creditor The provisions which with respect to the debtor shall be applicable to the creditor when the right of choice is given to him. Rules in case of loss before Creditor has made a choice: 1. If one of the things is lost through a fortuitous event, debtor 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. When a thing is lost through debtor's fault, the creditor may claim any of those subsisting, or the price of that which has disappeared, with a right to damages. 3. When all the things are lost through the debtor's fault, the choice of the creditor shall fall upon the price of any one of them, also with indemnity for damages. 4. When all the things are lost through a fortuitous event, the obligation of the debtor shall be extinguished. Facultative Obligation Effect of Loss: 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 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.

2. After substitution - If the principal thing is lost, the debtor is not liable whatever may be the cause of the loss, because it is no longer due. If the substitute is lost, the liability of the debtor depends upon whether or not the loss is due to his fault. C. AS TO EXISTENCE OF SEVERAL DEBTORS and/or CREDITORS (COLLECTIVE CHARACTER) > one where there are 2 or more debtor or 2 or more creditors, or both. Examples: - We promise to pay Cruz 100,000 Php. Sgd. Santos & Reyes. I promise to pay Cruz and Reyes 100,000. Sgd. Santos and Reyes. Collective Obligation Presumed to be t 1. If Margie is liable to Lara for P9,000, there can be no problem regarding the determination of the ff: a. the person liable to pay; b. the person entitled to demand payment; c. the extent of the liability of the debtor; and d. the extent of the right of the creditor. 2. Where there is plurality of parties and the share of each in the obligation is specified, the correlative rights and obligations of the parties are known. 3. If the share of each debtor is not specified, the presumption is that the obligation is t, and as a consequence: a. There are as many debts as there are debtors; b. There are as many credits as there are creditors; c. The debts and/or credits are considered distinct and separate from each other; d. Each debtor is liable only for a proportionate part of the debt; and e. Each creditor is entitled only to a proportionate part of the credit. Kinds of Obligation according to the Number of Parties: 1. Individual Obligation - one where there is only one obligor or one oblige. 2. Collective Obligation - one where there are two or more debtors and/or two or more creditors. Kinds of Collective obligation: a. T OBLIGATION - 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. -Principle to Apply: To each to his own.  Presumed t in the absence of an agreement or law to the contrary. Example: We promise to pay Cruz P10,000. Sgd. Reyes & Santos.

 By agreement of the parties. Example: We promise to pay Cruz P19, 000 tly. Sgd. Reyes & Santos.  More Examples: a. I promise to pay Cruz & Santos P50,000 on October 24, 2005 - Once it is already Oct. 24, Cruz can legally ask Reyes to pay him P25,000 but not P50,000 because the obligation is presumed to be t. b. We promise to pay Cruz P50,000 on October 24, 2004. Sgd. Reyes & Santos. - Once it is already Oct. 24, Reyes is liale to Cruz only 1/2 of the P50,000 and Santos the other half. b. SOLIDARY Obligation - one where each one of the debtors is bound to render, and/or each one of the creditors has a right to demand from any of the debtors, entire compliance with the prestation. (Art. 1207)  There is solidary liability only when; (a) the obligation expressly so states; or (b) the law requires solidarity; or (c) the nature of the obligation requires solidarity.  The obligation is solidary by agreement of the parties as shown by the word "solidarily". Example: We promise to pay Cruz P60,000 solidarily tomorrow. Sgd. Reyes and Santos  The use of the word "I" instead of "We" makes the obligation solidary. Example: I promise to pay Cruz P60,000 tomorrow. Sgd. Reyes and Ruiz.  The word "tly and severally" connotes a solidary undertaking agreed upon by the parties Example: We promise to pay Cruz P60,000 tly and severally.  More Examples: a. I promise to pay Cruz P70,000 on October 24,2005. Sgd. Reyes and Santos. - Once it is already Oct. 24, Cruz can legally demand and collect the entire P70,000 from either Reyes or Santos alone. b. We promise to pay Cruz and Santos P50,000 solidarily. Sgd. Reyes and Sanchez. - if Cruz decides already to collect, he can collect the entire amount of P50,000 from either Reyes or Sanchez.

Kinds of Solidarity A. According to the parties bound: 1. ive Solidarity - solidarity on the part of the debtors, where any one of them can be made liable for the fulfilment of the entire obligation. It is in the nature of a mutual guaranty. 2. Active Solidarity - solidarity on the part of the creditors, where any one of them can demand the fulfilment of the entire obligation. There is mutual representation among the solidary creditors with powers to exercise the rights of others in the same manner as their rights. 3. Mixed Solidarity - solidarity on the part of the debtors and creditors, where each one of the debtors is liable to render and each one of the creditors has a right to demand, entire compliance with the obligation. B. According to Source 1. Conventional Solidarity - When agreed upon by the parties. Example: We promise to pay Montemayor 50,000 solidarily.Sgd. Montecristo, Montes and Monteverde. -Other words indicating a solidary obligation are "t and severally", "together and separately", and "individually and collectively." 2. Legal Solidarity - when slidarity is imposed by law Examples: a. Liability of two or more persons for quasidelict (t-tortfeasor) b. Liability of partners in a partnership for crimes or quasi-delict committed by their copartner/s acting in the ordinary course of the partnership business. c. Principle, accomplices and accessories liability for damages arising from crime. d. When there are 2 or more bailees to whom a thing is loaned in the same contract, they are liable solidarily. e. Even when the agent has exceeded his authority, the principal is solidarily liable with the agent if the former allowed the latter to act as though he had full powers. 3. Real Solidarity - when solidarity is imposed by the nature of the obligation. Examples: -We promise to deliver a piano to Santos. Sgd. Garcia and Dela Cruz. - Liability of the legitimate ed operator of a public vehicle and the owner of a public vehicle under the "kabit system"

t Indivisible Obligation - it is t as to liabilities of the debtors or rights of the creditors but indivisible as to compliance. -it constitutes the middle ground between a t obligation and a solidary obligaton. Indivisibility and Solidarity Distinguished Indivisibility -Refers to the prestation -Only the debtor guilty of breach of obligation is liable for damages. -can exist although there is only one dsebtor and creditor. -the others are not liable in case of insolvency of one debtor. Solidarity -Refers to the juridical or legal tie that bind ties. -All of the debtors are liable for the breach of the obligation committed by a debtor. -There must be at least two debtors or two creditors. -The other debtors are proportionately liable. Kinds of Solidary Obligation according to the Legal Tie: 1. Uniform - when the parties are bound by the same stipulations. 2. Non-uniform or varied - when the parties are not subject to the same stipulations. PRINCIPLES: 1. Solidarity may exist altough the creditors and the debtors may not be bound in the same manner and by the same periods and conditions. 2. A solidary creditor may do any act beneficial or useful to the others but he cannot perform any act prejudicial to them. 3. A solidary creditor cannot assign his rights without the consent of the others. 4. When a solidary debtor pays the obligation; he is entitled to reimbursement from his co-debtors. Exceptions: He cannot get any reimbursement when the obligation: a) has already expired ; or b) becomes illegal. 5. The remission of the whole obligation obtained by one of the solidary debtors, does not entitle him to reimbursement from his co-debtors.

Rules in case thing has been lost or prestation has become impossible: 1. Loss is without the fault and before delay the obligation shall be extinguished. 2. Loss is due to fault on the part a solidary debtor all shall be responsible to the creditor, for the price + damages + interest. 3. Loss through a fortuitous event (without fault but after delay) - all shall be responsible to the creditor, for the price + damages + interest. D. AS TO WHETHER CAPABLE OR NOT OF PARTIAL PERFORMANCE 1. DIVISBLE OBLIGATION - is one the object of which, in its delivery or performance, is capable of partial fulfillment. Examples: I will pay you in 3 equal monthly installments beginning this September, 2009. I will construct Lee's building within 1 year from October, 2008. 2. INDIVISIBLE OBLIGATION - is one the object of which, in its delivery or performance, is not capable partial fulfillment. Examples : I will pay you tomorrow. I will do a concert tomorrow for the Pinatubo victims. Sgd. Gary. Test used to determine whether Divisible or Indivisible: >The purpose of the obligation or intention of the parties. Kinds of Division: a. Qualitative Division - based on quality, not on number or quantity of the things which are the object of the obligation. b. Quantitative Division - based on quantity rather than on quality. c. Ideal or Intellectual Division - one which exists only in the minds of the parties. Kinds of Indivisibility: a. Legal Indivisibility - when a specific provision of law declares as indivisible, obligations which, by their nature, are divisible. Example: Payment of licenses must be in full and not partially because the law requires it to be indivisibly performed. b. Conventional Indivisibility - when the will of the parties makes as indivisible, obligations which, by their nature, are divisible. c. Natural Indivisibility - when the nature of the object or prestation does not it of division.

Example: To give a particuIar car, to sing a song. Etc. Effect of non-compliance by a debtor in a t indivisible obligation If any one of the debtors does not comply with his undertaking in a t indivisible obligation, the obligation is converted into one for damages. The creditor cannot ask for specific performance or rescission because there is no cause of action against the other debtors who are willing to fulfil their promises. Obligations deemed Indivisible: 1. Obligations to give definite things. Ex. To give a particular cloth; to deliver a specific car. 2. 2.Obligations which are not susceptible of partial performance. Ex. To sing a song; to dance Tikling. 3. Obligations provided by law to be indivisible even if thing or service is physically divisible. Ex. Payment of Taxes 4. Obligations intended by the parties to be indivisible even if the thing is physically divisible. Ex. Payment of a loan in full at a given period. Obligations deemed Divisible: 1. Obligations which have for their object the execution of a certain number of days of work. Ex. I promise to repair your TV within 3 days. I undertake to construct the building within 2 years. 2. Obligations which have for their object the accomplishment of work by metrical units. Ex. I promise to deliver to you 30 cubic meters of sand. 3. Obligations which by their nature are susceptible of partial performance. Ex. Atty. Lopez oblige himself to teach Law 1 in Ateneo within 1 school term. I promise to pay 100,000 in 10 equal monthly installments beginning January, 2010. Divisibility or indivisibility in obligations Not to Do > In negative obligations not to do, the character of the prestation in each particular case shall determine their divisibility or indivisibility. > Obligations 'to do' and 'not to do' are generally indivisible.

E. AS TO EXISTENCE OF AN UNDERTAKING TO ASSUME GREATER LIABILITY 1. Obligation With a Penal Clause - contains an accessory undertaking to pay a previously stipulated indemnity in case of breach of the principal prestation, intended primarily to induce its fulfillment. - Contains an undertaking to assume greater liability in case of breach. 2. Obligation Without a Penal Clause - contains no undertaking to assume greater liability in case of breach. Principal obligation - can stand by itself and does not depend for its validity and existence upon another obligation. Accessory obligation - attached to a principal obligation and, therefore, cannot stand alone. Penal Clause - an accessory undertaking attached to an obligation to assume greater liability in case of breach. Ex. I promise to construct your house within 1 month and if I'm unable to finish, I will pay you damages of P10,000. Purposes of Penal Clause: 1. To ensure the performance of the obligation. 2.To sustitutre a penalty for damges to be paid. Differences of Penalty Clause and Condition Penalty Clause -Constitutes an obligation by itself although an accessory obligation. -Becomes demandable if the principal obligation is not performed. Condition -Does not constitute an obligation by itself. -Never demandable. Kinds of Penal Clause A. As to its Origin 1. Legal Penal Clause - when it is provided by law. 2. Conventional Penal Clause - when it is provided for by the stipulation of the parties. B. As to its Purpose 1. Compensatory Penal Clause - when the penalty takes the place of damages. 2. Punitive Penal Clause - when the penalty is imposed merely as punishment for breach. C. As to its Demandability or Effect

1. Subsidiary or Alternative Penal Clause - when only the penalty can be enforced. 2. t or Cumulative Penal Clause - when both the principal obligation and the penal clause.  ART. 1228. Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be demanded. Governing Principles 1. Proof of actual damages suffered by the creditor is not necessary in order to enforce the penalty. 2. Unless otherwise agreed upon the debtor cannot exempt himself from the performance of the obligation by paying the penalty. 3. In 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. 4. The creditor cannot demand the fulfilment of the obligation and the satisfaction of the penalty at the same time. 5. Accessory follows the principal, and not vice versa. 6. Nullity of the penal clause does not affect the validity of the principal obligation but not the opposite. 7. If the principal obligation is void, the penal clause is likewise void. But if the nullity of the principal obligation is due to the fault of the debtor, the penalty may be enforced. Damages in addition to the penalty may be recovered by the creditor: (ART. 1226) a. If stipulated by the parties; b. If the obligor refuse to pay the penalty; and c. If the obligor is guilty of fraud. The court may equitably reduce or lessen the penalty: (ART. 1229) a. When there is partial/irregular performance; and b. When the penalty agreed upon is iniquitous or unconscionable.