Professional Documents
Culture Documents
General Rule= 2 or more prestations are established between the parties from the
moment that the obligation was created.
Full performance of only one will extinguished the obligation and the others cannot be
performed.
As a rule the debtor exercises the right to choose, such right cannot be subject to
abuse and the debtor cannot choose something that is illegal, unlawful, or one that is not
contemplated or intended by the parties to the obligation. If the debtor abuses his right
to choose and to select any of the prestations then the creditor may rescind the
obligation and demand for damages.
In making the choice the debtor has three options as to form. The debtor may
exercise the right of choice by:
1. Express selection- by notifying either by verbally or in writing the creditor of said
choice.
2. Implied selection- as when only one of the prestations is available or can be
performed the others have been extinguished.
3. Constructively- by actual performance of the prestation chosen.
Nonetheless, in exercising the right to selection the debtor has the obligation to notify
and communicate the choice to the creditor and the choice become effective to both
parties only at the moment of said communication. The requirement of the notification is
not for the creditor to oppose or to object or for purpose of obtaining the consent of the
creditor, because the right belongs to the debtor. The only purpose here is to inform the
creditor and afford the creditor an opportunity to question the choice if the same is not in
accordance with the obligation.
Ex.
To convey a condo unit which is 60 sqm
To deliver a specific car
To transfer a specific lot
However the debtor chose to perform the first prestation but only a 15 sqm condo
is being delivered, it was not the same condo unit specified, the right of the creditor is to
question the prestation.
Once the choice has been communicated and is now effective between the parties
the obligation seizes to be alternative became now a simple obligation and from that
moment on creditor may enforce only that obligation. The other prestations are
considered discharged, no longer demandable. Once it became a simple obligation apply
the rule on non-performance or irregular performance for causes of breach.
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It may happen that between the time the obligation was established up to the time of
the fulfillment of the obligation and before a choice is made there may be loss of the
prestation.
Loss before the choice is made:
One or some of the prestations: Due to Fortuitous event: Choose between the remaining
obligation
Due to fault of debtor: same rule applies because after all the
debtor has the right to choose. No liability.
All of the prestations: Due to Fortuitous event: extinguishment
Due to fault of debtor: liability is limited to the value of the prestation that
was lost last.
The right to choose may be given to the creditor on the following circumstances:
1. Stipulation in contract
2. Order of the Court
It is also the duty of the creditor to communicate the choice to the debtor, notice
to the debtor is MANDATORY because its the duty of the debtor to perform the said
obligation. It must be communicated with a practicable manner and a reasonable time
before maturity date of the obligation. Nonetheless, the chosen prestation may be
included in the demand served by the creditor to the debtor. The creditor cannot also
choose what is illegal, impossible, unlawful or that which is not contemplated in the
obligation. The debtor may rescind if the creditor abuses the right to choose.
Loss before the creditor can make a choice
One or some of the prestations: Due to Fortuitous event: limited to the remainder
and without the liability of the debtor.
Due to fault of debtor: 1. Choose from the remainder
2. Choose the last prestation as to its value +
damages
All of the prestations: Due to Fortuitous event: extinguishment
Due to fault of debtor: value of any of the lost prestations
A third person can be given the right to choose on the following manner:
1. By stipulation of parties in the contract, may come in an arbitral clause, the 3 rd
person may now determine the prestation to be performed.
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2. By provision of law
Ex. ADR, Lupong Tagapamayapa
3. By court order- refer to mediation and there the mediator chose the prestation to be
performed.
Once the 3rd person chose the prestation to be performed the decision id
considered final, executory and binding between the parties. Unless, the decision is
rendered with grave abuse of discretion or with bias, if such case, the parties may now
proceed to litigation and the court will now be the one to choose the prestation. The 3 rd
person must notify both parties, without said notice, debtor cannor be compelled to
perform and cannot be liable for any breach.
Facultative Obligations
There is only one prestation due, which we called as principal prestation. From the
moment the principal prestation, the debtor has already given the right to substitute or
replace.
Debtor has the absolute right to choose between the principal prestation or
substitute prestation. Prior to fulfillfment of the obligation, debtor can choose either of
the two preatation.
Loss prior to choice:
Principal or substitute prestation: No liability even if there is fault or negligence.
Principal and substitute prestation: Debtor is liable
Alternative
Have 2 or more prestations
The right to choose belongs to the
debtor, creditor or 3rd persons
Facultative
Only one prestation but susceptible
of substitution
The right to choose ALWAYS belongs
to the debtor
-annulment of 3 Million
-balance of 6 Million will be filed against Y and Z.
- the defense of minority or insanity is only partial, it only invalidate the portion of
the defendant, the remainder should be enforced to the other debtors.
3. Purely personal to a co-debtor
Example:
Fault or negligence of ONLY one of them: creditor may proceed against any of them
even to the innocent debtor.
Fortuitous event but after delay, and delay is cause by ONLY ONE of them=
additional liability will be imposed upon the guilty debtor.
Solidarity is not destroyed even if parties is bound by different terms and conditions
Example:
- not a single co-owner can claim; no actual division took place / determined.
- ideal may later on be converted to qualitative or quantitative.
In debts payable by installment, the General rule is in case there is a breach on the
part he is not obliged to pay but an exception is when there is an acceleration clause
pertaining to the failure to pay the installment part the whole is payable and subject to
interest and penalty.
Performance of one part will not extinguished the obligation.
Performance of all parts will dissolve the obligation.
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