Art. 1159.
OBLIGATIONS ARISING Every person criminally liable
FROM CONTRACTS HAVE THE FORCE
OF LAW BETWEEN THE CONTRACTING
PARTIES AND SHOULD BE COMPLIED
WITH IN GOOD FAITH.
o Contract- meeting of minds
between two persons whereby one
binds himself, with respect to the
other, to give something or to
render some service.
1) BINDING FORCE- have the
same binding effect of
obligations imposed by law but
it does not mean that contract
is superior to the law. Contract
must be valid and it cannot be
valid if it is against the law.
2) REQUIREMENTS OF A VALID
CONTRACT- contract is valid if
it is not contrary to LAW,
MORALS, GOOD CUSTOMS,
PUBLIC ORDER, and PUBLIC
POLICY.
3) BREACH OF CONTRACT- a pay for the damage done, there is fault
contract may be breached or
violated by a party in whole or
in part. It takes place when a
party fails or refuses to
comply, without legal reason
or justification.
o Compliance in good faith-
compliance or performance in
accordance with the stipulations
or terms of the contract or
agreement.
Art. 1160. OBLIGATIONS DERIVED
FROM QUASI- CONTRACTS SHALL BE
SUBJECT TO THE PROVISIONS OF
CHAPTER 1
o Quasi-contract- juridical relation
resulting from lawful, voluntary and
unilateral acts
- there is no consent but the same is
supllied by fiction of law
KINDS OF QUASI-CONTRACT
o Negotiorum gestio- voluntary
management of the property or affairs
of another without the knowledge or
consent of the latter.
o Solutio indebiti- created when
something is received when there is no
right to demand it
There is no right to receive the
thing delivered
The thing was delivered
through mistake.
o Other examples of quasi-contracts
Art. 1161. CIVIL OBLIGATIONS
ARISING FROM CRIMINAL OFFENSES
SHALL BE GOVERNED BY THE PENAL
LAWS, SUBJECT TO THE PROVISIONS
OF ARTICLE 2177
o Civil liability for damages arising from
crimes or delicts
for an act or omission is also
civilly liable for damages
In crimes with no material
damage, there is no civil
liability to be enforced. But a
person not criminally
responsible may still be liable
civilly.
o Scope of civil liability
Restitution
Reparation for the damage
caused
Indemnification for
consequential damages
Art. 1162. OBLIGATIONS DERIVED
FROM QUASI-DELICTS SHALL BE
GOVERNED BY THE PROVISIONS OF
CHAPTER 2
o Quasi-delict- act or omission by a
person which causes damage to
another in his person, property, or
rights giving rise to an obligation to
or negligence
o Requisites of a quasi-delict:
There must be an act/omission
There must be fault/negligence
There must be damage caused
There must be a direct relation
or connection of cause and
effect between the act or
omission and the damage
No pre-existing contractual
relation between the parties
o Crime vs Quasi-delict
- In crime, there is criminal or
malicious intent or criminal
negligence. In quasi- delict, only
negligence.
- In crime, purpose is punishment,
while in quasi-delict,
indemnification of the offended
party
- Crime affects public interest, while
quasi-delict concerns private
interest
- In crime there are two liabilities:
criminal and civil. In quasi delict,
there is only civil liability
- Criminal liability can not be
compromised or settled by parties
themselves, while in quasi-delict, it
can be compromised as any other
civil liability.
- In crime, the guilt of the accused
must be proved beyond reasonable
doubt, while in quasi-delict, the
fault/negligence of the defendant
need only be proved by a great
weight of evidence.
CHAPTER II
Art. 1163. EVERY PERSON OBLIGED
TO GIVE SOMETHING IS ALSO
OBLIGED TO TAKE CARE OF IT THE
PROPER DILIGENCE OF A GOOD
FATHER OF A FAMILY, UNLESS THE
LAW OR THE STIPULATION OF THE
 PARTIES REQUIRES ANOTHER
STANDARD OF CARE.
o Determinate/specific thing- identified
by its individuality. Debtor cannot
substitute it with another although the
latter is of the same kind and quality.
o Generic thing- identified only by its
specie. Debtor can give anything of the
same class as long as it is of the same
kind.
o Duties of debor in obligation to give a
determinate thing:
They are to preserve the thing-
take care of the thing due with
the diligence of a good father of
a family pending delivery.
a) Diligence of a good father of
a family- ordinary care
b) Another standard of care
c) Factors to be considered-
debtor is not liable if his
failure to preserve the thing
is not due to his fault or
negligence but to fortuitous
events/ force majeure
d) Reason for debtors
obligation- insure that the
thing to be delivered would
subsist in the same
condition as it was when the
obligation was conracted.
Deliver the fruits of the thing
Deliver the accesions and
accessories
Deliver the thing itself
Answer for damages in case of
non-fulfillment
o Duties of debtor in obligation to
deliver a generic thing:
Deliver a thing which is of the
quality intended by the parties
taking into consideration the
purpose of the obligation and
other situations
To be liable for damages in case
of fraud, negligence, or delay.
Art. 1164. THE CREDITOR HAS A
RIGHT TO THE FRUITS OF THE THING
FROM THE TIME THE OBLIGATION TO
DELIVER IT ARISES. HOWEVER, HE
SHALL ACQUIRE NO REAL RIGHT OVER
IT UNTIL THE SAME HAS BEEN
DELIVERED TO HIM.
o Different kinds of fruits:
1) Natural fruits- spontaneous
products of the soul, and the
young and other products.
2) Industrial fruits- produced by
lands of any kind through
cultivation or labor.
3) Civil fruits-derived by virtue of
a juridical relation
Ex: rents of buildings, price of
leases of lands
o The creditor is entitled to the fruits
of the thing to be delivered from
the time the obligation to make the
delivery arises. To protect the
interest of the obligee should the
obligor commit delay, purposely, in
the fulfilment of his obligation.
o When obligation to deliver fruits
arises:
- From the time of the Perfection of
the contract, refers to the birth of
the contract or to the meeting of
the minds between the parties.
- If subject to a suspensive condition
or period, the fulfillment of the
condition or arrival of the term.
- In a contract of sale, from the
perfection of the contract
- In obligations to give arising from
law, quasi-contracts, delicts, and
quasi-delicts, time of performance
is determined by the specific
provisions of the law applicable
o Personal right- right or power of a
person to demand from a particular
person, there is a definite passive
and active subject
o Real right- right or interest of a
person over a specific thing without
a definite passive subject directed
against the whole world
Art. 1165.
o In a specific real obligation, the
creditor may exercise the ff
remedies or rights:
Demand specific performance
of fulfillment with a right to
indemnity for damages
Demand recission or
cancellation also with a right to
recover damages
Demand payment of damages
only, where it is the only
feasible remedy
o In a generic real obligation, it can
be performed by a third person
since the object is expressed only
according its family/ genus.
o A fortuitous event does not
exempt the debtor from
responsibility to a determinate
thing. An inderterminate thing
cannot be the object of destruction
by a fortuitous event because
genus nunquam perit (genus
never perishes)
Art. 1166.
o Accessions- fruits of a thing or
additions to or improvements upon
a thing.
o Accessories- things joined to or
included with the principal thing for
the latters embellishment, better
use or completion.
o All accessions and accessories are
considered included in the
obligation to deliver a determinate
thing although they may not have
been mentioned.
Art. 1167.
o It contemplates 3 situations:
 Debtor fails to perform an
obligation to do
Debtor performs an obligation
to do but contrary to the terms
Debtor performs an obligation
to do but in poor manner
o If the debtor fails to compply with
his obligation to do, the creditor
has the right to:
Have the obligation performed
by himself
Recover damages
If poorly done,it may be ordered
in the court for it to be undone
if it is still possible to undo what
was done.
o A specific performance cannot be
ordered in a personal obligation to
do because this may amount to
involuntary servitude which is
prohibited under the constitution.
Art. 1168. WHEN THE OBLIGATION
CONSISTS IN NOT DOING, AND THE
OBLIGOR DOES WHAT HAS BEEN
FORBIDDEN HIM, IT SHALL BE
UNDONE AT HIS EXPENSE.
Art. 1169.
o Ordinary delay- failure to perform
an obligation on time
o Legal delay or default or mora-
failure to perform an obligation on
time which failure constitutes a
breach of the obligation.
o Kinds of delay or default:
Mora solvendi- delay on the part
of the debtor to fulfill his
obligation
Mora accipiendi- delay on the
part of the creditor to accept
the performace of the obligation
Compensatio morae- delay of
the obligors in reciprocal
obligations
o 3 Requisites of delay or default by
the debtor:
failure of the debtor to
perform his obligation on the
date agreed upon
demand made by the creditor
upon the debtor to comply
failure of the debtor to comply
with such demand
o Effects of delay
- In mora solvendi:
Debtor is guilty of breach or
violation of the obligation
He is liable to the creditor for
interest
He is liable even for a
fortuitous event when the
obligation is to deliver a
determinate thing.
- In mora accipiendi:
Creditor is guilty of breach of
obligation
He is liable for damages
suffered.
He bears the risk of loss of the
things due.
Debtor is not liable for interest
from the time of creditors
delay.
Debtor may release himself
from the obligation by the
consignation or deposit in court
of the thing or sum due.
- In compensatio morae:
Delay of the obligor cancels the
delay of the obligee and vice
versa
o Delay by the debtor begins only
from the moment a demand is
made by the creditor. The
exceptions are mentioned below:
When the obligation so provides
When the law so provides ex.
Paying taxes
When time is of the essence
When demand would be useless
When there is performance by a
party in reciprocal obligations
Art. 1170. THOSE WHO IN THE
PERFORMANCE OF THEIR
OBLIGATIONS ARE GUILTY OF FRAUD,
NEGLIGENCE, OR DELAY AND THOSE
WHO IN ANY MANNER CONTRAVENE
THE TENOR THEREOF, ARE LIABLE FOR
DAMAGES.
-refers to incidental fraud (dolo incidente)
committed in the performance of an
obligation already existing because of
contract
-causal fraud (dolo causante) or fraud
employed in the execution of a contract
which vitiates consent
o Grounds for liabilty:
1) Fraud (deceit or dolo)- deliberate or
intentional evasion of the normal
fulfillment of an obligation
- designed to mislead or deceive
another
- claim damages
2) Negligence (fault or culpa)- any
voluntary act/ omission, there
being no bad faith or malice, which
prevents the normal fulfilment of
an obligation
3) Delay (mora)
4) Contravention of the terms of the
obligation- violation of the terms
and conditions stipulated in the
obligation. Contravention must not
be due to a fortuitous event or
force majeure.
o Fraud vs. Negligence
In fraud, there is deliberate
intention to cause
damage/injury. In
negligence, there is none.
Waiver of the liability for
future fraud is void. While
such waiver may, in a
certain sense, be allowed in
negligence.
Fraud must be clearly
proved, while negligence is
presumed from the violation
of a contractual obligation.
Lastly, liability for fraud
cannot be mitigated or
 reduced by courts, while
liability for negligence may
be reduced according to the
situations.
They are similar in that both
are voluntary, they are
commited with volition
Art. 1171. RESPONSIBILITY ARISING
FROM FRAUD IS DEMANDABLE IN ALL
OBLIGATIONS. ANY WAIVER OF AN
ACTION FOR FUTURE FRAUD IS VOID.
-can be demanded with respect to all
kinds of obligation and unlike in the case
of responsibility arising from negligence.
-court is not given the power to mitigate or
reduce the damages to be awarded.
o A waiver of an action for future
fraud is void (no effect) because it
is against the law and public policy.
o A past fraud can be the subject of a
valid waiver because the waiver
can be considered as an act of
generosity and magnanimity on the
part of the party who is the victim
of the fraud.
Art. 1172. RESPONSIBILITY ARISING FROM
NEGLIGENCE IN THE PERFORMANCE OF
EVERY KIND OF OBLIGATION IS ALSO
DEMANDABLE, BUT SUCH LIABILITY MAY
BE REGULATED BY THE COURTS,
ACCORDING TO THE CIRCUMSTANCES.
o An action for future negligence
may be renounced except where
the oligation requires the exercise
of extraordinary diligence as in the
case of common carriers.
o Where negligence shows bad faith,
it is considered equivalent to fraud.
o Kinds of negligence according to
source of obligation:
Contractual negligence
(culpa contractual)-
negligence in contracts
resulting in their breach.
-not a source of obligation
Civil negligence (culpa
aquiliana)- negligence which
by itself is the source of an
obligation between the
parties. It is also called tort
or quasi-delict.
Criminal negligence (culpa
criminal)- negligence
resulting in the commission
of a crime.
o What is prohibited is to recover
twice for the same negligent act.
o When the persons own negligence
was the immediate and proximate
cause of his injury, he cannot
recover damages. But if his
negligence was only contributory,
the immediate and proximate
cause of the injury being the
defendants lack of due care, th
plaintiff may recover damages.
Art. 1173. THE FAULT OR NEGLIGENCE
OF THE OBLIGOR CONSISTS IN THE
OMISSION OF THAT DILIGENCE WHICH
IS REQUIRED BY THE NATURE
o Fault/negligence is the failure to
observe for the protection of the
interests of another person, the
degree of care, precaution and
vigilance which the circumstances
justly demand, whereby such other
person suffers injury.
o Factors to be considered:
1) Nature of the obligation.
2) Circumstances of the person
3) Circumstances of time
4) Circumstances of the place
o Measure of liability for damages:
In contracts & quasi-
contracts, the damages for
which the obligor who acted
in good faith is liable shall
be those that are the
natural and probable
consequences of the
breach.
In case of fraud, bad faith,
malice, obligor shall be
responsible for all damages
which may be reasonably
attributed to the non-
performance of the
obligation.
o Kinds of diligence required:
1) that agreed upon by the
parties, orally, or in writing.
2) In the absence of stipulation,
that required law in the
particular case (like the
extraordinary diligence required
of common carriers)
3) If both the contract and law are
silent, then the diligence
expected of a good father of a
family
Art. 1174. EXCEPT IN CASES
EXPRESSLY SPECIFIED BY THE LAW,
OR WHEN IT IS OTHERWISE DECLARED
BY STIPULATION, OR WHEN THE
NATURE OF THE OBLIGATION
REQUIRES THE ASSUMPTION OF RISK,
NO PERSON SHALL BE RESPONSIBLE
FOR THOSE EVENTS WHICH COULD
NOT BE FORESEEN, OR WHICH
THOUGH FORESEEN, WERE
INEVITABLE.
o A fortuitous event is any event
which cannot be foreseen, or
which, though foreseen, is
inevitable.
Act of man- event
independent of the will of
the obligor but not of other
human wills
Acts of God- majeure
events which are totally
independent will of every
human being.
- exempts an obligor from
liability.
o Kinds of fortuitous events:
 1) Ordinary fortuitous events- 1) With reservation as the interest
common and which the 2) Receipt without indication of
contracting parties could particular installment paid
reasonably foresee (e.g.,rain) 3) Receipt for a part of the
2) Extra-ordinary fortuitous principal-
events- uncommon and which 4) Payment of taxes
the contracting parties 5) Non-payment proven
couldnt have reasonably
foreseen (e.g., fire, Art. 1177. The creditors, after having
earthquake, pestilence, pursued the property in possession of the
unusual flood) debtor to satisfy their claims, may exercise
o Requisites of a fortuitous event: all the rights and bring all the actions of
1) event must be independent of the latter for the same purpose, save
the human will or at least of the those which are inherent in his person;
debtors will they may also impugn the acts which the
2) event could not be foreseen, or debtor may have done to defraud them.
if foreseen, inevitable (1111)
3) event must be of such a
character as to render it Art. 1178. Subject to the laws, all rights
impossible for the debtor to acquired in virtue of an obligation are
comply w/ his obligation in a transmissible, if there has been no
normal manner stipulation to the contrary. (1112)
4) debtor must be free from any
participation in, or the CHAPTER 3
aggravation of, the injury to the
creditor, there is no concurrent DIFFERENT KINDS OF OBLIGATIONS
negligence on his part.
- absence of any of the above SECTION 1. - Pure and Conditional
requisites would prevent the Obligations
obligor from being exempt from
liability Art. 1179. Every obligation whose
o Exceptions: performance does not depend upon a
1) Expressly specified by law future or uncertain event, or upon a past
except: event unknown to the parties, is
The debtor is guilty of demandable at once.
fraud, negligence, or
delay or contravention Every obligation which contains a
Debtor has promised to resolutory condition shall also be
deliver the same specific demandable, without prejudice to the
thing to two or more effects of the happening of the event.
person who do not have (1113)
the same interest
Obligation to deliver a o Pure obligation- not subject to any
specific thing arises from condition and no specific date is
a crime. mentioned for its fulfillment and is,
Thing to be delivered is therefore, immediately demandable
generic Ex: D obliges himself to pay C 1,000.
2) when declared by stipulation- (immediately demandable because there
rests upon the freedom of is no condition and no date mentioned)
contract, should be clearly
expressed o Conditional obligation- one whose
3) when the nature of the consequences are subject in one way
obligation requires the or another to the fulfillment of a
assumption of risk condition.
- subject to a future/uncertain
Art. 1176. event
o Condition- future and uncertain event,
o Presumption is meant the inference the effectivity or extinguishment of the
of a fact not actually known arising obligation or right subject to it
from its usual connection with depends
another which is known or proved. - a condition must not be
o Kinds of presumption: impossible
1) Conclusive presumption- one
which cannot be contradicted, CHARACTERISTICS OF A CONDITION:
like the presumption that Future and uncertain
everyone is conclusively Past but unknown to the parties
presumed to know the law TWO PRINCIPAL KINDS OF CONDITION:
2) Disputable or rebuttable 1) Suspensive Condition
presumption- one which cannot - Condition precedent or
be contradicted or rebutted by condition antecedent
presenting proof to the - The demandability of the
contrary. obligation is suspended until
o When presumptions do not apply: the happening of the uncertain
 event which constitutes the
condition
Ex: I will sell you the land if it is
adjudicated to me in the division of my
deceased fathers estate.
2) Resolutory condition
- Condition subsequent
- Fulfillment of condition will
extinguish an obligation already
existing
Ex: D binds himself to give C monthly
allowance until C graduates from college.
SUSPENSIVE vs RESOLUTORY
If the SC is fulfilled, obligation
arises, while if it is the RC that is
fulfilled, obligation is extinguished
If the SC doesnt take place, tie of
the law does not appear, while if
RC, tie of law is consolidated.
Until the SC takes place, existence
of the obligation is a mere hope,
while in RC, its effects flow, but
over it hovers the possibility of
termination.
AN OBLIGATION IS DEMANDABLE AT
ONCE---
When it is pure
When it is subject to a resolutory
condition
When it is subject to a resolutory
period
Art. 1180. When the debtor binds himself
to pay when his means permit him to do
so, the obligation shall be deemed to be
one with a period, subject to the
provisions of Article 1197. (n)
WHERE DURATION OF PERIOD DEPENDS
UPON THE WILL OF DEBTOR
o Period- future and certain event upon
the arrival of which the obligation
subject to it either arises or is
extinguished.
1) The debtor promises to pay when his
means permit him to do so.
- this shall be deemed to be one
with a period
2) Other cases. (when debtor binds
himself to pay)
Art. 1181. In conditional obligations, the
acquisition of rights, as well as the
extinguishment or loss of those already
acquired, shall depend upon the
happening of the event which constitutes
the condition. (1114)
EFFECTS OF HAPPENING OF CONDITION:
1) Acquisition of rights
- In obligations subject to SC, the
acquisition of rights by the
creditor depends upon the
happening of the event which
constitutes the condition
- If the SC doesnt take place and
it is certain that it will not be
fulfilled, the parties would stand
as if the conditional obligation
had never existed.
2) Loss of rights already acquired
- In obligations subject to a RC,
happening of the event which
constitutes the condition
produces the extinguishment/
loss of rights already acquired
Art. 1182. When the fulfillment of the
condition depends upon the sole will of the
debtor, the conditional obligation shall be
void. If it depends upon chance or upon
the will of a third person, the obligation
shall take effect in conformity with the
provisions of this Code. (1115)
o Potestative condition
- condition suspensive in nature
- depends upon the sole will of
one of the contracting parties
WHERE SC DEPENDS UPON WILL OF
DEBTOR:
1) Conditional obligation void
- where the potestative condition
depends solely upon the will of
the debtor
- no juridical tie is created.
2) Only the condition void
- If the obligation is preexisting,
does not depend for its
existence
- Obligation is left unaffected
WHERE SC DEPENDS UPON WILL OF
CREDITOR:
1) It is valid.
WHERE RC DEPENDS UPON WILL OF
DEBTOR:
- Obligation is valid although its
fulfillment of the condition depends
upon the sole will of the debtor
o Casual condition
- If the SC depends upon chance or
upon the will of a third person,
obligation subject to it is valid.
Ex: S binds himself to sell his land to B if
he wins a case which is pending before the
Supreme court.
o Mixed Condition
- Obligation is valid if the SC
depends partly upon chance and
partly upon the will of a third
person.
WHERE SC DEPENDS PARTLY UPON WILL
OF DEBTOR:
- Obligation is perfectly valid
Art. 1183. 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 obligation is divisible, that part
thereof which is not affected by the
impossible or unlawful condition shall be
valid.
The condition not to do an impossible
thing shall be considered as not having
 been agreed upon. (1116a)
- refers to SCs
- applies only to cases where the
impossibility already existed at the
time the obligation was
constituted.
TWO KINDS OF IMPOSSIBLE CONDITIONS:
1) Physically impossible conditions
- In nature of things, cannot exist
or cannot be done.
2) Legally impossible conditions
- When they are contrary to law,
morals, good customs, public
order, or public policy.
EFFECTS OF IMPOSSIBLE CONDITIONS:
1) Conditional obligation void.
- Impossible conditions annul the
obligation which depends upon
them. Both the obligation and
the condition are void.
2) Conditional obligation valid.
- If the condition is negative (not
to do an impossible thing), it is
disregarded (same as if there
were no condition) and the
obligation is rendered pure and
valid.
3) Only the affected obligation void.
- If the obligation is divisible, the
part not affected by the
impossible condition shall be
valid.
4) Only the condition void.
- If the obligation is a preexisting
obligation, and does not depend
upon the fulfillment of the
condition which is impossible,
for its existence, only condition
is void.
Art. 1184. The condition that some event
happen at a determinate time shall
extinguish the obligation as soon as the
time expires or if it has become
indubitable that the event will not take
place. (1117)
o Positive condition
- Happening of an event at a
determinate time.
OBLIGATION IS EXTINGUISHED:
as soon as the time expires without
the event taking place.
As soon as it has become certainly
sure that the event will not take
place although the time specified
has not expired.
Art. 1185. The condition that some event
will not happen at a determinate time
shall render the obligation effective from
the moment the time indicated has
elapsed, or if it has become evident that
the event cannot occur.
If no time has been fixed, the condition
shall be deemed fulfilled at such time as
may have probably been contemplated,
bearing in mind the nature of the
obligation. (1118)
o Negative condition
- Event will not happen at a
determinate time.
OBLIGATION SHALL BECOME EFFECTIVE
AND BINDING:
From the moment the time
indicated has elapsed without the
event taking place
From the moment it has become
evident that the event cannot
occur, although the time indicated
has not elapsed.
Art. 1186. The condition shall be deemed
fulfilled when the obligor voluntarily
prevents its fulfillment. (1119)
CONSTRUCTIVE FULFILLMENT OF SC
3 REQUISITES:
1) Condition is suspensive.
2) Obligor actually prevents the
fulfillment of the condition.
3) He acts voluntarily.
CONSTRUCTIVE FULFILLMENT OF RC
Art. 1187. The effects of a conditional
obligation to give, once the condition has
been fulfilled, shall retroact to the day of
the constitution of the obligation.
Nevertheless, when the obligation imposes
reciprocal prestations upon the parties,
the fruits and interests during the
pendency of the condition shall be
deemed to have been mutually
compensated. If the obligation is
unilateral, the debtor shall appropriate the
fruits and interests received, unless from
the nature and circumstances of the
obligation it should be inferred that the
intention of the person constituting the
same was different.
In obligations to do and not to do, the
courts shall determine, in each case, the
retroactive effect of the condition that has
been complied with. (1120)
RETROACTIVE EFFECTS OF FULFILLMENT
OF SC:
1) In obligations to give
- It only becomes demandable
only upon the fulfillment of the
condition.
- Once the condition is fulfilled,
its effects shall retroact to the
day when the obligation was
constituted.
- Obligation should be considered
from the time it is constituted
and not from the time the
condition is fulfilled.
2) In obligations to do or not to do
- No fixed rule is provided
- Courts are empowered by
the use of sound discretion
and bearing in mind the
intent of the parties to
determine if it shall have no
retroactive effect or from
 what date such retroactive
effect shall take place.
RETROACTIVE EFFECTS AS TO FRUITS AND
INTERESTS IN OBLIGATION TO GIVE:
1) In reciprocal obligations
- There is no rectroactivity
because the fruits and
interest received during the
pendency of the condition
are deemed to have been
mutually compensated.
2) In unilateral obligations
- No retroactive effect
because they are gratuitous.
Debtor receives nothing
from the creditor.
Ex: Donation
Art. 1188. The creditor may, before the
fulfillment of the condition, bring the
appropriate actions for the preservation of
his right.
The debtor may recover what during the
same time he has paid by mistake in case
of a suspensive condition. (1121a)
RIGHTS PENDING FULFILLMENT OF
SUSPENSIVE CONDITION:
1) Rights of creditor
- He may take/ bring
appropriate actions for the
preservation of his right
2) Rights of debtor
- He is entitled to recover
what he has paid by
mistake prior to the
happening of the
suspensive condition.
- This right is granted to the
debtor because the creditor
may or may not be able to
fulfill the obligation
- Case of solution indebiti
Art. 1189. When the conditions have been
imposed with the intention of suspending
the efficacy of an obligation to give, the
following rules shall be observed in case of
the improvement, loss or deterioration of
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;
(2) If the thing is lost through the fault of
the debtor, he shall be obliged to pay
damages; it is understood that the thing is
lost when it perishes, or goes out of
commerce, or disappears in such a way
that its existence is unknown or it cannot
be recovered;
(3) When the thing deteriorates without
the fault of the debtor, the impairment is
to be borne by the creditor;
(4) If it deteriorates through the fault of
the debtor, the creditor may choose
between the rescission of the obligation
and its fulfillment, with indemnity for
damages in either case;
(5) If the thing is improved by its nature,
or by time, the improvement shall inure to
the benefit of the creditor;
(6) If it is improved at the expense of the
debtor, he shall have no other right than
that granted to the usufructuary. (1122)
REQUISITES:
Obligation is a real obligation
The object is a specific or
determinate thing
The obligation is subject to a
suspensive condition
The condition is fulfilled
There is loss, deterioration, or
improvement of the thing during
the pendency of the condition.
KIND OF LOSS:
1) Physical loss
- When a thing perishes
2) Legal loss
- When a thing goes out of
commerce
- When a thing heretofore legal
becomes illegal
3) Civil loss
- When a thing disappears in
such a way its existence is
unknown
- Known but it cannot be
recovered
RULES:
1) Loss of thing without debtors fault
- Obligation will be
extinguished
- Debtor is not liable
2) Loss of thing through debtors fault
- Creditor will be entitled to
demand damages plus
incidental damages, if any.
3) Deterioration of thing without
debtors fault
- Creditor will have to suffer the
deterioration or the
impairment
4) Deterioration of thing through
debtors fault
- Creditor may choose between:
- Rescission (cancellation) of the
obligation with damages
- Fulfillment of the obligation
also with damages
5) Improvement of thing by nature or
by time
- The improvement shall
benefit the debtor/creditor
6) Improvement of thing at expense of
debtor
- Debtor will have the right to
a usufructuary with respect
to improvements made on
the thing
o Usufruct
- Right to enjoy the use and
fruits of thing belonging to
another
Art. 1190. When the conditions have for
 their purpose the extinguishment of an
obligation to give, the parties, upon the
fulfillment of said conditions, shall return
to each other what they have received.
In case of the loss, deterioration or
improvement of the thing, the provisions
which, with respect to the debtor, are laid
down in the preceding article shall be
applied to the party who is bound to
return.
As for the obligations to do and not to do,
the provisions of the second paragraph of
Article 1187 shall be observed as regards
the effect of the extinguishment of the
obligation. (1123)
EFFECTS OF FULFILLMENT OF RC:
1) In obligations to give
- Parties are obliged to return
to each other what they
have received under the
obligation
- If the thing is in the
possession of a third party
who acted in good faith,
remedy is restitution against
the other
- Mutual restitution is
absolute. Applies not only to
the thing received but also
to the fruits and interests.
- Only possible exception is
when the intention of the
parties is otherwise.
2) In obligations to do or not to do:
- Courts shall determine the
retroactive effect of the
fulfillment of the resolutory
condition unless taking
account the circumstances of
each case
Art. 1191. The power to rescind
obligations is implied in reciprocal ones, in
case one of the obligors should not comply
with what is incumbent upon him.
The injured party may choose between the
fulfillment and the rescission of the
obligation, with the payment of damages
in either case. He may also seek
rescission, even after he has chosen
fulfillment, if the latter should become
impossible.
The court shall decree the rescission
claimed, unless there be just cause
authorizing the fixing of a period.
This is understood to be without prejudice
to the rights of third persons who have
acquired the thing, in accordance with
Articles 1385 and 1388 and the Mortgage
Law. (1124)
KINDS OF OBLIGATION ACCORDING TO
THE PERSON OBLIGED:
1) Unilateral
- When only one party is obliged
to comply with a prestation
- Ex: Donation
2) Bilateral
- When both parties are mutually
bound to each other.
A) Reciprocal Obligations
- Which arise from the same
cause and in which each party
is a debtor and creditor of the
other
B) Non-reciprocal obligations
- Which do not impose
simultaneous and correlative
performance on both parties.
- Performance of one party is not
dependent upon the
simultaneous performance by
the other
REMEDIES IN RECIPROCAL OBLIGATIONS:
1) Choice of remedies
a) fulfillment of the
obligation with damages
b) rescission of the
obligation with damages
2) Remedy of rescission for non-
compliance
-remedies are alternative and not
cumulative, he is privileged to
choose only one of the remedies,
and not both
- If fulfillment becomes
impossible, it can be
converted to rescission
LIMITATIONS ON RIGHT TO DEMAND
RESCISSION:
1) Resort to the courts
- Injured party has to resort to
the courts to assert his
rights judicially
2) Power of court to fix period
- Court has discretionary
power to allow a period
within which a person in
default may be permitted to
perform his obligation
3) Right of third person
- If the thing is in the hands
of a third party who acted in
good faith, rescission is not
available as a remedy
4) Substantial violation
- Rescission will not be
granted for slight breaches
of contract
- Violation should be
substantial as to defeat the
object of the parties in
making the agreement
5) Waiver of right
- Right to rescind may be
waived, expressly or
impliedly
- The acceptance by the
seller of the land sold as
security for the balanceof
the price is an implied
waiver for the right to
rescind in case of
nonpayment
RESCISSION WITHOUT PREVIOUS JUDICIAL
DECREE:
1) Where automatic rescission
expressly stipulated
2) where contract still executory
- where there is no
performance yet by both
 parties but one is ready and
willing to comply with what
is incumbent upon him and
the other is not
- willing party may rescind
the contract without a
previoud judicial decree of
rescission
Art. 1192. In case both parties have
committed a breach of the obligation, the
liability of the first infractor shall be
equitably tempered by the courts. If it
cannot be determined which of the parties
first violated the contract, the same shall
be deemed extinguished, and each shall
bear his own damages. (n)
WHERE BOTH PARTIES ARE GUILTY OF
BREACH:
1) First infractor known
- One party violated his obligation;
subsequently, the other also
violated his part of the obligation.
- In this case, liability of the first
infractor should be equitably
reduced
2) First infractor cannot be
determined
- If cannot be determined, contract
shall be deemed extinguished and
each shall bear his own damages
SECTION 2. - Obligations with a Period
Art. 1193. Obligations for whose fulfillment
a day certain has been fixed, shall be
demandable only when that day comes.
Obligations with a resolutory period take
effect at once, but terminate upon arrival
of the day certain.
A day certain is understood to be that
which must necessarily come, although it
may not be known when.
If the uncertainty consists in whether the
day will come or not, the obligation is
conditional, and it shall be regulated by
the rules of the preceding Section. (1125a)
o Obligation with a period
- One whose effects or
consequences are subjected in
one way or another to the
expiration or arrival of said
period or term
o Period
- Future and certain event upon
the arrival of which the
obligation subject to it either
arises or is terminated
PERIOD vs CONDITION
1) As to fulfillment
- Period is a certain event which
must happen sooner or later at
a date known while a condition
is an uncertain event
2) As to time
- Period only refers to the future
- Condition may refer to a past
event unknown to the parties
3) As to influence on the obligation
- Period fixes the time for the
efficaciousness of the
obligation. If suspensive, it
cannot prevent the birth of
the obligation in due time. If
resolutory, It does not
invalidate the fact that the
obligation existed.
- Condition cause an
obligation either to arise or
to cease
4) As to effect, when left to debtors
will
- A period which depends
upon the will of the debtor
empowers the court t0 fix
the duration
- Condition invalidates the
obligation
5) As to retroactivity of effects
- Arrival of a period does not
have any retroactive effect
- Condition has retroactive
effect
KINDS OF PERIOD OR TERM
ACCORDING TO EFFECT:
1) Suspensive period (ex die)
- Obligation begins only from
a day certain upon the
arrival of period
2) Resolutory period (in diem)
- Obligation is valid up to a
day certain and terminates
upon arrival of the period
ACCORDING TO SOURCE:
1) Legal period
- When it is provided for by
laws
2) Conventional or voluntary period
- when it is agreed to by the
parties
3) Judicial Period
- When it is fixed by the court
ACCORDING TO DEFINITENESS:
1) Definite period
- When it is fixed or it is
known when it will come
2) Indefinite period
- It is not fixed or it is not
known when it will come
- Where period is not fixed
but a period is intended
Art. 1194. In case of loss, deterioration or
improvement of the thing before the
arrival of the day certain, the rules in
Article 1189 shall be observed. (n)
Art. 1195. Anything paid or delivered
before 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. (1126a)
- Applies only to obligation to give
- Allows the recovery of what has
been paid by mistake before the
fulfillment of a suspensive
condition
DEBTOR PRESUMED AWARE OF PERIOD.
- Debtor knew that debt was not yet
due
- He has the burden of proving that
he was unaware of the period.
- The obligor may no longer recover
the thing or money once the period
has arrived but he can recover the
fruits or interests from the date of
premature performance to the date
of maturity of the obligation
NO RECOVERY IN PERSONAL OBLIGATIONS
-it is physically impossible to recover the
service rendered
Art. 1196. Whenever in an obligation a
period is designated, it is presumed to
have been established for the benefit of
both the creditor and the debtor, unless
from the tenor of the same or other
circumstances it should appear that the
period has been established in favor of
one or of the other. (1127)
PRESUMPTION AS TO BENEFIT OF PERIOD:
- presumed to have been established
for the benefit of both the creditor
and debtor
EXCEPTIONS TO THE GENERAL RULE:
1) Term is for the benefit of the debtor
alone
- He cannot be compelled to pay
prematurely, but he can, if he
desires to do so.
2) Term is for the benefit of the creditor
- He may demand fulfillment even
before the arrival of the term but
the debtor cannot require him to
accept payment before the
expiration of the stipulated period
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 thereof.
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. (1128a)
- Refers to a judicial period
- If the obligation does not state a
period and no period is intended,
the court is not authorized to fix a
period
EXCEPTIONS TO THE GENERAL RULE:
1) No period is fixed but a period was
intended
- It can be inferred from its nature and
the circumstances that a period was
intended
2) Duration of the period depends upon
the will of the debtor
LEGAL EFFECT WHERE SP/C DEPENDS
UPON WILL OF DEBTOR:
1) Existence of the obligation is not
affected although the period
depends upon sole will of the
debtor
2) If the obligation is subject to a
condition which depends upon the
sole will of the debtor, conditional
obligation is void.
PERIOD FIXED CANNOT BE CHANGED BY
THE COURTS:
1) If there is a period agreed upon and
it has already lapsed, court cannot
fix another period.
2) From the very moment the parties
give their acceptance and consent
to the period fixed by the court,
said period acquires the nature of
the contract
Art. 1198. The debtor shall lose every right
to make use of the period:
(1) When after the obligation has been
contracted, he 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 a
fortuitous event they disappear, unless he
immediately gives new ones equally
satisfactory;
(4) When the debtor violates any
undertaking, in consideration of which the
creditor agreed to the period;
(5) When the debtor attempts to abscond.
(1129a)
- General rule is that the obligation is
not demandable before the lapse of
the period
- But in these cases, debtor shall lose
every right to make use of the period.
- Period is disregarded and the
obligation becomes pure and,
immediately demandable
1) When debtor becomes insolvent
- Note that the insolvency of D must
occur after the obligation has been
contracted
2) When debtor does no furnish
guaranties or securities promised
3) When guaranties or securities given
have been impaired or have
disappeared
4) When debtor violates an undertaking
5) When debtor attempts to abscond
SECTION 3. - Alternative Obligations
Art. 1199. A person alternatively bound by
different prestations shall completely
 perform one of them.
The creditor cannot be compelled to
receive part of one and part of the other
undertaking. (1131)
KINDS OF OBLIGATION ACCORDING TO
OBJECT:
1) Simple Obligation
- One where there is only one
prestation
2) Compound obligation
- one where there are several
prestations.
a) Conjunctive obligation
- one where there are several
prestations and all of them are due
b) Distributive obligation
- One where several prestations are
due but the performance of one is
sufficient
1) Alternative obligation
- One where several prestations are
due but the performace of one is
sufficient
2) Facultative obligation
- One where only one prestation is
due but the debtor may substitute
another
o Alternative obligation
- One wherein various prestations are
due but the performance of one of
them is sufficient as determined by
the choice which belongs to the
debtor
Art. 1200. The right of choice belongs to
th) e debtor, unless it has been expressly
granted to the creditor.
The debtor shall have no right to choose
those prestations which are impossible,
unlawful or which could not have been the
object of the obligation. (1132)
RIGHT OF CHOICE, AS A RULE, GIVEN TO
DEBTOR.
- The right to choose the prestation
belongs to the debtor
- It may be exercised by the creditor
but only when expressly granted to
him or a third person when the right
is given to him by common
agreement
RIGHT OF CHOICE OF DEBTOR NOT
ABSOLUTE.
1) Debtor cannot choose those
prestations which are: a) impossible, b)
unlawful or c) which could not have
been the object of the obligation.
These are void.
2) Debtor has no more right of choice
when among the prestations whereby
he is alternatively bound, but only one
is practicable. Obligation becomes
simple.
3) Debtor cannot choose part of one
prestation and part of another
prestation.
Art. 1201. The choice shall produce no
effect except from the time it has been
communicated. (1133)
COMMUNICATION OF NOTICE THAT CHOICE
HAS BEEN MADE.
1) Effect of notice
- Obligation remains alternative
a) once the notice of the election has
been given to the creditor,
obligation ceases to be alternative
and becomes simple.
b) Such choice once properly made
and communicated is irrevocable
and cannot, be changed by either
party without the consent of the
other.
2) Proof and form of notice
- Burden of proving that such
communication has been made
is upon him who made the
choice.
Art. 1202. The debtor shall lose the right
of choice when among the prestations
whereby he is alternatively bound, only
one is practicable. (1134)
EFFECT WHEN ONLY ONE PRESTATION IS
PRACTICABLE.
- obligation is converted into a simple one
Art. 1203. If through the creditor's acts the
debtor cannot make a choice according to
the terms of the obligation, the latter may
rescind the contract with damages. (n)
WHEN DEBTOR MAY RESCIND CONTRACT.
o Rescission
- Creates the obligation to return
the things which were the
object of the contract together
with their fruits and price with
its interest
Art. 1204. The creditor shall have a right
to indemnity for damages when, through
the fault of the debtor, all the things which
are alternatively the object of the
obligation have been lost, or the
compliance of the obligation has become
impossible.
The indemnity shall be fixed taking as a
basis the value of the last thing which
disappeared, or that of the service which
last became impossible.
Damages other than the value of the last
thing or service may also be awarded.
(1135a)
EFFECTS OF LOSS OF OBJECTS OF
OBLIGATION.
1) Some of the objects have been lost
or have become impossible even
through the fault of the debtor,
debtor is not liable since he has the
right of choice and obligation can
still be performed.
2) If all of the objects are lost or have
become impossible through his
fault, creditor shall have the right
to indemnity for damages since the
obligation can no longer be
complied with.
- If fortuitous event, obligation is
 extinguished. negligence of the obligor, does not render
BASIS OF INDEMNITY. him liable. But once the substitution has
- Value of the last thing which been made, the obligor is liable for the
disappeared loss of the substitute on account of his
- Service which last became delay, negligence or fraud. (n)
impossible
o Facultative obligation
Art. 1205. When the choice has been - One where only one
expressly given to the creditor, the prestation has been agreed
obligation shall cease to be alternative upon but the obligor may
from the day when the selection has been render another substitution
communicated to the debtor. EFFECT OF LOSS.
1) Before substitution
Until then the responsibility of the debtor - If principal thing is lost
shall be governed by the following rules: through a fortuitous event,
obligation is extinguished;
(1) If one of the things is lost through a otherwise, debtor is liable
fortuitous event, he shall perform the for damages.
obligation by delivering that which the - Loss of the thing intended
creditor should choose from among the as a substitute with or
remainder, or that which remains if only without the fault of the
one subsists; debtor does not render him
liable because the thing
(2) If the loss of one of the things occurs intended as a substitute is
through the fault of the debtor, the not due.
creditor may claim any of those subsisting, 2) After substitution
or the price of that which, through the - If the principal thing is lost,
fault of the former, has disappeared, with debtor is not liable whatever
a right to damages; may be the cause of the loss,
because it is no longer due.
(3) If all the things are lost through the - If the substitue is lost, liability
fault of the debtor, the choice by the of the debtor depends upon
creditor shall fall upon the price of any one whether or not the loss is due to
of them, also with indemnity for damages. his fault.
- Once the substitution is made,
The same rules shall be applied to obligation is converted into a
obligations to do or not to do in case one, simple one.
some or all of the prestations should
become impossible. (1136a) ALTERNATIVE vs FACULTATIVE
ALTERNATIVE FACULTATIVE
WHEN RIGHT OF CHOICE BELONGS TO OBLIGATIONS OBLIGATIONS
CREDITOR.
- Debtor may expressly give the Several prestations Only one prestation
right of choice to the creditor. are due is due
RULES IN CASE OF LOSS BEFORE Right of choice may Right to make the
CREDITOR HAS MADE CHOICE. be given to the substitution is
1) When a thing is lost through a debtor or creditor given only to the
fortuitous event or third person debtor
- Choose from among the
remainder or that which
remains Loss through a Loss of the thing
2) When a thing is lost through fortuitous event due through a
debtors fault does NOT fortuitous event
3) When all the things are lost through extinguish the extinguishes the
debtors fault obligation obligation
- Can demand the payment of Loss through fault Loss of the thing
the price of any one of them of the debtor of one due through his
with a right to indemnity for of the alternatives fault renders him
damages does NOT render liable
4) When all the things are lost through him liable
a fortuitous event
- Obligation is extinguished Loss of one Loss of the thing
Above rules are also applicable to alternative through intended as
personal obligations the fault of the substitute, through
debtor, when the fault of the
choice belongs to debtor, before the
Art. 1206. When only one prestation has the creditor, substitution, does
been agreed upon, but the obligor may renders the debtor NOT render him
render another in substitution, the liable for damages liable.
obligation is called facultative.

The loss or deterioration of the thing

intended as a substitute, through the

SECTION 4. - Joint and Solidary Obligations
Art. 1207. The concurrence of two or more
creditors or of two or more debtors in one
and the same obligation does not imply
that each one of the former has a right to
demand, or that each one of the latter is
bound to render, entire compliance with
the prestation. There is a solidary liability
only when the obligation expressly so
states, or when the law or the nature of
the obligation requires solidarity. (1137a)
Art. 1208. If from the law, or the nature or
the wording of the obligations to which the
preceding article refers the contrary does
not appear, the credit or debt shall be
presumed to be divided into as many
shares as there are creditors or debtors,
the credits or debts being considered
distinct from one another, subject to the
Rules of Court governing the multiplicity of
suits. (1138a)
KINDS OF OBLIGATIONS ACCORDING TO
THE NUMBER OF PARTIES:
1) Individual Obligation
- there is only 1 obligor or 1
obligee
2) Collective Obligation
- There are two or more debtors
and/or two or more creditors
o Joint obligation
- One where the whole obligation
is to be paid or fulfilled
proportionately by the different
debtors and is to be demanded
proportionately by the diff
creditors
o Solidary Obligation
- 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.
When there are TWO OR MORE
DEBTORS OR TWO OR MORE
CREDITORS, the obligation is:
GENERAL RULE: JOINT OBLIGATION
- Because solidary obligations are
very burdensome for they
create unusual rights and
liabilities
o Consequences of a JOINT OBLIGATION:
There are as many debs as there
are debtors
There are as many credits as there
are creditors
The debts and/or credits are
considered distinct and separate
from one another
Each debtor is liable only for a
proportionate part of the debt
Each creditor is entitled only to a
proportionate part of the credit
Vitiated consent on the part of one
debtor does not affect the others
Insolvency of one debtor does not
make others responsible of his
share
Demand by the creditor on one
joint debtor puts him in default, but
not the others since the debts are
distinct.
Defenses of one debtor are not
necessarily available to the others.
WORDS INDICATING A JOINT OBLIGATION:
Pro rata
Proportionately
we promise to pay signed by
two or more persons
WHEN OBLIGATION SOLIDARY.
A) When the obligation so states
B) When the nature of the obligation
requires solidarity
C) When the law declares the
obligation to be solidary
examples: obligation arising from quasi-
contract or quasi-delict
WORDS INDICATING A SOLIDARY
OBLIGATION:
Joint and several
In solidum
Individually and collectively
Each will pay the WHOLE amount
I promise to pay signed by two or
more persons
KINDS OF SOLIDARITY:
1) ACCORDING TO THE PARTIES BOUND:
a) Passive solidarity
- Solidarity on the part of the
debtors
- Each one of the debtors may be
asked to perform the ENTIRE
obligation
- Mutual guaranty
Ex: A and B are solidary debtors of
C in the amount of P10,000.
b) Active solidarity
- solidarity on the part of the
creditors, where any one of
them can demand the
fulfillment of the entire
obligation.
- Mutual representation/ agency
Ex: Mr. X obtained a loan from Mr. Y
and Mr. Z who are solidary
creditors.
c) Mixed solidarity
- Solidarity on the part of debtors
and creditors, where each one
of the debtors is liable to
render, and each one of the
debtors is liable to render, and
each one of the creditors has a
right to demand entire
compliance
2) ACCORDING TO SOURCE:
a) Conventional solidarity
- Where solidarity is agreed upon
by the parties
b) Legal solidarity
- Solidarity is imposed by the law
c) Real Solidarity
- Solidarity is imposed by the
nature of the obligation
 Art. 1209. If the division is impossible, the
right of the creditors may be prejudiced
only by their collective acts, and the debt
can be enforced only by proceeding
against all the debtors. If one of the latter
should be insolvent, the others shall not
be liable for his share. (1139)
- This article speaks of a joint
indivisible obligation
- Joint because the parties are
merely proportionately liable
- Not physically divisible into
INDIVISIBILITY SOLIDARITY
Refers to the prestation Refers to the tie between
the parties
Only the debtor guilty of All of the debtor are liable
breach is liable for damages for the breach of the
obligation committed by a
debtor
Can exist although there is There must be at least two
only one debtor debtors or two creditors
Other debtors not liable in Others debtors are liable
case of insolvency of one in case of insolvency of
debtor one debtor
different parts
- -joint as to liabilities of the
debtors or rights of the
creditors but indivisible as to
compliance
Art. 1210. The indivisibility of an obligation
does not necessarily give rise to solidarity.
Nor does solidarity of itself imply
indivisibility. (n)
Art. 1211. Solidarity may exist although
the creditors and the debtors may not be
bound in the same manner and by the
same periods and conditions. (1140)
o KINDS OF SOLIDARY OBLIGATION
ACCORDING TO THE LEGAL TIE
1) Uniform when the parties are
bound by the same stipulations
2) Non-Uniform/Varied when the
parties are not subject to the same
stipulations
Art. 1212. Each one of the solidary
creditors may do whatever may be useful
to the others, but not anything which may
be prejudicial to the latter. (1141a)
Art. 1213. A solidary creditor cannot
assign his rights without the consent of
the others. (n)
Art. 1214. The debtor may pay any one of
the solidary creditors; but if any demand,
judicial or extrajudicial, has been made by
one of them, payment should be made to
him. (1142a)
Art. 1215. Novation, compensation,
confusion or remission of the debt, made
by any of the solidary creditors or with any
of the solidary debtors, shall extinguish
the obligation, without prejudice to the
provisions of Article 1219.
The creditor who may have executed any
of these acts, as well as he who collects
the debt, shall be liable to the others for
the share in the obligation corresponding
to them. (1143)
Art. 1216. The creditor may proceed
against any one of the solidary debtors or
some or all of them simultaneously. The
demand made against one of them shall
not be an obstacle to those which may
subsequently be directed against the
others, so long as the debt has not been
fully collected. (1144a)
Art. 1217. Payment made by one of the
solidary debtors extinguishes the
obligation. If two or more solidary debtors
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 made before the debt is due,
no interest for the intervening period may
be demanded.
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.
(1145a)
Art. 1218. Payment by a solidary debtor
shall not entitle him to reimbursement
from his co-debtors if such payment is
made after the obligation has prescribed
or become illegal. (n)
Art. 1219. The remission made by the
creditor of the share which affects one of
the solidary debtors does not release the
latter from his responsibility towards the
co-debtors, in case the debt had been
totally paid by anyone of them before the
remission was effected. (1146a)
Art. 1220. The remission of the whole
obligation, obtained by one of the solidary
debtors, does not entitle him to
reimbursement from his co-debtors. (n)
Art. 1221. If the thing has been lost or if
the prestation has become impossible
without the fault of the solidary debtors,
the obligation shall be extinguished.
If there was fault on the part of any one of
them, all shall be responsible to the
creditor, for the price and the payment of
damages and interest, without prejudice to
their action against the guilty or negligent
debtor.
If through a fortuitous event, the thing is
lost or the performance has become
impossible after one of the solidary
debtors has incurred in delay through the
judicial or extrajudicial demand upon him
by the creditor, the provisions of the
preceding paragraph shall apply. (1147a)
Art. 1222. A solidary debtor may, in
actions filed by the creditor, avail himself
of all defenses which are derived from the
nature of the obligation and of those which
are personal to him, or pertain to his own
share. With respect to those which
personally belong to the others, he may
avail himself thereof only as regards that
part of the debt for which the latter are
responsible. (1148a)
SECTION 5. - Divisible and Indivisible
Obligations
Art. 1223. The divisibility or indivisibility of
the things that are the object of
obligations in which there is only one
debtor and only one creditor does not alter
or modify the provisions of Chapter 2 of
this Title. (1149)
Art. 1224. A joint indivisible obligation
gives rise to indemnity for damages from
the time anyone of the debtors does not
comply with his undertaking. The debtors
who may have been ready to fulfill their
promises shall not contribute to the
indemnity beyond the corresponding
portion of the price of the thing or of the
value of the service in which the obligation
consists. (1150)
Art. 1225. For the purposes of the
preceding articles, obligations to give
definite things and those which are not
susceptible of partial performance shall be
deemed to be indivisible.
When the obligation has for its object the
execution of a certain number of days of
work, the accomplishment of work by
metrical units, or analogous things which
by their nature are susceptible of partial
performance, it shall be divisible.
However, even though the object or
service may be physically divisible, an
obligation is indivisible if so provided by
law or intended by the parties.
In obligations not to do, divisibility or
indivisibility shall be determined by the
character of the prestation in each
particular case. (1151a)
SECTION 6. - Obligations with a Penal
Clause
Art. 1226. In obligations with a penal
clause, the penalty shall substitute the
indemnity for damages and the payment
of interests in case of noncompliance, if
there is no stipulation to the contrary.
Nevertheless, damages shall be paid if the
obligor refuses to pay the penalty or is
guilty of fraud in the fulfillment of the
obligation.
The penalty may be enforced only when it
is demandable in accordance with the
provisions of this Code. (1152a)
Art. 1227. The debtor cannot exempt
himself from the performance of the
obligation by paying the penalty, save in
the case where this right has been
expressly reserved for him. Neither can
the creditor demand the fulfillment of the
obligation and the satisfaction of the
penalty at the same time, unless this right
has been clearly granted him. However, if
after the creditor has decided to require
the fulfillment of the obligation, the
performance thereof should become
impossible without his fault, the penalty
may be enforced. (1153a)
Art. 1228. Proof of actual damages
suffered by the creditor is not necessary in
order that the penalty may be demanded.
(n)
Art. 1229. The judge shall equitably
reduce the penalty when the principal
obligation has been partly or irregularly
complied with by the debtor. Even if there
has been no performance, the penalty
may also be reduced by the courts if it is
iniquitous or unconscionable. (1154a)
Art. 1230. The nullity of the penal clause
does not carry with it that of the principal
obligation.
The nullity of the principal obligation
carries with it that of the penal clause.
(1155)