DIFFERENT KINDS OF OBLIGATIONS

PURE CONDITIONAL OBLIGATIONS WITH ALTERNATIVE FACULTATIVE JOINT SOLIDARY DIVISIBLE / OBLIGATIONS
OBLIGATIONS OBLIGATIONS A PERIOD OBLIGATION OBLIGATION OBLIGATION OBLIGATION INDIVISIBLE WITH PENAL
CLAUSE
CONCEPT/ Obligations They may be A PERIOD is a It is one where out When only In a joint One in which DIVISIBLE (1225): A PENAL
DEFINITION whose obligations certain length of of the two or more one obligation, the each debtor CLAUSE is an
performance subject to: time which prestations which prestation credit or debt is liable for 1. When the accessory
does not 1. SUSPENSIVE determines the may be given, only has been shall be the entire obligation has undertaking
depend upon condition - effectivity or the one is due. agreed upon, presumed to be obligation for its object the attached to
a future or one the extinguishment of but the divided into as and each of execution of a an obligation
uncertain fulfillment of obligations. obligor may many equal the creditors certain number to assume
event, or upon which will give render shares as there is entitled to of days of work greater
a past event rise to the another in are creditors demand the 2. When the liability in
unknown to obligation. substitution, and debtors, the satisfaction obligation has case of
the parties The the obligation credits or debts of the whole for its object the breach.
(1179) demandability is called being obligation accomplishment
of the facultative. considered from any or of work by
Others: obligation is (1206) distinct from all of the metrical units
1. When it suspended one another. debtors. 3. When the
has a until the obligation has
resolutory happening of It may be by for its object
condition the condition stipulation, analogous
(1179 [2]) (1181) by law, or by things which by
2. When it is 2. RESOLUTORY the nature their nature are
subject to condition - of the susceptible of
a one the obligation partial
resolutory fulfillment of (1207) performance
period which will
(1193) extinguish an INDIVISIBLE (1225):
3. Obligation obligation
with a already 1. Obligations to
condition existing give definite
not to do (1181) things
an 3. POTESTATIVE 2. Those which are
impossible condition not susceptible
thing (1182) – If of partial
(1183) suspensive performance
and depedent 3. Even though the
upon the sole object or service
will of the may be
 debtor, the physically
conditional divisible, an
obligation is obligation is
vod. indivisible if so
4. IMPOSSIBLE provided by law
condition 4. Even though the
(1183) – those object or service
physically may be
impossible to physically
perform, or divisible, an
those contrary obligation is
to good indivisible if so
customs, intended by the
public policy parties
or prohibited
by law. The In obligations not to
conditional do, divisibility or
obligation is indivisibility shall be
void, unless determined by the
divisible. character of the
5. POSITIVE prestation in each
condition particular case
(1184) - the (1225).
condition that
some event
happen at a
determinate
time
6. NEGATIVE
condition
(1185) - the
condition that
some event
will not
happen at a
determinate
time

SPECIFIC RULES GENERAL DURING THE 1189 (see 1194) 1202-1205 1206 1221
ON LOSS, RULE ON PENDENCY OF
DETERIORATION, FORTUITOUS THE CONDITION:
IMPROVEMENT, EVENTS: 1174 1189
ETC.

EXTINGUISHMENT OF OBLIGATIONS
PAYMENT LOSS CONDONATION CONFUSION COMPENSATION NOVATION
/ REMISSION
CONCEPT / Payment or performance means not only delivery of money but also the WHEN IS It is an act of It is the The extinguishment The
DEFINITION performance in any manner of an obligation THERE LOSS? liberality by meeting of to the concurrent substitution
It is which the oblige the qualities amount of the debtsor change of
understood who receives no of creditor of two persons who an obligation
that the thing price or and debtor IN THEIR OWN by another,
is lost equivalent with respect RIGHT arewhich
1. WHEN IT thereof, to the same CREDITORS AND extinguishes
PERISHES, renounces the obligation DEBTORS of each or modifies
2. OR enforcement of others the first,
GOES OUT OF an obligation, either
COMMERCE, which is changing its
3. OR extinguished in object or
DISAPPEARS its entirety or in principal
IN SUCH A the part or obligation or
WAY THAT aspect of the substituting
ITS same to which another in
EXISTENCE IS the remission place of the
UNKNOWN refers debtor or
OR IT subrogating a
CANNOT BE third person
RECOVERED in the rights
of the
creditor
REQUISITES TO REQUISITES FOR A VALID PAYMENT/PERFORMANCE: REQUISITES FOR REQUISITES: In order that REQUISITES:
EXTINGUISH THE REMISSION OR compensation may
OBLIGATION As to prestation CONDONATION: 1. It should be proper, it is 1. A
1. The very thing or service contemplated must be paid or delivered take place necessary: previous valid
2. The fulfillment must be complete 1. There must between the obligation.
be an principal 1. THAT EACH ONE Hence if the
As to payor/parties: 1236/1240/1242 AGREEMENT debtor and OF THE OBLIGORS old obligation
(since the creditor, BE BOUND is void or non-
As to form (in case payment of money): 1249 acceptance of hence, PRINCIPALLY, AND existent there
the offer is confusion THAT HE BE AT THE is nothing to
As to place: 1251 required) – between the SAME TIME A novate
condonation is creditor and PRINCIPAL
bilateral the CREDITOR OF THE 2. The
subsidiary OTHER agreement of
2. The parties debtor does all the parties
must be not 2. THAT BOTH to the new
CAPACITATED extinguish DEBTS CONSIST IN A contract
and must give the SUM OF MONEY, OR
CONSENT obligation IF THE THINGS DUE 3. The
ARE CONSUMABLE, intent
3. There must 2. The THEY BE OF THE (animus
be a SUBJECT merger must SAME KIND, AND novandi) to
MATTER or be clear, ALSO OF THE SAME extinguish or
object of complete QUALITY IF THE modify the
remission and definite LATTER HAS BEEN old obligation
(otherwise STATED
there would be 3. The very 4. The
nothing to obligation 3. THAT THE validity of the
condone) involved TWO DEBTS BE DUE new
must be the obligation
4. The cause or same or 4. THAT THEY
consideration identical BE LIQUIDATED AND
must be DEMANDABLE
LIBERALITY
(remission is 5. THAT OVER
essentially NEITHER OF THEM
gratuitous – if THERE BE ANY
not, it may be RETENTION OR
novation, CONTROVERSY,
dacion, COMMENCED BY
compromise) THIRD PERSONS
AND
5. The COMMUNICATED IN
obligation must DUE TIME TO THE
have been DEBTOR.
DEMANDABLE
at the time of 6. There must
the remission have been no waiver
 of the
6. Remission compensation.
must NOT BE
INOFFICIOUS 7. That the
compensation is not
7. FORMALITIES prohibited by law.
must be
observed. If
made expressly,
formalities of a
donation are
required.
a) Remission of
real rights = it
must be in a
public
instrument
b) If the amount
condoned is
more than
P5000.00 = it
must be in
writing

8. It must be
CLEARLY AND
CONVINCINGLY
SHOWN, either
by express
stipulation, or
by acts
admitting of no
other
reasonable
explanation
(since waivers
or remissions
are not to be
presumed
generally)
 DATION IN APPLICATION CESSION TENDER OF
PAYMENT PAYMENT AND
CONSIGNATION
Whereby The designation of The process by TENDER OF
property is the debt to which which a debtor PAYMENT:
alienated to should be applied transfers all his The positive and
the creditor in a payment made properties not unconditional act of
satisfaction of by the debtor who subject to execution offering the creditor
a debt in owes several in favor of his what is due him
money debts in favor of creditors so that the together with a
the same creditor latter may sell them demand that the
and thus apply the creditor accept the
proceeds to their same.
credits There must be
FUSION OF INTENT,
ABILITY AND
CAPABILITY to make
good the offer,
which must be
ABSOLUTE and must
COVER the amount
due.

CONSIGNATION:
The act of
depositing the thing
due with the court
or judicial
authorities
whenever the
creditor cannot
accept or refuses to
accept payment
1. There must be 1. More than one REQUISITES FOR A
two or more debts debt VALID TENDER OF
PAYMENT:
2. The debts must 2. More than one 1. It must be made
be of the same creditor in legal tender
kind (manager’s
3. Complete or check/telegraphic
3. Debts are owed partial insolvency of transfer is not valid)
by the same debtor
debtor in favor of 2. Include
the same creditor 4. Abandonment of interest, tax
all debtor’s assessment being
4. Debts are all property not due
due unless exempt from
stipulated execution in favor 3. Unconditional
of creditors
5. Payment made 4. Obligation is due
is not enough to 5. Acceptance or
extinguish the consent on the part
existing debts of the creditors REQUISITES FOR A
VALID
CONSIGNATION:
1. Existence of a
valid debt

2. Valid prior
tender, unless
tender is excused,
and which was
refused without
valid cause/reason

3. Prior notice of
consignation
(before deposit in
court is made)
unless any attempt
to give such notice
is useless

4. Actual
consignation or
deposit

5. Subsequent
notice of
consignation