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)

Classifications of Obligations
a. Conjunctive
b. Alternative
c. Facultative
Creditor cannot be compelled to receive
parts of different prestations

Except: If he consents: Novation

Art. 1200. The right of choice belongs to the
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

Right to choose the prestation to be

performed. it is the debtor ( however the
debtor has no right to choose those
prestations which are impossible or
unlawful, or could not be the object of the
obligation.

1. The obligation is now limited ony to the

prestation chosen or selected with all

Effects of delay in making a selection

a. The court will make the choice
b. The creditor makes a choice within a
certain period
c. The court may order the debtor

Rule in case of plurality of debtors and

creditors
In this case, all must give their consent in
the making of the selection of the
prestation to perform, unless the obligation
is solidary in which case the choice of one
is binding to all
Art. 1202. The debtor shall lose the right of
choice when among the prestations
whereby he is alternatively bound, only one
is practicable.

Art. 1201. The choice shall produce no effect

except from the time it has been communicated.
The choice shall not produce any legal
effect until it has been communicated to
the other party.
Effects of choice or selection

If the debtor, without announcing to the

creditor his choice of the prestation simply
perfomed one of them, the performance is
not binding. The debtor can recover what
he had delivered.
Consent of other party not required in the
making of choice.
General rule= in the making of the choice,
the law does not require that the choosing
party first secure the conformity of the
other party. Otherwise, this will in effect
frustrate the clear intention of the law and
the alternative nature of the obligation.

When there is delay in the selection, the fair

resolution is to punish the one who is supposed to
exercise the right to choice.

Exception: If it is expressly granted to the

creditor.

the natural consequences flowing

therefrom
2. The choice is irrevocable, otherwise,
the party might be exposed to damages
which may arise
Performance of prestation without
selection having been made and announced

Rule when all the prestation except one is

practicable.
Applies only to debtors- not to creditors
who are expressly granted the right to
choose.

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.

When the debtor cannot make a choice due

to creditors acts
General rule
If only a particular prestation is prevented,
and there are others available, he may
choose among the others.

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.

Rule when all the objects of alternative

obligation have become impossible;
consequences:
If thru the fault of the debtor- indemnity of
damages
If all things are lost through fortuitious
event, the obligation is extinguished and
the debtor is released from responsibility
unless the contrary had been stipulated by
the parties.

Rule when not all prestations had become

impossible by the fault of the debtor
The creditor cannot claim for indemnity for
damages because the debtor wha has the
right of choice may still perform any of the
remaining alternative prestations.

Indemnity for damages, mode of

determination

(provision)
The reason for using the value of the last
thing or last service is that upon the loss or
impossibility of the first thing or service,
the last one is converted into a simple
obligation. Consequently the debtor has no
more altenrative to choose from. He must
deliver or perform the last thing or service.
Art. 1205. When the choice has been expressly
given to the creditor, the obligation shall cease to
be alternative from the day when the selection
has been communicated to the debtor.

Until then the responsibility of the debtor shall be

governed by the following rules:

(1) If one of the things is lost through a fortuitous

event, he 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) If the loss of one of the things occurs through

the fault of the debtor, the creditor may claim any
of those subsisting, or the price of that which,
through the fault of the former, has disappeared,
with a right to damages;

(3) If all the things are lost through the fault of the
debtor, the choice by the creditor shall fall upon
the price of any one of them, also with indemnity
for damages.

The same rules shall be applied to obligations to do

or not to do in case one, some or all of the
prestations should become impossible. (1136a)

When obligation ceased to be alternativeThe obligation for the debtor ceased to be

alternative from the day the selection of
the specific prestation out of two or more
or several, had been communicated to the

said debtor. From that moment, the

obligation is converted into a simple one.

Until the actual selection is made, the

responsibility of the debtor shall be as
follows:
1. If only one of the things is lost through
fortuitious event, the debtor shall
deliver what the creditor has chosen
from among the remainder. If only one
remains, he shall deliver this to the
creditor
2. If one of the things are lost through the
fault of the debtor, the creditor may
choose any one of the remainders, or
he may choose the price or value of the
one which was lost, with damages if
warranted.
3. If all the thing are lost though the fault
of the debtor, the creditor may choose
the price of anyone of these things
supposed to be the alternative object
of the prestation, with damages if
warranted.

Obligation to do or not to do.

If the obligation consists in obligations to
do or not to do, the same rules shall apply.

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.

Solidary Obligation- is one where each of the

debtors is liable for the entire obligation and each
of the creditors is entitled to demand the
satisfaction of the whole obligation form any of all
the debtors

If there is concurrence between two or more

debtors or creditors in one obligation, in the
absence of express terms characterizing that the
obligation is solidary, the obligation is joint.

Effect of delay in selection by creditor.

The loss or deterioration of the thing intended as

a substitute, through the negligence of the
obligor, does not render him liable. But once the
substitution has been made, the obligor is liable
for the loss of the substitute on account of his
delay, negligence or fraud. (n)
Facultative Obligation- This is the kind of
obligation where the obligor is obliged to
perform only one prestation, but he is
allowed to perform or deliver another in
substitution thereof.

Classifications of Obligations
Individual

Art. 1206. When only one prestation has been

agreed upon, but the obligor may render another
in substitution, the obligation is called
facultative.

Effect of Loss Or Deterioration of the thing

intended as substitute

Collective
Joint obligation
Solidary
Passive solidarity
Active solidarity

Presumption in collective obligation

The law presumes that the obligation is
joint, unless from the
a. Law
b. Nature of the obligation,

c. Stipulation of the parties,

seek reimbursement from his co-debtors as

to their respective shares in the obligation.

The contrary appears.

Positive- This arises where any of the

solidary creditors can demand the payment
or performance of the entire obligation
form the debtor or any of the debtors if
there are several of them.

In other words, for an obligation to be solidary, the

solidarity of the obligation whether active or
passive, must be provided expressly by the
obligation itself, the law, or the nature of the
obligation requires solidarity.

Consequences of Joint Obligation

1. Each debtor is liable only for the
proportionate part of the entire debt.
Th reason being that there are as many
separate debts as there are debtors.
2. Each creditor, if there are several, is
entitled only a proportionate part of
the credit. The reason is, there are as
many separate credits as there are
creditors.
3. The demand made by one creditor upon
one debtor produces the effects of
default, only as between them but not
to the others.
4. The interruption of the prescription
caused by the demand made by one
creditor upon one debtor will not
benefit the co-creditors. Neither will
that demand interrupt the prescription
of the obligation as to the other
debtors.
5. The insolvency of a debtor will not
increase the liability of his co-debtors.
Neither will it allow a creditor to
demand anything from the co-creditors.
6. The vices of each obligation meaning
form the personal defect of a particular
debtor or creditor will affect the
obligation or rights of the others.

Reason why solidary liability is not

presumed
Solidarity by reason of the nature of the
obligationSolidary liability may arise if two or more
persons acting together in violation of art.
19, 20, 21 and 22 of the Code under the
Chapter on Human Relations shall be liable
solidarily by reason of the nature of the
obligation incurred.

Judicial Solidarity- May arise if imposed by

final judgment by the court upon several
defendants,
Solidarity by express stipulation, words to
use

solidary word need to be used. It is sufficient

that the obligation states that each one of the
debtors can be compelled to pay the entire
obligation, or that each of them is obliged for
the entire value of the obligation.

Ambiguous clauses- When the

obligation is ambiguous, the obligation
must be considered as joint to conform
with the presumption in favor of joint
obligation.

Consequences of solidarity
Passive- this arises when any one of the
several debtors can be made liable for the
payment or performance of the entire
obligation without prejudice to his right to

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.

Presumption of Joint Obligation

If there is concurrence between two or
more debtors or creditors in one
obligation, in the absence of express
terms characterizing that the obligation
is solidary, the obligation is joint.
There is solidary liability only when the
obligation expressly states or when the
law, or the nature of the obligation
requires solidarity.

Consequences of joint 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.

In the payment of the indemnity, those

ready to fulfill their undertaking shall
not contribute beyond the
corresponding portion of his share in
the price of the thing or value of the
service.

Meaning of right of the creditors may

be prejudiced only by their collective
acts.

-As long as the oblgation is joint, the act of

one creditor cannot have any effect as to
the other creditors because the credit of
each is separate from the credits of others.
The indivisibility requires collective action
to be effective.

If a written demand is made by one

creditor only, the creditor cannot pay him
alone. Payment must be made to all.
Hence, the act of one is ineffective.

Art. 1210. The indivisibility of an

obligation does not necessarily give rise
to solidarity. Nor does solidarity of itself
imply indivisibility.

Effects of breach of a joint indivisible

obligation
Compliance can only be enforced
through proceeding against all of them.
If one of them failed in his undertaking,
the obligation could no longer be
fulfilled because the prestation or
object is an indivisible one. Division is
impossible in indivisible obligations.

Insolvency of the debtor; effectsThe article makes it clear that in case

of insolvency of a debtor, his codebtors
shall not be liable for his share.

Joint Obligation
In which is each debtor is liable only
for the proportionate part of the debt,
and the creditor is entitled to demand
only a proportionate part of the credit
from each debtor.

Indivisible Obligations- where the

presation or object cannot be
performed by parts without altering its
essence or substante

Indivisibility- it is the character of the

object of the contract which does not
permit its division or segregation as it will
destroy its essence or substance.

Kinds of Indivisibility
Legal- by operation of law, where the
law declares as indivisible an obligation
Conventional- where the contracting
parties agree than a n obligation which
is divisible shall be indivisible

Solidary

Kinds of Solidary Obligation

Acc to parties bound- passive, active
Acc. To creation- legal, conventional,
real

Indivisibility and Solidarity though not

identical
Solid divi
Solid indiv
Joint divi
Joint indivi

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.

Solidarity, whether active or passive, not

affected by differences in terms and
conditions

Forms of Solidarity- uniform, valid

VICES- RULE
Art. 1213. A solidary creditor cannot assign his
rights without the consent of the others.

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

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.
Novation- when the obligation is
modified
a. Change of object or principal
conditions
b. Substitution of debtor
c. Subrogating 3rd person in the rights
of the creditor

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.

Beneficial acts of solidary creditor

A relationship of mutual agency exists
by and among soldiary creditors. The
act of one will affect the others
because of their relationship. Solidary
creditor may perform acts which may
be beneficial or useful to the others.

Prejudicial Acts of Solidary creditor

If a solidary creditor performs an act
prejudicial to the others, it may have
legal effects, but the performing
creditors shall be liable to his
cocreditors.

Unauthorized assignment of rights. (law

is silent-implication)

Compensation- two persons are creditors and

debtors to each other
Confusion
Remmission- gratuitious abandonment by the
creditor of his right, it is essentially gratuitious and
the acceptance of the obligor is necessary.

Effects of execution of the four modes of

extinguishing obligation by a solidary co-creditor.

The four modes are acts prejudicial to the

other solidary creditors as it will extinguish
the debt or obligation which is due to all of
them.

Effects of Remission on Other Co-debtors.