Book IV, Title 1, Chapter 3 (S3)

Alternative Obligations
SECTION 3 – Alternative Obligations
This section refers to multiple prestations in an obligation
ARTICLE 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.
 Alternative obligation is one wherein various prestation or objects are due but the
performance of one of them is sufficient as determined by the choice which, as a general
rule belongs to the debtor.
 In Alternative obligations, it is important to remember that on due date, if one of the
prestation/object is fulfilled, the entire obligation is extinguished.
ARTICLE 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 chose those prestations which are impossible,
unlawful or which could not have been the object of the obligation.
ARTICLE 1201. The choice shall produce no effect except from the time it has been
communicated.
ARTICLE 1202. The debtor shall lose the right to choice when among the prestation
whereby he is alternatively bound, only one is practicable. (1134)
ARTICLE 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.
“The above articles all deal with choices of prestations” (Article 1200-1203)
Example:

A promises to deliver to X

CAR

JEEP

MOTORBIKE
ARTICLE 1204. The creditor shall have a right to indemnity for damages when, through
the fault of the debtor, all the things which 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 has become impossible.
Damages other than the value of the last thing or services may also be awarded.
This article deal with the instance where the prestations have been lost due to the fault of
the debtor before the obligation has been completed.
ARTICLE 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 chose from among the remainder, or that which
remains if only one subsist;
(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 if 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 the
prestations should become impossible.
ARTICLE 1206. When only one prestation has been agreed upon, but he obligor may render
another in substitution, the obligation is called facultative.
The lost 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.
This Article deals with Facultative Obligations where there is one prestation but the debtor
can replace the object with another.
So long as the substitute has not yet been communicated, no matter what happens to it, the
creditor has no claim over the same.
Example:

A promises to deliver to X

CAR

JEEP

MOTORBIKE
 Book IV, Title 1, Chapter 3 (S4)
Joint and Solidary Obligations
SECTION 4 – Joint and Solidary Obligations
Joint and Solidary Obligations refer to multiple subject
ARTICLE 1207. The concurrence of two or more creditors or two or more debtors in one
of the same obligation it does not imply that each one of the former has the right to demand,
or each one of the latter is bound to render, entire compliance with the prestation. There is
a solidarity liability only when the obligation expressly so states, or when the law or the
nature of the obligation requires solidarity.
ARTICLE 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 equal shares as there are creditors or debtors, the
credits or debt being considered distinct from one another, subject to the Rules of Court
governing the multiplicity of suits.
While these Article refers to Joint Obligations, it makes reference to Solidary Obligations
as well. Thus it is necessary to start discussing the basic concepts of Joint and Solidary
Obligations and to determine the difference between the two in order to avoid confusion in
later provisions.
The best way to describe the concepts would be to have a practical example of the
situations.
Case:
Assuming that the obligation consists of a debt that is owed by Obligor(s) to the Obligee(s)
in the amount of Php9,000.
The distinctions would be as follows:
ARTICLE 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.
This article speaks of joint indivisible obligation. The obligation is joint because the parties
are merely proportionately liable to the whole of the obligation.
Creditor(s) can only run after the debtors as a group even if only one of them cannot comply
with the obligation. Furthermore, even if a debtor is capable of complying, he/she will also
have to be sued for specific performance even if he she can comply with his portion. But
he/she cannot be made liable for the defaulting share.
ARTICLE 1210. The indivisibility of an obligation does not necessarily give rise to solidarity.
Nor does solidarity of itself imply indivisibility.
Sometimes because the object is indivisible there is a perception that the arrangement is
solidary. Actually, the obligation remains to be joint and the indivisibility of the object
will not determine the nature of the obligation.
ARTICLE 1211. Solidarity may exist although the creditors and the debtors may not be
bound on the same manner and by the same periods and conditions.
Example: A, B and C, will jointly and severally pay Y the sum of 9,000 broken down into
the following; A-3,000 on December 10, 2018; B-if B passes the BAR and C-if the dollar
does not reach P58:USD1
ARTICLE 1212 Each one of the solidary creditors may do whatever may be useful to the
others, but not anything which may prejudicial to the latter.
Ex 1. X, promises to deliver to solidary Creditors A, B and C, 3 basketball tickets to the UAAP.
Later X told A that he will give not just 3 basketball tickets but if A agrees he will upgrade the
seats to VIP seats to the basketball game.
Can A accept the change in the obligation?

Ex. 2 X, promises to deliver to solidary Creditors A, B and C, 3 basketball tickets to the UAAP.
Later X told A that he will not give 3 basketball tickets but if A agrees he give them an overnight
stay in Philippine Plaza.
Can A accept the change in the obligation?

ARTICLE 1213. A solidary creditor cannot assign his rights without the consent of the
others.
Remember that solidary obligations is “one for all and all for one”
ARTICLE 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.
Ex. A, a graduating LMgmt student is obliged to deliver a copy of his thesis to the Chairman, the
Vice Chairman or to the Secretary of the Department. A can deliver the thesis to any of them, but
if any one of them asks for the copy from A, A must deliver the same to the person who asked for
it.

ARTICLE 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 provision of article
The creditor who may have executed any of these acts, as well as he who collects the
debt, should be liable to the others for the share in the obligation corresponding to them.
Novation replaces the old obligation with a new obligation
Compensation off-sets the obligation against another obligation
Confusion – creates a situation where the debtor and creditor is the same person
Remission – forgives the obligation.
All these are modes of extinguishing an obligation
ARTICLE 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 no
been fully collected.

ARTICLE 1217. Payment made by one of the solidary debtor extinguishes the obligation.
If two or more of the solidary debtor 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.
This Article deals with how a solidary debtor who pays the obligation in full can collect
from the other debtors.

ARTICLE 1218. Payment by a solidary debtor shall not entitle him for the reimbursement
from his co-debtors if such payment is made after the obligation has prescribed or become
illegal
Prescription – the lapsing of a right due to passage of time.
Once the obligation has prescribed or become illegal, then there is no longer any obligation.
So a solidary debtor who pays after that is doing something that the debtors are no longer
required to do. The solidary debtor cannot ask for reimbursement from the other co-
debtors.
ARTICLE 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 any one of them before the remission is effected.

ARTICLE 1220. The remission of the whole obligation, obtained by one of the solidary
debtors, does not entitle him to reimbursement from his co-debtors.
ARTICLE 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 provision of the preceding paragraph
shall apply.
This Article deals with loss of the prestation in Solidary Obligations
ARTICLE 1222. A solidary debtor may, in action 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.
Defenses: Circumstances that excuses a debtor from becoming liable for an obligation. They
can be:
 Personal to the debtor – ex. Debtor is a minor or incapable of entering into an agreement
 Derived from the Nature of the obligation – ex. The portion pertaining to the debtor is
against morals or good customs.
 Pertains to the share – ex. The prestation of the debtor is illegal/immoral.
 Book IV, Title 1, Chapter 3 (S5)
Divisible and Indivisible Obligations
SECTION 5 – Divisible and Indivisible Obligations
ARTICLE 1223. The divisibility or indivisibility of the things that are the object of the
obligation in which there is only one debtor and only one creditor does not alter or modify
the provision of Chapter 2 of this Title.
The divisibility or indivisibility of the object does not affect the nature and effect of the
obligation (Chapter 2).
This is because the nature of the object that is not prohibited by law cannot affect the
obligation as such object is within the scope of commerce.
 Divisible means that the object is capable of partial performance.
 Indivisible means that the object is not capable of partial performance
ARTICLE 1224. A joint indivisible obligation give rise to indemnity for damages from the
time anyone of the debtors does not comply with his undertaking. The debtor 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.

ARTICLE 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.
Kinds of Indivisibility
 Physical or Natural Indivisibility or the object by its nature cannot be delivered in parts
or partially performed
 Conventional Indivisibility or the situation where even if the object is capable of being
delivered in parts or partially performed, but because of the agreement of the parties, it
is considered indivisible
 Legal Indivisibility or the situation where even if the object is capable of being
delivered in parts or partially performed, but because of the law, it is considered
indivisible.
 Book IV, Title 1, Chapter 3 (S6)
Obligations with a Penal Clause
SECTION 6– Obligations with a Penal Clause
ARTICLE 1226. In obligation with penal clause, the penalty shall substitute the
indemnity for damages and the payment of interest 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.
Obligations with a Penal Clause is an obligation with a penalty already agreed upon
in case of breach of the contract. (remember Liquidated Damages)
ARTICLE 1227. The debtor cannot exempt himself from the performance of his
obligation by paying the penalty, save in the case when 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.
An obligation with a penal clause is not an alternative obligation so there is only
one object in the obligation. The parties have no option but to fulfill the object of
the obligation. The Penal Clause only comes in when the debtor has failed to
comply with the obligation.
ARTICLE 1228. Proof of an actual damages suffered by the creditor is not
necessarily in order that the penalty may be demanded.
ARTICLE 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.
ARTICLE 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.
STUDY GUIDE
MODIFIED TRUE OR FALSE
1. In alternative obligations, one promises to deliver a thing to the other with the option
to choose another object instead of what was promised.
2. In alternative obligations, the right to choose what to deliver to the other belongs to
the one giving the object.
3. A creditor may demand delivery of an item in an alternative obligation only if it is
the last remaining items from the alternative items.
4. Loss of one of the things due to fortuitous events in an alternative obligation shall
extinguish the obligation.
5. In facultative obligations, loss of the thing due to fortuitous events before
substitution is made extinguishes the obligation
6. If Jose promises to paint Mario’s house if Jose is not late tomorrow is a valid
conditional obligation.
7. A period in an obligation must always be a future event.
8. A period in an obligation set must specify the date to be valid.
9. Suspensive period or conditions suspends the validity or extinguishment of an
obligation.
10. Resolutory obligations are demandable at once.
11. Pure obligation are demandable at once.
12. It is possible to have a pure obligation subject to a period.
13. In an obligation to give a specific thing subject to a suspensive condition, any
improvements, loss or deterioration to the object is bourne by the obligee.
14. There is very little difference between a period and a condition.
15. Pure obligations are the simplest types of obligations.
16. An obligation to pay when the debtor has money is uncertain and thus not valid.
17. Not all potestative conditions are void conditions.
18. Impossible conditions are not valid conditions.
19. Fulfillment of conditions cannot be dependent on the will of the debtor.
 20. An obligation to pay the creditor when the debtor feels like paying the obligation is
void.
21. A obligation to pay when the sun rises tomorrow is absurd and is thus void.
22. An obligation entered into by Jose to pay a sum of money to Joy if Joy will let Jose
copy her answers in an examination is valid.
23. All obligations must have a specific name to be valid.
24. It is possible for an obligation to be subject to a period and a condition.
ENUMERATIONS/DEFINITIONS
1. What are the primary kinds of obligation under the laws of obligations?
2. What is a condition in an obligation?
3. What is a period in an obligation?
4. What are the kinds of conditions?
5. What obligations are demandable at once?
6. What are the kinds of condition or periods as to effect?
7. What are the kinds of conditions as to form?
8. What are the kinds of conditions as to cause or origin?
9. What are the void conditions?
10. What are the rules in the case of improvement, deterioration and loss in a real
obligation to deliver a specific thing?
11. For whose benefit is the period presumed to have been established?
12. When does the debtor lose the benefit of the period?
13. When does the occurrence of an event within a given period of time, considered not
to have occurred?
14. When can the courts fix the period in an obligation?
15. What are the rules the govern instances where both parties in an obligation is at
fault?
PROBLEM SOLVING
Problem 1. – Gavin promised to deliver a specific dog to Trichie on Wednesday next
week. Come Friday next week, Trichie remembered the promise of Gavin and given
that the obligation of Gavin is two days overdue, Trichie filed an action for specific
performance with damages due to delay. Will the case of Trichie prosper? Justify.

Problem 2. – Bobby promised to pay Jeremy P50,000 if Jeremy will paint Bobby’s
room according to the design Bobby made? After making this promise, the parties
promptly forgot about the promise until after 5 years. At that time, Jeremy remembered
the promise of Bobby and thus went to Bobby’s house with all the painting supplies
and would like to comply with the condition that Bobby imposed to be able to get the
promised P50,000. Bobby refused to let Jeremy paint the room because he already had
the room painted last year. Jeremy sued Bobby for the P50,000 he was promised. Can
he do so? Justify.

Problem 3. – Anton promised to deliver to Mita a specific dog if Mita will graduate this
school year. After graduating within the school year, Mita went to Anton to ask for the
dog but Anton told her that the dog he promised had caught distemper and despite all
efforts to save the dog, the dog died. At this point, Anton had mentioned the dog had
given birth to 5 puppies before it died. Because of this, she also asked for the 5 puppies
from Anton. Anton argued that his obligation has already been extinguished, and even
if hasn’t Mita is only entitled to the dog and not the puppies because his obligation to
deliver the dog has not arisen yet when the puppies were born, besides the agreement
was only deliver the dog and not the puppies.
 Is the obligation of Anton extinguished by fortuitous event? Justify.
 Is Mita entitled to the puppies? Justify.
Problem 4. – Dana promised to trade with Honeybee her collectible One Direction CD
for a One Direction Shirt from their concert in Manila on or before Sunday next week.
As time passed, Dana began to have separation anxiety over her collectible item and
decided to make a duplicate copy of the CD that she can instead pass on to Honeybee.
Honeybee on the other hand had decided to get the One Direction printed T-shirts from
Divisoria instead buying the shirt at the concert because it was too expensive. On due
date, they each discovered what the other has done and sued each other for breach of
contract. If you were the judge before whom this case has been brought to, how would
you decide the case in accordance with the laws of obligations and contracts? Justify.