SECTION 3 : Alternative Obligations (Articles 1199-1206)

1. Define the following:

1. Alternative obligation - debtor is alternatively bound with various prestations that are
due but the performance of one of them is sufficient to extinguish the obligation.

2. Facultative obligation - debtor is bound to perform one prestation is due to deliver one
thing with a reserved right to choose another prestation or thing as substitute for the
principal.

2. What are the kinds of obligation according to object? Define each.

·1 Simple Obligation - there is only one object

·2 Compound Obligation - two or more prestations

3. To whom the right of choice belongs? Explain the limitations of this right.

·3 The right of choice belongs to the debtor, unless it has been expressly granted to the
creditor.

4. What are the effects of choice made that has been communicated?

·4 The obligation will be limited only to the chosen or selected prestation with all the
natural consequences arising from it;

·5 The choice is irrevocable, otherwise, the other pary might be exposed to damages which
may arise from costly preparation in waiting for the performance of the announced
prestation.

5. What are the effects when only one prestation is practicable?

·6 The debtor loses his right of choice when only one alternative prestation is practicable of
performance.
6. When the debtor may rescind contract? Give examples.

·7 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.

7. What are the effects of loss or becoming impossible of objects of obligation? What shall be

the basis of indemnity?

·8 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.

8. What are the rules in case of loss of thing before creditor has made choice? Give examples.

·9 When a thing is lost through a fortuitous event - Creditor may choose among the
remaining prestations.

·10 When the thing is lost through debtor's fault - Credtior may choose among the
remaining prestations witha right to claim damages.

·11 When all the things are lost through debtor's fault - Creditor can demand the payment
of the price of any of the prestations with right to damages

·12 When all the things are lost through fortuitous event - Obligation is extinguished.

9. Give examples of facultative obligation.

·13 Gigi, upon failure to pay her debt to Carlo in 30 days, will mortgage her land to secure
her debt which shall be payable in 90 days

10. In a facultative obligation, what are the effects of loss of principal thing?

·14 one prestation is due although debtor is allowed to substitute it.

·15 the right to make the substitution is given only to the debtor

·16 the loss of thing due extinguish the obligation

 ·17 the loss of thing due through his fault makes him liable

·18 the loss of the substitute before the substitution though the fault of debtor does not
render him liable.

11. Distinguish alternative and facultative obligations.

·19 As to objects due - In facultative obligations only one object is due, whereas in
alternative obligations several objects are due;

·20 As to compliance - Facultative obligations may be complied by the deluvery of another

object or performance of another prestation in substitution of that which is due,
whereas alternative obligations may be complied with by the delivery of one of the
objects or by the performance of one of the prestations which is alternatively due.

·21 As to the right of choice - in facultative, the right of choice pertains only to the debtor,
whereas in alternative, the right of choice may pertain even to the creditor or to a third
person.

·22 As to effect of fortiutous loss - in facultative the loss or impossibility the object or
prestation which is due without the any fault of the debtor is sufficient to extinguish the
obligation whereas in alternative the loss or impossibility all the objects or prestations
which are due without the fault of the debtor is necessary to extinguish the obligation.

·23 As to effect culpable loss - in facultative, the culpable loss of the object which the debtor
may deliver in substitution before the substitution is effected does not give rise to any
liability on the part of the debtor; in alternative, the culpable loss of any of the objects
which are the alternatively due before the choice is made may give rise to a liability on
the part of the debtor.

SECTION 4 : Joint and Solidary Obligations (Articles 1207-1222)

12. What are the kinds of obligation according to the number of parties?

·24 Individual obligation

·25 Collective obligation

·26 Joint obligation

·27 Solidary obligation

13. Define the following:

3. Joint obligation - one where the whole obligation is to be paid or fulfilled

proportionately by the different debtors or is to be demanded proportionately by the
different creditors.

4. Solidary obligation - where one of the debtors is bound to render or one of the creditors
has a right to demand from any of debtors, entire compliance with the prestation.

14. Give examples of words that are being used to indicate (a) joint liability and (b) solidary

liability.

5. Proportionately, Pro rata, Jointly

6. Jointly and severally, Individually and collectively

15. What is the presumption when the share of each debtor is not specified? Give the

consequences of this presumption.

·28 There are as many debts as there are debtors

·29 There are as many credits as there are creditors

·30 The debts/credits are considered distinct and separate from one another

·31 Each debtor is liable only for a proportionate part of the debt

·32 Each creditor is entitled only to a proportionate part of the credit

16. When is obligation solidary?

·33 a legal relationship where one or more of several debtors are each liable to pay the
entire amount, or one or more of several creditors each able to collect the whole.

17. What are the kinds of solidarity? Give examples.

·34 Passive/solidarity on the part of the debtor

 ·35 Active/solidarity on the part of the creditor

18. Can solidarity be presumed? Explain.

·36 In general, solidarity in an obligation is never presumed, and it must be expressly stated
as a true intent of the parties' will.

19. Explain and give example of joint indivisible obligation.

·37 A joint indivisible obligation gives the 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.

20. Differentiate indivisibility from solidarity.

·38 Indivisibility is the Nature of the obligation ; Solidarity is the “vinculum” or juridical tie
existing between the parties

21. Can there be solidarity even parties are not bound in the same manner, periods and

conditions? Explain your answer.

·39 Solidarity may exist although the creditors and the debtors may not be bound in the
same manner and by the same periods and conditions.

22. What happens when a solidary creditor did acts prejudicial to other creditors?

·40 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. A solidary creditor cannot assign his
rights without the consent of the others.

23. What is the effect of unauthorized assignment of rights by solidary creditor?

·41 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.

24. Can payment be made by debtor to any of the solidary creditors? Explain.

·42 One of the solidary creditors can demand the payment or performance of the entire
obligation from the debtor or any of the debtors.

25. What is the liability of a solidary creditor in case of novation, compensation, confusion, and
remission?

·43 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

26. Give the effects of the following:

7. Extension of time given by creditor to a solidary debtor.

Extension of the time or prolongation of the term of the indebtedness given to
the debtor releases a surety but does not release a co-obligor who is bound in
solido.

8. Novation, compensation, confusion, remission, prescription and other cause of

modification in joint obligation.
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.

27. May a creditor ask payment of debt against any of the solidary debtors? Explain.

·44 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.

28. Give the effects of the following:

9. Payment by a solidary debtor

Between the solidary debtors and creditors - obligation extignuished
Among the solidary debtors - paying solidary debtor can demand reimbursement
Among the solidary creditors - receiving creditor is liable to the others for their
corresponding share.

10. Payment where obligation has already prescribed or become illegal

Payment by a solidary debtor shall not entitle him to reimbursement from his codebtors
if such payment is made after the obligation has prescribed or become illegal.

11. Remission of share after payment

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.

29. Can there be right of reimbursement by one of solidary debtors in case of remission of the
whole obligation?

·45 The remission of the whole obligation, obtained by one of the solidary debtors, does not
entitle him to reimbursement from his co-debtors.

30. What are the rules in case thing has been lost or prestation has become impossible?

·46 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.

31. What are the defenses available to a solidary debtor in actions filed by the creditor?

·47 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.