Different Kinds of Obligations

July 10, 2015
Neldy N. Frias BSCE – 4
DIFFERENT KINDS OF OBLIGATIONS
SECTION 1 – Pure and Conditional Obligations
Pure obligation is when one is to act without condition mandated by law while conditional
obligation is demandable upon the occurrence or achievement of the condition.
Example:
Ana will give John this lot (a pure obligation) while "Ana will give John this lot if John gives her
his car" is conditional
SECTION 2 – Obligations with a Period
An obligation with a period is one that has a fixed day certain for its fulfillment. Such an
obligation is demandable only when that day comes. The term “a day certain” refers to “that
which must necessarily come, although it may not be known when.”It only relieves the
contracting parties from the fulfillment of their respective obligation during the term or period.
Example:
A furniture shop sold to a hotel carpets from India with the agreement that the items will be
imported and delivered within the calendar year. The furniture shop has until the end of the
calendar year to perform its obligations to the hotel.
SECTION 3 – Alternative Obligations
An alternative obligation is one wherein the debtor is permitted to complete his obligation by
performing either one of the different prostrations which he is alternatively bound. The
debtor’s choice produces legal effect reckoned from when the choice has been communicated
to the creditor. The creditor cannot be required to receive partial performance of one
undertaking and on another – i.e. the debtor must complete performance of either one of the
alternative obligations.
Example:
A realty company paid a construction firm to build either one of the following: a house, a
bridge, or a tower. To comply with its obligation, the construction firm may choose to build a
house. Once chosen, the construction firm is obligated to complete it.
SECTION 4 – Joint and Solidary Obligations
A joint and solidary obligation or solidary obligation is one wherein either one of several
creditors has the right to demand full and complete compliance of an obligation against either
one of the debtors. In such an obligation, the debtors are sureties who are liable for the full
amount of the debt incurred by the principal debtor. A surety is liable regardless of whether it
benefitted from the debt incurred by the principal debtor. A joint obligation is one wherein
credit or debt is divided into as many shares as there are creditors or debtors. The credits or
debts are disti1nct from one another. Hence, the debtor is only liable for its corresponding
share of the debts. If from the law or the nature or the wording of the obligation does not show
a joint and solidary obligation, then it will be presumed to be a joint obligation.
Example:
In a loan document, a company president signed as a surety binding himself solidarily to pay a
P10 million debt borrowed by his company from a bank. If the debt is unpaid, the bank may
collect the full P10 million debts either from the company or its president.
Due to the consequences, a solidary obligation arises only when: (a) the obligation expressly so
states; or (b) the law or the nature of the obligation requires solidarity.
A joint obligation is one wherein credit or debt is divided into as many shares as there are
creditors or debtors. The credits or debts are disti1nct from one another. Hence, the debtor is
only liable for its corresponding share of the debts. If from the law or the nature or the wording
of the obligation does not show a joint and solidary obligation, then it will be presumed to be a
joint obligation.
Example:
To complete a townhouse project, an architecture firm and construction company jointly

borrowed and equally divided a P20 million from a lending institution. If either debt is not paid
after becoming due and demandable, the lending institution can only collect P10 million from
the architecture firm. The lending institution will have to collect the remaining P10 million from
the construction company.
SECTION 5 – Divisible and Indivisible Obligations

A divisible obligation is one the object of which in its delivery or performance is capable of
partial fulfillment.
Example:
Sam agreed to pay Jay Php10, 000.00 in five months installment. The obligation of Sam is
divisible because it is payable in partial payments.
An indivisible obligation is one the object which in its delivery or performance is not capable of
partial fulfillment.
Example:
Sam agreed to deliver a determinate car to Jay on Nov. 15, 2015. This is an indivisible obligation
because it is not subject to partial performance.
SECTION 6 – Obligations with a Penal Clause
Obligation with a penal clause - -t is one which contains an accessory undertaking to pay a
previously stipulated indemnity in case of breach of the principal prostration, intended
primarily to induce its fulfillment .
A penal clause is an accessory undertaking attached to an obligation to assume greater liability

in case of breach, the obligation is not fulfilled, or is partly or irregularly complied with.
Example:
Juan promised to construct a house for Pedro. The contract carried a penal clause that in case
of non-compliance, Juan would have to pay a penalty of P50, 000. Juan did not construct the
house and, as a consequence, Pedro suffered damage in the amount of P40, 000. The penalty of
50K shall be paid. Pedro cannot recover more than 50K, the penalty stipulated, even if he
proves that the damages suffered by him is P60, 000.
The penalty substitutes indemnity for the damage of P40, 000, unless there is a stipulation to
the contrary, in which case Pedro may also recover the damages proved by him. If Juan refuses
to pay the penalty, Juan may recover legal interest thereon, the interest representing new
damages brought about by the non-payment of the penalty.
If Juan is guilty of fraud (not mere fault) in the fulfillment of his obligation, he is also liable for
damages caused thereby in conformity with Art.1171. Proof of the fraud and the existence and
amount of damages is incumbent upon Y. but Y need not prove fraud to recover the penalty.

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July 10, 2015

Neldy N. Frias BSCE – 4

DIFFERENT KINDS OF OBLIGATIONS

SECTION 1 – Pure and Conditional Obligations

SECTION 2 – Obligations with a Period

SECTION 3 – Alternative Obligations

SECTION 4 – Joint and Solidary Obligations

To complete a townhouse project, an architecture firm and construction company jointly

SECTION 5 – Divisible and Indivisible Obligations

SECTION 6 – Obligations with a Penal Clause

A penal clause is an accessory undertaking attached to an obligation to assume greater liability

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