1

5. Judicial Decisions (Article 8 of the Civil Code)

COMLAW REVIEWER not exactly laws
MIDTERM COVERAGE
the judiciary decisions are not considered
What is Law. because the job of the judiciary is to interpret
 “A mass of obligatory rules established for the law.
the purpose of governing the relations of
persons in society” 6. Other Sources – Equity, Customs
(Tolentino-former senate, civil law) without any guidance from the
aforementioned sources, you have
 “A rule of conduct, just, obligatory, customs: practices of a particular group
promogulated by legitimate authority and from particular place
of common observance and benefit”
(Sanchez Roman) Constitution
1987 Constitution (Feb 11, 1987)
 law must be made by a group of people
 Constitutional Commission (48 members:
convening themselves in congress
32 lawyers, 6 women, 5 religious, 6
 it must be applied to everyone professors, 1 filmmaker, 2 no formal degrees,
35 from Luzon, 9 from Visayas)
Divine Law.
any body of law that is perceived as deriving from  Convened on June 2, 1986 and finished work
a transcendent source, such as the will of God or on October 16, 1986.
gods – in contrast to man-made law or to secular  Ratified on Feb 2, 1987, with over 76% saying
law. yes to the New Constitution – “plebiscite”
Preamble.
Natural Law.
By we, the sovereign Filipino people and not by the
Maintains that these rules of right and wrong are
constitutional commission.
inherent in people and are not created by society or
court judges. made by the sovereign Filipino People (ultimate
source of law)
Moral Law. The ethical view that particular actions
are intrinsically right or wrong, guided by some THE CONSTITUTION
principles
Article II, Section 1.
What is Civil Law? The Philippines is a democratic and republican
Is a law that is primarily governed by the civil code State. Sovereignty resided in the people and all
of the Philippines and other laws government authority emanates from them.
the authority is emanated from the people
Sources of LAW
 includes legislative or representatives of the
1. Constitution. people
fundamental law of the land; supreme law.  the Philippines is sovereign because the
2. Legislation (congress) people are sovereign.
Republic Act, Batas Pambansa
 We have power over our state
3. Administrative Orders, Regulations, Rulings
(Article 7 of the Civil Code)  government authority is existent since (we) the
people granted it
Administrative orders.
Issuances made by the government Section 3.
bureaucracy, by the executive department Civilian authority is, at all times, supreme over
the military. The Armed Forces of the Philippines
providing details is the protector of the people and the State. Its goal
4. Rulings. is to secure
meant to interpret the law the sovereignty of the State and the integrity of the
national territory.
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 times of peace and of war, civilian authority is Article 3. Ignorance of the law excuses no one
always supreme over the military from compliance therewith. (2)
- Ignorantia legis non exusat
Section 4.
The prime duty of the Government is to serve Must be taken in conjunction with Article 2
and protect the people. The Government may call
upon the people to defend the State and, in the Article 2.
fulfillment thereof, all citizens may be required, Laws shall take effect after fifteen days following
under conditions provided by law, to render the completion of their publication in the Official
personal, military or civil service. Gazette, unless it is otherwise provided.
Section 17. publish to inform the citizens regarding the law that
The State shall give priority to education, was formed.
science and technology, arts, culture, and
sports to foster patriotism and nationalism, [OBLIGATIONS & CONTRACTS]
accelerate social progress, and promote total
human liberation and development. Republic Act No. 386 “An Act to Ordain &
Institute the Civil Code of the Philippines”
Section 13.
The State recognizes the vital role of the youth
Civil Code of the Philippines
in nation;
 Took effect August 30, 1950 (72 years old)
building and shall promote and protect their
 Jorge Bocobo, Francisco Capistrano, Arturo
physical, moral, spiritual, intellectual, and social
Tolentino
well-being.
 2270 provisions – comlaw 284
It shall inculcate in the youth patriotism and
Three Branches of Government
nationalism, and encourage their involvement in
public and civic affairs
LEGISLATIVE.
Art. VI, Section 1. The legislative power shall be
Legislation
vested in the congress of the Philippines which
How many laws has the Philippines enacted?
shall consist of a
 11,953 republic acts (as of July 7, 2023)
 24 Senates,
 2,035 presidential decrees
 House of Representatives
 889 batas pambansa
 300 Congressmen
 nearly 15,000 pieces of legislation
 250 District Representatives,
Civil Code
Article 7. EXECUTIVE
Administrative or executive acts, orders and Art. VII, Section 1.
regulations shall be valid only when they are not Shall be vested in the President of the Philippines
contrary to the laws or the constitution. (5a) Section 5.
shall take the oath before they enter the office
 BIR, Tax Code.
Cannot issue a revenue regulation that violates JUDICIARY
the law or the constitution *elaborate* Art VIII, Section 1.
Vested in ONE SUPREME COURT, and in such
Article 8.
lower courts as may be established by law. 15
Judicial Decisions applying or interpreting the
justices
laws or the Constitution shall form a part of the
legal system of the Philippines. (n) Judicial Power. Includes the duty of the courts of
justice to settle actual controversies involving rights
Judicial Decision (by the supreme court) convert to which are legally demandable or enforceable
Law; a senator or congress initiate or sponsor a bill
that covers up the context
 there’s no specific law that governs it.
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OBLIGATION  voluntary payment or performance made

by the debtor; based on equity / natural law
ARTICLE 1156. “An obligation is a juridical
necessity to give, to do or not to do. (n)”  moral duty that is not legally enforceable.
A duty that a person feels they should do,
JURIDICAL NECESSITY. juridical tie but there is no legal requirement /
 connotes that in case of noncompliance, agreement to do it.
there will be legal sanctions.
(c) Moral Obligation
 rights & duties arising from an obligation  an Obligation is a juridical relation whereby
are legally demandable and the courts of a person may demand from another the
justice may be called upon through proper observance of a determinative conduct
action to order the performance (giving, doing, not doing)
 in case of breach, may demand
OBLIGATION. satisfaction from the assets of the latter.
Latin Word “obligatio” (tying / binding)
essential elements of an obligation
 duty of a person (obligor - debtor) to satisfy a
specific demandable claim of another person a) Active Subject (creditor. Obligee)
(Obligee – creditor) Person demanding the performance of an
Obligation right to demand
 which if breached, is enforceable in court
 to demand the observance of a determinative
b) Passive Subject (debtor. Obligor)
conduct
Bound to perform or fulfill the obligation or duty
duty to fulfill
by JBL Reyes.
 Is a juridical relation whereby a person
c) Presentation/Object
(Creditor) may demand from another
(To give, to do or not to do)
(Debtor) the observance of a determinative
conduct (giving, doing and not doing) and in required to be complied, if not complied the other
case of breach, may demand satisfaction from party can sue through court
the assets of the latter
what the debtor needs to perform
[to give, to do or not to do]
types of obligation.
CONTRACT. Necessarily gives rise to an obligation 1. to give
but an obligation does not always need to have a requires the delivery of something, to give a thing
contract.  specific/determinate – particularly
designated or separated from others; unique.
kinds of obligation
 generic/indeterminate – refers to a class;
A.) Viewpoint of “sanction” cannot be pointed out specifically {e.g., cars,
products bought}
(a) Civil Obligation
 by article 1156, grants a right of action by 2. to do
which their performance can be compelled – require the performance of an action, service from
forced; the obligor
 sanction is judicial due process – (a
requirement that legal matters be resolved 3. not to do
according to established rules and principles
and that individuals be treated fairly) real (to give) vs. personal obligation (to do or not
to do)
(b) Natural Obligation
 by article 1423, obligation that can’t be Subject matter of an obligation
enforced in court, but authorizes the ; “action item”
retention of the d) Efficient Cause
(Vinculum juris, juridical tie)
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what binds the parties to the obligation; source ARTICLE 1159. “Obligations arising from contracts
of obligation have the force of law between contracting parties
and should be complied with in good faith.”
SOURCES OF OBLIGATION
Source #3 Quasi-Contracts:
ARTICLE 1157. Obligations arise from Two Types.
(1) Law 1158
(2) Contracts 1159 1. Negotiorum gestio (Voluntary Management)
(3) Quasi-Contracts; 1160
Article 2144.
(4) Acts or Omissions punished by law 1161
(5) Quasi-delicts 1162 Whoever voluntarily takes charge of the agency
or management of the business or property of
another, without any power from the latter, is
Source #1 Law: obliged to continue the same until the termination of
 in order for a law to give rise to an obligation, the affair and its incidents, or to require the person
we must be able to point to a specific law as
concerned to substitute him, if the owner is in a
the basis of obligation (as used in the Civil
position to do so.
Code)

 the only way for a law to create an obligation is 2. Solutio Indebiti (Unjust Enrichment)
that the obligation must be specifically
mentioned in order for them to be demandable. Article 2154.
If something is received when there is no right to
ARTICLE 1158. “Obligations derived from law are demand it, and it was duly delivered through
not presumed. Only those expressively mistake, the obligation to return it arises.
determined in this code or in special laws are
demandable, and shall be regulated by the ARTICLE 1160. “Obligations derived from quasi-
precepts of the law which establishes them; and as contracts shall be subject to the provisions of
to what had not been foreseen, by the provisions of Chapter 1, Title XVII, of this Book”
this Book.”

Source #2 Contracts: Source #4 Crimes:

 in between the debtor and the creditor or Revised penal Code, Art. 100:
between two parties, they must treat the Every person criminally liable for a felony is also
contract like a law. civilly liable.

Article 1305.  An obligation arises from crime if the offense

 A contract meeting of minds between two is punishable under the provisions of the
persons whereby one binds himself, with RPC and other penal laws.
respect to the other, to give something or to
render some service ARTICLE 1161. “Civil Obligations arising from
criminal offenses shall be governed by the penal
 promises still have the force of law between two laws, subject to the provisions of article 2177, and
parties. of the pertinent provisions of Chapter 2, Preliminary
Title, on Human Relations, and of Title XVIII of this
Stages of a Contract. Book, regulating damages”
1. negotiation. Source #5 Quasi-delicts:
parties indicate their interest in the contract
Article 2176.
2. perfection or birth.
Whoever by act or omission causes damage to
takes place when the parties agree on all the
another, there being fault or negligence, is
essential elements of a contract
obliged to pay for the damage done.
3. consummation or termination.
Occurs when the parties fulfill or perform the terms Such fault or negligence, if there is no pre-existing
they agreed on. contractual relation between the parties, is called
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a quasi-delict and is governed by the provisions of ARTICLE 1164. The Creditor has a right to the
this chapter. fruits of a thing from the time the obligation to
deliver it arises. However, he shall acquire no real
Negligence. right over it until the same has been delivered to
Defined as the failure to observe for the protection him. (1095)
of the interests of another person.
COMPEL DELIVERY BY DEBTOR (1165)
ARTICLE 1162. Obligations derived from quasi-
delicts shall be governed by the provisions of 3. deliver the thing
Chapter 2, Title XVII of this Book, and by special - the Creditor cannot use force if the Debtor refuses
laws. to deliver the thing?

NATURE & EFFECTS OF  determinate. Specific performance

Obligation to do a specific thing
OBLIGATION
 indeterminate. Substituted performance
1163 – 1166 to give
If the debtor refuses to comply with the
1167 to do
obligation to give a generic thing, a third
1168 not to do
person can comply with the obligation or the
1169 delay
creditor himself can obtain the generic thing at
1170 fraud-negligence/delay
the expense of the debtor.
1171 fraud
1172-1173 negligence
1174 fortuitous events ARTICLE 1165.
A “Thing” can be: When what is to be delivered is a determinate
1. Determinate or Specific; cannot be substituted thing, the creditor, in addition to the right granted
2. Indeterminate or Generic; can be substituted him by article 1170, may compel the debtor to
make the delivery.
OBLIGATION TO GIVE (1163) If the thing is indeterminate or generic, he may
Component duties ask that the obligation be complied with at the
expense of the debtor.
1. Take care of the thing with proper diligence of a
good father of a family
If the obligor delays, or has promised to deliver the
same thing to two or more persons who do not
 “Proper diligence of a good father of a family”
have the same interest, he shall be responsible for
“bonum pater familia”
any fortuitous event until he has effected the
delivery. (1096)
ARTICLE 1163. Every person obliged to give
something is also obliged to take care of it with the
RIGHT TO ACCESSIONS & ACCESSORIES
proper diligence of a good father of a family,
(1166)
unless the law or the stipulation of the parties
requires another standard of care.
4. Delivery accessions and accessories
RIGHTS TO THE FRUITS (1164)
 Accessions. Goods which are installed in or
2 Obligation to deliver the fruits of the thing affixed to other goods
What are the “fruits”
 Accessories. Things joined to another thing as
 Natural Fruits. Spontaneous products of soil
an ornament, or to render it more perfectly
 Industrial Fruits. Those produced by lands,
cultivation by labor ARTICLE 1166. The obligation to give a
determinate thing includes that of delivering all its
 Civil Fruits. Rent, price of leases of lands, life accessions and accessories, even though they may
annuities or other similar income. not have been mentioned.

Types of DELIVERY
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1. Actual Delivery (Latin name for delivery- ARTICLE 1167. If a person obliged to do
Tradition) something fails to do it, the same shall be executed
2. Constructive Delivery at his cost.
not exactly delivery but is equivalent to delivery
This same rule shall be observed if he does it in
a. Traditio Simbolica contravention of the tenor of the obligation.
Delivery the keys of the place where the Furthermore, it may be decreed that what has been
movable is stored or kept poorly done be undone.

b. Traditio Longa Manu OBLIGATION NOT TO DO (1168)

Consent or the pointing out of the object
Delivery with long hand Failure not to do?
a. Undone at Debtor’s expense
c. Traditio Brevi Manu b. Damages (1170)
Giving something to someone who already
has it. (Delivery by short hand)
ARTICLE 1168. When the obligation consists in
d. Traditio Constitutum Possessorium not doing, and the obligor does what has been
Delivery takes place when the vendor forbidden him, it shall also be undone at his
continues in possession of the thing sold after expense (1099a)
the sale but in another capacity such as that of
a lessee or depository. DELAY (1169)
Delay/Default/Mora
e. Tradition by execution of Legal Forms
Like an execution of public instrument selling What is Delay?
land  Legal delay, not ordinary delay
 Is a breach of an obligation
FAILURE TO DELIVERY BY THE DEBTOR  No demand, No delay
 Default – delay in fulfillment of obligations or
1. What can the Creditor do? failure of delivery
a. Compel Delivery or have it done at the
debtor’s expense Demand:
b. Cancel Obligation 1. Judicial (complaint- go to court)
c. Hold Debtor for Damages (1170) or extrajudicial (demand-note outside the court)
2. for an obligation that is due
OBLIGATION TO DO (1167)
Rule: No Demand, No Delay
Failure to do? Exceptions when no demand is needed:
a. Be done at Debtor’s cost
1. Law says so
If done the wrong way? 2. Obligation says so (i.e., must be expressly
a. Be done at Debtor’s cost stated)
3. Time is the essence
If poorly done? 4. When demand would be useless
a. Undo or have it repaired 5. When a party fulfills his obligation in a reciprocal
obligation
 In an Obligation to do, can you compel a
Debtor to do or comply with an obligation? Kinds of Mora
No. > Concept of Involuntary Servitude. 1. Mora Solvendi (Debtor)
Article 3, Section 18.
 Delay in performing the obligation
(2) No involuntary servitude in any form shall Debtor is Liable for
exist except as a punishment for a crime whereof 1. Interest
the party shall have been duly convicted. 2. Damages
3. Bear the risk of loss
4. Liable even for fortuitous event
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(2) When from the nature and the circumstances of

Q: What is an acceleration clause? the obligation it appears that the designation of the
-penalty of a delay time when the thing is to be delivered or the service
is to be rendered was a controlling motive for the
establishment of the contract; or

(3) When demand would be useless, as when the

obligor has rendered it beyond his power to perform
In reciprocal obligations, neither party incurs in
 Sample Acceleration Clause delay if the other does not comply or is not ready to
comply in a proper manner with what is incumbent
4.02. Acceleration of Maturity. upon him. From the moment one of the parties
fulfills his obligation, delay by the other begins.
If an event of default (delay) shall have occurred,
(1100a)
then the entire balance of the indebtedness
(including but not limited to the Loan and the other
indebtedness) secured hereby (or such parts as FRAUD, NEGLIGENCE (1170)
lender may elect) with interest accrued thereon
(or such parts as lender may elect) shall, at the Fraud.
option of the Lender,  or malice (dolo) defined as a “conscious and
intentional design to evade the normal
become due and payable without notice or fulfillment of existing obligations”
demand time being of the essence. Any omission  deceit = dolo
on the part of the lender to exercise such option
when entitled to do so shall not be considered as a ARTICLE 1171. Responsibility arising from fraud is
waiver of such right. demandable in all obligations. Any waiver of an
 everything will be paid right now action for future fraud is void. (1102a)
 all unpaid interest plus penalties will have to be
paid right now, become due and payable now
NEGLIGENCE (1172-1173)
2. Mora Accipiendi (Creditor)
Fault or Culpa
Definition: unjust refusal by the Creditor to accept
performance of obligation Negligence
 omission by the debtor of the diligence required
 What can the debtor do? by the nature of the obligation and corresponds
1. Go to court and deposit thing or with the circumstances of the person, time and
2. Keep the thing place
Bad faith. Gross negligence = the court will award
3. Compensatio Morae (both parties in a
moral damages
reciprocal obligation)
 is the mutual delay of the parties. It cancels out
Kinds of Culpa
the effects of default, it would be as if no one
1. Culpa Contractual
was guilty of delay.
Which is the fault or negligence incident in the
performance of a situation which already
ARTICLE 1169.
existed.
(Debtor) Those obliged to deliver or to do
something incur in delay (Creditor) from the time 2. Culpa Aquiliana (Quasi-delict)
the Obligee judicially or extrajudicially demands 3. Culpa Criminal (Criminal negligence)
from the fulfillment of their obligation.
Other classifications: Gross vs Simple
However, the demand by the creditor shall not be
necessarily in order that delay may exist: ARTICLE 1172. Responsibility arising from
negligence in the performance of every kind of
(1) When the obligation or law expressly so obligation is also demandable, but such liability
declare; or may be regulated by the courts, according to the
circumstances. (1103)
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ARTICLE 1173. The fault or negligence of the Pure Obligation

obligor consists in the omission of that diligence  Demandable at once (1179)
which is required by the nature of the obligation and  Its performance does not depend upon a
corresponds with future or uncertain event
 Obligation whose performance does not
the circumstances of the persons, of the time depend on a condition or term
and of the place. When negligence shows bad faith,  effect if pure: immediately demandable
the provisions of articles 1171 and 2201, paragraph
2 shall apply.

If the law or contract does not state the diligence

which is to be observed in the performance, that Conditional Obligation
which is expected of a good father of a family shall  Depends on a Condition
be required (1104a)  Shall depend upon the happening of the
event which constitutes the condition (1181)
FORTIOUS EVENT (1174)  Let condition happen first before
Force majeure, Acts of God, Caso Fortuito demanding compliance

 Event was not foreseen or independent of will of Condition

the debtor 1. Future and Uncertain Event
 If foreseen, event was inevitable 2. Past event unknown to parties
 Renders performance of the obligation 3. Not sure if it will happen
impossible 4. Refers to the future or the past
 No negligence on part of debtor
 Effects of Fortuitous Events Term (1193)
No Liability 1. A day certain – is sure to happen
No need to deliver or to do (1174) 2. it may necessarily come, although it may
No liability for damages (1174) not be known when

But still liable if: Types of Condition

Law says so, e.g., 1165(3), 1263
Agreed in Contract 1. Suspensive Condition
Nature of obligation requires assumption of risk - If condition happens, it gives rise to an
obligation
Genus nunquam peruit – Genus never perishes - If condition does not happen, obligation is
extinguished (1184)
ARTICLE 1174. Except in cases, expressly
specified by the law, or when it is otherwise If creditor prevents happening of the
declared by stipulation, or when the nature of the condition, condition considered fulfilled and
obligation requires the assumption of risk, no obligation is born and becomes demandable
person shall be responsible for those events which (1186)
could not be foreseen, or which, though foreseen,
were inevitable - It can be penalized

Kinds of Obligations Once condition happens, it effects retroact

to date obligation was created (1187)
1. Pure & Conditional (1179-1192)
2. Obligations with a Period (1193-1198) Retroact. extending in scope or effect to a prior
3. Alternative & Facultative (1199-1206) time or to conditions that existed or originated in
the past.
4. Joint & Solidary (1207-1222)
2. Resolutory
 When is an Obligation Demandable? – demandable at once [1179(2)]
- If condition happens, it extinguishes the
 When is an Obligation Extinguished? obligation
- If condition happens, return thing (1190)
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1190 – shall return to each other what they 1. Thing lost without the debtor’s fault –
receive. obligation is extinguished
2. Thing lost with debtor’s fault – debtor liable for
Potestative, Casual, Impossible, Illegal, Reciprocal
damages
Article 1182
Lost = out of commerce, perish
1. Potestative (1182)
a. Depends on the sole will of the debtor- Void 3. Thing deteriorates without debtor’s fault –
b. Depends on the third person – Valid creditor bears deterioration
Outside the influence of both creditor and
debtor 4. Thing deteriorates with debtor’s fault – liable for
damages or creditor can cancel obligation +
2. Casual (1182) damages
If happening of a condition depends on chance
– Valid 5. Thing improve by nature – Creditor get benefit

3. Impossible (1183)
Condition and obligation are considered void Resolutory Condition. Article 1190. Incase of loss,
deterioration or improvement of the thing, the provisions
4. Illegal (1183) which, with respect to the debtor, are laid down in the
Condition and obligation are considered void preceding article shall be applied to the party who is
bound to return.
5. Reciprocal Obligation (1191) Reciprocal Obligation (1191)
Creditors and debtors of each other
No delay unless one party ready to comply with - The power to rescind (cancel)
his obligation - May choose between the fulfillment and the
rescission of the obligation
Rights before condition happens (1188)
- The injured party may choose between
Before condition is fulfilled: (1) Fulfillment
(2) Rescission w/ damages (cancelation)
Right of Creditor Preserve Rights
Right of Debtor Recover payment by mistake 1169 on delay
In reciprocal obligations, neither party incurs in
Retroactive Effect of Conditional Obligations delay if the other does not comply or is not ready to
(1187) comply in a proper manner with what is incumbent
upon him
the effects of a conditional obligation to give,
retroact to the day of the constitution of the
obligation. What if both parties are guilty of breach (1192)
- The liability of the first infractor shall be
In obligations to do and not to do, the courts
equitably tempered by the courts.
shall determine, in each case, the retroactive effect
of the condition that has been complied with
- If can’t be determined, the same shall be
- Obligations to delivers the fruits deemed extinguished, each shall bear his
own damages.

Events during the pendency of suspensive

condition (1189-1190) Obligation with a period/term (1193)

While waiting for the condition to happen - Obligations for whose fulfillment a day certain
has been fixed, shall be demandable only
when that day comes.
 10

Usury Law, which set a ceiling on interest rates

- Day certain is understood to be that which on loans
must necessarily come, although it may not be
known when But Usury Law rendered ineffective by Central
Bank Circular which removed the ceiling on interest
rates for loans. Therefore, there is no limit on the
Day Certain = date which may come, but it may not rates that may be imposed on loans.
be known when

Pay when able

Article 1176.
Pay when able = Obligation with a term (1180)
First Paragraph
When is an obligation demandable if it says pay
when able? (1197) The receipt of the principal by the creditor without
reservation with respect to the interest, shall give
Go to court to fix a period rise to the presumption that said interest has been
paid.
Loan contract.
Benefit of Period
Debtor borrows 10,000 from Creditor.
For whose benefit is the term presumed to have
been established (1196) Debtor agrees to pay 11,000 for the loan 30 days
later, with 10,000 as payment for the principal and
For the benefit of both creditor and debtor
1,000 as payment for the interest.
Debtor’s compliance with obligation is subject to a
Debtor pays creditor 10,000 only and tells creditor it
period. When does Debtor lose right to period?
is for the principal amount
(1198)
Creditor accepts the 10,000 and does not say
1. Debtor becomes insolvent
anything at all.
2. Debtor fails to give collateral
3. Debtor impairs or loses collateral What does this mean? It is presumed that the
4. Debtor attempts to abscond (avoid) interest of 1,000 has been paid
The chance of the creditor to get paid is negatively Can the presumption be overturned?
affected.
Yes, by the proof that the creditor did not waive the
The creditor can no longer wait for the period and right to collect the interest of 1,000
may sue the debtor in order for his rights to be
protected.
Second Paragraph

Other Provisions The receipt of a later installment of a debt without

reservation as to prior installments, shall likewise
1175. Usurious Transactions shall be governed by raise the presumption that such installments have
special laws been paid.
Usury = receiving interest in excess of the rate or Loan Contract.
amount allowed by law for loans
Debtor agrees to pay the loan in equal monthly
Basis: installments of 10,000
 11

Debtor pays Creditor 10,000 on January 31,

February 28, March 31 and May 31
Responsibility of Debtor before Creditor
Creditor Accept these payments and does not say communicates choice of prestation, right of
anything at all. choice: Creditor
What does this mean? With the receipt by the (1) What if one prestation lost without fault of
Creditor of the May 31 Payment, it will be Debtor (fortuitous event)?
presumed that on April 30 installment was paid.
Creditor to choose from other prestations

Can the presumption be overturned? Yes, by proof (2) If one prestation is lost
that the Creditor reserved his right or did not Creditor to choose from any remaining
abandon his right to collect the April 30 installment prestation or lost prestation + damages

Alternative Obligations (3) What if all prestations lost? (1204-1205)

Creditor to choose any prestation and ask
Article 1199. A person alternatively bound by for value of lost prestation + damages in
different prestations shall completely perform one either case
of them.
(4) All prestations except one are lost (1203-
 The is only one obligation, to be known once 1204)
prestation is chosen Creditor’s fault – Debtor can
cancel/rescind contract and ask for
Who Chooses, what can’t be chosen, when
damages
is effectivity of choice?
Facultative Obligation
Article 1200.
Article 1206. when only one prestation has been
Right of choice belongs to the debtor
agreed upon, but the obligor may render another in
Unless it has been expressly granted to the Substitution, the obligation is called facultative.
creditor
The loss or deterioration of the thing intended as
 Debtor has no right to choose those a substitute, through the negligence of the obligor,
does not render him liable.
prestations which are impossible,
unlawful or which could not have been the But once the substitution has been made, the
object of the obligation obligor is liable for the loss of the substitute on
account of his delay, negligence or fraud. (n)

Article 1201. What is a Joint Obligation? When is there

The choice shall produce no effect except from the Solidary act?
time it has been communicated.
Article 1207.
- No communication, no valid choice  Two or more creditors or of two or more
- Once communicated, obligation ceases to be debtors, in one and the same obligation.
alternative
 There is a solidary liability only when the
Can the creditor be given the right to choose? obligation expressly so states, or when the
law or the nature of the obligation requires
- YES solidarity

Article 1205. When the choice has been Exceptions (Obligation is Solidary)
expressly given to the creditor, the obligation shall
cease to be alternative from the day when the 1. When law says it is solidary
selection has been communicated to the debtor. 2. When the contract says it is solidary
 12

3. When nature of obligation requires solidarity solidum; solidaria’ “I promise to pay” signed
by two or more persons
Presumption of Joint Obligation
 When does solidarity exist by law?
Article 1208. credit or debit shall be presumed to
be divided into as many shares as there are (1) 1824. All partners are liable solidarity with
creditors or debtors. the partnership for everything
JOINT OBLIGATIONS (2) 1911. Principal is solidarity liable with the
- Each credit or debit divided into as many agent if the former allowed the latter to
shares as there are D or C act as though he had full powers.
- Each credit or debit considered separate from
each other (3) 1915. If two or more persons have
JOINT not Divisible (see 1224) appointed an agent for a common
transaction
Effects of Joint Obligation
(4) 94. Family Code – if the community property
- Creditor can only ask for payment of own is insufficient
share from a Joint Debtor
- Debtor will only pay own share to a JC (5) 121. Family Code – conjugal partnership is
insufficient
- “To each, his own”

[ what questions are answered in joint or Solidarity and Different Terms

solidary obligations? ]
Article 1211. Solidarity may exist although the
Debtor Side creditors and the debtors may not be bound in
 Who are liable to pay the same manner by the same periods and
 How much are they liable to pay conditions

Creditor Side
 Who can demand payment WHAT SOLIDARY CREDITORS MAY OR
 How much can they demand as payment MAY NOT DO

SOLIDARY OBLIGATIONS (1) Solidary Cs can do beneficial/useful things

for other solidary Cs (make a demand)
- “One for all, all for one”
- Solidarity not indivisibility (2) Solidary Cs cannot do harmful or
prejudicial things (1212) – forgive the debt,
- A Solidary Obligation may be divisible or waive interest
indivisible (1209-1210)

- It may exist although D and C are not bound in (3) Solidary C cannot transfer or assign right
the same manner/terms/conditions (1211) to a third person without consent of the
other solidary Cs (1213)

Other names for Joint or Solidary (4) The debtor may pay any one of the solidary
creditors; but if any demand, judicial or
(1) JOINT extrajudicial, has been made by one them,
- Pro rata; proportionately; mancomunada’ “we payment should be made to him (1214)
promise to pay” signed by two or more
persons
(5) The creditor may proceed against any one
(2) SOLIDARY of the solidary debtors or some or all.
- Jointly and/or severally; individually and/or
collectively; together and/or separately; in
 13

The demand made against one of them RULES ON LOSS OF THING DUE IN SOLIDARY
shall not be an obstacle to those which may OBLIGATION
subsequently be directed against the others,
so long as the debt has not been fully Situation Effect
Thing is lost without Obligation is
collected. (1216)
fault of any SD extinguished
- Basis of bond between solidary Cs: mutual Prestation becomes Obligation is
trust and confidence impossible extinguished
Thing is lost due to All SD is liable to C +
fault of any SDs damages + interest
SDs can go after
negligent SD
Thing is lost due to Obligation is
fortuitous event extinguished
PAYMENT BY SOLIDAY DEBTOR Thing is lost due to All SD liable to C +
fortuitous event after damages + interest
Rule: one SD has incurred SDs can go after
If one SD pays obligation, obligation considered delay Delaying SD
extinguished SD to proceed against other SDs for
Reimbursement (1215,1217) DEFENSES BY SOLIDARY DEBTOR

Article 1222. A solidary debtor, may, in actions

Special Case: If any SD is insolvent and cannot
filed by the creditor, avail himself of all defenses
reimburse other SDs, all other SDs to be which are derived from the
responsible for insolvent SD share (1217)
nature of the obligation and of those which are
personal to him, or pertain to his own share.
Paying SD paid obligation after obligation become
illegal or prescribed – paying SD cannot ask for With respect to those which personally belong to
reimbursement (1218) the others, he may avail himself thereof only as
regards that part of the debt for which the latter are
EFFECTS OF EXTINGUSHMENT OF SOLIDARY responsible
OBLIGATION
Situation: SC sues SD in court; SD has to defend
Special Case: himself

 SC who initiated novation, compensation, What can SD use as defenses?

confusion or remission extinguishes the
obligation – SC shall pay fellow SCs their 1. Those from nature of obligation:
shares (1215) payment, prescription, illegality, fraud

 SC remits (forgives/waives) share of one SD. 2. Those personal to SD: insanity, minority,
incapacity, mistake, violence
(1) Payment happened after remission: 3. Those personal to other SDs: insanity,
SD no longer liable to reimburse paying SD minority, incapacity, mistake, violence with
respect to co-SD
(2) Payment happened before remission
SD still liable to reimburse paying SD (1219)

 SC remits whole obligation because of one SD.

That SD is not entitled to be reimbursed by
fellow SDs. (1220)