CHAPTER 3 DIFFERENT KINDS OF OBLIGATIONS
each other; both parties are debtors and creditors of
SECTION 1: PURE AND CONDITIONAL
OBLIGATIONS
Pure obligation-one which is not subject to any
condition and no specific date is mentioned for its
fulfilment and is, therefore, immediately demandable
Conditional obligation-one whose consequences are
subject in one way or another to the fulfilment of a
condition
Condition-a future and uncertain event, upon the
happening of which, the effectivity or extinguishment
of an obligation (or right) subject to it depends
Suspensive condition/condition
precedent/condition antecedent-one the fulfilment
of which will give rise to an obligation (or right)
-the demandability of the obligation is suspended until
the happening of the uncertain event which constitutes
the condition
Resolutory condition/condition subsequent-one
the fulfilment of which will extinguish an obligation (or
right) already existing
Period-a future and certain event upon the arrival of
which the obligation subject to it either arises or is
extinguished
Potestative condition-a condition suspensive in
nature and which depends upon the sole will of one of
the contracting parties
Physically impossible conditions-when in nature of
things cannot exist or cannot be done
Legally impossible conditions-when they are
contrary to law, morals, good customs, public order or
public policy
Positive (suspensive) condition-the happening of
an event at a determinate time (the obligation is
extinguished)
Negative condition-an event will not happen at a
determinate time (the obligation shall become effective
and binding)
Physical loss-when a thing perishes as when a house
is burned and reduced to ashes
Legal loss-when a thing goes out of commerce (when
it is expropriated) or when a thing heretofore legal
becomes illegal
Civil loss-when a thing disappears in such a way that
its existence is unknown, or even if known, it cannot be
recovered, whether as a matter of fact or of law
Usufruct-the right is to enjoy the use and fruits of a
thing belonging to another
Unilateral-when only one party is obliged to comply
with a prestation
Bilateral-when both parties are mutually bound to
each other
Reciprocal obligations-those which arise from the
same cause and in which each party is a debtor and
creditor of the other, such that the performance of one
is designed to be the equivalent and the condition for
the performance of the other
Non-reciprocal obligations-those which do not
impose simultaneously and correlative performance on
both parties
-the performance of one party is not dependent upon
the simultaneous performance by the other
SECTION 2: OBLIGATIONS WITH A PERIOD
Obligation with a period-one whose effects or
consequences are subjected in one way or another to
the expiration or arrival of said period or term
Period-a future and certain event upon the arrival of
which the obligation (or right) subject to it either arises
or is terminated
Suspensive period (ex die)-the obligation begins
only from a day certain upon the arrival of period
Resolutory period (in diem)-the obligation is valid
up to a day certain and terminates upon the arrival of
the period
Definite period-when it is fixed or it is known when it
will come
Indefinite period-when it is not fixed or it is not
known when it will come
-where the period is not fixed but a period is intended,
the courts are usually empowered by law to fix the
same
Judicial period-a period fixed by the court
Contractual period- the period fixed by the parties in
their contract
SECTION 3: ALTERNATIVE OBLIGATIONS
Simple obligation-only one prestation
Compound obligation-there are 2 or more
prestations
Conjunctive obligation-2 or more prestations and all
of them are due
Distributive obligation-2 or more of the prestations
is due
Alternative obligation-several prestations are due
but the performance of one is sufficient
-one wherein various prestations 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
Facultative obligation only one prestation is due Partial defense-the non fulfilment of the condition
but the debtor may substitute another can be set up by B only with respect to his share

-one where only one prestation has been agreed upon SECTION 5: DIVISIBLE AND INDIVISIBLE
but the obligor may render another in substitution OBLIGATIONS

SECTION 4: JOINT AND SOLIDARY OBLIGATIONS
Individual obligations-only 1 olibgor and 1 obligee
Collective Obligation-2 or more debtors and/or 2 or
more creditors
Joint obligation-the whole obligation is to be paid or
fulfilled proportionately by the different debtors and/or
is to be demanded proportionately by the different
creditors
-mancomunada, mancomunadamente, pro rata,
proportionately, we promise to pay
Solidary obligation-where each one of the debtors is
bound to render, and/or each one of the creditors has a
right to demand from any of the debtors, entire
compliance with the prestation
Divisible obligation-one the object of which, in its
delivery or performance, is capable of partial fulfilment
Indivisible obligation-one the object of which, in its
delivery or performance, is not capable of partial
fulfilment
Legal indivisibility-where a specific provision of law
declares as indisivible
Conventional indivisibility-where the will of the
parties makes as indivisible, obligations which, by their
nature, are divisible
Natural indivisibility-where the nature of the object
or prestation does not admit of division

-jointly and/or severally, soldiaria, in solidium,

together and/or separately, individually and/or SECTION 6: OBLIGATIONS WITH A PENAL CLAUSE
collectiviely, juntos o separadamente, I promise
Principal obligation-one which can stand by itself
to pay
and does not depend for its validity and existence upon
Passive solidarity-solidarity on the part of the another obligation
debtors, where any one of them can be made liable
Accessory obligation-one which is attached to a
for the fulfilment of the entire obligation; mutual
principal obligation and, therefore, cannot stand alone
guaranty
Obligation with a penal clause-one which contains
Active solidarity-solidarity on the part of the
an accessory undertaking to pay a previously
creditors, where any one them can demand the
stipulated indemnity in case of breach of the principal
fulfilment of the entire obligation; mutually
presation, intended primarily to induce its fulfilment
representation
Penal clause-an accessory undertaking attached to an
Mixed solidarity-solidarity on the part of the debtors
obligation to assume greater liability in case of breach,
and creditors, where each one of the debtors is liable
the obligation is not fulfilled or is partly or irregularly
to render, and each one of the creditors has a right to
complied with
demand, entire compliance with the obligation (it is as
if there is 1 creditor and 1 debtor) Compensatory penal clause-when the penalty takes
the place of damages
Conventional solidarity-where solidarity is agreed
upon by the parties Punitive penal clause-when the penalty is imposed
merely as punishment for breach
Legal solidarity-where solidarity is imposed by law
Subsidiary/alternative penal clause-when only the
Real solidarity-where solidarity is imposed by the
penalty can be enforced
nature of the obligation
Joint/cumulative penal clause-when both the
Uniform (solidary obligation)-when the parties are
principal obligation and the penal clause can be
bound by the same stipulations
enforced
Non-uniform/varied (solidary obligation)-when the
CH. 4 EXTINGUISHMENT OF OBLIGATIONS
parties are not subject to the same stipulations
Integrity of prestation-considered to have been paid
Prescription-one acquires ownership and other rights
if completely delivered or performed
through the lapse of time in the manner and under the
conditions laid down by law Identity of prestation-the very prestation due must
be delivered or performed
Complete defense-a defense derived from the nature
of the obligation Substantial performance-when the important or
essential part of the contract has been performed and
-a defense personal to B alone
only a small or minor part thereof has not been carried
out
Free disposal of the thing due-the thing to be
delivered must not be subject to any claim or lien or
encumbrance (e.g. mortgage, pledge) of a third person
Capacity to alienate-the person is not incapacitated
to enter into contracts and for that matter, to make a
disposition of the thing due
Estoppel-a legal bar to alleging or denying a fact
because of ones own action or words to the contrary
Dation in payment/adjudication/dacion en pago-
the conveyance of ownership of a thing as an accepted
equivalent of performance
Judicial costs-the statutory amounts allowed to a
party to an action for his expenses incurred in the
action
Legal Tender-currency which if offered by the debtor
in the right amount, the creditor must accept in
payment of a debt in money
Inflation-a sharp sudden increase of money or credit
or both without a corresponding increase in business
transactions
-causes a sharp drop in the value of money, resulting in
the rise of the general price level
Deflation-the reduction in volume and circulation of
the available money or credit, resulting in a decline of
the general price level
Venue-the place where a court suit or action must be
filed or instituted
Domicile-the place of a persons habitual residence;
legal or actual residence
-the place where he has his true fixed permanent home
and to which place he, whenever he is absent, has the
intention of returning
Residence-only an element of domicile; simply
requires bodily presence as an inhabitant in a given
place
Application of payments-the designation of the debt
to which should be applied the payment by a debtor
who has various debts of the same kind in favor of one
and the same creditor
Payment by cession-the assignment or abandonment
of all the properties of the debtor for the benefit of his
creditors in order that the latter may sell the same and
apply the proceeds thereof to the satisfaction of their
credits
Tender payment-the act, on the part of the debtor, of
offering to the creditor the thing or amount due
Consignation-the act of depositing the thing or
amount due with the proper court when the creditor
does not desire or cannot receive it, after complying
with the formalities required by law
Thing is lost-perishes or goes out commerce or
disappears in such a way that its existence is unknown
or it cannot be recovered
Condonation/remission-the gratuitous abandonment
by the creditor of his right against the debtor
Legitime-that part of the testators property which he
cannot dispose of because the law has reserved it for
certain heirs
Pledge-a contract by virtue of which the debtor
delivers to the creditor or to a third person a movable o
instrument evidencing incorporeal rights for the
purpose of securing the fulfilment of a principal
obligation with the understanding that when the
obligation is fulfilled the thing delivered shall be
returned with all its fruits and accessions
Confusion/merger-the meeting in one person of the
qualities of creditor and debtor with respect tot the
same obligation
Compensation-the extinguishment to the concurrent
amount of the debts of two persons who, in their own
right, are debtors and creditors of each other
Voluntary/conventional compensation-includes
any compensation which takes place by agreement of
the parties even if all the requisites for legal
compensation are not present
Foreign exchange-the conversion of an amount of
money or currency of one country into an equivalent
amount of money or currency of another
Exchange rate-the price of one currency expressed or
quoted in relation to another currency
Deposit/depositum-a loan which creates the
relationship of debtor and creditor
-constituted from the moment a person receives a
thing belonging to another with the obligation of safely
keeping it and returning the same
Novation-the total or partial extinction of an obligation
through the creation of a new one which substitutes it
Substitution-when the person of the DR is substituted
Subrogation-when a third person is subrogated in the
rights of the CR
-the substitution of one person (subrogee) in the place
of a creditor (subroger) with reference to a lawful claim
or right, giving the former all the rights of the latter
including the right to employ all remedies to enforce
payment
expromission-which takes place when a third person
of his own initiative and without the knowledge or
against the will of the original debtor assumes the
latters obligation with the consent of the creditor
Delegacion-which takes place when the creditor
accepts a third person to take place of the debtor at
the instance of the latter
-all parties must agree (old DR, new DR, CR)