Different Kinds of Obligations | Obligations | OBLIGATIONS AND CONTRACTS

Different Kinds of Obligations under Philippine Civil Law

The Civil Code of the Philippines classifies obligations under various categories based on the nature, manner, and type of performance required. Below is a meticulous examination of each type of obligation according to the Civil Code, with reference to the key articles and legal principles.


1. Pure and Conditional Obligations

  • Pure Obligations: These are obligations that do not have a condition or a specific period for their fulfillment (Art. 1179). They are immediately demandable.

  • Conditional Obligations: These depend on the occurrence or non-occurrence of a future and uncertain event. Conditional obligations are further divided into:

    • Suspensive Condition (Art. 1181): The obligation arises only when the condition occurs. The obligation is suspended until the fulfillment of the condition.
    • Resolutory Condition (Art. 1183): The obligation is immediately demandable but can be extinguished upon the occurrence of a specific condition.
  • Impossible Conditions (Art. 1183): If the condition is impossible, the obligation becomes void. If the impossible condition is only attached to an obligation to give, the condition is considered as not written.


2. Obligations with a Period

  • Obligations with a period have a specific time fixed for their performance. These can be:

    • Ex Die (from a day certain): Obligation is effective immediately but demandable upon arrival of the day certain.
    • In Diem (up to a day certain): Obligation terminates upon the day certain.

    The period is presumed to be for the benefit of both debtor and creditor (Art. 1196), although it may be set exclusively for one or the other party.


3. Alternative and Facultative Obligations

  • Alternative Obligations (Art. 1199): The debtor is bound to fulfill only one of several possible prestations. The choice belongs to the debtor unless otherwise stipulated. If all prestations are lost or impossible due to the fault of the debtor, the creditor may demand the value of any of the prestations.

  • Facultative Obligations: Here, only one prestation is due, but the debtor may substitute it with another prestation (Art. 1206). If the principal obligation becomes impossible, the obligation is extinguished.


4. Joint and Solidary Obligations

  • Joint Obligations (Art. 1207): Each debtor is liable only for a proportionate part of the debt, and each creditor is entitled only to a proportionate part of the credit.

  • Solidary Obligations: Here, each debtor is liable for the entire obligation, and each creditor may demand the whole obligation. Solidarity may be active, passive, or mixed:

    • Active Solidarity: Multiple creditors, each entitled to demand the entire performance.
    • Passive Solidarity: Multiple debtors, each liable for the entire obligation.
    • Mixed Solidarity: Multiple creditors and debtors, any of whom can demand or pay the entire obligation.

5. Divisible and Indivisible Obligations

  • Divisible Obligations (Art. 1223): These are obligations that can be performed in parts, either in nature or according to the law.

  • Indivisible Obligations: These cannot be performed in parts due to either the nature of the obligation or legal stipulations (Art. 1225). Noncompliance by one of the debtors in a solidary indivisible obligation entitles the creditor to demand the entire prestation from any solidary debtor.


6. Obligations with a Penal Clause

  • A penal clause is an accessory obligation which sets a penalty in case of non-compliance (Art. 1226). The penalty serves to reinforce the fulfillment of the principal obligation. The creditor cannot demand both the principal obligation and the penalty unless expressly stipulated. The penalty may be reduced if it is iniquitous or excessive, considering the nature of the obligation and the circumstances.

7. Obligations to Give, to Do, and Not to Do

  • Obligation to Give: This requires the delivery of a specific thing. It includes obligations to deliver determinate or indeterminate objects. Key provisions include Articles 1165-1167 on the proper handling and preservation of the thing due, the rights of the creditor, and remedies in case of non-fulfillment.

  • Obligation to Do: This requires performing an act. The creditor may seek a substitute performance or damages if the debtor fails to perform.

  • Obligation Not to Do: This requires refraining from a specific act. If the debtor performs the prohibited act, the creditor may have it undone or demand damages.


8. Complex Obligations

  • Conjunctive Obligations: The debtor is required to perform multiple prestations. Failure in any part constitutes breach.

  • Distributive Obligations: These allow for either an alternative or facultative obligation where the debtor has options on what prestation to perform.


9. Legal, Conventional, and Penal Obligations

  • Legal Obligations: Arising from laws and enforced by the state.

  • Conventional Obligations: Arising from contracts and mutual agreements.

  • Penal Obligations: Obligations accompanied by a penal clause that imposes a penalty on the debtor for non-fulfillment.


Key Remedies in Case of Breach

  1. Rescission (Art. 1191): The creditor may rescind the contract and recover damages if one party fails to fulfill an obligation.

  2. Specific Performance: For obligations to do or give, the creditor may demand specific performance in certain cases.

  3. Damages: Compensation for harm caused by breach, which can be moral, actual, nominal, temperate, liquidated, or exemplary.

  4. Consignation: For obligations to give money or determinate things, consignation may be used when the debtor cannot comply due to the creditor's refusal or incapacity to receive the performance.


Key Articles

  • Article 1156: Definition of obligation.
  • Article 1163-1165: Obligations to give, including the obligation of care.
  • Article 1181-1192: Pure and conditional obligations, obligations with a period.
  • Article 1199-1206: Alternative and facultative obligations.
  • Article 1207-1222: Joint and solidary obligations.
  • Article 1223-1225: Divisible and indivisible obligations.
  • Article 1226-1230: Obligations with a penal clause.
  • Article 1306: Freedom of contract and restrictions.

Understanding these categories provides a clear framework for analyzing various obligation scenarios in the context of the Philippine Civil Code. Each type has specific rules governing enforceability, breach, and remedies, designed to uphold the interests of both creditors and debtors while promoting fair and just outcomes in contractual and extracontractual relationships.