Different Kinds of Obligation (Primary)

Section 1: Pure and Conditional Obligation

Section 6: Obligation with a Penal Clause

PURE- subject to resolutory condition; demandable at once

CONDITIONAL - with a condition imposed in its performance

Condition - uncertain event; every future or uncertain event upon which an obligation or provision is made to depend.

Characteristic of Condition

  1. Future and Uncertain
  1. Past but uknown

Two Principal Kinds of Condition

  1. Suspensive Condition - give rise to the obligation
  1. Resolutory Condition - extinguishes the obligation

Classification of conditions

a) as to effect

suspensive

resolutory

b) as to form

c) as to possibility

d) cause of origin

e) as to mode

f) as to numbers

g) as to divisibility

Express

Implied

possible

impossible

potestative

casual

mixed

positive

negative

conjunctive

disjunctive

divisible

indivisible

Section 2: Obligations with a Period

PERIOD - is a future and uncertain event upon the arrival of which the obligation arises or terminated.

Kinds of period or term

1) according to effect

Suspensive Period (EX DIE) -a term or period with a suspensive effect, which means the obligation becomes effective only from the arrival of a certain day.

Resolutory Period (IN DIEM) - a term or period with a resolutory effect, which means the obligation will subsist up to a certain day and it terminates upon the arrival of that day.

2) according to source

Legal Period - when it is provided by the law

Conventional and Voluntary Period - when it is agreed by the parties

3) according to definiteness

Definite Period- when it is fixed or it is know when it will come

Judicial Period - When it is fixed by the court

Indefinite Period - when it is not fixed and it is not known it will come

Requisites for a valid term or period

  1. It must be future
  1. It must be certain, that is, sure to come but may be extended by mutual agreement
  1. It must be possible physically and legally.

Section 3: Alternative Obligation

Kinds of Obligation according to object:

1.Simple Obligation – there is only one object

2.Compound Obligation – two or more prestations, it may be

Conjuctive obligation - one where there are several prestation and all of them are due

Distributive Obligation - one where 2 or more of the prestations is due

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.

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.

Section 4: Joint and Solidary Obligations

Kinds of Obligations according to the number of parties

1. Individual Obligation – there is only one debtor and one creditor in a contract

2. Collective Obligation – there are two or more debtor and two or more creditors

JOINT OBLIGATION - where the whole obligation is to be paid or fulfilled proportionately by the different debtors and demanded proportionately by the different creditors. This is the presumption in all collective obligation unless solidarity is expressly stated.

SOLIDARY OBLIGATION - where each one of the debtors is bound render, and/or each creditor has the right to demand from any of the debtors, the entire compliance with the prestation.

Kinds of Solidary

  1. according to parties bound

Passive-solidarity on the part of the debtor

Active-solidarity on the part of the creditor

Mixed-solidarity on the part of the debtors and creditors

  1. according to source

Conventional-solidarity agreed upon by the parties

Legal- solidarity is imposed by the law

Real- solidarity is imposed by the nature of the obligation

Consequences of Solidary Obligation

Passive Solidarity- one of the several debtors can be made liable for the payment or the performance of the entire obligation. (full payment by any of the debtor extinguishes the obligation)

Active Solidarity- one of the solidary creditors can demand the payment or performance of the entire obligation from the debtor or any of the debtors. (There is mutual representation w/ power to exercise the rights of others in the same manner as their own rights)

Solidary liability cannot be presumed

(1) When the obligation itself expressly provides for solidarity, for the burden s now assumed voluntarily by the debtor/s who are supposed to take care of their own concerns and affairs (Conventional Solidarity)

(2)When the law expressly provides for solidarity for which the law has its own legal reason for the imposition of solidarity (Legal Solidarity);

(3)When the nature of the obligation requires solidarity (Real Solidarity)

Section 5: Divisible and Indivisible Obligation

Divisible Obligation- is one of the object of which, in its delivery or performance, is capable of partial fulfillment.

Indivisible Obligation- is one of the object of which in its delivery or performance is not capable of partial fulfillment.

1.Qualitative Division – divisibility depends on the quality of the thing; not homogenous (e.g. Inheritance – real & personal property)

2.Quantitative Division – divisibility depends on the numbers of the things; homogeneous (e.g. 1000 hectares of land can divided into how many parts)

3.Ideal Division – non-material divisibility; only mental & intellectual (e.g. Corporation).

1.Legal Indivisibility – indivisibility provided by law

2.Conventional Indivisibility – indivisibility agreed upon by both parties

3.Natural Indivisibility– indivisibility by reason of the nature of the object or subject matter of the obligation

if the contract is divisible and a part of it is illegal, the illegal part of the contract is considered void and not enforceable.

if the contract is indivisible and a part of it is illegal, the entire contract is considered void and not enforceable.

Principal Obligation - can stand by itself and does not depend for its validity and existence upon another obligation

Accessory Obligation - attached to a principal obligation and therefore cannot stand alone.

Penal Clause- an accessory undertaking attached to an obligation to assume greater liability in case of breach.

Kinds of Penal Clause

  1. as to its origin

Legal Penal Clause

Conventional Penal Clause

  1. as to its purpose

Compensatory Penal Clause

Punitive Penal Clause

  1. as to its demandability effect

Subsidiary or Alternative Penal Clause

Joint or Cumulative Penal Clause