Obligations that are demandable at once

Article 1179. Every obligation whose performance does not depend upon a future or uncertain event,
or upon a past event unknown to the parties, is demandable at once.

Every obligation which contains a resolutory condition shall also be demandable, without prejudice to
the effects of the happening of the event.

Conditional obligation effectivity (suspensive) or extinguishment (resolutory) is subject

to a future and uncertain event or upon a past event unknown to the parties
Article 1181. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss
of those already acquired, shall depend upon the happening of the event which constitutes the
condition.

In a suspensive condition demandability of the obligation arises upon the happening of the
event and if the condition is not fulfilled then the obligation is unenforceable. While in a
resolutory condition demandability arises before the happening of the event, thus the
obligation exists before the happening of the event and the happening of the event
extinguishes the rights previously acquired and if the condition does not happen the rights
acquired remain unaffected.

A sale could be subject to either a suspensive or resolutory condition

Article 1478. The parties may stipulate that ownership in the thing shall not pass to the purchaser until
he has fully paid the price. contract to sell

Article 1601. Conventional redemption shall take place when the vendor reserves the right to
repurchase the thing sold, with the obligation to comply with the provisions of article 1616 and other
stipulations which may have been agreed upon.

Potestative condition is when the fulfillment of the suspensive condition depends upon the
sole will of the debtor

Article 1182. When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void. If it depends upon chance or upon the will of a third person, the
obligation shall take effect in conformity with the provisions of this Code.
A contract must bind both contracting parties, its validity or compliance cannot be left to the
will of one of them

Article 1308. The contract must bind both contracting parties; its validity or compliance cannot be left
to the will of one of them.

Article 1473. The fixing of the price can never be left to the discretion of one of the contracting parties.
However, if the price fixed by one of the parties is accepted by the other, the sale is perfected.

A loan of money to be paid when the debtor wants to pay is potestative only to the manner of
payment but not to the amount to be paid because the indebtedness is already an existing
obligation

Article 1197. If the obligation does not fix a period, but from its nature and the circumstances it can
be inferred that a period was intended, the courts may fix the duration thereof.

The courts shall also fix the duration of the period when it depends upon the will of the debtor.

In every case, the courts shall determine such period as may under the circumstances have been
probably contemplated by the parties. Once fixed by the courts, the period cannot be changed by
them.

Alternative remedies of specific performance or rescission with damages in either case, in case
one of the parties fails or refuses to comply with his obligation

Article 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors
should not comply with what is incumbent upon him.

The injured party may choose between the fulfillment and the rescission of the obligation, with the
payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment,
if the latter should become impossible.

The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a
period.

This is understood to be without prejudice to the rights of third persons who have acquired the thing,
in accordance with articles 1385 and 1388 and the Mortgage Law.

If the obligation has been substantially performed in good faith, it is as if there is complete
performance
 person obligated to do
Article 1234. If the obligation has been substantially performed in good faith, the obligor may recover
as though there had been a strict and complete fulfillment, less damages suffered by the obligee.

period (suspensive or resolutory) is a future and certain event. A day certain is that which must
necessarily come, although it may not be known when.

Article 1993. The depositor shall reimburse the depositary for any loss arising from the character of
the thing deposited, unless at the time of the constitution of the deposit the former was not aware of,
or was not expected to know the dangerous character of the thing, or unless he notified the depositary
of the same, or the latter was aware of it without advice from the depositor. (?)

When the debtor binds himself to pay when he has the money, the obligation is deemed to be
one with a period.

Article 1180. When the debtor binds himself to pay when his means permit him to do so, the obligation
shall be deemed to be one with a period, subject to the provisions of article 1197.

Article 1197. If the obligation does not fix a period, but from its nature and the circumstances it can
be inferred that a period was intended, the courts may fix the duration thereof.

The courts shall also fix the duration of the period when it depends upon the will of the debtor.

In every case, the courts shall determine such period as may under the circumstances have been
probably contemplated by the parties. Once fixed by the courts, the period cannot be changed by
them.

In case of loss, deterioration or improvement of the thing before the arrival of the period

Article 1189. When the conditions have been imposed with the intention of suspending the efficacy
of an obligation to give, the following rules shall be observed in case of the improvement, loss or
deterioration of the thing during the pendency of the condition:

(1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished;

(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it perishes, or goes out of commerce, or disappears in
such a way that its existence is unknown or it cannot be recovered;
 (3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne
by the creditor;

(4) If it deteriorates through the fault of the debtor, the creditor may choose between the
rescission of the obligation and its fulfillment, with indemnity for damages in either case;

(5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit
of the creditor;

(6) If it is improved at the expense of the debtor, he shall have no other right than that granted
to the usufructuary.

Article 1194. In case of loss, deterioration or improvement of the thing before the arrival of the day
certain, the rules in article 1189 shall be observed.

The obligation becomes immediately due and demandable when the debtor loses the right to
make use of the period

Article 1198. The debtor shall lose every right to make use of the period:

(1) When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt;

(2) When he does not furnish to the creditor the guaranties or securities which he has
promised;

(3) When by his own acts he has impaired said guaranties or securities after their
establishment, and when through a fortuitous event they disappear, unless he immediately
gives new ones equally satisfactory;

(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to
the period;

(5) When the debtor attempts to abscond.

Alternative obligation compared to facultative obligation. There is more than one object and
the debtor has to choose to perform one; on the other there is only one object, but the debtor
may choose to substitute it with another

In alternative before the choice is made, the loss of one thing due to a fortuitous event does
not extinguish the obligation since there are other things. In facultative before the substitution,
if the principal is lost due to a fortuitous event then the obligation is extinguished, but if the
substitute is lost the obligation is not extinguished. In both cases once the choice has been
communicated to the creditor it ceases to be alternative or facultative and becomes a simple
obligation.

ARTICLE 1199. A person alternatively bound by different prestations shall completely perform one of
them.

The creditor cannot be compelled to receive part of one and part of the other undertaking.

Article 1206. When only one prestation has been agreed upon, but the obligor may render another in
substitution, the obligation is called facultative.

The loss or deterioration of the thing intended as a substitute, through the negligence of the obligor,
does not render him liable. But once the substitution has been made, the obligor is liable for the loss
of the substitute on account of his delay, negligence or fraud.

SOLIDARY - each debtor is liable for the whole

JOINT - each debtor is liable to their corresponding share

The obligation is presumed to be joint unless expressly stipulated to be solidary or provided by

law.

Article 1207. The concurrence of two or more creditors or of two or more debtors in one and the same
obligation does not imply that each one of the former has a right to demand, or that each one of the
latter is bound to render, entire compliance with the prestation. There is a solidary liability only when
the obligation expressly so states, or when the law or the nature of the obligation requires solidarity.

Article 1208. If from the law, or the nature or the wording of the obligations to which the preceding
article refers the contrary does not appear, the credit or debt shall be presumed to be divided into as
many shares as there are creditors or debtors, the credits or debts being considered distinct from one
another, subject to the Rules of Court governing the multiplicity of suits.

Art. 94 Family Code. If the community property is insufficient to cover the foregoing liabilities, except
those falling under paragraph (9), the spouses shall be solidarily liable for the unpaid balance with
their separate properties. (161a, 162a, 163a, 202a-205a)

Art. 219. Family Code. Those given the authority and responsibility under the preceding Article shall
be principally and solidarily liable for damages caused by the acts or omissions of the unemancipated
minor. The parents, judicial guardians or the persons exercising substitute parental authority over said
minor shall be subsidiarily liable.

The respective liabilities of those referred to in the preceding paragraph shall not apply if it is proved
that they exercised the proper diligence required under the particular circumstances.

All other cases not covered by this and the preceding articles shall be governed by the provisions of
the Civil Code on quasi-delicts.
Article 927. If two or more heirs take possession of the estate, they shall be solidarily liable for the
loss or destruction of a thing devised or bequeathed, even though only one of them should have been
negligent.

Article 1723. The engineer or architect who drew up the plans and specifications for a building is liable
for damages if within fifteen years from the completion of the structure, the same should collapse by
reason of a defect in those plans and specifications, or due to the defects in the ground. The contractor
is likewise responsible for the damages if the edifice falls, within the same period, on account of defects
in the construction or the use of materials of inferior quality furnished by him, or due to any violation
of the terms of the contract. If the engineer or architect supervises the construction, he shall be
solidarily liable with the contractor.

Acceptance of the building, after completion, does not imply waiver of any of the cause of action by
reason of any defect mentioned in the preceding paragraph.

The action must be brought within ten years following the collapse of the building.

Article 1824. All partners are liable solidarily with the partnership for everything chargeable to the
partnership under articles 1822 and 1823

Article 1911. Even when the agent has exceeded his authority, the principal is solidarily liable with
the agent if the former allowed the latter to act as though he had full powers.

Article 1915. If two or more persons have appointed an agent for a common transaction or
undertaking, they shall be solidarily liable to the agent for all the consequences of the agency.

Article 1945. When there are two or more bailees to whom a thing is loaned in the same contract,
they are liable solidarily.

Article 2146. If the officious manager delegates to another person all or some of his duties, he shall
be liable for the acts of the delegate, without prejudice to the direct obligation of the latter toward the
owner of the business.

The responsibility of two or more officious managers shall be solidary, unless the management was
assumed to save the thing or business from imminent danger.

Article 2157. The responsibility of two or more payees, when there has been payment of what is not
due, is solidary.

Article 2184. In motor vehicle mishaps, the owner is solidarily liable with his driver, if the former, who
was in the vehicle, could have, by the use of the due diligence, prevented the misfortune. It is
disputably presumed that a driver was negligent, if he had been found guilty of reckless driving or
violating traffic regulations at least twice within the next preceding two months.

If the owner was not in the motor vehicle, the provisions of article 2180 are applicable.

Article 2194. The responsibility of two or more persons who are liable for quasi-delict is solidary.
In joint there are two or more creditors or debtors in the same obligation who are bound to
demand or give his proportionate share which is considered distinct from the others; while in
solidary anyone of the debtors is bound to comply with the entire obligation or anyone of the
creditors can collect the entire debt but if demand has been made by one solidary creditor
payment should be made to him

Article 1207. The concurrence of two or more creditors or of two or more debtors in one and the same
obligation does not imply that each one of the former has a right to demand, or that each one of the
latter is bound to render, entire compliance with the prestation. There is a solidary liability only when
the obligation expressly so states, or when the law or the nature of the obligation requires solidarity.

Article 1208. If from the law, or the nature or the wording of the obligations to which the preceding
article refers the contrary does not appear, the credit or debt shall be presumed to be divided into as
many shares as there are creditors or debtors, the credits or debts being considered distinct from one
another, subject to the Rules of Court governing the multiplicity of suits.

Article 1214. The debtor may pay any one of the solidary creditors; but if any demand, judicial or
extrajudicial, has been made by one of them, payment should be made to him.

Article 1216. The creditor may proceed against any one of the solidary debtors or some or all of them
simultaneously. The demand made against one of them shall not be an obstacle to those which may
subsequently be directed against the others, so long as the debt has not been fully collected.

Solidarity may exist although the debtors are not bound by the same periods but the solidary
debtor required to pay the debt that is due can set-up the personal defense which belong to
the others whose debt is not yet due

Article 1211. Solidarity may exist although the creditors and the debtors may not be bound in the
same manner and by the same periods and conditions.

Reimbursement to a solidary debtor who pays the whole obligation

Article 1217. Payment made by one of the solidary debtors extinguishes the obligation. If two or more
solidary debtors offer to pay, the creditor may choose which offer to accept.

He who made the payment may claim from his co-debtors only the share which corresponds to each,
with the interest for the payment already made. If the payment is made before the debt is due, no
interest for the intervening period may be demanded.

When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor
paying the obligation, such share shall be borne by all his co-debtors, in proportion to the debt of each.
Reimbursement if one solidary debtor is insolvent

Article 1218. Payment by a solidary debtor shall not entitle him to reimbursement from his co-debtors
if such payment is made after the obligation has prescribed or become illegal.

Remission of the whole obligation obtained by one solidary debtor does not entitle him to
reimbursement, and remission of one solidary debtor when the debt has been totally paid by
another does not release him from his responsibility to the other

Article 1219. The remission made by the creditor of the share which affects one of the solidary debtors
does not release the latter from his responsibility towards the co-debtors, in case the debt had been
totally paid by anyone of them before the remission was effected.

Article 1220. The remission of the whole obligation, obtained by one of the solidary debtors, does not
entitle him to reimbursement from his co-debtors

If the object to be delivered is a joint indivisible obligation, the obligation can be enforced only
by proceeding against all and if one refuses to comply, then the obligation to deliver becomes
one for monetary indemnity

Article 1209. If the division is impossible, the right of the creditors may be prejudiced only by their
collective acts, and the debt can be enforced only by proceeding against all the debtors. If one of the
latter should be insolvent, the others shall not be liable for his share. (1139)

Article 1210. The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does
solidarity of itself imply indivisibility. (n)

Article 1224. A joint indivisible obligation gives rise to indemnity for damages from the time anyone of
the debtors does not comply with his undertaking. The debtors who may have been ready to fulfill their
promises shall not contribute to the indemnity beyond the corresponding portion of the price of the
thing or of the value of the service in which the obligation consists.

An indivisible thing cannot be made divisible by agreement of the parties. However, a divisible
thing may be made indivisible by the agreement of the parties or by law

Article 1225. For the purposes of the preceding articles, obligations to give definite things and those
which are not susceptible of partial performance shall be deemed to be indivisible.
When the obligation has for its object the execution of a certain number of days of work, the
accomplishment of work by metrical units, or analogous things which by their nature are susceptible
of partial performance, it shall be divisible.

However, even though the object or service may be physically divisible, an obligation is indivisible if
so provided by law or intended by the parties.

In obligations not to do, divisibility or indivisibility shall be determined by the character of the prestation
in each particular case.

Obligation with a penal clause is an accessory obligation when the debtor fails or refuses to
perform the principal obligation

Article 1230. The nullity of the penal clause does not carry with it that of the principal obligation.

The nullity of the principal obligation carries with it that of the penal clause.

Proof of actual damages is not necessary since the amount of damage is agreed upon by the
parties to a contract

Article 1228. Proof of actual damages suffered by the creditor is not necessary in order that the
penalty may be demanded.

Article 2226. Liquidated damages are those agreed upon by the parties to a contract, to be paid in
case of breach thereof.

Nevertheless, the amount can be equitably reduced if it is iniquitous or unconscionable or has

been partly or irregularly performed

Article 1229. The judge shall equitably reduce the penalty when the principal obligation has been
partly or irregularly complied with by the debtor. Even if there has been no performance, the penalty
may also be reduced by the courts if it is iniquitous or unconscionable.

Article 2227. Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably
reduced if they are iniquitous or unconscionable.
The payment of the penalty is a substitute for damages. However, actual damages shall be paid
if the obligor refuses to pay the penalty or is guilty of fraud or when there is a stipulation

Article 1226. In obligations with a penal clause, the penalty shall substitute the indemnity for damages
and the payment of interests in case of noncompliance, if there is no stipulation to the contrary.
Nevertheless, damages shall be paid if the obligor refuses to pay the penalty or is guilty of fraud in the
fulfillment of the obligation.

The penalty may be enforced only when it is demandable in accordance with the provisions of this
Code.