3. Civil Obligations

4. Different Kinds of Obligations

a. Pure b. Conditional; Kinds of Conditions c. With a Period d. Alternative Obligations e. Joint and Solidary Obligations f. Divisible and Indivisible Obligations g. Obligations with a Penal Clause

Powers not included in the power to compromise

Submission to arbitration (CIVIL CODE, Art. 1880)

Alternative obligations

Initially, the obligation is indeterminate and becomes determinate upon making of choice and notification.

General Rule: The right to make a choice is with the debtor/obligor, subject to the rule that the debtor cannot choose a prestation that is impossible, unlawful, or could not have been the object of the obligation.

Exception: Under Article 1200, the right to make a choice may be expressly granted to the creditor/obligee. By separate agreement, the parties may designate a 3rd person to choose, subject also to the rule that he CANNOT choose the:

• Impossible
• Unlawful
• Could not have been the object of the obligation

When Choice is Effective – from notification.

• Debtor’s Choice: upon notice to creditor
• Creditor’s Choice: upon notice to debtor
• 3rd Person’s Choice: upon notice to both debtor and creditor (CIVIL CODE, arts. 1200–1201)

NOTE: There is no form required for the notice. It may be oral or written, express or implied (as when debtor delivers one of the choices and creditor accepts). Mere notice is required, not consent.

Once choice is made and communicated, it becomes irrevocable, and converted to a simple obligation.

If the party who has the right to make the choice does not make it or delays, the right does not pass to the other party – the other party may seek to compel the exercise of that choice, but cannot automatically demand delivery of any particular prestation.

NOTE: When only one object or prestation is left, it becomes a tacit choice. The obligation becomes a simple obligation.