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BUSINESS LAW 1

EVALUATION

1. Define and explain the following:

a) Alternative obligation

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.

b) Facultative obligation - a type of obligation where one thing is due, but another is paid in its place. In such type of obligations there is no alternative provided. The debtor is given the right to substitute the thing due with another that is not due.

c) Joint and solidary obligations -  is one wherein either one of several creditors has the right to demand full and complete compliance of an obligation against either one of the debtors. In such an obligation, the debtors are sureties who are liable for the full amount of the debt incurred by the principal debtor. A surety is liable regardless of whether it benefitted from the debt incurred by the principal debtor.

2. What are the kinds of obligation according to object?

a.) Simple Obligation – There is only one (1) prestation

b.) Compound Obligation – There are two (2) or more prestations.

3. Explain Articles 1200 and 1201.

Art. 1200. The right of choice belongs to the debtor, unless it has been expressly granted to the creditor.

  The debtor shall have no right to choose those prestations which are impossible, unlawful or which could not have been the object of the obligation.

Art. 1201. The choice shall produce no effect except from the time it has been communicated.

4. What are the effects when only one prestation is practicable?

Effect when only one prestation is practicable. If more than one ispracticable, it is. Article 1200 that will apply. 

5. When does the debtor may rescind?

6. What are the effects of loss or becoming impossible of objects of obligation? What is the basis of indemnity?

7. What are the rules in case of loss before creditor has made choice?

8. Distinguish alternative and...