Article 1186 and 1187

Garcia, Paul Robert C.

 ART. 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment. (1119)

This provision speaks of the DOCTRINE OF CONSTRUCTIVE FULFILLMENT Compare with Art. 1203- REQUISITES: 1. The condition is SUSPENSIVE; 2. The obligor ACTUALLY PREVENTS the fulfilment of the condition; 3. He acts VOLUNTARILY.

Malice or fraud is not required, as long as his purpose is to prevent the fulfillment of the condition. No person shall profit by his own wrong.

 Example A engaged the services of B to construct a road about 2000 meters without jurisdiction. A ordered the construction stopped when it was almost finished

B demanded from A the payment of the whole price of construction A refused to pay on the ground that the construction was not yet finished A should pay in full, for it was he voluntarily prevented fulfilment of the condition and so it

 Example A promised to sell land to B if B borrows money from a certain bank, A later changes his mind and tell the bank not to give a loan to B. The condition is deemed complied with and liable to A and A should not act in bad faith.

 Art. 1187. The effects of a conditional obligation to give, once the condition has been fulfilled, shall retroact to the day of the constitution of the obligation. Nevertheless, when the obligation imposes reciprocal prestations upon the parties, the fruits and interests during the pendency of the condition shall be deemed to have been mutually compensated. If the obligation is unilateral, the debtor shall appropriate the fruits and interests received, unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting the same was different.
In obligations to do and not to do, the courts shall determine, in each case, the retroactive effect of the condition that has been complied with. (1120)

Effects of conditional obligation to give:

Once the condition is fulfilled, the effects of the conditional obligations shall retroact to the day of the constitution of the obligation and not on the date when the condition was fulfilled.
Example On Jan. 1, 1999 A agreed to give B a parcel of land if he passes the May, 1999 CPA exams. If B passes the CPA exams in May, 1999, he is entitled to the land effective Jan. 1, 1999 because Bs right over the land retroacts to the date when the obligation was constituted.

 As to the fruits and interest The effect of conditional obligation to give, as a rule, do not retroact to the date of the constitution of the obligation. The following rules shall govern:
1. In reciprocal obligation (like a contract of sale) - the fruits and interest during the pendency of the condition shall be deemed to have been mutually compensated.

Example: A agrees to sell and B agrees to buy As parcel of land if B passes the May, 1999 CPA exams. If B passes the May, 1999 CPA Board, the obligation becomes demandable. B is entitled to all the interests that his money (with which to pay A) may earn while A is entitled to the fruits which the parcel of land may have produced during the pendency of the condition.

2. In unilateral obligation the debtor shall appropriate the fruits and interests received during the pendency of the condition unless a contrary intention appears.

Example X agreed to give Y a parcel of land if Y passes the CPA Board in May, 1999 exams. Pending the happening of the condition, A is entitled to the fruits which the land may produce, A will deliver only the parcel of land if the condition is fulfilled, unless a contrary intention appears.