SECTION 1. ARTICLE 1179. PURE AND CONDITIONAL OBLIGATIONS CONCEPT. A.

PURE OBLIGATION one without a condition or a term (hence, demandable at once, provided there will be no absurdity) ex. I promise to give you a car. B. CONDITIONAL OBLIGATION when there is a condition ex. Ill give you a car on condition that you go to baguio on or before dec. 10, 1965. CONDITION it is an uncertain which wields an influence on a legal relationship. PERIOD that which necessarily must come Ex. Ill pay you P 1 million on june 1. 2005. WHEN AN OBLIGATION IS DEMANDABLE AT ONCE a. When it is pure. b. Or when it has a resolutory condition.
1

CLASSIFICATION OF CONDITION A. 1. SUSPENSIVE the happening of the condition gives rise to the obligation 2. RESOLUTORY the happening of the condition extinguishes the obligations. B. 1. POTESTATIVE depends debtor upon the will of the

2. CASUAL MIXED depends on chance or hazard or the will of a third persons C. 1. DIVISIBLE capable of partial performance 2. INDIVISIBLE not capable performance D. 1. POSITIVE of partial

an act is to be performed 2. NEGATIVE something will be omitted E. 1. EXPRESS the condition is stated 2. IMPLIED the condition merely inferred F. 1. POSSIBLE calpable of fulfillment in nature and in law. 2. IMPOSSIBLE not capable of fulfillment due to nature or due to operation of the law or morals or public policy; or due to a contradiction in its terms G. 1. CONJUNCTIVE if all the performed 2. ALTERNATIVE conditions must be

if only a few of the conditions have to be performed ARTICLE 1180 speaks of condition depends exclusively on the will of the debtor (and therefore apparently void under 1182). The general rule is, therefore, for the creditor to ask for the court first for the fixing of the term, and it is only when the term set arrives that he can demand fulfillment. ARTICLE 1181. SUSPENSIVE AND RESOLUTORY CONDITIONS 1. SUSPENSIVE CONDITIONS the happening of which will give rise to the acquisition of a right (also called conditions precedent or conditions antecedent. Ex. I promise to do what you ask provided that x condition is first complied with. 2. RESOLUTORY CONDITIONS ( also called conditions subsequent) here, rights
2

already acquired are lost once the condition is fulfilled. Ex. Ill give you car now should you pass the bar, the donation will not be effective. If you pass the, bar, you must first return the car to me. CONDITIONAL PERFECTION OF A CONTRACT if the perfection of a contract depends upon the fulfillment of a condition, non-fulfillment thereof means the non-perfection of the contract since the suspensive condition should have been fulfilled. ARTICLE 1183. deals with the three kinds of conditions 1. POTESTATIVE, CASUAL, MIXED CONDITION a. Potestative or facultative conditio depends on the exclusive will of one of the parties. b. Casual

depends on the chance or upon the will of one of the parties. Ex. If I win in lotto ( valid) 2. POTESTATIVE (FACULATIVE) CONDITION 1. Potestative on the part of the debtor (void) a. If also suspensive both the condition and the obligation are void, for the obligation is really illusory. Ex, Ill give you P 1,000,000 next month if I live. b. If also resolutory valid ex. Ill give you a car until I return from baguio. 2. Potestative on the part of the creditor VALID Ill give you my fountain pen if you desire to have it. ARTICLE 1183. deals with impossible condition.
3

the effect of and illegal

CLASSIFICATION 1. IMPOSSIBLE (PHYSICALLY) to make a dead man live 2. ILLEGAL prohibited by good customs, public policy, prohibited, directly or indirectly by law. EFFECTS OF IMPOSSIBLE AND ILLEGAL CONDITIONS 1. If the conditions is to do an impossible or illegal thing, both the condition and the obligation are void(because the debtors knows that no fulfillment can be done and therefore is not serious about being liable) Ill give you P 10,000 if you go to the moon within this year. 2. If the condition is negative, that is, not to do the impossible, the just disregard the condition but the obligation remains. 3. The condition is negative, not to do an illegal thing, both the condition and the obligation are valid.
4

ARTICLE 1184. conditions

refers

to

positive

ex. Ill give you my land if you marry maria x this year. If by the end of the year, maria x is already dead, or you have not yet married her, the obligation is extinguished. EFFECT IF PERIOD OF FULFILLMENT IS NOT FIXED if the period is not fixed in the contract, the court, considered the parties intentions, should determine what period was intended. ARTICLE 1185 CONDITIONS) (REFERS TO NEGATIVE

EX. Ill give you a car if you do not marry x on or before de. 10, 1992. If on dec. 11, 1992 you have not married x, you can demand delivery of the car. If x dies before dec. 11, 1992 you can, on the death of x demand delivery of the car without waiting for dec. 11, 1992, because it is evident that you can no longer marry x. ARTICLE 1186.

this article deals with constructive or presumed fulfillment. Reason for the article: one must not profit by his own fault. Applies only to a suspensive condition, it may sometimes apply to a resolutory condition. REQUISITES: 1. VOLUNTARILY MADE either maliciously or not the intent to prevent must be present 2. ACTUALLY PREVENTS intention without prevention, or prevention without intention is not sufficient CONSTRUCTIVE CONDITIONS FULFILLMENT OF

a. retroacts-(as a generl rule) to the day the obligation was constituted b. no retroactivity wit reference only to: 1. fruits or interest 2. period of prescription.the

period runs from the day the condition was fulfilled, because it can be enforced only from said date.
NO RETROACTIVE EFFECTS AS TO FRUITS AND INTEREST 1. UNILATERAL OBLLIGATION debtors gets the fruits and interest unless there is a contrary intent. Ex. In 2005, A promised to give B his (As) land if B passes the bar in 2005. If the condition is fulfilled a also give the fruits for the period of one year? No, by express provision of the law unless there is a contrary intent. 2. RECIPROCAL OBLIGATION the fruits and interest during the pendency of the condition shall ( for the purpose of convenience and practical effectiveness) be
5

if the debtor prevents the creditor from fulfilling thee condition of the obligation, the condition is deemed fulfilled n the obligation demandable. ARTICLE 1187 EFFETS OF FULFILLMENT OF SUSPENSIVE CONDITION

deemed to compensate each other (even though they really be unequal). SCOPE OF FRUITS fruits here refer to natural, industrial, and civil fruits (like rent). ARTICLE 1188 FIRST PARAGRAPH (ACTINS TO PRESERVE CREDITORS RIGHT)

REASON: If not allowed to take

the appropriate actions, there is a danger the creditor will receive nothing as when the object is deliberately

A. REASON: what was paid by mistake may be recovered because, after all, the condition may not materialize. In the meantime, the debtor has lost the use of the object. It is unfair for the creditor to unjustly enrich himself. This is a case of solution indebiti undue payment. The debtor is also entitled to fruits or legal interest if the creditor be in bad faith. ARTICLE 1189

destroyed, or hidden or alienated. Bring appropriate actions:

Means to sue

ARTICLE APPLIES:
1. The suspensive condition is fulfilled. 2. The object is specific (not generic)

Other appropriate actions: a. Ask for the security if the

debtor is about to be insolvent. b. Ask the court to prevent or concealment pendete conditince. SECOND PARAGRAPH (RIGHT OF DEBTORTO RECOVER WHAT WAS PAID BY MISTAKE)

3 things may happen to the object of an obligation:

1. May be lost 2.may be detoriate 3. may be improved

The object may be lost

a. Without debtor b. With the c. Partly without debtor.

the

fault

of

the

fault if the debtor with and partly the fault of the

The object may be detoriate

a. Without the fault of the debtor b. With the fault if the debtor c. Partly with and partly without the fault of the debtor.

The object may improve:

a. By nature or by time b. Through the expense of the debtor c. Partly through nature or time and partly by the debtor. LOSS DEFINED A. When B. When C. When that D. When it perishes it goes out of commerce it disappears in such a way its existence is unknown. it disappears

b. Because the obligation had been extinguished and considered to have had no effect, the parties should restore to each other what they have received. c. Aside from the actual things received, the fruits or the interest theron should also be returned after deducting of course the expenses made for their production, gathering and preservation. d. The courts are given power to determine the retroactivity of the fulfillment of resolutory conditions. ARTICLE 1191. The power to rescind means the right to cancel (or resolve). Reciprocal ones refers only to reciprocal obligation, that is to obligations where to two parties are reciprocally obliged to do or give something. CHARATERISTICS OF THE RIGHT TO RESCIND OR RESOLVE UNDER THIS ARTICLE

ARTICLE 1190 EFFECTS WHEN RESOLUTORY CONDITIONS IS FULFILLED a. The obligation is extinguished.
7

a. It exist only in reciprocal obligations. b. It can be demanded only if the plaintiff I ready , willing and able to comply with his own obligation, and the other is not. c. The right t rescind is not absolute: 1. Trivial causes or slight

e. The right to rescind is implied (presumed)to exist and therefore, need not be expressly stipulated upon. f. The right to rescind may be waived, expressly or impliedly. CHOICE BY THE INJURED PARTY a. The injured party may choose

between:
1. Fulfillment (specific performance) (plus damages) 2. Or rescission (plus damages) b. The right to is not conjunctive, that is the plaintiff cannot ask for remedies. c. The right is alternative and an alternative prayer may be made in a court complaint unless either had been waived previously. d. The injured party who has elected fulfillment may, if fulfillment be impossible, still ask for rescission (provided that rescission is otherwise proper). The rule is vice versa, provided the court has not yet given a final judgment.

breaches will rescission.

not

cause

2. If there be a just cause for fixing the period within the which the debtor can comply, the court will not decree rescission. 3. If the property is now in the hands of an innocent third party who has lawfull possession of the same. d. The right to rescind needs judicial approval in certain cases, and in others, does not need such approval. 1. Judicial approval is needed when there has already been delivery of the object 2. Judicial approval is not needed when there has been no delivery yet.
8

e. If an action is brought for specific performance, the damages sought must be asked in the same action; otherwise, the damages are deemed waived. ARTICLE 1192. RULE IF BOTH PARTIES HAVE COMMITTED A BREACH the first one is fair to both parties because the second infractor also derive some advantage by his own act or neglect. The second rule is likewise just because it is presumed that both at about the same time to reap some benefit. SECTIO 2 ARTICLE PERIOD 1193. OBLIGATION WITH A

PERIOD a period is a certain length of time which determines the effectivity or extinguishment of obligations. PERIOD AS DEFINED BY MANRESA: a term or a period consists in a space of time which has an influence on obligations as a
9

result of a judicial act. and either suspends their demandability or produces their extinguishment. PERIOD DISTINGUIHMENT FROM A CONDITION A. IN THEIR FULFILLMENT Condition is an uncertain event. Period is an event which must happen sooner or later, at a date known beforehand, or a time which cannot be determined. B. WITH REFERENCE TO TIME Condition refers to the future. Period under the law refer even to the past. C. AS TO INFLUENCE ON THE OBLIGATION Condition causes an obligation to arise or to cease, but a period merely fixes the time or the efficaciousness of an obligation. Period may a have suspensive or resolutory effect but in the former, it cannot prevent the birth of the obligation in due time, and in the latter, it does not militate against its existence.

THE DIFFERENT PERIODS

KINDS

OF

TERMS

OR

DEFINITE the exact date or time is known and given INDEFINITE something that will surely happen, but the date of happening is unknown. LEGAL a period granted under the provision of the law CONVENTIONAL OR VOLUNTARY period agreed upon or stipulated by the parties. JUDICIAL the period or term fixed by the courts for the performance of an obligation or for its termination EX DIE a period with a suspensive effect. IN DIEM a period with a resolutory effect. DAY CERTAIN is understood to be that which must necessarily come, although it may not be known. PERIOD OF PRESCRIPTION commences from the time the termination in the obligation arrives, for it is only from that date it is due and demandable.

10