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II.

Discussions
1. Illustrate an obligation subject to:
(a) Suspensive Condition
When an obligation is subject to a suspensive condition, the creation of the
obligation will depend on the occurrence of an event or on the certainty that the
event will not occur; thus, the condition delays the creation of a relationship
between the parties. As long as the condition has not occurred, the very existence
of the obligation is not yet arises. For example, If your rent is due on the 30th, you
have an obligation to pay the rent. The performance to pay occurs on the 30th.
The performance is suspended until the 30th.

(b) Resolutory Condition


Resolutory condition refers to a condition whereby, upon fulfillment terminates an
already enforceable obligation. The continuance of such a contract is made
dependent upon the happening of an uncertain future event. However, there is no
postponement or suspension of the contract and all rights and obligations come into
existence immediately upon conclusion of an agreement between the parties. For
instance, You have a car note over the next 10 years. Once you pay the last
payment at the end of 10 years, the obligation ends.

What is the effect of the fulfillment of the condition in a conditional obligation?


The suspensive condition is when the parties agree that the duty to perform is
postponed until a determined or determinable date due to the pending event, and
that this event is certain to happen. However, the exact date is unknown. The
obligation will arises when the said condition is already fulfilled. While in the
resolutory condition, when the parties agree that the obligations in the contract will
be terminated upon a certain future time. This exact time is certain to happen, but
the exact date is unkown.

2. Give two (2) cases when the conditional obligation is valid although the condition
depends entirely upon the will of the debtor. Explain.
First case is when the debtor promises to pay when his means permit him to do so.
In this case, what depends upon the will of the debtor is the duration of the period
when he is capable on paying his debt and not whether he should comply or not. For
example, Mr. G binds himself to pay Ms. Y of his debt that costs 10,000 little by
little. This obligation is valid and it shall be deemed to be one with a period of time.

Next case is when the debtor is capable of doing the said obligation. For example,
Marie borrowed 5,000 to Rose payable on September 13. Due to the review of
financial reverses, Marie now is not capable on paying the debt to Rose but Marie is
willing to pay the said debt. The remedies of Rose will arise

3. May an obligor be liable under an obligation subject to a suspensive condition


although the condition has not yet been fulfilled? Explain.
Under the suspensive condition, the obligation will arises when the said condition is
already fulfilled. Therefore, under this type of condition, the obligor or the debtor is
not yet liable. The debtor would be liable if the condition is already fulfilled.

4. In obligation to give a parcel of land subject to a suspensive condition, who is


entitled to the fruits that accrued during the pendency of the condition once said
condition is fulfilled?
Upon the fulfillment of the obligation, the seller has the right to keep to himself all
the fruits and interests he may have received during the pendency of the condition,
unless a contrary intention by the seller that he shall render an accounting of fruits
received during its pendency.

5. State the rules in case the thing to be delivered:


(a) is lost with the debtors fault; without his fault;
If the delivery lost is due to the debtors fault, the debtor has an obligation to pay
the damages that incurred and the price of the thing that is lost also can be
demand.
If the delivery lost without the fault of the debtor, the debtor is not liable for any
obligation or the obligation shall be extinguished. We are not liable for the fortuitous
event or any event that beyond our powers.

(b) Deteriorates with the debtors fault; without his fault


If it deteriorates through the fault of the debtor, the creditor may choose between
the 2 remedies as a creditor, which is the rescission or the fulfillment of the

obligation, with damages that incurred in either case. As a creditor, you only have to
choose one of the remedies that are given.
If it deteriorates without the fault of the debtor, the value of thing that delivered will
be depreciated and the value will be reduced due to the deterioration of the thing.

III. Problems
Explain or state briefly the rule or reason for your answer.
1. D (debtor) borrowed 20,000 from C (creditor) payable on or before August 30.
Before the arrival of the due date, C agreed to the promise of B to pay C if B wants.
Can C insist that B pay not later than August 30?
On this situation, the conditional obligation whose fulfillment depends partly on the
will of the debtor and partly upon the will of the third person is perfectly valid. In
this case, it shows that the creditor demands the third person to pay him not later
than August 30 but on the said case, they agreed on the promise of the third person
to pay the creditor if the third person wants. Therefore, the creditor cannot demand
to the debtor if the due date is not yet passed.

2. Suppose in the same problem, D obliges himself to pay C 10,000 after C has paid
his obligation to T. Is the obligation valid?
The said condition is considered as the suspensive condition wherein the obligation
will only arises if the condition is already fulfilled. The debtor obliges himself to pay
the creditor if the creditor already paid the third party. If the creditor has not yet
fulfilled his obligation to the third party, he cannot demand the debtor to pay him
immediately. Therefore, the obligation of the debtor is invalid. The debtor is not
liable to pay the creditor if the creditor is not yet paid to the third party.

3. S (Seller) agreed to sell to B (buyer) a specific car for 200,000, delivery of the car
and the payment of the price to be made on June 15. Suppose S delivered the car
on June 15 but B failed to pay the price, what are the remedies of S?
If the buyer does not comply with his obligation to pay, the seller may choose
between the two remedies: (a) action for specific performance (fulfillment) of the
obligation with the damages; or (b) action for the rescission of the obligation also
with damages. The seller has the privilege to choose only one of the remedies, and
not both. If the creditor chosen rescission, he cannot demand the fulfillment of

obligation to the buyer. Same as, if he chosen the buyer to fulfill the obligation, he
cannot practice the rescission later on.
4. S sold a parcel of the land to B for 240,000 payable in installment of 20,000 a
year. The land was delivered to B who obtained ownership thereof. After B had paid
200,000, he could no longer continuing paying in view of financial reverses but he
was willing to pay the balance of 40,000 if given more time. Thereupon, S sued for
rescission under Article 1191. If you were the judge, would you grant rescission?
If I were the judge, I would grant the rescission of Seller in default a term or period
for the performance of the Buyer. The buyer is willing to comply with his obligation
to pay the maintaining balance that cost 40,000 but needs time to do so due to the
view of his financial reverses, not because he doesnt want to pay the maintaining
balance that hed left.

5. D (debtor) binds himself to pay C (creditor) a sum of money. Give the three (3)
cases when the obligation of D is demandable at once by C?

When the obligation is pure

An obligation is demandable at once if it is pure obligation which one is not


suspended by any condition, whether it has been contracted without any condition,
or when thus contracted, the condition has been performed. It is immediately
demandable. Their agreement doesnt have specific date, and conditions so the
creditor can demand to pay the said amount to the debtor.

When the obligation is subject to a resolutory condition

On the above description of resolutory obligation, once the condition is already


fulfilled, the obligation will be extinguish. The creditor can demand to the debtor
during the fulfilling of the condition.

When the obligation is subject to a resolutory period

Same as the case above, the creditor can demand to the buyer while in the proce