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HANDOUT NO. 3
Requisites:
a. Futurity
b. Uncertainty
Kinds of conditions:
1. Suspensive one which suspends the effectivity of the obligation until the condition
is fulfilled. It is the fulfillment of the condition that produces the efficacy of the
obligation. No fulfillment, no obligation.
2. Resolutory one which extinguishes the obligation upon the happening of the
condition. The obligation takes effect at once, but will terminate upon the happening
of the event.
1. When it is pure
2. When the obligation is subject to a resolutory condition or a period
- If the debtor will pay when his means permit him to do so, or words of similar
import, such as,
1. when I can afford
- It is only the time when payment is to be made. Since we are referring to the
tome of effectivity, we consider it a term or a period.
- Since the time for payment (not the payment) depends upon the will of the
debtor, immediate performance cannot be enforced, the right of the creditor is to
go to court and let the court fix the date for payment. The creditor in this case is
not demanding payment, he is only asking the court to fix the date for payment,
Once fixed by the court, the obligation becomes demandable on the date fixed.
Kinds of Condition
1. Potestative one which depends upon the will of one of the parties. This is called
facultative condition.
2. Casual one which depends exclusively upon chance. This is a valid obligation.
3. Mixed one which demands upon the will of one of the contracting parties and
partly upon chance or the will of a third person. This is also a valid obligation.
B. Casual If the condition is casual and tis fulfillment depends upon chance
and/or upon the will of a third person, the obligation shall be valid.
C. Mixed IF the condition is mixed and its fulfillment depends partly upon the will
of a party to the obligation and partly upon chance and/or the will of a third
person, the obligation shall be valid.
1. When there is no term, period, or condition, the obligation to deliver arises from
the perfection of the contract or its constitution or creation, the obligation being
pure.
2. If subject to a suspensive condition, the obligation to deliver arises from the
moment the condition happens.
1. If the condition is to do an impossible or illegal thing, both the condition and the
obligation are void.
2. If the condition is negative, that is, not to do an illegal thing, both the condition
and the obligation are valid.
3. If the condition is negative, that is, not to do the impossible, just disregard the
condition, but the obligation remains.
When the debtor voluntarily prevents the fulfillment of the condition, the
condition is deemed fulfilled. The obligation, therefore, is effective. This is called
constructive or presumed fulfillment.
1. If the thing is lost without the fault of the debtor, the obligation shall be
extinguished.
2. If the thing is lost through the fault of the debtor, he shall be obliged to pay
damages.
3. When the thing deteriorates without the fault of the debtor, the impairment is to
be borne by the creditor.
4. If it deteriorates through the fault of the debtor, the creditor may choose between
the rescission of the obligation and its fulfillment, with indemnity for damages in
either case.
5. If the thing is improved by its nature, or by time, the improvement shall inure to
the benefit of the creditor.
6. If it is improved at the expense of the debtor, he shall have no other right than
that granted to the usufructuary. (Art. 1189)
LOST: It is understood that the things is lost when it perishes, or goes out of commerce, or
disappears in such a way that its existence is unknown or it cannot be recovered. (Art. 1189)
Rule on Loss
1. Without debtors fault impairment shall be borne by the creditor, debtor is not
liable.
2. Due to debtors fault creditor may choose between:
a. Rescission plus damages
b. Fulfillment plus damages
Concept of Rescission
The power to rescind means the right to cancel or to resolve the contract in case
of non-fulfillment of the obligation on the part of one of them.
Characteristics:
1. It exists only in reciprocal obligations
2. It can be demanded only if the plaintiff is ready, willing and able to comply with
his own obligation and the other is not.
PERIOD
- A period is a certain length of time which determines the effectivity or the
extinguishment of an obligation.
Day Certain the day which will necessarily come whether we like it or not
Kinds of period
1. According to source
a. Ex-die (suspensive period) a period which must lapse before the obligations can
be demanded.
b. In-diem (resolutory period ) a period after which the obligation is extinguished
3. According to definiteness
Requisites of Period:
The debtor may recover what he has paid including the fruits and interest if
he is unaware of the period. If he paid voluntarily knowing that the obligation is not
yet due, he cannot recover what he had paid.
Instances when the court may not fix the term or period
1. When no term was specified by the parties because no term was ever intended, in
which case it is considered a pure obligation.
2. When the obligation is payable on demand.
3. When specified period is provided by law.
The court determines the period by considering the time probably contemplated by
the parties. Once the period is fixed by the court, the period becomes part of the
contract, and the court cannot change it. However, the parties may change the period by
mutual agreement or even disregard the period making it demandable at once.
1. When, after the obligation has been contracted, the debtor becomes insolvent, unless
he gives a guaranty or security for the debt.
2. When he does not furnish to the creditor the guaranties or securities which he has
promised.
3. When by his own acts he has impaired said guaranties or securities after their
establishment, and when through a fortuitous even they disappear, unless he
immediately gives new ones equally satisfactory.
4. When the debtor violates any undertaking in consideration of which the creditor
agreed to the period.
5. When the debtor attempts to abscond. (Art. 1198, CC)
ALTERNATIVE OBLIGATION
Alternative obligation is one where out of two or more prestation which may be
given, only one is due. In short, there are several things due but the delivery of one is
sufficient to extinguish the obligation.
Right to Choose:
The debtor shall have no right to choose those prestations which are:
1. Impossible
2. Unlawful
3. Those which could not have been the object of the obligation.
Summary of the rules, obligations and rights of the debtor and creditor in an alternative
obligation if the debtor binds himself alternatively to deliver three (3) objects.
a. Loss is due to fortuitous event If the loss is due to a fortuitous event, the effect
are the same as where the right of choice belongs to the debtor.
b. Loss is due to debtors fault
1. If none remains, the obligation is converted into monetary consideration
taking into consideration the value of any of the objects chosen by the creditor
because he is given the right of choice plus damages.