Article 1190
He may also seek rescission
When the conditions have for their purpose the
extinguishment of an obligation to give, the parties,
upon the fulfillment of the condition shall return to
each other what they have received.
In case of loss, deterioration ot improvement of the
thing, the provision which, with respect to the debtor,
are laid down in the preceeding article shall be
applied to the party who is bound to return.
As for obligations to do or not to do, the provisions of
the second paragraph of Article 1187 shall be
observed as regards the effect of the extinguishment
of the obligation.
Effects of fulfillment of a resolutory condition
1. Obligations to give- the obligation is
extinguished (art 1181). Parties are obliged to
return to each other what they have received
under the obligation.
a. Return to status qou, effect of the fulfillment
of the condition is retroactive
b. In case a thing to be returned is in the hands
of a third person, who dint act in bad, the
remedy of the party entitiled to restitution is
against the other,
c. Mutual restitution. Applies tonot only to the
thing received but also tto the fruits and
interest,
d. In obli to givem si ausoensuve condition, the
retroactivity admints exceptions (bilateran
and unilateral)
2. Obligations to do or not to do- the courts shall
determine the retroactive effect of the fulfill,emt
of the resolutory condition
The happening of a resolutory condition has the
same effect on the creditor- as the happening of
the suspensive condition has on the debtor- an
obligation arises.
Article 1191
The power to rescind onligation is implied in
reciprocal ones, in case one of the obligors should not
comply with what is incumbent upon him.
The injured party may choose between the
fulfillment and the recission of the obligation with
payment ot damages.
even after he has choosen fulfillment, if the latter
should become impossible.
The court shall decree the rescission claimed, unless
there be just cause authorizing the fixing of the
period.
This is understood to be without prejudice to the
rights of third persons who have acquired the thing,
in accordance with article 1385 and 1388 and the
mortgage law.
Kinds of Obligation according to the person obliged
1. Uunilateral- when only one party is obliged to
comply with a prestation
2. Bilateral \- when both parties are mutualy
bound to each other.
- Bot parties are creditor and debtor of each
other
a. Reciprocal obligations
- Those which are the same cause and in
which each party is a debtor and creditor of
each other such that the performance of one
is designed to be the equivalent and the
condition for the performance of the other
b. Nonreciprocal obligations those which
don’t impose simultaneous and
correlative performance on both parties.
Remedies in Reciprocal Obligations
1. Choice of Remedies
a. Action for specific performance with
payment to damages
b. Action for rescission with payment to
damages
2. Remedy of rescission for noncompliance
- Principal action for rescission for
noperformance under art 1191 must be
distinguise from subsiadry action for
rescission by reason of lesion or damage
under 1281 and from cancellation of a
contract
Art 1191 governs where there is noncompliance by
one of the contracting parties in case of reciprocal
obligations. The remedy is BREACH by the other
contracting party that violates the reciprocity
between them.
Court may grant guilty party term for performance
where the guilty party is willing to comply with his
obligation but needs time to do so and not where he
refuses to perform.
Remedies are alternative
Only privileged to chose only one of the remedies and
not both, subject to the exception of par 2, he may also
seek rescission after he has chosen performance if the
latter should become indubitable.
Limitations on Right to demand recission
1. Resort to the courts- judicial rescission or one
granted by a court
2. Power of court to fix period- the court has a
discretion power to allow a period withing
which a person in default may be permitted to
perform his obligation.
3. Rights of third person- if the thing subject matter
is in the hands of a third person who acted in
good faith, rescission is not available remedy.
4. Substantial violation- rescission will not be
granted for slight breaches of contract. The law
is not concerned with
5. Waiver of Right- expressly or implied
Rescission without previous judicial decree
1. Where automatic rescission expressly stipulated
- the parties validly enter into an
agreemantthat violation of the terms of
contract would cause rescission without
judicial intervention
However there must be at least a written notice
sent to the other party informing him of the
rescission.
2. Where contract still executory
- no performance on both parties, but one is
ready and willing to comply with what is
incumbent upon him
Article 1192
In case both parties have commited a breach of
obligation, the liability of the first infractor shall be
equitably tempered by the courts. If it cannot be
determing which of the parties first vilated the
contract, the same shall be deemed extinguished and
each shall bear his own damages.
1. First infractor known- one party violated his
obligation,subsequently the other also violated
his part of the obligation.
2. First infractor cannot be determined-one party
violated his obligation followed by the other, but
cannot be determined who ise the first infractor.
The contract shall be deemed extinguished and
each shall bear his own damages.
OBLIGATIONS WITH A PERIOD
Article 1193
Obligations for whose fulfillmend a day certain
has been fixed, shall be demndable only when
that day comes.
Obligations with a resolutory period take effect at
once but terminate upon arrival of the day
certain.
A day certain is umderstood to be that which
muse necessarily vome, although it may not be
known when.
If the uncertainty consists in wether the day will
come or not, the obligation is conditional and it
shall be regulated by the rules of the preceding
section.
Obligation with a period is one whose effects or
consequences are subjected one way or nother to
expiration or arrival of said period or term
Period/term
Future and certain event upon arrival od which the
obligation/ right subject to it either case or ise
terminated.
Period vs Condition
Period Condition
Fulfillment
Certain and future even Uncertain event
(happen sooner at adte
known beforehand)
Time
Future Past event unknown to
parties
Effect when left to debtor’s will
Empowers the court to Invalidates obligation
fix the duration (1197)
Retroactivity effects
 Unless there is Retroactive effect
agreement to contrary,
the arrival of period
don’t have any
retroactive effect
Kinds of period or term
1. According to effect
a. Suspensive Period (exdie)- obligation begins
only from a day certain upon the arrival of
period (1193)
b. Resoltory Period (in diem)- obligations is
valid up to a day certain and terminates upon
arrival of the period
2. Acdg to source
a. Legal period- when it is provided for by
laws
b. Judicial period- fixed by the court
3. According to definiteness
a. Definite period- fixed or known when it will
come
b. Indefinite period- not ixed or it is not known
when it will come.
Article 1194
In case of lss, deterioration, improvement of the thing
before the arrival of the day certain, the rules in
article 1189 shall be observed.
Effect of loss, deterioration or improvement before
arrival of perion
Article 1195
Anything paid or delivered before the arrival of the
period, the obligation being unaware of the period or
believing that the obligation has become dur and
demandable, may be recovered, with the fruits and
interests.
Payment before arrival of period
Obligation to give, similar to 1188 par 2, which allows
recovey of what has been paid by mistake before the
fulfillment of suspensive condition
Creditor cannot unjustly enrish himself by retaining the
thing or money received before the arrival of the period.
(quasi contracts)
Debtor presumed aware of period
- Debtor knew the debt was not yet due
- Burden of proving unaware of period
- Duration will of the period
Obligor may no loner recover the thing or money once
the period has arrived but he cann recover the fruits or
interests thereof from the date of premature performance
to the date of maturity of the obligation.
No recovery in personal obligations
Physically impossible to recover the service rencered
and as to the latter as the obligor performs by not doing
Article 1196
Whenever in an obligation s period is designated, it is
presumed to have been established for the benefit of
both the creditor and the debtor, unless from the
tenor of the same or other circumstances, it should
appear that the period has been established in favor
of one or of the other.
Presumption as to benefit of a period
Period is presumed to have been established for the
benefit of both the creditor and debtor. Before the
expiration of the period, the debtor may not fulfill the
obligation and neither may creditor demands its
fulfillment without the consent of the other specially if
the latter would be prejudiced
Presumption is rebuttable
Exceptions to General Rule
- benefit may be subject of express stipulation
of the parties
1. term is for the benefit of the debtor alone- cant
be compelled to pay prematurely but he can if he
desire to do so
2. term is for the benefit of the creditor- demand
fulfillment even before the arrival of the term
but the debtor cannot require him to accept
payment bedore the expiration of the stipulated
period.
Computation of term or period
1. administrative code of 1987 perovide
Legal Periods- “year” 12 calendar months, month-
specific calendar month computed according to the
number of days the specific month contains, day- 24
hours, night-sunset to sunrise
2. Calendar Month- month designated in the
calendar without regards to the number of days
“period of time running from the beginning of a
certain numbered day up to, but not if there is
not sufficient numver of days in the next month,
then up to and including the last day of the
month.
Article 1197 If the obligation does not fix a period,
but from its nature and circumstances it can be
inferred that a period was internded, the courts mau
fic the duration thereof.
The courts shall also fix the duration the period when
it depends upon the will of the debtor,
In every case, the courts shall determine such period
as may under the circumstances have been probably
contemplated by the parties. Once fixed by the
courts, the period cannot be changed by them.
Court generally without power to fix period
Refers to a judicial period as distinguished from the
period fixed by the parties in their contract which is
known as contractual period
Obligation doesn’t state a period, no period intended-
court not authorized to fix a period
Exceptions to the general rule
2 cases, 1197 psrt and parcel of all obligations
contemplated
Enforces or carries out the intention of the parties. Cant
arbitrarily fix a period out of thin air
1. No period is fixed but a period was intended-
obligation does not fixed a period but it can be
inferred from its nature and the circumstance
that a period was intended.
2. Duration of the period depends upon the will of
his debtor
- To forestall the possibility that the
obligations may never be fulfilled
Legal effect where suspensive period/ condition
depends upon will of debtor
1. The existence of the obligation is not affected
although the period depends upon the sole will
of the debtor. Performance with respect to time
that is left to the will of bettor
2. Sole will of debtor- conditional obligation is
void (1182) fulfillment of the obligation that
depends upon the will of the debtor
Period fixed cannot be changed by the courts
1. There is a period agreed upon and it has already
lapsed
2. From the very moment the parties give their
acceptance and consent to the period fixed by
the court, said period acquires the nature of the
contract because the effect of such acceptance
and consent bu the parties is exactle te same as if
they has expressly agreed upon.
Article 1198
The debtor shall lose every right to make use of the
period:
1. When after the obligation has been
contracted, he become insolvent, unless he
gives a guaranty or security for the debt;
2. When he does not furnish to the creditor
the guaranties ro 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 event they disappear, unless he
immediately gives new onew 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.
When obligation can be demabnded before lapse of
period
General rule: obligation is not demandable before the
lapse of period. In any case in 1198, the debtor shall lose
every right to make use of the period, that is =, the
period is disregarded and obligation becomes pure and
therefore, immediately demandable
Exemptions debtor cannot be comply with his
obligations

1. When the debtor becomes insolvent

2. When debtor does no furnish guaranties or
securities promised
3. When guaranties or securities given have been
impaired or have disappeaded.
4. When debtor violates an undertaking
5. When the debtor attempts to abscond