SECTION 1- PURE AND CONDITIONAL OBLIGATIONS

ART 1179. Every obligation that does not depend on future/past event and which contain resolutory condition is
demandable

Pure obligation- no condition/specific date and demandable

Conditional obligation- with condition

Condition- future and uncertain/ past but unknown event where obligation depends

Kinds of condition

a. Suspensive condition (condition precedent/ condition antecedent)

-Fulfillment of it will give rise to obligation
-Demandability is suspended until condition is met
-if does not takes place, law does not appear
-if takes place, obligation is a hope

b. Resolutory condition (condition subsequent)

-fulfillment of which extinguish an obligation
-if does not take place, law is consolidated
-if takes place, possibility of termination

Obligation is demandable at once

a. When it is pure
b. When subject to resolutory condition and period

ART 1180. When a debtor binds himself to pay, he is left with his will in the duration of the period. If they
can’t agree on the date, the court will fix it.

Period- future and certain event

Other cases

a. Little by little
b. ASAP
c. From time to time
d. At any time I have money
e. In partial payments
f. When I am in a position to pay

ART 1181.In condtional obligations, the acquisition/loss of rights shall depend on the happenings

Acquisition of rights- suspensive condition

Its obligatory force is dependent on the situation and the creditor only has hope

Loss of rights- resolutory conditions

The happening extinguishes rights
 ART 1182. When the fulfillment depends on the debtor, the conditional obligation is void. If it depends of the 3 rd
person, the obligation is under the provision of the Code.

Classifications of conditions

As to effect
a. Suspensive- happening gives rise to obligation
i. When this depend upon will of debtor
a. Conditional obligation is void
ART 1308. When this depend upon will of debtor, it cannot be demanded
ART 1156. There is no juridical tie
b. ONLY condition is void but obligation is not because obligation is pre-
existing

ii. When this depend upon will of creditor

a. Condition is VALID
b. Resolutory- happening extinguishes obligation
i. When this depends on will of debtor
Same as when suspensive is in the hands of creditor

As to form
a. Express- condition is clearly stated
b. Implied- condition is inferred

As to possibility
a. Possible- condition is capable to be fulfilled
b. Impossible- condition is not capable to be fulfilled

As to origin
a. Potestative- depends upon the will of one
When suspensive condition depends on debtor, obligation is VOID as it is within his power to
comply or not
b. Casual- depends upon chance or will of 3rd person
If suspensive condition is casual, it is VALID
c. Mixed- depends partly upon chance and partly on the 3rd person
If suspensive condition is mixed, it is VALID

As to mode
a. Positive- performance of act
b. Negative- omission of an act

As to numbers
a. Conjuntive- several conditions and all must be fulfilled
b. Disjuntive- several conditions and 1 or some must be fulfilled

As to divisibility
a. Divisible- susceptible of partial performance
b. Indivisible- not susceptible of partial performance
 ART 1183. Unlawful impossible conditions shall annul the obligation.
If divisible, the part which is unaffected is VALID.
The condition not to do an impossible thing does not exist.

APPLIES
It refers to suspensive conditions
Applies to cases where impossibility already existed at the time of constitution

2 kinds of impossible conditions

a. Physically impossible conditions- in nature are impossible
b. Legally impossible conditions- contrary to law

Effect of impossible conditions

a. Condition and obligation is VOID
Obligor knows his condition cannot be met so he has no intention to comply

b. Conditional obligation is VALID

Condition is negative, pure and valid
c. Only affected obligation VOID
If divisible
d. Only condition is void
Obligation is pre-existing obligation and does not depend on condition

ART 1184. Extinguish the obligation as soon as the time expires or definite that event will not take place
(Positive/suspensive condition)

ART 1185. Obligation is effective because time has elapsed without even taking place or event cannot occur
(Negative condition, sometimes positive)

ART 1186. Condition is fulfilled when obligor prevents fulfillment

Constructive fulfillment of suspensive

Law does not require obligor fraud as long as its intention in to prevent. He is not allowed to profit from his own
fault.

Constructive fulfillment of resolutory condition

ART 1190. Debtor is to return what he has received upon fulfillment
X gipahulam niya ang balay kay Y tung giassign siya sa place sang company. Tung nagtransfer siya, ang
obligation ni X na extinguish na.

ART 1187. The effects of a conditional obligation to give shall retroact to the day of the constituion of the
obligation. If reciprocal, fruits and interests are mutually compensated. If unilateral, debtor shall appropriate fruits
and interests.
If it is negative, the court decide.

Retroactive effects of fulfillment of suspensive condition

1. In obligations to give- demandable upon fulfillment of condition
 Condition is accidental, obligation can exist without condition and so, obligation is
considered from the time it was constitued not from the time when condition is fulfilled.

2. In obligations to do or not to do- no fixed rule but court has a say if it has no retro effect and when will the
effect take shall take effect

Retroactive effects as to fruits and interests in obligations to give

1. In reciprical obligations- no retro because fruits and interests are mutually compensated.
For convenience because they dont need to account what they have received/ quits
nalang

2. In ulinateral obligations- no retro because they are gratuitous

Debtor will receive nothing so the fruits are his

ART 1188. Creditor, before the fulfillment, can bring actions for preservation of his rights. Debtor may recover what
he has been paid by mistake.

Rights pending fulfillment of suspensive condition

1. Rights of creditor
He may do action for preservation of rights
He may go to court for concealment of property the debtor has to deliver
2. Rights of debtor
He is entitled to recover what has paid by mistake
Solutio indebiti- no one shall enrich themselves for the expense of another

ART 1189. In obligation to give, rules are observed in the improvement/loss during pendancy:
1. Is thing is lost and its not fault of the debtor, obligation is extinguished
2. If thing is lost due to debtor, he is obliged
3. If thing deteriorates without fault of debtor, impairment is on creditor
4. If thing deteriorates due to debtor, creditor may choos wheter to extinguish or indemnify damages
5. If this is improved by nature, benefit is on creditor
6. If thing improved due to debtor, he has no right until granted

Requisites:
1. Real obligation
2. Specific thing
3. Condition ia fulfilled
4. There is loss, deterioration/ improvement

Kinds of loss:
1. Physical loss- thing perishes
2. Legal loss- thing gous out of commerce/ becomes illegal
3. Civil loss- thing disapears and cant be recovered

Rules
1. Loss without fault of debtor- obligation is extinguished
2. Loss of thing due to debtor- creditor ican demand damages
3. Deterioration of thing withiut debtors fault- creditor will have no rights to demand
4. Deterioration of thing with debtors fault- cancellation or fulfillment of obligation plus
 incidental damages
5. Improvement of thing due to nature- creditor have rights
6. Improvement of thing due to debtor-
Usufruct- ART 562. Enjor fruits of a thing belonging to another person
ART 579. Remove improvements without causing damage
ART 580. Improvements may set off if debtor caused damages

ART 1190. When the conditions have for their purpose the extinguishment of an obligation to give, the parties
upon fulfillment of conditions, shall return to each other what they have received.
In case of loss, deterioration and improvement, the provision shall be to the party who is bound to return.
In obligations to do and not to do, the court shall determine the retroactive effect of the condition.

Effects of fulfillment of resolutory condition

1. In obligation to give- ART 1181. When resolutory condition in obligation to givr is fulfilled, the obligation is
extinguished
A. Return to status quo
B. If a thing to be returned is legally in the possesion of the 3rd person who did not act in bad faith, the remedy is
from the one bound to give
C. The obligation of mutual restitution is absolute
D. In obligations to give in suspensive condition, the retroactivity excempts according as the obligation is
bilateral or unilateral

2. In obligations to do and not to do- the courts will determine if the condition is suspensive, they may even
disallow

ART 1191. The power to end obligations lies on both parties in the case one of the obligor cant comply.
The injured party may choose between fulfillment and ending of obligation with payment of damages. He can end
after deciding to continue if continuance is impossible.
The court shall decree rescission without prejudice to rights of thr 3rd person

Kinds of obligation according to the person obliged

1. Unilateral- one party is obliged to comply

2. Bilateral- both parties are mutually bound. Noth are debtors and creditors of each other
a. Reciprocal obligations- same cause and each party is debtor and creditor of the other
Performance of one is condition for performance of the other
Non-fulfilment may give right to demand rescission
EXAMPLE: CODs

Remedies:
1. Choice of remedies
a. Action for fulfilment
b. Action for rescission
2. Remedy of rescission for non-compliance
Breach by another party that violates reciprocity

b. Non-reciprocal obligations- don’t have simultaneous performance to both parties

EXAMPLE: I borrowed money and he borrowed my car the next day
Court may grant guilt party term for performance
Exception applies only when guilty party is willing to comply but needs time

Remedies are alternative

Aggrieved party can only choose one remedy. If he chooses to fulfil but fulfilment is impossible, he can choose
rescission but cannot choose fulfilment again after rescission

Limitations on right to demand rescission

1. Resort to court- court shall decree rescission unless there be just cause authorizing the fixing period
2. Power of court to fix period
3. Right of the third person- rescission is not available as remedy
4. Substation violation- rescission can’t be permitted with breach
Violation must be substantial (big) because the law is not concerned with trifles (small
things)
5. Waiver of right- remedy is to recover damages
EXAMPLE: collaterals

Rescission without previous judicial decree

1. Where automatic rescission expressly stipulated- contract that tells violation of terms may cancel the terms
-there must be a written notice sent to other party informing the cancel
-extra-judicial rescission has a legal effect when it is opposed by the other party

2. Where contract still executory- when there is no performance by both parties but one is ready and other is
not, the ready party may rescind
-if extrajudicial rescission is contested by other party, he can call the court
and the court will decide

ART 1192. If both parties committed violation, the 1st infractor is liable in court. If it can’t be determined, the contract
is extinguished and each are liable for their own damages

If both are guilty of breach

1. 1st infractor known- both are guilty that is why the liability of the 1st is reduced
2. 1st infractor can’t be determined-