CHAPTER 3: DIFFERENT KINDS OF OBLIGATIONS Under the facts, Sean would be bound to sell

Sec. 1. - Pure and Conditional Obligations the land to B upon receipt of the notice that he had won
the case against X.
ART. 1179. EVERY OBLIGATION WHOSE PERFORMANCE
DOES NOT DEPEND UPON A FUTURE OR UNCERTAIN Two Principal Kinds of Condition
EVENT, OR UPON A PAST EVENT UNKNOWN TO THE
PARTIES, IS DEMANDABLE AT ONCE. Suspensive condition
• (Condition precedent/antecedent)
EVERY OBLIGATION WHICH CONTAINS A RESOLUTORY • Fulfillment of the condition will give rise to an
CONDITION SHALL ALSO BE DEMANDABLE, WITHOUT obligation.
PREJUDICE TO THE EFFECTS OF THE HAPPENING OF • Demandability of the obligation is suspended
THE EVENT. until the happening of a future and uncertain
event which constitutes the condition
Pure Obligation- one whose effectivity or • The birth, perfection or effectivity of the
extinguishment does not depend upon the fulfillment contract subject to a condition can take place
or non-fulfillment of a condition or upon the expiration only if and when the condition happens or is
of a term or period. fulfilled.
• If the suspensive condition does not take place,
Elements of a Pure Obligation: the parties would stand as if the conditional
a) Not subject to a condition obligation had never existed.
b) Not subject to a term/period • There can be no rescission of an obligation that
 Characterized by the quality of immediate is still non-existent, the suspensive condition
demandability, but there must be a reasonable not having been fulfilled
period of grace.
Resolutory Condition
Example: • (Condition subsequent)
 Pogi promise to deliver his specific to Ganda • Fulfillment of the condition will extinguish an
 Ganda promise to give pogi 10,000 on demand. obligation already existing

Conditional Obligation
 one whose consequences are subject in one When is an obligation demandable at once?
way or another to the fulfillment of a condition. Obligations that are immediately demandable:
 Effectivity is subject to the fulfillment of a 1. Pure obligations (Art 1179)
condition. 2. Obligations with resolutory condition (Art.
1179, par.2)
Example: 3. Obligations with resolutory period (Art. 1193,
Pogi promises to give a car to Ganda if she passes the par.2)
board exam. 4. Obligations with a condition not to do an
impossible thing (Art. 1183, par.2)
Condition - a future and uncertain event, upon the
happening of which, the effectivity or extinguishment of
an obligation (or rights) subject to it depends. Distinctions between suspensive and resolutory
conditions.
Characteristics:
(1) If the suspensive condition is fulfilled, the obligation
• Future and Uncertain – future and uncertain
arises, while if it is the resolutory condition that is
must go together
fulfilled, the obligation is extinguished;
• Past but unknown – past event unknown to the
parties.
(2) Until the first takes place, the existence of the
obligation is a mere hope, while in the second, its
Past event unknown to the parties
effects flow, but over it, hovers the possibility of
What is really contemplated by the law is the
termination.
knowledge to be acquired in the future of a past event
which at the moment is unknown to the parties
ARTICLE 1180. WHEN THE DEBTOR BINDS HIMSELF TO
interested, for it is only in that sense that the event can
PAY WHEN HIS MEANS PERMIT HIM TO DO SO, THE
be deemed uncertain. This knowledge determines
OBLIGATION SHALL BE DEEMED TO BE ONE WITH A
whether the obligation will arise or not.
PERIOD, SUBJECT TO THE PROVISIONS OF ARTICLE
Example:
1197.
Sean is the owner of a parcel of land which is
being claimed by X. Last week, the Supreme Court has
Period – is a future and certain event upon the arrival
rendered a final decision upholding the right of Sean.
of which the obligation subject to it either arises or
However, Sean has not yet received the notice that he
extinguished.
had won the case. Now, Sean obliged himself to sell the
land to B for a definite price, should he win the case
against X.
Where duration of period depends upon the will of  Bibigay ko sayo tong kotse ko ngayon pero pag
debtor. pumasa ka sa oblicon ibabalik mo yung car

1. The debtor promises to pay when his means permit Effect of non-compliance with resolutory condition.
him to do so  Where a contract is subject to a resolutory
 In this case, what depends upon the debtor’s condition, non-compliance with or non-
will is not whether he should pay or not for fulfillment of the condition resolves the
indeed he binds himself to pay. contract by force of law without need of
 What is left only to his will is the duration of the judicial intervention.
period.
 If the debtor and the creditor cannot agree as ARTICLE 1182: WHEN THE FULFILLMENT OF THE
to the specific time for payment, the court shall CONDITION DEPENDS UPON THE SOLE WILL OF THE
fix the same on the application of either party. DEBTOR, THE CONDITIONAL OBLIGATION SHALL BE
 What really depends on him is not the VOID.
obligation but the time. IF IT DEPENDS UPON CHANCE OR UPON THE WILL OF A
 It’s a question of when. THIRD PERSON, THE OBLIGATION SHALL TAKE EFFECT
IN CONFORMITY WITH THE PROVISIONS OF THIS CODE.
2. Other cases – As when the debtor binds himself to
pay: Classifications of Conditions:
 Little by little 1. As to effect
 As soon as possible  Suspensive – when the fulfillment of the
 From time to time condition results in the acquisition of rights
 As soon as I have the money arising out of the obligations.
 At any time I have the money  Resolutory – when the fulfillment of the
 In partial payments condition results in the extinguishment of rights
arising out of the obligation.
 When I am in a position to pay
2. As to Form
 Express – when the condition is stated
expressly.
ARTICLE 1181: IN CONDITIONAL OBLIGATIONS, THE  Implied – when the condition is tacit.
ACQUISITION OF RIGHTS, AS WELL AS THE 3. As to possibility
EXTINGUISHMENT OR LOSS OF THOSE ALREADY  Possible – when the condition is capable of
ACQUIRED, SHALL DEPEND UPON THE HAPPENING OF realization according to nature, law, public
THE EVENT WHICH CONSTITUTES THE CONDITION. policy or good customs. (it is capable of
fulfillment in nature and in law, most of the
Effect of happening of condition: classifications are positive condition)
This article reiterates the distinction between a  Impossible – when the condition is not capable
suspensive (or antecedent) condition and a resolutory of realization according to nature, law, public
(or subsequent) condition. policy or good customs.
4. As to cause or origin
1. Acquisition of rights  Potestative – when the fulfillment of the
 In obligations subject to a suspensive condition, condition depends upon the will of a party to
the acquisition of rights by the creditor depends the obligation.
 Casual – when the fulfillment of the condition
upon the happening of the event which
depends upon chance and/or upon the will of a
constitutes the condition.
third person.
 What characterizes this kind of obligation is the
 Mixed – when the fulfillment of the condition
fact of its efficacy or obligatory force (as depends partly upon the will of a party to the
distinguished from its demandability) is obligation and party upon chance and/or will of
subordinated to the happening of a future and a third person
uncertain event; 5. As to mode
 so that if the suspensive condition does not take  Positive – when the condition involves the
place, the parties would stand as if the performance of an act.
conditional obligation had never existed  Negative – when the condition involves the
 or before the suspensive condition has taken omission of an act.
place, what is acquired by the creditor is a mere 6. As to number
hope or expectancy of acquiring right.  Conjunctive – when there are several
 Bibigay ko sayo yung kotse ko kapag pumasa ka conditions, all of which must be realized.
sa oblicon sub.  Alternative – when there are several
2. Loss of rights already acquired conditions, but only one must be realized.
 In obligations subject to a resolutory condition, 7. As to divisibility
 Divisible – when the condition is susceptible of
the happening of the event which constitutes
partial realization. Capable of partial
the condition produces extinguishment or loss
performance.
of rights already acquired.
 Indivisible – when the condition is not
 The creditor will enjoy the things he currently susceptible of partial realization.
have, and loss his rights kapag nafulfill na ang
condition.
Meaning of Potestative Condition  (1) If the suspensive condition depends upon
A Potestative condition is a condition suspensive in chance or upon the will of a third person, the
nature and which depends upon the sole will of one of obligation subject to it is valid.
the contracting parties. Performance depends  Example: I will give you 10,000 pesos if I won in
exclusively on the will of one of he parties either debtor the lottery tomorrow.
or creditor.  (2) When the fulfillment of the condition does
not depend on the will of the obligor, but that
on a third person who can in no way be
Where suspensive condition depends upon the will of
compelled to carry it out, and it is found by the
debtor.
court that the obligor has done all in his power
(1) Conditional obligation void.
to comply with his obligation, his part of the
 Where the Potestative condition depends solely
contract is deemed complied with and he has a
upon the will of the debtor, the conditional
right to demand performance of the contract by
obligation shall be void because its validity and
the other party.
compliance is left to the will of the debtor and it
cannot, therefore, be legally demanded.
Mixed Condition
Examples:
 The obligation is valid if the suspensive
 I will give you 10,000 pesos if I like
condition depends partly upon chance and
 I will pay you after I receive a loan from a bank
partly upon the will of a third person
 I will pay you after I recover what D owes me
 Example: Where X, building contractor, obliges
himself in favor of Y, owner to repair at X’s
(2) Only the condition void
expense, any damage to the building taking
 If the obligation is a pre-existing one, and,
place after an earthquake if found by a panel of
therefore, does not depend for its existence
arbitrators that construction defects
upon the fulfillment by the debtor of the
contributed in any way to the damage. Both
potestative condition, only the condition is void
conditions must take place in order that X’s
leaving unaffected the obligation itself. Here,
obligation will arise.
the condition is imposed not on the birth of the
obligation but on its fulfillment.
Where suspensive condition depends partly upon the
 Example: D borrowed P10,000 from C payable
will of debtor.
within 2 months. Subsequently, D promised to
 According to Manresa, the use of the word
pay V “after D sells his car” to which C agreed.
“exclusive” (now “sole”) makes it clear that
In this case, only the condition is void but not
conditional obligations whose fulfillment
the pre-existing obligation of D to pay C.
depends partly upon the will of the debtor and
partly upon the will of a third person, or upon
Where suspensive condition depends upon the will of
chance are perfectly valid.
creditor.
 For example, “I will give you 1M if you marry
 If the condition depends exclusively upon the
Sarrah”
will of the creditor, the obligation is valid.
Summary
 Example: I will give you 10,000 pesos if you like
 Potestative on debtor + Suspensive = VOID
 The obligation does not become illusory.
 Potestative on debtor + Resolutory = Valid (no
Normally, the creditor is interested in the
harm done since the work has been rendered,
fulfillment of the obligation because it is for his
the creditor enjoyed the fruits of his labor)
benefit. It is up to him whether to enforce his
(there is no damage done)
right or not.
 Potestative on part of creditor = Valid
 Casual = Valid
Where resolutory condition depends upon the will of
 Mixed = Valid
the debtor.
 If the condition is resolutory in nature, like the
right to repurchase in a sale with pacto de retro,
ARTICLE 1183: Impossible conditions, those contrary to
the obligation is valid although its fulfillment
good customs or public policy and those prohibited by
depends upon the sole will of the debtor.
law shall annul the obligation which depends upon
 The fulfillment of the condition merely causes
them. If the obligation is divisible, that part thereof
the extinguishment or loss of rights already
which is not affected by the impossible or unlawful
acquired.
condition shall be valid.
 The debtor is naturally interested in its
fulfillment.
The condition not to do an impossible thing shall be
 The position of the debtor when the condition is
considered as not having been agreed upon.
resolutory is exactly the same as that of the
Three kinds of impossible Conditions
creditor when the condition is suspensive.
 Physically impossible condition
 A condition which is both potestative (or
o By nature of things, cannot exist or
facultative) and resolutory may be valid, even
though the condition is left to the will of the cannot be done
obligor. o Ex. Obligation to make the dead man
alive
Casual Condition  Illogical condition
 o You draw a circle at the same time a X obliges himself to give Y P10,000.00 if Y will marry W
square before Y reaches the age of 23.
 Legally Impossible Conditions a) X is liable if Y marries W before he reaches the
o When they are contrary to law, morals, age of 23.
good customs, public order, or public b) X is not liable if Y marries W at the age of 23 or
policy. after he reaches the age of 23. In this case, the
o Ex. Condition to kill someone, both the time specified, before reaching the age of 23,
obligation and condition are void has expired without the condition (marrying W)
being fulfilled. The obligation is extinguished as
Effect of Impossible Conditions soon as Y becomes 23years old.
1. Conditional obligation void c) If Y dies at the age of 22 without having married
 Impossible conditions annul the obligation W, the obligation is extinguished because it has
which depends upon them. Both the obligation become indubitable that the condition will not
and the condition are void. take place. In this case, the obligation of X is
 The reason behind the law is that the obligor deemed extinguished from the death of Y,
knows his obligation cannot be fulfilled. He has although the time specified (before reaching
no intention to comply with his obligation. the age of 23) has not yet expired.
 In conditional testamentary dispositions and in
simple and remuneratory donations, the rule is Article 1185: The condition that some event will not
different. happen at a determinate time shall render the
obligation effective from the moment the time
2. Conditional Obligation Valid indicated has elapsed, or if it has become evident that
If the condition is negative, that is, not to do an the event cannot occur.
impossible thing, it is to disregard the condition but the
obligation is rendered pure and valid. If no time has been fixed, the condition shall be
deemed fulfilled at such time as may have probably
The condition not to do an impossible thing shall be been contemplated, bearing in mind the nature of the
considered as not having been agreed upon. obligation
 Both obligation and condition are valid
 Ex. I will give you 1Million if you cannot make a Negative Conditions
dead man alive The above provision speaks of a negative condition that
an event will not happen at a determinate time. The
3. Only the affected obligation void. obligation shall become effective and binding:
Note: If the obligation is divisible, that part thereof  From the moment the time indicated has
which is not affected by the impossible or unlawful elapsed without the event taking place; or
condition shall be VALID.  From the moment it has become evident that
 Ex. I will give you 10,000 if you sell my land and I the event cannot occur, although the time
will give you a car, if you kill Pedro. indicated has not yet elapsed.
 The obligation to give 10,000 is valid but the If no time is fixed, the circumstances shall be considered
obligation to give a car is VOID because it is to determine the intention of the parties. This rule may
dependent upon an illegal condition. also be applied to a positive condition.

4. Only the Condition void Example:

If the obligation is a pre-existing obligation, and, X binds himself to give Y P10,000.00 if Y is not yet
therefore, does not depend upon the fulfillment of the married to W on December 30.
condition which is impossible, for its existence, only the a) X is not liable to Y if Y marries W on December
condition is void. 30 or prior thereto.
b) X is liable to Y if on December 30 Y is not
married to W or if Y marries W after December
Article 1184: The condition that some event happen at 30. In the latter case, the condition (not
a determinate time shall extinguish the obligation as marrying W) is fulfilled upon the expiration of
soon as the time expires or if it has become the time indicated, which is December 30.
indubitable that the event will not take place c) Suppose W dies on November 20 without
having been married to Y. The obligation is
Positive Condition rendered effective because it is certain that the
The above article refers to a positive (suspensive) condition not to marry W will be fulfilled. In this
condition – the happening of an event at a determinate case, the obligation Becomes effective from the
time. The obligation is extinguished: moment of W’s death on November 20
 As soon as the time expires without the event although the time indicated (December 30) has
taking place, or not yet elapsed.
 As soon as it has become indubitable that the
event will not take place although the time Priest are not prohibited to contract marriage
specified has not yet expired
Example: ARTICLE 1186: The condition shall be deemed fulfilled
when the obligor voluntarily prevents its fulfillment.
(Constructive fulfillment/Presumed Fulfillment) In obligations to do and not to do, the courts shall
Constructive fulfillment of suspensive condition. determine, in each case, the retroactive effect of the
There are 3 requisites for the application of this article: condition that has been complied with.
1. The condition is suspensive
2. The obligor actually prevents the fulfillment of Example:
the condition
3. He acts voluntarily On January 20, Sean agreed to sell his parcel of land to B
for P100,000.00 should Ben win a case involving the
The law does not require that the obligor acts with recovery of another parcel of land. On April 10, Sean
malice or fraud as long as his purpose is to prevent the sold his land to Cherry. Ben won the case on December
fulfillment of the condition. He should not be allowed to 4.
profit from his own fault or bad faith to the prejudice
of the obligee. In a reciprocal obligation like a contract Before December 4, Ben had no right to demand the
of sale, both parties are mutually obligors and also sale of the land by Sean. When the condition, however,
obligees. was fulfilled on December 4, it is as if Ben was entitled
to the land beginning January 20. Hence, as between
Example: Ben and Cherry, Ben will have a better right over the
Pogi promised to give a car to Ganda if she passes the land. (It is required, however, under the Property
board exam. But Pogi poisoned Ganda para di siya Registration Decree [Pres. Decree No. 1529, Sec. 51.],
matuloy mag exam, therefore, it’s considered na nafulfill that the promise of Sean be annotated on the back of
na yung condition since Pogi voluntarily prevents the the certificate of title of the property to be binding
fulfillment of the condition kaya need niya parin ibigay against third persons like Cherry.)
yung car.
If the land was sold by Ben to Den on May 15, Den
If attempt lang to prevent di magaapply tong article na would still have a better right as against Cherry since
to the sale by Ben will be considered valid.

When there’s impossibility to the fulfillment of the

Retroactive effects of fulfillment of suspensive
condition, the effect of the prestation to give. Both
condition
obligation are considered VOID
1. In obligation to give
 An obligation to give subject to a suspensive
Constructive fulfillment of resolutory condition.
condition becomes demandable upon the
Article 1186 applies also to an obligation subject to a
fulfillment of the condition. However, once the
resolutory condition with respect to the debtor who is
condition is fulfilled, its effects shall retroact to
bound to return what he has received upon the
the day when the obligation was constituted.
fulfillment of the condition
 The reason is because the condition is only an
accidental element of a contract.
Example:
 An obligation can exist without being subject to
X obliges himself to allow Y to occupy the former’s house
a condition. Had the parties known beforehand
in Manila as long as X is assigned by their company in
that the condition would be fulfilled, they would
the province. When Y learned that X would be
have bound themselves under a pure
transferred to Manila, he was able to induce the
obligation.
president of the company to assign another person in
 Hence, the obligation should be considered
place of X.
from the time it is constituted and not from the
time the condition is fulfilled
The obligation of X is extinguished because the
fulfillment of the resolutory condition was voluntarily  It would seem that the rule on retroactivity has
prevented by Y. Hence, Y must vacate the house. no application to real contracts as they are
perfected only by delivery of the object of the
ARTICLE 1187: The effects of a conditional obligation to obligation.
give, once the condition has been fulfilled, shall 2. In obligations to do or not to do
retroact to the day of the constitution of the  With respect to the retractive effect of the
obligation. fulfillment of a suspensive condition in
obligations to do or not to do, no fixed rule is
Nevertheless, when the obligation imposes reciprocal provided.
prestations upon the parties, the fruits and interests  This does not mean, however, that in these
during the pendency of the condition shall be deemed obligations the principle of retroactivity is not
to have been mutually compensated. applicable.
 The courts are empowered by the use of sound
If the obligation is unilateral, the debtor shall discretion and bearing in mind the intent of the
appropriate the fruits and interests received, unless parties, to determine, in each case the
from the nature and circumstances of the obligation it retroactive effect of the suspensive condition
should be inferred that the intention of the person that has been complied with.
constituting the same was different.  It includes the power to decide that the
fulfillment of the condition shall have no
 retroactive effect or from what date such (4) If it deteriorates through the fault of the debtor, the
retroactive effect shall be reckoned. creditor may choose between the rescission of the
obligation and its fulfillment, with indemnity for
(Retroactive effect as to the Fruits and Interest) damages in either case;

Reciprocal – mutually compensated (5) If the thing is improved by its nature, or by time, the
improvement shall inure to the benefit of the creditor;
Unilateral – usually no retroactive effect because they
are gratuitous. The debtor receives nothing from the (6) If it is improved at the expense of the debtor, he
creditor. shall have no other right than that granted to the
usufructuary.

Requisites:
ARTICLE 1188:
1. The suspensive condition is fulfilled
The creditor may, before the fulfillment of the
2. The object is specific/determinate thing not generic
condition, bring the appropriate actions for the
3. The obligation is a real obligation
preservation of his right.
4. There is loss, deterioration, or improvement of the
thing during the pendency of the happening on one
The debtor may recover what during the same time he
condition.
has paid by mistake in case of a suspensive condition.

 (PAR 1. Preservation of the right of the

Creditor) Rights of Creditor
o He may take or bring appropriate ARTICLE 1190
actions for the preservation of his right,  (Effect of Extinguishment)
as the debtor may render nugatory the  (Effects of fulfillment of resolutory condition)
obligation upon the happening of the
condition. Thus, he may go to court to ARTICLE 1191
prevent the alienation or concealment  (Right to Rescind/cancel)
of the property of the debtor or to have
his right annotated in the registry of ARTICLE 1192
property.  (lumabag sa contract)
 (Par 2. The right of the debtor to recover what  (Par. 1 First Infractor is known, alam kung sino
was paid by mistake) Rights of Debtor ang naunang lumabag sa obligation)
o To prevent unjust enrichment  (Par 2. Hindi alam sino unang lumabag kaya
o He is entitled to recover what he has each shall bear his own damages)
paid by mistake prior to the happening
of the suspensive condition. This right is ARTICLE 1193
granted to the debtor because the
creditor may or may not be able to
fulfill the condition imposed and hence, ARTICLE 1194
it is not certain that the obligation will
arise. This is a case of solutio indebiti ARTICLE 1195
which is based on the principle that no
one shall enrich himself at the expense ARTICLE 1196
of another
ARTICLE 1197
ARTICLE 1189: (Loss, Deterioration, Improvement)
ARTICLE 1198
When the conditions have been imposed with the
intention of suspending the efficacy of an obligation to ARTICLE 1199
give, the following rules shall be observed in case of the
improvement, loss or deterioration of the thing during ARTICLE 1200
the pendency of the condition:
ARTICLE 1201
(1) If the thing is lost without the fault of the debtor, the
obligation shall be extinguished; ARTICLE 1203

(2) If the thing is lost through the fault of the debtor, he ARTICLE 1204
shall be obliged to pay damages; it is understood that
the thing is lost when it perishes, or goes out of ARTICLE 1205
commerce, or disappears in such a way that its
existence is unknown or it cannot be recovered; ARTICLE 1206

(3) When the thing deteriorates without the fault of the ARTICLE 1207
debtor, the impairment is to be borne by the creditor;
ARTICLE 1208
ARTICLE 1209

ARTICLE 1210

ARTICLE 1211

ARTICLE 1212

ARTICLE 1213

ARTICLE 1214

ARTICLE 1215

ARTICLE 1216

ARTICLE 1217

ARTICLE 1218

ARTICLE 1219

ARTICLE 1220

ARTICLE 1221

ARTICLE 1222

ARTICLE 1223

ARTICLE 1224

ARTICLE 1225

ARTICLE 1226

ARTICLE 1227

ARTICLE 1228

ARTICLE 1229

ARTICLE 1230