Chapter 3 2 Principal Kinds of Condition:

Different Kinds of Obligations 1. Suspensive Condition (Condition

Precedent or Condition Antecedent)
Primary Classification of Obligations under - One the fulfillment of which will
the Civil Code: give rise to an obligation (or right)
1. Pure and Conditional Obligations - The demandability of the
2. Obligations with a period obligation is suspended until the
3. Alternative and Facultative happening of the uncertain event
Obligations which constitutes the condition
4. Joint and Solidary Obligations 2. Resolutory Condition (Condition
5. Divisible and Indivisible Obligations Subsequent)
6. Obligations with a Penal Clause - One the fulfillment of which will
Secondary Classification: extinguish an obligation (or right)
1. Unilateral and Bilateral Obligations already existing
2. Real and Personal Obligations
3. Determinate and Generic Obligations Distinctions between
4. Civil and Natural Obligations suspensive and resolutory conditions
5. Legal, Conventional, and Penal Suspensive Resolutory
Obligations The obligation The obligation is
When fulfilled
arises extinguished
The tie of the
The toe of the
law (juridical
Article 1179 When does law (juridical or
or legal tie)
Pure Obligations not take place legal tie) is
does not
- Is one which is not subject to any consolidated
appear
condition and no specific date is It affects flow,
The existence
mentioned for its fulfillment and is, but over it
When takes of the
therefore, immediately demandable hovers the
place obligation is a
possibility of
mere hope
termination
Conditional Obligations
- Is one whose consequences are subject
When obligation is demandable at once:
in one way or another to the fulfillment
1. When it is pure
of a condition
2. When it is subject to a resolutory
condition
Condition
3. When it is subject to a resolutory
- Is a future and uncertain event, upon
period
the happening of which, the effectivity
or extinguishment of an obligation (or
right) subject to it depends

Characteristics of a Condition:
1. Future and Uncertain
2. Past but Unknown
 Article 1180 2. Casual
Where duration of period depends upon the - The condition depends upon
will of debtor: chance or upon the will of a
1. The debtor promises to pay when his third person
means permit him to do so 3. Mixed
2. As when the debtor binds himself to - The condition depends partly
pay upon chance and partly upon
a. Little by little the will of a third person
b. As soon as possible As to Mode:
c. From time to time 1. Positive
d. At any time I have the money - The condition consists in the
e. In partial payments performance of an act
f. When I am in a position to pay 2. Negative
- The condition consists in the
Article 1181 omission of an act
Effect of Happening of condition As to Numbers:
1. Acquisition of Rights (suspensive) 1. Conjunctive
2. Loss of Rights already acquired - There are several conditions and all
(resolutory) must be fulfilled
2. Disjunctive
- There are several conditions
Article 1182 and only one or some of them
Classifications of Conditions: must be fulfilled
As to effect: As to Divisibility:
1. Suspensive 1. Divisible
- The happening of which gives - The condition is susceptible of partial
rise to the obligation performance
2. Resolutory 2. Indivisible
- The happening of which - The condition is not
extinguishes the obligation susceptible of partial
As to form: performance
1. Express
- The condition is clearly stated Potestative Condition
2. Implied - A condition suspensive in nature and
- The condition is merely which depends upon the sole will of
inferred one of the contracting parties
As to Cause or Origin:
1. Potestative Where suspensive condition depends upon will
- The condition depends upon of debtor:
the will of one of the 1. Conditional obligation void
contracting parties 2. Only the condition void
Where suspensive condition depends upon will
of creditor:
1. Obligation is valid
Casual Condition
If the suspensive condition depends upon
chance or upon the will of a third person, the
obligation subject to it is valid.
Mixed condition
The obligation is valid if the suspensive
condition depends partly upon chance and
partly upon the will of a third person.
Where suspensive condition depends partly
upon the will of debtor
According to Manresa, the use of the word
exclusive (now sole) makes it clear that
conditional obligations whose fulfillment
depends partly upon the will of the debtor and
partly upon the will of a third person, or upon
chance are perfectly valid.
Article 1183
Refers to suspensive conditions
2 kinds of impossible conditions:
1. Physically impossible conditions
- When they, in nature of things,
cannot exist or cannot be done
2. Legally impossible conditions
- When they are contrary to law,
morals, good customs, public
order, or public policy
Effect of Impossible Conditions:
1. Conditional obligation void
2. Conditional obligation valid
3. Only the affected obligation void
4. Only the condition void
Article 1184
Refers to positive (suspensive) condition
- The happening of an event at a
determinate time
The obligation is extinguished:
1. As soon as the time expires without the
event taking place
2. As soon as it has become indubitable
that the event will not take place
although the time specified has not
expired
Article 1185
Refers to negative condition
- An event that will not happen at a
determinate time
The obligation shall become effective and
binding:
1. From the moment the time indicated
has elapsed without the event taking
place
2. From the moment it has become
evident that the event cannot occur,
although the time indicated has not yet
elapsed
Article 1186
Requisites for the application of this article:
1. The condition is suspensive
2. The obligor actually prevents the
fulfillment of the condition
3. He acts voluntarily
Article 1187
Retroactive effects of fulfillment of suspensive
condition:
1. In obligation to give
2. In obligation to do or not to do
Retroactive effects as to fruits and interests in
obligations to give:
1. In reciprocal obligations
2. In unilateral obligations
Article 1188
Rights pending fulfillment of suspensive
condition:
1. Rights of creditor
a. Take or bring appropriate
actions for the preservation of
his right
b. Go to court
2. Rights of debtor
a. Entitled to recover what he has
paid by mistake
Article 1189
Requisites for application of this article:
1. The obligation is a real obligation
2. The object is a specific or determinate
thing
3. The obligation is subject to a suspensive
conditions
4. The condition is fulfilled
5. There is loss, deterioration, or
improvement of the thing during the
pendency of the condition
Kinds of loss (civil law):
1. Physical loss
- When a thing perishes as when a
house is burned and reduced to
ashes
2. Legal loss
- When a thing goes out of
commerce or when a thing
heretofore legal becomes illegal
3. Civil loss
- When a thing disappears in such a
way that its existence is unknown
or even if known, it cannot be
recovered, whether as a matter
of fact or of law
Rules in case of loss, deterioration, or
improvement of thing during pendency of
suspensive condition:
1. Loss of thing without debtors fault
2. Loss of thing through debtors fault
3. Deterioration of thing without debtors
fault
4. Deterioration of thing through debtors
fault
5. Improvement of thing by nature or by
time
6. Improvement of thing at expense of
debtor
Usufruct
- Is the right to enjoy the use and fruits of
a thing belonging to another
Article 1190
Effects of fulfillment of resolutory condition:
1. In obligation to give
2. In obligations to do or not to do
Article 1191
Kinds of obligation according to the person
obliged:
1. Unilateral
- When only one party is obliged to
comply with a prestation
2. Bilateral
- When both parties are mutually
bound to each other
 - Both parties are debtors and Rescission without previous judicial decree
creditors of each other 1. Where automatic rescission expressly
a. Reciprocal obligations stipulated
- Are those which arise from the 2. Where contract still executory
same cause and in which each
party is a debtor and creditor of Article 1192
the other, such that the 2 situations where both parties are guilty of
performance of one is designed breach:
to be the equivalent and the 1. First infractor known
condition for the performance 2. First infractor cannot be determined
of the other.
b. Non-reciprocal obligations
- Are those conditions which do
not impose simultaneous and
correlative performance on
both parties
- The performance of one party is
not dependent upon the
simultaneous performance by
the other

Remedies in reciprocal obligations:

1. Choice of remedies
a. Action for specific performance
(fulfillment) of the obligation
with damages
b. Action for rescission of the
obligation also with damages
2. Remedy of rescission of non-
compliance
a. Principal action
b. Subsidiary action

Limitations on right to demand rescission:

1. Resort to the courts
2. Power of court to fix period
3. Right of third person
4. Substantial violation
5. Waiver of right
 Article 1193 Kinds of period or term:
Obligation with a period According to effect:
- Is one whose consequences are 1. Suspensive period (ex die)
subjected in one or another to the - The obligation begins only from a
expiration of said period or term day certain upon the arrival of
period
Period or term 2. Resolutory period (in diem)
- Is a future and certain event upon the - The obligation is valid up to a day
arrival of which the obligation (or right) certain and terminates upon
subject to it either arises or is arrival of the period
terminated
- It is a day certain which must According to source:
necessarily come, although it may not 1. Legal period
be known when, like the death of a - When it is provided for by laws
person 2. Conventional or voluntary period
- When it is agreed to by the
Period and Condition Distinguished parties
Period Condition 3. Judicial period
As to Uncertain - When it is fixed by the court
Certain event
fulfillment event
May refer also According to definiteness:
Refers only to to past event
As to time 1. Definite period
future unknown to
the parties - When it is fixed or it is known
Merely fixed when it will come
As to the time for Causes an 2. Indefinite period
influence on the obligation - When it is not fixed or it is not
the efficaciousness either to arise known when it will come
obligation of the or to cease - Where the period is not fixed but
obligation
a period is intended, the courts
Depends upon
the will of the Depends upon are usually empowered by law to
As to effect, debtor the sole will of fix the same
when left to empowers the the debtor
debtors will court to fix the invalidates the Article 1194
duration obligation In case of loss, deterioration or improvement of
thereof the thing before the arrival of the day certain,
The arrival of
the rules in Article 1189 shall be observed.
period does
not have any The happening
As to Article 1195
retroactive of a condition
retroactivity
effect (unless has retroactive Debtor presumed aware of period
of effects
there is an effect No recovery in personal obligations
agreement to
the contrary)
 Article 1196
Exceptions to the general rule:
1. Term is for the benefit of the debtor
alone
2. Term is for the benefit of the creditor
Computation of term or period
Year = 365 days
Month = 30 days
Day = 24 hours
Night = from sunset to sunrise
Months designated by their names
- Computed by the number of days which
they respectively have
Article 1198
General Rule: the obligation is not demandable
before the lapse of the period.
When obligation can be demandable before
lapse of period:
1. When debtor becomes insolvent
2. When debtor does no furnish
guaranties or securities promised
3. When guaranties or securities given
have been impaired or have
disappeared
4. When debtor violates an undertaking
5. When debtor attempts to abscond

In computing a period (Art. 13)

- 1st day excluded
- Last day included

Article 1197
Refers to judicial period

Court generally without power to fix a period

If the obligation does not state a period and no
period is intended, the court in NOT authorized
to fix a period. The courts have no right to make
contracts for the parties. (Tolentino vs.
Gonzales)

Exceptions to the general rule:

1. No period is fixed but a period was
intended
2. Duration of the period depends upon
the will of the debtor

Legal effect where suspensive period/condition

depends upon will of debtor.

Period fixed cannot be changed by the courts