Chapter 3 Different Kinds of Obligations

 Primary Classification of Obligations underthe Civil Code:

1. Pure and Conditional Obligations
2. Obligations with a period
3. Alternative and FacultativeObligations
4. Joint and Solidary Obligations
5. Divisible and Indivisible Obligations
6. Obligations with a Penal Clause

 Secondary Classification:
1. Unilateral and Bilateral Obligations
2. Real and Personal Obligations
3. Determinate and Generic Obligations
4. Civil and Natural Obligations
5. Legal, Conventional, and PenalObligations

Article 1179
Pure Obligations-
Is one which is not subject to anycondition and no specific date ismentioned for its fulfillment and
is,therefore, immediately demandable
Conditional Obligations-
Is one whose consequences are subjectin one way or another to the fulfillmentof a condition
Condition-
Is a future and uncertain event, uponthe happening of which, the effectivityor extinguishment of an
obligation (orright) subject to it depends
Characteristics of a Condition:
1. Future and Uncertain
2. Past but Unknown

2 Principal Kinds of Condition:

1. Suspensive Condition (ConditionPrecedent or Condition Antecedent)

-One the fulfillment of which willgive rise to an obligation (or right)
-The demandability of theobligation is suspended until thehappening of the uncertain eventwhich constitutes
the condition
2. Resolutory Condition (ConditionSubsequent)
-One the fulfillment of which willextinguish an obligation (or right)already existing
Distinction between suspensive and resolutory condition

Distinction between suspensive and resolutory conditions

When Fulfilled
When does not take place
When take place
Suspensive Resolutory
The obligation arises The obligation extinguised
The tie of the law (juridical or legal tie) The tie of the law (juridical or legal
does not appear tie) is consolodated
The existence of the obligation is a mere it affects flow, but over it hovers the
hope posiblity of termination

When obligation is demandable at once:

1. When it ispure
2. When it is subject to a resolutorycondition
3. When it is subject to a resolutoryperiod

Article 1180
Where duration of period depends upon thewill of debtor:
1. The debtor promises to pay when hismeans permit him to do so
2. As when the debtor binds himself topay
a. Little by little
b. As soon as possible
c. From time to time
d. At any time I have the money
e. In partial payments
f. When I am in a position to pay

Article 1181
Effect of Happening of condition
1. Acquisition of Rights(suspensive)
2. Loss of Rights already acquired (resolutory)

Article 1182
Classifications of Conditions:
 As to effect:
1.Suspensive- The happening of which givesrise to the obligation
2.Resolutory-The happening of whichextinguishes the obligation
 As to form:
1.Express-The condition is clearly stated
2.Implied-The condition is merelyinferred
 As to Cause or Origin:
1.Potestative-The condition depends uponthe will of one of thecontracting parties
2.Casual-The condition depends uponchance or upon the will of athird person
3.Mixed-The condition depends partlyupon chance and partly uponthe will of a third person
 As to Mode:
1.Positive-The condition consists in theperformance of an act
2.Negative-The condition consists in theomission of an act
 As to Numbers:
1.Conjunctive-There are several conditions and allmust be fulfilled
2.Disjunctive-There are several conditionsand only one or some of themmust be fulfilled
 As to Divisibility:
1.Divisible-The condition is susceptible of partialperformance
2.Indivisible-The condition is notsusceptible of partialperformance

Potestative Condition-A condition suspensive in nature andwhich depends upon the sole will of one of the contracting
parties

Where suspensive condition depends upon willof debtor:

1. 1.Conditional obligation void
2. Only the condition void

Where suspensive condition depends upon willof creditor:

1.Obligation is valid
Casual Condition
If the suspensive condition depends uponchance or upon the will of a third person,
theobligation subject to it is valid.

Mixed condition
The obligation is valid if the suspensivecondition depends partly upon chance andpartly upon the will of a third
person.
Where suspensive condition depends partlyupon the will of debtor
According to Manresa, the use of the word ‘exclusive’ (now ‘sole’) makes it clear that
conditional obligations whose fulfillmentdepends partly upon the will of the debtor andpartly upon the will of a
third person, or uponchance 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, publicorder, or public policy

Effect of Impossible Conditions:

1. 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 adeterminate time

The obligation is extinguished:

1. As soon as the time expires without theevent taking place
2. As soon as it has become indubitablethat the event will not take placealthough the time specified has
notexpired

Article 1185 Refers to negative condition

- An event that will not happen at adeterminate time

The obligation shall become effective andbinding:

1. From the moment the time indicatedhas elapsed without the event takingplace
2. From the moment it has becomeevident that the event cannot occur,although the time indicated has not
yetelapsed

Article 1186
Requisites for the application of this article:
1. The condition is suspensive
2. The obligor actually prevents thefulfillment of the condition
3. He acts voluntarily

Article 1187
Retroactive effects of fulfillment of suspensivecondition:
1. In obligation to give
2. In obligation to do or not to do

Retroactive effects as to fruits and interests inobligations to give:

1. In reciprocal obligations
2. In unilateral obligations

Article 1188
Rights pending fulfillment of suspensivecondition:
1. Rights of creditora.
a. Take or bring appropriateactions for the preservation of his right
b. Go to court
2. Rights of debtor
a. Entitled to recover what he haspaid by mistake

Article 1189
Requisites for application of this article:
1. The obligation is a real obligation
2. The object is a specific or determinatething
3. The obligation is subject to a suspensiveconditions
4. The condition is fulfilled
5. There is loss, deterioration, orimprovement of the thing during thependency of the condition
Kinds of loss (civil law):
1. 1.Physical loss-When a thing perishes as when ahouse is burned and reduced toashes
2. Legal loss-When a thing goes out of commerce or when a thingheretofore legal becomes illegal
3. Civil loss-When a thing disappears in such away that its existence is unknownor even if known, it cannot
berecovered, whether as a matterof fact or of law

Rules in case of loss, deterioration, orimprovement of thing during pendency of suspensive condition:
1. Loss of thing without debtor’s fault
2. Loss of thing through debtor’s fault
3. Deterioration of thing without debtor’sfault
4. Deterioration of thing through debtor’sfault
5. Improvement of thing by nature or bytime
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 personobliged:
1. 1.Unilateral- When only one party is obliged tocomply with a prestation
2. Bilateral-When both parties are mutuallybound to each other
-Both parties are debtors andcreditors of each other

a. Reciprocal obligations-Are those which arise from thesame cause and in which eachparty is a debtor and creditor of
the other, such that theperformance of one is designedto be the equivalent and thecondition for the performanceof the
other.
b. Non-reciprocal obligations-Are those conditions which donot impose simultaneous andcorrelative performance
onboth parties
-The performance of one party isnot dependent upon thesimultaneous performance bythe other

Remedies in reciprocal obligations:

1. Choice of remediesa.
a. Action for specific performance(fulfillment) of the obligationwith damages
b. Action for rescission of theobligation 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

Rescission without previous judicial decree

1. Where automatic rescission expresslystipulated
2. Where contract still executory

Article 1192

2 situations where both parties are guilty of breach:

1. First infractor known2
2. First infractor cannot be determined

Article 1193 Obligation with a period

-Is one whose consequences aresubjected in one or another to theexpiration of said period or term

Period or term
-Is a future and certain event upon thearrival of which the obligation (or right)subject to it either arises or is
terminated
-It is a day certain which mustnecessarily come, although it may notbe known when, like the death of aperson
Period and Condition Distinguished

Period and Condition Distinguished

Period Condition
As to fulfillment Certain event Uncertain event
As to time Refers only to future May refer also to past event
unknown to the parties
As to influence on Merely fixed the time for Causes and obligation either
the obligation the efficaciousness of the to arise or to cease
obligation
As to affect, when Depends upon the will of Depends upon the sole will of
left to debtors will the debtor empowers the the debtor invalidates the
court to fix the duration obligation
thereof
As to retroactivity The arrival of period does The happening of a condition
of effects not have any retroactive has retroactive effect
effect (unless there is an
agreement to contrary)

Kinds of period or term:According to effect:

1. Suspensive period (ex die)
-The obligation begins only from aday certain upon the arrival of period
2. Resolutory period (in diem)
-The obligation is valid up to a daycertain and terminates uponarrival of the period
According to source:
1. Legal period-When it is provided for by laws
2. 2.Conventional or voluntary period- When it is agreed to by theparties
3. Judicial period-When it is fixed by the court

According to definiteness:
1.

Definite period
-

When it is fixed or it is knownwhen it will come

2.

Indefinite period
-

When it is not fixed or it is notknown when it will come-

Where the period is not fixed buta period is intended, the courtsare usually empowered by law tofix the same
Article 1194
In case of loss, deterioration or improvement of the thing before the arrival of the day certain,the rules in Article 1189
shall be observed.
Article 1195
Debtor presumed aware of periodNo recovery in personal obligations