ART. 1179.
Every obligation between “future” and “uncertain” to
whose performance does not
depend upon a future or
uncertain event, or upon a past
event unknown to the parties, is
demandable at once.
Every obligation which contains
a resolutory condition shall also
be demandable, without
prejudice to the effects of the
happening of the event. (1113)
A pure obligation is one which is not
subject to any condition and no
specific date is mentioned for its
fulfillment and is, therefore,
immediately demandable.
A conditional obligation is one
whose consequences are subject in
one way or another to the
fulfillment of a condition.
Meaning of condition.
Condition is a future and uncertain
event, upon the happening of which,
the effectivity or extinguishment of
an obligation (or rights) subject to
it depends.
Characteristics of a condition.
(1) Future and uncertain. — In
order to constitute an event a
condition, it is not enough that it be
future; it must also be uncertain.
The first paragraph of Article 1179
obviously uses the disjunctive or
distinguish pure obligation from
both the conditional obligation and
one with a period. Be that as it may,
the word “or” should be “and.”
(2) Past but unknown. — A
condition may refer to a past event
unknown to the parties. (infra.) If it
refers to a future event, both its
very occurrence and the time of
such occurrence must be uncertain;
otherwise, it is not a condition.
A condition must not be impossible.
Two principal kinds of condition.
(1) Suspensive condition (condition
precedent or condition antecedent)
or one the fulfi llment of which will
give rise to an obligation (or right).
In other words, the demandability
of the obligation is suspended until
the happening of a future and
uncertain event which constitutes
the condition.
(2) Resolutory condition (condition
subsequent) or one the fulfillment of
which will extinguish an obligation
(or right) already existing.
Distinctions between suspensive
and resolutory conditions.
The difference between the two
conditions is very clear; both bear
an influence on the existence of the
obligation, but in diametrically
opposed manner.
(1) If the suspensive condition is
fulfilled, the obligation arises, while
if it is the resolutory condition that
is fulfilled, the obligation is
extinguished;
(2) If the fi rst does not take place,
the tie of law (juridical or legal
tie) does not appear, while if it is
the other, the tie of law is
consolidated; and
(3) Until the first takes place, the
existence of the obligation is a mere
hope, while in the second, its effects
flow, but over it, hovers the
possibility of termination.
When obligation demandable at
once.
An obligation is demandable at once
— which constitutes the condition.
(1) when it is pure;
(2) when it is subject to a
resolutory condition; or
(3) when it is subject to a
resolutory period.
ART. 1180. When the debtor
binds himself to pay when his
means permit him to do so, the
obligation shall be deemed to be
one with a period, subject to the
provisions of Article 1197.
A period is a future and certain
event upon the arrival of which the
obligation subject to it either arises
or is extinguished.
(1) The debtor promises to pay when
his means permit him to do so. —
The obligation shall be deemed to
be one with a period. In this case,
what depends upon the debtor’s
will is not whether he should pay or
not for indeed he binds himself to
pay. What is left only to his will is
the duration of the period. If the
debtor and the creditor cannot
agree as to the specifi c time for
payment, the court shall fi x the
same on the application of either
party.
ART. 1181. In conditional
obligations, the acquisition of
rights, as well as the
extinguishment or loss of those
already acquired, shall depend
upon the happening of the event
(1114)
ART. 1182. When the fulfi llment
of the condition depends upon
the sole will of the debtor, the
conditional obligation shall be
void. If it depends upon chance
or upon the will of a third person,
the obligation shall take effect in
conformity with the provisions of
this Code. (1115)
Classifications of conditions.
Conditions may be classified as
follows:
(1) As to effect.
(a) Suspensive. — the happening of
which gives rise to the obligation;
and
(b) Resolutory. — the happening of
which extinguishes the obligation.
(2) As to form.
(a) Express. — the condition is
clearly stated; and
(b) Implied. — the condition is
merely inferred.
(3) As to possibility.
(a) Possible. — the condition is
capable of fulfillment, legally
and physically; and
(b) Impossible. — the condition is
not capable of fulfillment, legally or
physically.
(4) As to cause or origin.
(a) Potestative. — the condition
depends upon the will of one of the
contracting parties;
(b) Casual. — the condition
depends upon chance or upon the
will of a third person; and
(c) Mixed. — the condition depends
partly upon chance and partly upon
the will of a third person.
(5) As to mode.
(a) Positive. — the condition
consists in the performance of an
act; and
(b) Negative. — the condition
consists in the omission of an
act.
(6) As to number.
(a) Conjunctive. — there are several
conditions and all must be fulfilled;
and
(b) Disjunctive. — there are several
conditions and only one or
some of them must be fulfilled.
(7) As to divisibility.
(a) Divisible. — the condition is
susceptible of partial
performance; and
(b) Indivisible. — the condition is
not susceptible of partial
performance.
Meaning of potestative condition.
A potestative condition is a
condition suspensive in nature and
which depends upon the sole will of
one of the contracting parties.
Where suspensive condition
depends upon the will of debtor.
(1) Conditional obligation void. —
Where the potestative condition
depends solely upon the will of the
debtor, the conditional obligation
shall be void because its validity
and compliance is left to the will of
the debtor (Art. 1308.) and it
cannot, therefore, be legally
demanded.

Where suspensive condition
depends upon the will of
creditor.
If the condition depends exclusively
upon the will of the creditor,
the obligation is valid.
Casual condition.
(1) 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.
ART. 1183. Impossible
conditions, those contrary to
good customs or public policy
and those prohibited by law shall
annul the obligation which
depends upon them. If the
obligation is divisible, that part
thereof which is not affected by
the impossible or unlawful
condition shall be valid.
The condition not to do an
impossible thing shall be
considered as not having been
agreed upon. (1116a)
Two kinds of impossible
conditions.
(1) Physically impossible conditions.
— when they, in the nature of
things, cannot exist or cannot be
done; and
(2) Legally impossible conditions. —
when they are contrary to law,
morals, good customs, public order,
or public policy.
ART. 1184. The condition that
some event happen at a
determinate time shall
extinguish the obligation as soon
as the time expires or if it has
become indubitable that the
event will not take place. (1117)
Positive condition.
The above article refers to a
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; or
(2) as soon as it has become
indubitable that the event will not
take place although the time
specified has not yet expired.
ART. 1185. The condition that
some event will not happen at a
determinate time shall render
the obligation effective from the
moment the time indicated has
elapsed, or if it has become
evident that the event cannot
occur. If no time has been fixed,
the condition shall be deemed
fulfilled at such time as may have
probably been contemplated,
bearing in mind the nature of the
obligation.
Negative condition.
The above provision speaks of a
negative condition that an event
will not happen at a determinate
time. (see Art. 879.) The obligation
shall become effective and binding:
(1) from the moment the time
indicated has elapsed without the
event taking place; or
(2) from the moment it has become
evident that the event can not
occur, although the time indicated
has not yet elapsed.
If no time is fixed, the
circumstances shall be considered
to determine the intention of the
parties. This rule may also be
applied to a positive condition.
ART. 1186. The condition shall be
deemed fulfilled when the
obligor voluntarily prevents its
fulfi llment. (1119)
Constructive fulfillment of
suspensive condition.
There are three (3) requisites for
the application of this article:
(1) The condition is suspensive;
(2) The obligor actually prevents
the fulfi llment of the condition;
and
(3) He acts voluntarily.
ART. 1188. The creditor may,
before the fulfillment of the
condition, bring the appropriate
actions for the preservation of
his right.
The debtor may recover what
during the same time he has paid
by mistake in case of a
suspensive condition. (1121a)
Rights pending fulfillment of
suspensive condition.
(1) Rights of creditor. — He may
take or bring appropriate actions
for the preservation of his right, as
the debtor may render nugatory the
obligation upon the happening of
the condition. Thus, he may go to
court to prevent the alienation or
concealment of the property of the
debtor or to have his right
annotated in the registry of
property. The rule in paragraph one
applies by analogy to obligations
subject to a resolutory condition.
(see Art. 1190, par. 1.)
(2) Rights of debtor. — He is
entitled to recover what he has paid
by mistake prior to the happening
of the suspensive condition. This
right is granted to the debtor
because the creditor may or may
not be
able to fulfill the condition imposed
and hence, it is not certain that the
obligation will arise. This is a case
of solutio indebiti which is based on
the principle that no one shall
enrich himself at the expense of
another.
ART. 1189. When the conditions
have been imposed with the
intention of suspending the effi
cacy of an obligation to give, the
following rules shall be observed
in case of the improvement, loss
or deterioration of the thing
during the pendency of the
condition:
(1) If the thing is lost without the
fault of the debtor, the obligation
shall be extinguished;
(2) If the thing is lost through the
fault of the debtor, he shall be
obliged to pay damages; it is
understood that the thing is lost
when it perishes, or goes out of
commerce, or disappears in such
a way that its existence is
unknown or it cannot be
recovered;
(3) When the thing deteriorates
without the fault of the debtor,
the impairment is to be borne by
the creditor;
(4) If it deteriorates through the
fault of the debtor, the creditor
may choose between the
rescission of the obligation and
its fulfillment, with indemnity for
damages in either case;
(5) If the thing is improved by its
nature, or by time, the
improvement shall inure to the
benefit of the creditor;
(6) If it is improved at the
expense of the debtor, he shall
have no other right than that
granted to the usufructuary.
(1122)
Requisites for application of
Article 1189.
Article 1189 applies only if:
(1) The obligation is a real
obligation;
(2) The object is a specifi c or
determinate thing;
(3) The obligation is subject to a
suspensive condition;
(4) The condition is fulfi lled; and
(5) There is loss, deterioration, or
improvement of the thing during
the pendency of the happening on
one condition.
Kinds of loss.
Loss in civil law may be:
(1) Physical loss. — when a thing
perishes as when a house is burned
and reduced to ashes; or
(2) Legal loss. — when a thing goes
out of commerce (e.g., when it is
expropriated) or when a thing
heretofore legal becomes illegal
(3) Civil loss. — when a thing
disappears in such a way that its
existence is unknown (e.g., a
particular dog has been missing for
sometime); or even if known, it
cannot be recovered (Art. 1189[2].),
whether as a matter of fact (e.g., a
particular ring is dropped from a
ship at sea) or of law (e.g., a
property is lost through
prescription).
Rules in case of loss, etc. of thing
during pendency of suspensive
condition.
(1) Loss of thing without debtor’s
fault. —
EXAMPLE:
D obliged himself to give C his car
worth P100,000.00 if C sells D’s
property. The car was lost without
the fault of D.
The obligation is extinguished and
D is not liable to C even if C sells
the property. A person, as a general
rule, is not liable for a fortuitous
event. (Art. 1174.)
(2) Loss of thing through debtor’s
fault. —
EXAMPLE:
In the same example, if the loss
occurred because of the negligence
of D, C will be entitled to demand
damages (Art. 1170.), i.e.,
P100,000.00 plus incidental
damages, if any.
(3) Deterioration of thing without
debtor’s fault. — A thing
deteriorates when its value is
reduced or impaired with or
without the fault of the debtor.
EXAMPLE:
If the car fi gured in an accident, as
a result of which its windshield
was broken and some of its paints
were scratched away without the
fault of D, thereby reducing its
value to P80,000.00, C will have to
suffer the
deterioration of impairment in the
amount of P20,000.00. (Art. 1174.)
(4) Deterioration of thing through
debtor’s fault. —
EXAMPLE:
In this case, C may choose between:
(a) Rescission (or cancellation) of
the obligation with damages; in the
case D is liable to pay P100,000.00,
value of the car before its
deterioration plus incidental
damages, if any; or
(b) Fulfi llment of the obligation
also with damages (see Art. 1191.);
in this case, D is bound to C to give
the car and pay P20,000.00 plus
incidental damages, if any.
(5) Improvement of thing by nature
or by time. — A thing is improved
when its value is increased or
enhanced by nature or by time or at
the
expense of the debtor or creditor.
(see Art. 1187.)
EXAMPLE:
Suppose the market value of the car
increased, who gets the
benefit?
The improvement shall inure to the
benefi t of C. Inasmuch as C
would suffer in case of
deterioration of the car through a
fortuitous event,
it is but fair that he should be
compensated in case of
improvement of the
car instead.

(6) Improvement of thing at expense

of debtor. —
EXAMPLE:
During the pendency of the
condition, D had the car painted
and its seat cover changed at his
expense.
In this case, D will have the right
granted to a usufructuary with
respect to improvements made on
the thing held in usufruct.6