Benedicto, Christine Joy R.

2 BSA 2
Section 1: Study Guide
I Definition
1. Condition- is the future and uncertain event upon the happening of which, the effectivity or extinguishment of
an obligation or right is subject to it depend.
2. Civil Loss- the thing disappears in such way that is existence is unknown: or even if known it cannot be
recovered, whether as a matter of fact or law.
3. Reciprocal Obligation- obligation where both parties are reciprocally bound to perform and obligation.
4. Pure Obligation- obligation that not subject in any condition and has no specific date, therefore immediately
demandable.
5. Potestative Condition- condition is depend upon the will of one party.
II Discussion
1. Illustrate an obligation subject to:
a. Suspensive Condition- the creation of this obligation depend on the occurrence or non-occurrence
of event. Thus, the occurance of the condition will arise the obligation. Example:
 X promise to pay Y when he sells his car
 In this example the payment is suspended until Y sell his car.
b. Resolutory Condition- is the condition in which upon the occurrence of condition will result to
extinguishment of the obligation. Example:
 X will support Y until he finishes college
 Here the obligation of X to Y will be extinguish when Y finish college.
c. Effect of the fulfillment of the condition to the conditional obligation.
 In suspensive condition, upon the fulfillment of condition the creditor will acquire right
(obligatory force). However, during the pendency of the condition, the creditor has only mere
hope or expectancy in acquiring rights.
 In resolutory condition, upon the fulfillment of condition the creditor will loss his right and
the obligation will be extinguish.
2. Give two cases when the conditional obligation is valid although the condition depends entirely upon the will
of the debtor. Explain
Case 1: Y borrowed 10 000 pesos from X. Y promised to pay X as soon as possible.

 In this case the condition “as soon as possible” is valid because even the will is depending
on debtor, he still has intention to pay X it is when he is capable on paying his debt. This
condition doesn’t show if he will comply or not.
Case 2: Y borrowed 10 000 pesos from X. Y promised to pay X on December 5. On December 5, due
on financial problem Y is not capable on paying X but Y is willing to pay. Now remedies of X will arise.

 This condition is still valid because the debtor has intention to pay the said obligation but
due to uncertain circumstances it become delayed.
3. May an obligor be liable under an obligation subject to a suspensive condition although the condition has not
yet been fulfilled? Explain.
  Obligor is not yet liable under suspensive condition because under this condition the obligation
will rise only upon the happening or fulfillment of the said condition.
4. In an Obligation to give a parcel of land subject to a suspensive condition, who is entitled to the fruits that
accrued during the pendency of the condition once said condition is fulfilled?
 Here the fruit during the pendency of the condition shall be deemed to have been mutually
compensated. Thus, the seller has the right to the fruit accrued during the pendency of condition.
5. State the rules in case the thing to be delivered:
a. Is lost with the debtor’s fault: without his fault:
 If its debtors’ fault, the debtors has obligation to pay the damage incurred and the price of
the thing lost.
 If it without debtors’ fault (fortuitous event), the obligation shall be extinguished.
b. Deteriorate with the debtor’s fault: without his fault.
 When the thing deteriorates on debtors’ fault, the creditor may choose between the
recession of the obligation and its fulfillment, with the indemnity for damage in either case.
 When the thing deteriorates without the fault of debtor, the impairment is to be borne by
the creditor simply because it is not caused by debtor.
III. Problem
1. D borrowed 20 000 from C payable on or before August 30. Before the arrival of the due date, C agree to the
promise of B to pay C if B wants. Can C insist that B pay not later than August 30?
 The condition used here is mixed condition, where fulfillment of the conditional obligation
depend partly to the debtor and partly to the third party, thus it is valid.
o In this case, C demand B (third person) to pay him not later than August 30 but on the
said case, they agreed that B will pay him if he wants. Therefore, the C cannot demand
B if the due is not yet passed.
2. Suppose in the same problem, D obliges himself to pay C 10 000 after C has paid his obligation to T. Is the
obligation valid?
 This problem used suspensive condition, which D give a condition that he will pay C “if C pay his
debt to T”. Thus, if C has not yet fulfilled his obligation to T, he cannot demand the D to pay him
immediately. Therefore, the obligation is invalid.
o The intention of D to his given condition is to delay the fulfillment of his obligation.
3. S agreed to sell to B a specific car for 200 000, delivery of the car and the payment of the price to be made
on June 15. Suppose S delivered the car on June 15 but B failed to pay the price, what are the remedies of S?
 S may file a case for the payment of Y. In addition, he can also claim for the damage incurred or
S can seek the recession of the obligation.
4. S sold a parcel of land to B for 240 000 payables in installment of 20 000 a year. The land was delivered to
B who obtained ownership thereof. After B paid 200 000, he could no longer continuing paying in view of
financial reverse but he was willing to pay the balance of 40 000 if given more time. Thereupon, S sued for
recession under Article 1191. If you were the judge, would you grant rescission?
 If I were the judge, I will accept the recession of S in the term of obligation because B doesn’t have
intention no to pay the remaining balance, in fact he is willing to pay the remaining 40 000 he just
need more time to fulfill the obligation.
5. D bind himself to pay C a sum of money. Give three cases when the obligation of D is demandable at once by
C.
a. When the obligation is pure obligation. It is not subject to the fulfillment of the obligation and
has no definite time. Thus, it is demandable at once.
 b. When subject to resolutory condition. It is said that upon the fulfillment of resolutory condition
the obligation will be extinguish. So, the creditor may still demand to debtor during the fulfilling
the obligation.
c. When subject to resolutory period/time. Same on case (b), the creditor can demand debtor
during the fulfilling of obligation.
Section 2: Study Guide
I. Definition
1. Obligation with a period- Obligation for those fulfillments a day certain has been fixed, shall be
demandable only when that day comes.
2. Period- interval of time, which, exerting an influence on an obligation as a consequence of juridical
act, either suspends its demanding or produces is extinguishment.
3. Indefinite Period- there is no fixed date or time.
II. Discussion
1. Has the debtor the right to recover what he has paid to the creditor before the arrival of the period
agreed upon? Explain.
 The obligation is to give so it is still recoverable, based in Article 1195, which allow the
recovery of what has been paid by mistake before the fulfillment of the suspensive
condition. For a reason of the creditor cannot be unjustly enrich by retaining the thing or
money he receives before the arrival of the period. However, if the debtor is aware that the
period is not yet due and where the period is depending upon him, payment by him affect
the determination of arrival of period. Thus, he cannot recover the thing or money once the
period arrived.
2. If the obligation does not state the period for its performance, has a party the right to ask a court to
fix a period or duration thereof? Explain.
 General Rule: The court is not authorized to fix a period.
 The court have no right to make contract for the parties. Reason is because the
contract is the law between the parties and its term cannot be change by the court.
Thus, the party cannot ask the law to fix the period.
 Exemption to the General Rule:
 If the obligation does not fix period, but from its nature and circumstances it can
be inferred that a period was intended by the parties.
 If the duration of the period depends upon the will of debtor
 In case of reciprocal obligation, when there is a just cause for fixing the period
 If the debtor bind himself when he means permit him to do so.
3. Give the case when the obligee can demand the performance of an obligation even before the arrival
of the period agreed upon.
 General Rule: Obligation is not demandable before the lapse of period.
o However, there is exception:
1. When debtor become insolvent
2. When debtor does no furnish guaranties or securities promised
3. When guaranties or securities given have been impaired or disappear
4. When debtor violate an undertaking
5. When debtor attempts to abscond
 At the time that any of these cases appear, the debtors will lose his rights
to make use of the period, which make the obligation become pure,
therefore it become immediately demandable even before the arrival of
agreed period.
 III. Problem
1. D borrowed 10 000 to C at 15% interest per annum payable on December 31. Can D require C to accept
payment before December 31?
 D can make payment for borrowed money and its interest to C before the agreed date.
However, cannot be compel to accept the performance before the said due date especially
if he would be prejudice or inconvenienced thereby.
2. D bind himself to give 10 000 to C upon the death of the father of D. Is the obligation of D conditional or one
with the period?
 Conditional is one whose consequence are subject to fulfillment of a condition. While One
with the period is Obligation for those fulfillments a day certain has been fixed, shall be
demandable only when that day comes.
o In this given problem there is future and certain event (the death of the father of
D), which is the requisite of obligation with the period. Therefore, the given
problem is Obligation with the period.
3. D obtained a loan from C in the amount of 50 000, payable on August 10. As security for his debt, D mortgage
his car in favor of C. The car however, was substantially damage without the fault of D. What right, if any, does
C have under the law? May C demand payment from D even before August 10?
 In this case, even the car was damage without the fault of D. C doesn’t have a right under
the law because the event happens without debtors’ fault. Only the value of said security
was reduced.
Section 3: Study Guide
I. Definition
1. Alternative Obligation- obligation where there is multiple performance due but the performance of
one is sufficient.
2. Facultative Obligation- Obligation where only one performance is due but the obligor may substitute
another performance.
3. Conjunctive Obligation- Obligation where there are two or more object and all of them are due. All of
this object must be performed to extinguish the obligation.
II. Discussion
1. What are the limitations on the right of choice of the debtor in alternative obligation? Illustrate on
such limitation.
 There are three limitation on right of choice of the debtor.
o Debtor cannot choose those prestation which are impossible, unlawful, or which
could have not been the object of the obligation. For example, X promise to give Y
the dog that talk in English. This right of choice of debtor is void, because it is
impossible that he can find the dog that talks in English.
o Debtor has no more right of choice when, among the prestation he alternatively
bound, only on is practicable. For example, X promise to give Y his LV watch, or his
iPhone 11 Max, or 70 000 pesos. Suddenly X was holdup, his watch and cellphone
are taken. Thus, X has no choice but to give Y 70 000 cash because it is the only
one practicable among his given alternative.
o Debtor cannot choose part of one prestation and part of another prestation. It is
stated on Article 1199 paragraph 2.
2. Give the situation when the debtor is given the option either to exercise his right of choice or to
rescind the contract with damage:
 Based on Article 1203, when happening is fault of creditor debtor may rescind the contract
with the damage. For example, X barrowed from Y 50 000. Both of them agreed that X could
 deliver item one, or item two, or time three. If through fault of Y, item one is destroyed, X can
rescind the contract if he wants. In rescission, X will have to return the 50 000 and the
interest in return Y must pay X the value of item one and the damage.
3. State the legal effects in case:
a. Some of the object of the obligation are lost through the fault of the debtor who has the
right of choice:
o The debtor is not liable since he has the right of choice and the obligation can still
be performed. For example, X agree to deliver LV bag, or Gucci bag, or YSL bag. If
item one is lost through the fault of X, he may still perform the obligation because
he is the one that has right of choice.
b. All are lost through his fault.
o In this case the creditor may have now the right to indemnity for the damage since
the obligation can no longer complied with. In continuation to example above, if
all of the bag was lost through the fault of debtor the liability will arise and creditor
may have right to ask for indemnity of obligation. And if lost was due to fortuitous
event the obligation will extinguish.
III. Problem
1. D borrowed 10 000 from C. it was agreed that D could pay 10 000 or deliver his piano on August 22.
On August 20, D informed C that the former would deliver his piano. Can D still change his period
considering that he was given the right of choice?
 D can still change period since the right of choice depends upon him and he give notice to
C for the early delivery of the said obligation.
o Law does not require any form of communicating the choice to other party.
2. Under a contract, X promised to deliver Y item one, or item two, or item tree. Y was given the right of
choice. What is the liability of X in case, through his fault:
a. Item two was loss or destroyed:
o When the right was given to creditor and suddenly item two was lost or destroy
trough debtors’ fault, creditor may claim item one or item three together with the
right to damage, or the price of item two with the right of damage.
b. All the items are lost or destroyed.
o In here, the creditor can demand the payment of the price of any one of them with
the right for damages.
3. S sold his TV set to B who gave S the option to deliver instead of his refrigerator. Is S liable to B in
case the TV is lost through S’s fault?
 S is not liable to B because as a general rule, the debtor has the right of choice the right to
choose the prestation. The debtor can still perform his obligation by making another
substitute.
Section 4: Study Guide
I. Definition
1. Joint Obligation- one where whole obligation is to be fulfilled proportionately by the different debtors,
and/or is to be demanded proportionately by the different creditors.
2. Solidary Obligation- one where each one of the debtor is bound to render, and/or of the creditors has
a right to demand from any of the debtors, entire compliance with the prestation.
3. Active Solidary- the tie among the creditors, where any of one of them san demand the fulfillment of
the entire obligation. The essence of this is the “mutual representation” among the solidary creditors
with the powers to exercise the rights of others in the same manner as their rights.
4. Joint Indivisible Obligation- Obligation where the parties are proportionately liable and the object or
subject matter is not physically divisible into different parts.
5. Joint Divisible Obligation- Obligation where the parties are proportionately liable and the object or
subject matter is physically divisible into different parts.