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Law On Obligations and Contracts
(midterm exam)
1. 1. The Law on Obligations and Contracts
2011 Midterm Examination Submitted
by: Domingo, Dennimar O. TTh 17:00 -
18:30 Submitted to: Pio Sara Jagurin
2. 2. II. Discussions 1. Illustrate an
obligation subject to: (a) Suspensive
Condition When an obligation is subject
to a suspensive condition, the creation
of the obligation will depend on the
occurrence of an event or on the
certainty that the event will not occur;
thus, the condition delays the creation of
a relationship between the parties. As
long as the condition has not occurred,
the very existence of the obligation is
not yet arises. For example, If your rent
is due on the 30th, you have an
obligation to pay the rent. The
performance to pay occurs on the 30th.
The performance is suspended until the
30th. (b) Resolutory Condition
Resolutory condition refers to a
condition whereby, upon fulfillment
terminates an already enforceable
obligation. The continuance of such a
contract is made dependent upon the
happening of an uncertain future event.
However, there is no postponement or
suspension of the contract and all rights
and obligations come into existence
immediately upon conclusion of an
agreement between the parties. For
instance, You have a car note over the
next 10 years. Once you pay the last
payment at the end of 10 years, the
obligation ends. What is the effect of the
fulfillment of the condition in a
conditional obligation? The suspensive
condition is when the parties agree that
the duty to perform is postponed until a
determined or determinable date due to
the pending event, and that this event is
certain to happen. However, the exact
date is unknown. The obligation will
arises when the said condition is already
fulfilled. While in the resolutory
condition, when the parties agree that
the obligations in the contract will be
terminated upon a certain future time.
the exact date is unkown.
3. 3. 2. Give two (2) cases when the
conditional obligation is valid although
the condition depends entirely upon the
will of the debtor. Explain. First case is
when the debtor promises to pay when
his means permit him to do so. In this
case, what depends upon the will of the
debtor is the duration of the period when
he is capable on paying his debt and not
whether he should comply or not. For
example, Mr. G binds himself to pay Ms.
Y of his debt that costs ₱10,000 little by
little. This obligation is valid and it shall
be deemed to be one with a period of
time. Next case is when the debtor is
capable of doing the said obligation. For
example, Marie borrowed 5,000 to Rose
payable on September 13. Due to the
review of financial reverses, Marie now
is not capable on paying the debt to
Rose but Marie is willing to pay the said
debt. The remedies of Rose will arise 3.
May an obligor be liable under an
obligation subject to a suspensive
condition although the condition has not
yet been fulfilled? Explain. Under the
suspensive condition, the obligation will
arises when the said condition is already
fulfilled. Therefore, under this type of
condition, the obligor or the debtor is not
yet liable. The debtor would be liable if
the condition is already fulfilled. 4. In
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? Upon the
fulfillment of the obligation, the seller
has the right to keep to himself all the
fruits and interests he may have
received during the pendency of the
condition, unless a contrary intention by
the seller that he shall render an
accounting of fruits received during its
pendency.
4. 4. 5. State the rules in case the thing to
be delivered: (a) is lost with the debtor’s
fault; without his fault; If the delivery lost
is due to the debtor’s fault, the debtor
has an obligation to pay the damages
that incurred and the price of the thing
that is lost also can be demand. If the
delivery lost without the fault of the
debtor, the debtor is not liable for any
obligation or the obligation shall be
extinguished. We are not liable for the
fortuitous event or any event that
beyond our powers. (b) Deteriorates
with the debtor’s fault; without his fault If
it deteriorates through the fault of the
debtor, the creditor may choose
between the 2 remedies as a creditor,
which is the rescission or the fulfillment
of the obligation, with damages that
incurred in either case. As a creditor,
you only have to choose one of the
remedies that are given. If it deteriorates
without the fault of the debtor, the value
of thing that delivered will be
depreciated and the value will be
reduced due to the deterioration of the
thing.