1.

The effect of a suspensive-potestative obligation whose fulfillment depends exclusively upon the will
of the debtor, the condition as well as the obligation is VOID as the prohibition is found in Art. 1182 of
the Civil Code. In the second wherein the suspensive-potestative obligation whose fulfillment depends
exclusively upon the will of the creditor, the condition as well as the obligation is VALID.

2. None, as provided in Art. 1183 of the Civil Code, impossible conditions shall annul the obligation
which depends upon it.

3. An obligation with suspensive condition becomes effective upon the fulfillment of the agreed
condition.

4. The power to rescind is the right of the injured party in reciprocal obligations. The injured or
aggrieved party may choose two remedies which is to demand the fulfillment of the obligation or the
rescission of the obligation, for both remedies the aggrieved party has the right to claim damages.

5. A conditional obligation becomes due and demandable upon fulfillment of the condition in the case of
a suspensive condition. In the case of a resolutory condition, it becomes due and demandable upon the
constitution of the obligation.

CAPSULIZED PRESENTATION

1. Sagun v. ANZ Global Services and Operations, et. al.

Civil Law; Contracts. -- In a contract with suspensive condition, if the condition does not happen, the
obligation does not come into effect. Thus, until and unless petitioner complied with the satisfactory
background check, there exists no obligation on the part of ANZ to recognize and fully accord him the
rights under the employment contract.

2. International Hotel Corporation v. Joaquin, et.al.

Civil Law; Obligations; Conditional Obligations; The existing rule in a mixed conditional obligation is that
when the condition was not fulfilled but the obligor did all in his power to comply with the obligation,
the condition should be deemed satisfied. --- To secure a DBP-guaranteed foreign loan did not solely
depend on the diligence or the sole will of the respondents because it required the action and discretion
of third persons – an able and willing foreign financial institution to provide the needed funds, and the
DBP Board of Governors to guarantee the loan. Such third persons could not be legally compelled to act
in a manner favorable to IHC. There is no question that when the fulfillment of a condition is dependent
partly on the will of one of the contracting parties, or of the obligor, and partly on chance, hazard or the
will of a third person, the obligation is mixed.

3. The Wellex Group, Inc. v. U-Land Airlines, Co., LTD.

Civil Law; Contracts; Rescission; Rescission or resolution under Article 1191 is predicated on the failure
of one of the parties in a reciprocal obligation to fulfill the prestation as required by that obligation. ---
The absence of fraud in a transaction does not mean that rescission under Article 1191 is not proper.
This case is not an action to declare the First Memorandum of Agreement null and void due to fraud at
the inception of the contract or dolo causante. This case is not an action for fraud based on Article 1381
of the Civil Code. Rescission or resolution under Article 1191 is predicated on the failure of one of the
parties in a reciprocal obligation to fulfill the prestation as required by that obligation. It is not based on
vitiation of consent through fraudulent misrepresentations.

4. Dandoy v. CA

Civil Law; Pure Obligation. --- On the basis of respondent's evidence, the petitioner's obligation arising
from the sale of the subject jewelry, was sufficiently established. The obligation, as already pointed out
above, should be characterized as pure---as opposed to conditional or one with a period---which is
demandable at once upon its constitution. At the time the jewelries were received by the petitioner, the
contract of sale was consummated, and the corresponding obligation to pay had risen.

5. Camp John Hay Development Corporation v. Charter Chemical and Coating Corporation

1. The effect of a suspensive-potestative obligation whose fulfillment depends exclusively upon the will
of the debtor, the condition as well as the obligation is VOID as the prohibition is found in Art. 1182 of
the Civil Code. In the second wherein the suspensive-potestative obligation whose fulfillment depends
exclusively upon the will of the creditor, the condition as well as the obligation is VALID.

2. None, as provided in Art. 1183 of the Civil Code, impossible conditions shall annul the obligation
which depends upon it.

3. An obligation with suspensive condition becomes effective upon the fulfillment of the agreed
condition.

4. The power to rescind is the right of the injured party in reciprocal obligations. The injured or
aggrieved party may choose two remedies which is to demand the fulfillment of the obligation or the
rescission of the obligation, for both remedies the aggrieved party has the right to claim damages.
5. A suspensive conditional obligation becomes due and demandable upon fulfillment of the agreed
condition. In the case of a resolutory condition, it becomes due and demandable upon the constitution
of the obligation.

CAPSULIZED PRESENTATION

1. Sagun v. ANZ Global Services and Operations, et. al.

Civil Law; Contracts. -- In a contract with suspensive condition, if the condition does not happen, the
obligation does not come into effect. Thus, until and unless petitioner complied with the satisfactory
background check, there exists no obligation on the part of ANZ to recognize and fully accord him the
rights under the employment contract.

2. International Hotel Corporation v. Joaquin, et.al.

Civil Law; Obligations; Conditional Obligations; The existing rule in a mixed conditional obligation is that
when the condition was not fulfilled but the obligor did all in his power to comply with the obligation,
the condition should be deemed satisfied. --- To secure a DBP-guaranteed foreign loan did not solely
depend on the diligence or the sole will of the respondents because it required the action and discretion
of third persons – an able and willing foreign financial institution to provide the needed funds, and the
DBP Board of Governors to guarantee the loan. Such third persons could not be legally compelled to act
in a manner favorable to IHC. There is no question that when the fulfillment of a condition is dependent
partly on the will of one of the contracting parties, or of the obligor, and partly on chance, hazard or the
will of a third person, the obligation is mixed.

3. The Wellex Group, Inc. v. U-Land Airlines, Co., LTD.

Civil Law; Contracts; Rescission; Rescission or resolution under Article 1191 is predicated on the failure
of one of the parties in a reciprocal obligation to fulfill the prestation as required by that obligation. ---
The absence of fraud in a transaction does not mean that rescission under Article 1191 is not proper.
This case is not an action to declare the First Memorandum of Agreement null and void due to fraud at
the inception of the contract or dolo causante. This case is not an action for fraud based on Article 1381
of the Civil Code. Rescission or resolution under Article 1191 is predicated on the failure of one of the
parties in a reciprocal obligation to fulfill the prestation as required by that obligation. It is not based on
vitiation of consent through fraudulent misrepresentations.

4. Dandoy v. CA
Civil Law; Pure Obligation. --- On the basis of respondent's evidence, the petitioner's obligation arising
from the sale of the subject jewelry, was sufficiently established. The obligation, as already pointed out
above, should be characterized as pure---as opposed to conditional or one with a period---which is
demandable at once upon its constitution. At the time the jewelries were received by the petitioner, the
contract of sale was consummated, and the corresponding obligation to pay had risen.

5. Camp John Hay Development Corporation v. Charter Chemical and Coating Corporation

Civil Law; Right to Rescind. --- Rescission of the contract is sanctioned in this case. Under the contract,
petitioner and respondent have reciprocal obligations. Respondent, for its part, was bound to render
painting services for petitioner's property. This was completed by respondent in 2003, after which it was
belatedly issued a clearance in 2005. Meanwhile, in accordance with the Contractor's Agreement,
petitioner paid part of the contract price with the remaining balance to be paid through offsetting of two
(2) Camp John Hay Suites units. However, despite incessant demands from respondent, petitioner failed
to deliver these units because their construction had yet to be completed. The law, then, gives
respondent the right to seek rescission because petitioner could not comply with what is incumbent
upon i
1. In terms of fulfillment:

- a period is a future and certain event.

- a condition is an uncertain event.

In terms of time:

- a period refers only to the future

- a condition may refer also to the past

In terms of influence on the obligation:

- a period fixes the time for the performance of an obligation. It does prevent its existence (suspensive)
and conception in due time (resolutory).

- a condition causes the existence or the extinguishment of an obligation.

Both period and condition are required to be legally and physically possible to be valid.

2. A period fixed by the parties is presumed to have established in favor of both the debtor and the
creditor. A period may be established in favor of one of the parties as shown in the wording of the
obligation. The period may either be; for the benefit of the debtor; he cannot be compelled to perform
the obligation before the arrival of the period and may perform the obligation in advance. For the
benefit of the creditor; he cannot be compelled to accept the performance before the arrival of the
period and may demand the performance of the obligation in advance.

3. An obligation with a period can only be demandable when that period expires.

CAPSULIZED PRESENTATION

1. Salonte vs. COA, et.al., G.R. No. 207348, August 19, 2014