Essay

1.
A. In this case, the obligation is extinguished because the obligation of the contract
which is to give 100 grams of marijuana in exchange of P500 is contrary to law. Under
the law on obligation and contacts, as a source of obligation, a contract must be valid
and enforceable. A contract is valid if it is not contrary to law, morals, good customs,
public order, or public policy. Here, the selling or usage of marijuana is prohibited by the
law. Hence, the obligation is invalid and should be extinguished.
B. The obligation will prosper. Under Article 1156 of the law on obligation and contracts,
an obligation is a juridical necessity to give, to do, or not to do. In this case, A obliged
himself to give B a sum of P10,000 if he will stop using marijuana, this shows that A is
telling not to do an act in exchange of money, which is lawful. Hence, the obligation is
valid.
2. The obligation will prosper as long as the condition that B will participate in the
marathon. The law provides two different conditions in a contract, suspensive and
resolutory. Here, the condition is a suspensive one. The law states that a suspensive
condition is a condition which suspends rights and obligations until the uncertain event
occurs. So, if B failed to participate in the marathon, the obligation of A to give P10,000
will never takes place, it is as if there was no agreement between the parties at all.
3.
A. Yes. Under the law, if the thing is lost through the fault of the debtor, he shall be
obliged to pay damages. In this case, the motorcycle was lost through the fault of A, the
debtor. Hence, he is liable for damages.
B. No. The law provides that when the thing deteriorates without the fault of the debtor,
the impairment is to be borne by the creditor. In this case, the motorcycle was
deteriorated without the fault of A. Hence, he is not liable for any damages and B. the
creditor, will bear the loss.
C. No. The law states that if the thing is improved at the expense of the debtor, he shall
have no other right than that granted to the usufructuary. Hence, B is not obliged to pay
for the expenses of A for the improvement of the motorcycle to be delivered to him.
4.
A. Yes. The law provides that if the thing is lost through the fault of the debtor, he is
liable to pay for the damages. In this case, all the items to be delivered to B were lost, a
motorcycle (60,000), a bicycle (15,000), and a skateboard (10,000). Hence, A is liable to
pay B a total amount of 85,000 for damages.
B. Under Art 1189, the right of choice of the creditor can only be invoked if the thing is
deteriorated by the fault of the debtor. The creditor may choose between rescission of

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the obligation or its cancellation, and fulfillment of the obligation, with indemnity for
damages in either case. In this case, if the creditor chooses rescission, the obligation
will be cancelled but the debtor will pay for the damages which is 85,000. On The other
hand, if the things were partially lost, and the creditor chooses for its fulfillment, the
remaining things should be delivered and the lost ones will be paid by the debtor as
damages.

Definition
Pure Obligation- an obligation which is not subject to any condition or term and is
immediately demandable.
Conditional Obligation- an obligation subject to a condition, suspensive or resolutory.
Suspensive Condition- a condition in which the happening or fulfilment of the condition
results in the birth of the obligation.
Resolutory condition- a condition in which the happening or fulfillment of the condition
results in the extinguishment of the obligation.
Period- interval of time, which, exerting an influence on an obligation as a consequence
of a juridical act, either suspends its demandability or produces extinguishment.
Condition- a condition is a clause in a contract or agreement which has for its object to
suspend, rescind or modify the principal obligation.
Alternative Obligation- one where several prestations are due but the performace of one
is sufficient.
Facultative Obligation- one where only one prestation is due but the debtor may
substitute another.
Kinds of Loss- a thing is lost when it:
1. Disappears in such a way that its existence is unknown or it cannot be recovered;
2. Perishes; and
3. Goes out of the commerce of men.

Enumeration

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Article 1189
When the conditions have been imposed with the intention of suspending the efficacy 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.

The provision of this article applies only to:

Obligations to deliver a determinate or specific thing.

In case the suspensive condition is fulfilled.

What can happen to the thing during the pendency of the condition?

Loss of the thing- it is understood that thing is lost when it perishes, goes out of
commerce of man, or disappear in such a way that existence is unknown or it cannot be
recovered.

Deterioration of the thing- a thing deteriorates when its value is reduced or impaired
which not amount to total loss. In other words the thing still exist at the time the
condition is fulfilled.

Improvement of the thing- a thing is improved when its value is increased or enhanced
by nature or by time or at the expense of the debtor.

(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 things 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.

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(6) If its improved at the expense of the debtor, he shall have no other right than that
granted to the usufructuary.

Art. 1198
ARTICLE 1198. The debtor shall lose every right to make use of the period:
When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt;
When he does not furnish to the creditor the guaranties or securities which he has
promised;
When by his own acts he has impaired said guaranties or securities after their
establishment, and when through a fortuitous event they disappear, unless he
immediately gives new ones equally satisfactory;
When the debtor violates any undertaking, in consideration of which the creditor agreed
to the period;
When the debtor attempts to abscond.