Title I Chapter 3

DIFFERENT KINDS OF
OBLIGATIONS
Section 1
Pure and Conditional Obligations
Articles 1170-1192
 Article 1179. Every obligation 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)
What is a pure obligation?
An obligation not subject to any condition and no specific date is
mentioned for its fulfillment and is, therefore, immediately demandable.

Examples:

1. D obliges himself to pay C P2,000. D’s obligation is immediately

demandable because there is no condition and no date is mentioned for D to
fulfill the obligation.
Take note that although the obligation is immediately demandable it does
not mean that the C can demand payment soon after he gave the P2,000 to D.
Rather, D is given a period of time to pay but its duration will depend on the
nature of the obligation and the circumstances. (Art. 1197)
2. D promised to pay C P2,000 upon C’s demand. The
obligation is immediately due and demandable.

Again, take note that although the obligation is

immediately demandable it does not mean that the C can
demand payment soon after he gave the P2,000 to D. Rather,
D is given a period of time to pay but its duration will
depend on the nature of the obligation and the
circumstances. (Art. 1197)
What is a conditional obligation?
An obligation whose consequences are subject in one way
or another to the fulfillment of a condition.

What is a condition?
It is a future and uncertain event, upon the happening of
which, the effectivity or extinguishment of an obligation
subject to it depends.
What are the characteristics of a condition?
1. Future and uncertain event
Examples:
I will treat you to Jollibee (obligation), if you will pass
Oblicon this semester (condition, which is a future and
uncertain event).
I will give you P1,000 (obligation), if a Covid vaccine will be
available this year (condition, which is a future and uncertain
event).
2. Past but unknown
Examples:
I will treat you to Jollibee (obligation), if your grandfather
was a guerilla during the Second World War (condition,
which is a past event unknown to the parties).
I will give you P1,000 (obligation), if Covid 19 really came
from bats (condition, which is a past event unknown to the
parties).
What are the two principal kinds of condition?
1. Suspensive condition - the fulfillment of the condition will
give rise to the obligation.

Example:
I will treat you to Jollibee (obligation), if you will pass Oblicon
this semester (condition).
Here, the obligation to treat the creditor to Jollibee shall arise if
the creditor shall pass Oblicon. But if the creditor fails, then there is
no obligation to treat.
2. Resolutory condition. Fulfillment of the condition will
extinguish the obligation.
Example:
I will give you a P5,000 monthly allowance until Covid 19 is
totally eradicated.
Here, the obligation to give a P5,000 monthly allowance is
immediately demandable. It will be extinguished once the Covid
19 is totally eradicated.
 Suspensive Condition vs. Resolutory Condition

Suspensive Condition Resolutory Condition

If the suspensive condition is If the resolutory condition is
fulfilled, the obligation arises. fulfilled, the obligation is
extinguished.
If the first does not take place, Its effects flow, but over it
the tie of the law (juridical or hovers the possibility of
legal tie) does not appear. termination, (see 8 Manresa 130-
131.)
Until the first takes place, the If it is the other, the tie of law
existence of the obligation is a is consolidated.
mere hope.
When is an obligation demandable at once?

1. When it is pure (Art. 1179, par. 1);

2. When it is subject to a resolutory condition. (Art. 1179, par.

2); and

3. When it is subject to a resolutory period. (Art. 1193, par. 2)

 Article 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. (n)
Where Duration of Period Depends Upon the Will of
Debtor.
A period is a future and certain event upon the arrival of which the
obligation subject to it either arises or is extinguished.

When the debtor promises to pay when his means permit him to do
so, then the obligation shall be deemed to be one with a period.

The same rule applies in case the debtor binds himself to pay:
(a) “little by little”
(b) “as soon as possible”
(c) “from time to time”;
(d) “at any time I have the money”
(e) “in partial payments”
(f) “when I am in a position to pay.”
 Article 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 which constitutes the
condition. (1114)
What is the effect of the happening of a condition?
1. If the condition is suspensive the creditor acquires the rights
once the condition is fulfilled.
Example:
D obligated himself to give C a new cellular phone if C will pass
Oblicon this semester. C can demand a new cellular phone only if the
condition is fulfilled (i.e., if C will pass Oblicon). In the meantime,
D’s obligation is suspended.
 2. If the condition is resolutory the happening of the event
which constitutes the condition produces the extinguishment or
loss of rights already acquired.

Example:

D binds himself to give monthly support to C until the end of

the pandemic.

Here, C already acquired the right to ask monthly support

from D. But C’s right shall be extinguished or lost once the
condition (end of pandemic) is fulfilled.
 Article 1182. When the fulfillment 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)
What are the different classes of conditions?

As to effect:
1. Suspensive – its happening gives rise to the obligation.
2. Resolutory – its happening extinguishes the obligation.

As to form:
1. Express - the condition is clearly stated.
2. Implied - the condition is merely inferred.
As to possibility:
1. Possible - the condition is capable of fulfillment, legally and
physically.
2. Impossible - the condition is not capable of fulfillment, legally or
physically.

As to cause or origin:
1. Potestative - the fulfillment of the condition depends upon the will
of one of the contracting parties.
2. Casual - the condition depends upon chance or upon the will of a
third person.
3. Mixed - the condition depends partly upon chance and partly upon
the will of a third person.
As to mode:
1. Positive - the condition consists in the performance of an
act.
2. Negative - the condition consists in the omission of an act.

As to numbers:
1. Conjunctive - there are several conditions and all must be
fulfilled.
2. Disjunctive - there are several conditions and only one or
some of them must be fulfilled.
As to divisibility:

1. Divisible - the condition is susceptible of partial performance.

2. Indivisible - the condition is not susceptible of partial
performance.
Where Suspensive Condition Depends Upon 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.)

Example:
“I will pay you after I receive a loan from a bank.” (Berg vs.
Magdalena Estate, Inc., 92 Phil. 110.)
Here, the debtor can choose not to pay simply by not borrowing
from the bank.
2. Only the condition void - If the obligation is a pre-existing one and,
therefore, does not depend for its existence upon the debtor’s
fulfillment of the potestative condition, then only the condition is void
but the obligation itself remains valid.

Example:
On September 20, 2020, D borrowed 10,000.00 from C payable
within two (2) months. Subsequently, D promised to pay C “after D sells
his cellphone” to which C agreed.
In this case, only the condition is void but not the pre-existing
obligation of D to pay C.
 Where Suspensive Condition Depends Upon Will of
Creditor.

If the condition depends exclusively upon the will of the

creditor, the obligation is valid.

Example:
“I will pay you my indebtedness upon your demand.”

The obligation is not a mere illusion. This is because normally

the creditor is interested in the fulfillment of the obligation
because it is for his benefit. It is up to him whether to enforce
his right or not.
Where Resolutory Condition Depends Upon Will of
Debtor.

If the condition is resolutory in nature, like the right to repurchase

in a sale with pacto de retro, the obligation is valid although its
fulfillment depends upon the sole will of the debtor (seller).
Example: Sale with a right to repurchase or pacto de
retro sale
On September 20, 2020, S sold his house and lot to B. They
agreed that S can buy back the property from B within one year.
Here, B becomes the owner of the house and lot. But his
ownership may be extinguished if S will decide to repurchase it
within one year. But after the one year redemption period S can no
longer repurchase the property and B becomes its absolute owner
Casual Condition.
If the suspensive condition depends upon chance or upon
the will of a third person, the obligation subject to it is
valid.
Examples:
I will pay for the the repair of your motorcycle
(obligation), if it is damaged in a collision (condition that
depends on chance, which is the collision).
I will rehire you as a front desk staff (obligation), if the
government will already allow hotels to reopen (condition
that depends on the will of a third person, which is the
government).
Mixed Condition.
The obligation is valid if the suspensive condition depends
partly upon chance and partly upon the will of a third
person.
Example:
I will pay for the the repair of your motorcycle (obligation), if
it is damaged in a collision (condition that depends on
chance, which is the collision) and if the there is no police
finding that you were at fault (condition that depends on the
will of a third person, which is the police).
 Article 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 nature
of things, cannot exist or cannot be done.

Examples:
“I will give you P200,000 if you will go to the sun.”
“I will wash your clothes for one month if your right hand
can reach your right elbow.”
“I will repair your computer if you can squeeze orange juice
from a mango fruit.”
2. Legally impossible conditions - contrary to law, morals,
good customs, public order, or public policy.

Examples:
D will give P200,000.00 if C:
1. will kill D’s mother-in-law (against the law); or

2. will be D’s mistress (against law and morals); or

3. will slap D’s father (against good customs); or
4. will publicly defy the use of face mask and face shield
government (against public order); or
5. will not appear as a witness against X in a criminal case
(against public policy.)
What are the effects of impossible conditions on the
obligations?

1. If the condition is positive, that is to do an impossible thing,

then the obligation void. This is because the debtor really has no
intention to comply with his obligation because the condition is
impossible (physically or legally) to be fulfilled.

Example:
D will give P200,000.00 if C will kill D’s mother-in-law (legally
impossible). The obligation is void.
2. If the condition is negative, that is, not to do an impossible
thing, it is disregarded and the obligation is rendered pure and
valid.

Example:
I will give you P200,000 if you will not go to the sun.
The obligation becomes a pure obligation and immediately
demandable. The condition not to go to the sun is simply
disregarded.
3. If the obligation is divisible, the part thereof not affected
by the impossible condition shall be valid.

Example:
I will give you a new motorcycle if you will pass Oblicon
and the latest Samsung cellphone if you will slap your
Oblicon teacher.
Only the obligation to give the latest Samsung cellphone
is void.
4. If the obligation is a preexisting obligation, and, therefore,
does not depend upon the fulfillment of the condition which is
impossible, for its existence, only the condition is void.

Example:

On September 20, 2020, D borrowed P100,000 from C and

promised to pay on December 25, 2020. Later, the parties
agreed that D will pay C only if C will upload naked photos on
the internet.

Here, only the condition is void. The preexisting obligation

remains valid.
 Article 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 Suspensive Condition - the event will
happen at a given time.

The obligation subject of this condition 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 expired.
Example:

D obliges himself to give a laptop computer to C

if Biden will defeat Trump in the November
election.
 a. If Biden wins in the November election, then D
should give a laptop computer to C;

b. If Biden loses in the November election, then D is

not liable to give a laptop computer to C;

c. If Biden dies in October, then D’s obligation is

considered extinguished in October. Here, no need to
wait until the November election because it is clear that
the condition (Biden defeating Trump) can never
happen.
 Article 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. (1118)
 Negative Suspensive Condition - the event will not
happen at a given time.

The obligation subject of this condition 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

cannot occur, although the time indicated has not yet
elapsed.
Example:

D obliges himself to give a laptop computer to C if

Biden will not be able to defeat Trump in the
November election.
 a. If Biden loses in the November election, then D
should give a laptop computer to C;

b. If Biden wins in the November election, then D

is not liable to give a laptop computer to C;

c. If Biden dies in October, then D’s obligation

arises in October. Here, no need to wait until the
November election because it is clear that Biden can
never defeat Trump.
 Article 1186. The condition shall be deemed
fulfilled when the obligor voluntarily prevents its
fulfillment. (1119)
***
This is known as the constructive fulfillment of the
condition.
Constructive because although the condition was
not actually fulfilled, as if it is fulfilled because it was
the debtor who prevented it from happening.
Requisites:

1. The condition is suspensive;

2. The obligor actually prevents the fulfillment of
the condition; and
3. He acts voluntarily.
Example:

A hired the services of Engr. B to construct his

house. They agreed that A will pay P300,000 to Engr. B
once the project is completed. When the house is 80%
complete, A asked Engr. B to stop the construction
without any valid reason whatsoever.

Engr. B is entitled to the full amount of P300,000 as

if he was able to finish the construction. This is so
because it is debtor D who prevented the fulfillment of
the condition when he stopped the construction
without any valid reason.
 Article 1187. The effects of a conditional obligation to give,
once the condition has been fulfilled, shall retroact to the day of
the constitution of the obligation. Nevertheless, when the
obligation imposes reciprocal prestations upon the parties, the
fruits and interests during the pendency of the condition shall be
deemed to have been mutually compensated. If the obligation is
unilateral, the debtor shall appropriate the fruits and interests
received, unless from the nature and circumstances of the
obligation it should be inferred that the intention of the person
constituting the same was different.
In obligations to do and not to do, the courts shall determine,
in each case, the retroactive effect of the condition that has been
complied with. (1120)
 This article deals with the retroactive
effects of the fulfillment of a Suspensive
Condition.
1. In obligations to give:
An obligation to give subject to a suspensive
condition becomes demandable only upon the
fulfillment of the condition.
However, once the condition is fulfilled, its effects
shall retroact to the day when the obligation was
constituted.
Example:
CORONEL, ET. AL., vs. THE COURT OF APPEALS, ET. AL.
G.R. No. 103577 October 7, 1996

On September 20, 2020, siblings A, B and C entered into a

contract to sell with X over a parcel of land they inherited from
their father . The condition is that A, B and C will sign a deed of
absolute sale once the land title is transferred from their father’s
name to their names.
On September 30, 2020, a new land title was issued in the
names of A, B and C.
On October 30, 2020, they sold the land to another buyer, Y.
When X learned of the second sale he demanded its
cancellation and asked that the land be sold and delivered to
him instead.
 Here, when the condition (A, B and C acquiring a title in
their names) was fulfilled on September 30, 2020, X became
entitled to land retroactive to the time (September 20, 2020)
the parties entered into an agreement.
Hence, between X (first buyer) and Y (second buyer) to
whom the land was sold on October 20, 2020, X has a better
right. Therefore, X can ask for the cancellation of the sale of
the land to Y and for A, B and C to sign a deed of absolute sale
in his favor.

Take note, however, that for X (first buyer) to have a

better right than the Y (second buyer), X’s right to buy must
have been registered in the office known as the Register
of Deeds. If not, then Y has a better right to the land and has
no obligation to give the land to X.
2. In obligations to do or not to do - the courts are
empowered by the use of sound discretion and
bearing in mind the intent of the parties,to determine,
in each case, the retroactive effect of the suspensive
condition that has been complied with.
What are the retroactive effects as to fruits and
interests in obligations to give?

1. In reciprocal obligations -There is no retroactivity

because the fruits and interests received during the
pendency of the condition are deemed to have been
mutually compensated. This rule is necessary for
purposes of convenience since the parties would not
have to render mutual accounting of what they have
received. Fruits here may be natural, industrial, or civil
fruits, (see Art. 1164.)
2. In unilateral obligations -There is usually no
retroactive effect because they are gratuitous. The
debtor receives nothing from the creditor. Thus, fruits
and interests belong to the debtor unless from the
nature and other circumstances of the obligation it
should be inferred that the intention of the person
constituting the same was different.
 Article 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)
What are the rights of the parties pending the
fulfillment of a suspensive condition?
Rights of creditor - 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.

Rights of debtor - He is entitled to recover what he

has paid by mistake prior to the happening of the
suspensive condition. (solutio indebiti)
 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:
(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)
What are the requisites for the rules to be
applicable?

Article 1189 applies only if:

1. the obligation is a real obligation;
2. the object is a specific or determinate thing;
3. the obligation is subject to a suspensive conditions;
4. the condition is fulfilled; and
5. there is loss, deterioration, or improvement of the
thing during the pendency of the condition.
Kinds of Loss:

1. Physical loss - when a thing perishes.

2. Legal loss - when a thing becomes illegal or goes out

of commerce.

3. Civil loss is when a thing disappears in such a way that

its existence is unknown or even if known, it cannot be
recovered, whether as a matter of fact or of law.
What are the rules in case of loss of the thing during
pendency of suspensive condition?

LOSS OF THING LOSS OF THING

WITHOUT DEBTOR’S THROUGH DEBTOR’S
FAULT FAULT

Obligation is Debtor shall pay

extinguished. damages.
What are the rules in case of deterioration of the
thing during pendency of suspensive condition?

DETERIORATION OF DETERIORATION OF
THING WITHOUT THING THROUGH
DEBTOR’S FAULT DEBTOR’S FAULT

The impairment is to be The creditor may choose

borne by the creditor. between the rescission of
the obligation and its
fulfillment, with indemnity
for damages in either case.
What are the rules in case of improvement of the
thing during pendency of suspensive condition?

THE THING IS IMPROVED THE THING IS IMPROVED

BY ITS NATURE, OR BY TIME AT THE DEBTOR’S EXPENSE

The improvement shall Debtor shall have no

inure to the benefit of the other right than that granted
creditor. to the usufructuary.
 Article 1190. When the conditions have for their purpose the
extinguishment of an obligation to give, the parties, upon the fulfillment
of said conditions, shall return to each other what they have received.
In case of the loss, deterioration or improvement of the thing, the
provisions which, with respect to the debtor, are laid down in the
preceding article shall be applied to the party who is bound to return.
As for the obligations to do and not to do, the provisions of the
second paragraph of article 1187 shall be observed as regards the effect of
the extinguishment of the obligation. (1123)
What are the effects of fulfillment of resolutory
condition?
1. In obligations to give - When the resolutory condition in
an obligation to give is fulfilled, the obligation is extinguished
(Art. 1181) and the parties are obliged to return to each other
what they have received under the obligation, (par. 2.)
2. In obligations to do or not to do - In such obligations, the
courts shall determine the retroactive effect of the fulfillment of
the resolutory condition (par. 2.) as in the case where the
condition is suspensive. (Art. 1187, par. 2.)
 Article 1191. The power to rescind obligations is implied in
reciprocal ones, in case one of the obligors should not comply with
what is incumbent upon him.
The injured party may choose between the fulfillment and the
rescission of the obligation, with the payment of damages in either
case. He may also seek rescission, even after he has chosen fulfillment,
if the latter should become impossible.
The court shall decree the rescission claimed, unless there be just
cause authorizing the fixing of a period.
This is understood to be without prejudice to the rights of third
persons who have acquired the thing, in accordance with articles 1385
and 1388 and the Mortgage Law. (1124)
Kinds of Obligation According to the Person
Obliged.

1. Unilateral - when only one party is obliged to

comply with a prestation.

2. Bilateral - when both parties are mutually

bound to each other. Bilateral obligations may be
reciprocal or non-reciprocal.
What is a reciprocal obligation?

Reciprocal obligations are those which arise from

the same cause and in which each party is a debtor
and creditor of the other, such that the performance
of one is designed to be the equivalent and the
condition for the performance of the other.

The obligations of the parties are embodied in one

contract.
What is a non-reciprocal obligation?

Non-reciprocal obligations are those which do

not impose simultaneous and correlative
performance on both parties. In other words, the
performance of one party is not dependent upon
the simultaneous performance by the other.

The obligations of the parties are embodied in

different contracts.
Remedies in Reciprocal Obligations.

a. Action for specific performance (fulfillment) of

the obligation with damages

b. Action for rescission of the obligation also with

damages
Limitations on Right to Demand Rescission.

1. Resort to the courts

2. Power of court to fix period
3. Right of third person
4. Substantial violation
5. Waiver of right
Article 1192. In case both parties have committed a
breach of the obligation, the liability of the first infractor
shall be equitably tempered by the courts. If it cannot be
determined which of the parties first violated the
contract, the same shall be deemed extinguished, and
each shall bear his own damages. (n)
Rules Where Both Parties are Guilty of Breach

1. First infractor known - One party violated his

obligation; subsequently, the other also violated his part of
the obligation. In this case, the liability of the first
infractor should be equitably reduced.

2. First infractor cannot be determined - One party

violated his obligation followed by the other, but it cannot
be determined which of them was the first infractor. The
rule is that the contract shall be deemed extinguished and
each shall bear his own damages.

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