BUS Law 1- Obligation and Contract

“Group 4”

Submitted To:
Ma. Solita J. Virtudazo, JD, MS
Instructor

Submitted By:
Discussion Leader: Rogelio O. Bernaldez Jr.
Documenter: Fedelina Dediil
Members:
Cristy Ann Bendijo
Rodel A. Pagapong
Gle Marie O. Bernil
Sheramae M. Millanas
Regina Galos
Angelica R. Olandria
Learning Activity/ Assessment 4: Different Kinds of Obligations

1. Distinguish pure obligation from conditional obligation with examples?

Answer: Pure Obligation and Conditional Obligation are the two kinds of obligation in which possess
different obligations shown. Apparently, Pure Obligation is an obligation which does not contain any
condition or term upon which the fulfilment is made to depend. It is immediately demandable by the
creditors and the debtor cannot be excused from not complying with his prestation. Otherwise, it is
one which is not subject to whichever conditions and no specific date is mentioned for its
accomplishment and is, therefore, urgent need. Further, it is an obligation with respect to which no
condition precedent remains which has not been performed. The most distinctive characteristic of a
pure obligation is its demandability. A distinction must be made between immediate demandability
and its performance by the obligor or debtor. Although, the obligee or creditor can demand the
performance of the obligation immediately and the quality of immediate demandability is not infringed
or violated when a reasonable period is granted for performance. Thus, without condition and
demandable at once. For instances, when it talks about money it goes like this example: Mr.
Christian obliges himself to pay Angel, for the amount of P 25, 000. Another is that when it talks about
things: Louise promised Rose to give a brand new android phone. On the other hand, Conditional
Obligation is an obligation subject to a condition and also it is an event which both future and
uncertain upon that the existence or extinguishment of an obligation is made to depend. One whose
consequences are subject in one way or another to the fulfillment of a condition. Nonetheless, there
are two types of conditional obligation such as suspensive obligation that its fulfilment gives rise to an
obligation and the other one is resolutory obligation in which its happening extinguishes the obligation
which is already existing. Moreover, it is the acquisition of rights as well as loss of those already
acquired shall depend upon happening of the affair which constitutes the condition. Having this it
composed four characteristics which are needs to retain in mind and acquire it as a knowledge likely
every future and uncertain event upon which provision is made to depend. Even though the event is
uncertain, it should be possible. The condition must be imposed by the will of the party and not a
necessary legal requisite. Lastly, past event but unknown parties. Through these characteristics, it
can help us to learn more for what is it, how it will contribute and affect the obligation. Thus, it is an
obligation that requires the fulfillment of a given condition before such obligation shall be performed
by the debtor. For instances, when it talks about money it goes like this: Emilio will give P 200, 000
to Carmelita if she could finish her study as an engineer for five years. For things, Stephanie binds
herself to give Edsel a gold wrist watch if he will get married on December 31, 2020 as well as
Angelito promised Joy a brand new apple iphone if Joy passes her long exam tomorrow. Therefore,
these two kinds of obligations are really important and will help us to identify the obligation we had.

2. Explain suspensive condition and resolutory condition?

Answer: Certainly, suspensive condition and resolutory condition are the two common types of
condition with distinct to each other. Suspensive Condition is the acquisition of rights by the creditor
depends upon the happening of the event which comprises the condition. If such condition does not
occur, it would be as of the conditional obligational had never existed. To make it understand clearly,
we provide an instance like having an assurance to someone which is to give a brand new car if
someone after graduating in the course of doctor as suma cumlaude. However, it is also called as
condition precedent or antecedent that one the fulfillment of which will give rise to an obligation. In
other words, the demandability of the obligation is suspended until the occurrence of the uncertain
event which constitutes the condition. Anyhow, it suspends the rights and obligations under a contract
till the condition is fulfilled. Once it accomplished the contract is deemed to have been force from the
effective date, and not from the date of the accomplishment of the suspensive condition. Remember,
when an obligation is subject to a suspensive condition, the creation of the obligation will depend on
the happen 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. Concisely, it is the happening of the condition gives rise
to an obligation. For examples, if you rent is due on 29 th, you have an obligation to pay the rent will
the performance to pay occurs on the 29 th that the performance is suspended up to the 29 th. Another
is that Gle Marie binds to deliver a big house key to Rodel if he marries Angelica. In this example,
shows that obligation is only demandable above the happen of the condition that is if Rodel marries
Angelica then the obligation is suspended and not yet demandable. Thus, it is a condition the
fulfillment which will give rise to the getting all of the rights. On the other side, Resolutory Condition
refers to a condition whereby, upon fufillment terminates an already enforceable obligation. It also
entitles the parties to be resorted to their original positions. At the same time, it also implies in all
commutative contracts. It takes effect in case either of the parties does not comply with his/ her
engagements, in which event the party complaining of the breach may sue for dissolution of the
contract with damages. Usually, it also known as resolutive condition as well as it also called as
condition subsequent. Precisely, it is a condition where the rights and obligations already existing are
under threat of extinction upon fulfillment of such condition. For instance, donation by reason of
marriage eventually the celebration of marriage shows as a resolutory condition unluckily if the
marriage did not push through will the donation may be cancelled or revoked. That’s why it is really
essential to follow the condition or events to remain and achieve the rights we had. When dealing with
resolutory condition, the contract is immediately binding with all rights and obligations coming into
existence from day one of the contract and there is no suspension of these rights and obligations. If a
resolutory condition is accomplished, the operation of the rights cease. In our own understanding, it
is the fulfillment of which will extinguish the obligation and the obligation is already taking place but
with the possibility of termination. Further, here also happening already the obligation but once it’s
fulfilled the condition at the end it will disappear the obligation made. For example, Fedelina will be
given a daily allowance with her Tita for the substitute of teaching her cousin for the final examination.
In this example, the obligation of her Tita which is to give a daily allowance of herself will happen.
Until, it is not yet end the final examination Fedeliina have still the obligation in her Tita. Now, if the
final examination of Fedelina’s cousin is finished it will bring to an end about the obligation of her Tita
which is to provide a daily allowance of Fedelina. Succinctly, it also the happening of the condition
extinguishes the obligation already existing. Specifically, an example is that Rogelio binds himself to
lend his only car to Ian until the latter passes the CPA Board. The obligation to lend is instantly
demandable. Ian’s right over the car is extinguished above his passing the CPA board and Ian is now
obliged to return the car. And its how resolutory condition shown. Therefore, Suspensive Condition
and Resolutory Condtion are valid and enforceable also vital in terms of conditional obligation exist.

3. Distinguish the three types of suspensive condition?

Answer: The Three Types of Suspensive Condition are the following with their differences:
1. Potestative – is a suspensive condtion which depends upon the will of one of the contracting
parties. Definitely, if at the sole will of the debtor means it is void and if at the creditor’s will
means it still valid. Actually, this is to prevent the establishment of illusory obligations. A
distinction must be made between the effects of a potestative condition whose fulfillment
depends exclusively upon the will of the creditor and the effects of one whose fulfillment
depends exclusively upon the will of the debtor. Separately, on the part of the creditor is well-
grounded or justifiable. For example, I will give you my notes, if you want them. However, on
the part of the debtor shows that suspensive both condition and obligation are not legally
binding or enforceable. For example, I will give you my car next year if I don’t want it anymore.
Hence, it relies on the will of one of the parties.
2. Casual – is a condition which depends upon a chance of the will of a third person. For
instances, a cellphone warranty and also when you are in a situation where Cristy Ann will buy
a new cellphone to Regina if she win a major prize in Lotto tomorrow. This is a valid condition
as it depends upon chance. Usually, it is the condition given by chance with using the word
such as if and if ever like Adolfa will give P 30, 000, if they won the case. Hence, it is one of
the fulfillment which lean on the possibilities and opportunities.
3. Mixed – from the word mixed means combining characteristics of more than one kind of such
condition. It is the condition depends partly upon the will of the parties and partly upon chance
or the will of a third person. To show this, one of the example is that Atty. Dedil passing the
bar. To make it short, it is all about depends partly upon the will of a third person and partly
upon chance. For example, Vincent promise to give Victor a new Honda Car if Victor will be
able to play and beat Karpov in a game of chess. This is mixed condition that is Karpov
 willingness to play chess with Victor and the latter’s winning over Karpov. Hence, it is a will of
the other contracting parties and other circumstances including the will of a third party also
show off combining the condition from potestative to casual in our comprehension.

4. Explain Article 1189.

Answer: Well, Article 1189 state that “When 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:
In this article, we made an explanation from this to elaborate and expound to be able to understand
what is it and how it can affect with examples provided. The provision of this article apply only to
obligations to deliver a determinate or specific thing. In case of suspensive condition is fulfilled. To
inform, what can happen to the thing during the pendency of the condition? Definitely, it occurs the
improvement of the thing, the loss of the thing, and the deterioration of the thing. We focus by this
three cases during the pendency of the condition. Certainly, when you say improvement of the thing
means a thing is improved when its value is increased or enhance by nature or by time or at the
expense of the debtor. However, when the 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. When the deterioration of the thing mean 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. Furthermore, If the thing is loss without the fault of the debtor will the obligation
shall be extinguished as well as if the thing is loss through the fault of the debtor he shall be obliged
to pay damages that can be understood the thing is loss when it destroy or ruined or maybe cease to
exist in which cannot be recovered. For instance, Christian, Honda civic model 2020 with plate
number BB 2222, Christian obliged himself to give the determinate car to Clint, if Clint passes the bar
exam in December but during the pendency of the condition the car was loss through the fault of
Christian, in this case the obligation is bring to an end. But if it is loss through the fault of Christian, he
is obliged to pay the damages to Clint. In addition, when the thing deteriorates without the fault of the
debtor will the impairment is to be borne by the creditor along with 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. For example, Edsel, House and Lot at Brgy. Marupok 1000
sq.m worth for 1 million, Edsel obliged himself to give specific house to Stephanie, if Stephanie
marries John. During the pendency of the condition the house was partially damaged by an
earthquake, in this case the impairment is to be borne by Stephanie. But if it deteriorates through the
fault of Edsel, Edsel may choose between the recission or cancellation of the obligation and its
fulfillment with indemnity for damages in either case Aside from that, if the thing is improved by its
nature, or by time will the improvement shall be accustom to accept to the benefit of the creditor.
Lastly, if its improved shall at the expense of the debtor he shall have no other right than that granted
to the legal right to use and derive profit or benefit from property. For instance, the market value of
the car increased. Thus, this article really shows awaiting settlement of the condition with the things to
happen such as loss, deterioration and improvement in order to be aware and acquire knowledge
about it.

5. In your own understanding, what is meant by Article 1192?

Answer: Article 1192 state that