The

Law on
OBLIGATIONS
and
CONTRACTS
ROMILYN B. GREGORIO | BSBA MM 3 – 3N
1) PURE OBLIGATION - performance is
not subject to any condition, and
can be immediately demandable.
2) CONDITIONAL OBLIGATION -
performance is subject to a
condition, and can only be
demandable upon the happening of
an event
3) OBLIGATION WITH A PERIOD -
performance is subject to a
period, and can only be
demandable when that period
expires.
4) ALTERNATIVE OBLIGATION – is on
wherein various prestations are
due but the performance of one of
them is sufficiently determined
by choice which, as a general
rule, belongs to the debtor.
5) FACULTATIVE OBLIGATION – it is
where only one prestation has
been agreed upon but the obligor
may render another substitution.
: a duty to do or not do
something in fulfillment of an
obligation, or the performance of such
a duty
Resources
https://philawgov.wikia.org/wiki/Obligation#:~:text=Pure%20obligation%20%2D%20performance%20is%20not,
the%20happening%20of%20an%20event.
https://www.scribd.com/document/461623064/Alternative-and-Facultative-Obligation
https://lspuoblicon2015.wordpress.com/category/i-obligations/chapter-3-different-kinds-of-
obligations/section-4-joint-and-solidary-obligations/
6) JOINT OBLIGATION – where the
whole obligation is to be paid or
fulfilled proportionately by the
different debtors and demanded
proportionately by the different
creditors. This is the
presumption in all collective
obligation unless solidarity is
expressly stated.
7) SOLIDARY OBLIGATION – where each
one of the debtors is bound render,
and/or each creditor has the right
to demand from any of the debtors,
the entire compliance with the
prestation
8) DIVISIBLE OBLIGATION – the
prestation can be partially
performed.
9) INDIVISIBLE OBLIGATION – the
prestation cannot be partially
performed
10) OBLIGATION WITH A PENAL CLAUSE –
the accessory prestation imposes a
penalty that shall substitute the
indemnity for damages and the
payment of interests in case of
noncompliance to the principal
prestation.
An uncertain future act or event whose
occurrence or nonoccurrence determines
• suspends the effects • resolves the
the rights or obligations of a party
of an obligation obligation upon the
under a legal instrument and esp. a happening of the
contract • Fulfillment of the
condition
suspensive condition
A clause in the instrument describing gives rise to an • fulfillment of the
the act or event and its effect. obligation resolutory condition
extinguishes an
• Pending the happening
obligation
of the suspensive
condition, the • effects flow, but
existence of there is the
thecondition is a mere possibility of
hope termination.
1. SUSPENSIVE CONDITION– If the
obligation may not be enforced
until the uncertain event occurs,
the condition is suspensive

e.g. Obtaining bond approval before A potestative condition is a condition, the

a certain date, or the sale of the
Purchaser's current property before
a certain date. It is very
important for both the Seller and
Purchaser to take note of the
wording of these conditions and
ensure that they understand them..
fulfillment of which depends upon the sole
will of the debtor, in which case, the
conditional obligation is void
A potestative condition depends upon the
exclusive will of one of the parties. It is
also a prohibited type of condition.

2. REDSOLUTORY CONDITION– If the

obligation may be immediately
If the suspensive condition depends upon
enforced but will come to an end
chance or upon the will of a third
when the uncertain event occurs,
person,the obligation subject to it is valid
the condition is resolutory.
One which depends on upon chance or other
e.g. Arvin binds himself to lend factors, and not upon the will of the
his only car to Ian until the contracting parties.
latter passes the CPA Board. The
obligation to lend is immediately
demandable. Ian's right over the
car is extinguished upon his
passing the CPA board.

Resources
https://dictionary.findlaw.com/definition/condition.html
https://attorney.org.ph/legal-news/302-pure-and-conditional-obligations
https://law.justia.com/codes/louisiana/2011/cc/cc1767/#:~:text=A%20conditional%20obligation%20is%20on
e,occurs%2C%20the%20condition%20is%20resolutory.
https://lawyerphilippines.org/2016/03/18/potestative-conditions-in-contracts/

impossible conditions and those contrary to
law or good customs shall be considered as
not imposed and shall in no manner prejudice
the heir, even if the testator should
otherwise provide
Illegal or impossible conditions in simple
and remuneratory donations shall be
considered as not imposed.
1. PHYSICALLY IMPOSSIBLE CONDITION–
when they, in the nature of things,
cannot exist or cannot be done
2. LEGALLY IMPOSSIBLE CONDITION–
when they are contrary to law,
morals, good customs, public
order, or public policy
1. CONDITIONAL OBLIGATION VOID. —
Impossible conditions annul the
obligation which depends upon them.
Both the obligation and the
condition are void. The reason
behind the law is that the obligor
knows his obligation cannot be
fulfilled. He has no intention to
comply with his obligation.
2. CONDITIONAL OBLIGATION VALID. —
if the condition is negative, that
is, not to do an impossible thing,
it is disregarded and the
obligations rendered pure and
valid.
Resources
https://www.coursehero.com/file/p1bcp9o6/Two-kinds-of-impossible-conditions-They-are-1-Physically-
impossible-conditions/
2.
Actually, the condition is always
fulfilled when it is not to do an
impossible thing so that it is the
same as if there were no
condition. The negative condition
may be not to give an impossible
thing.
3. ONLY THE AFFECTED OBLIGATION
VOID. — If the obligation is
divisible, the part thereof not
affected by the impossible
condition shall be valid
e.g “I will give you P10,000.00 if
you sell my land, and a car, if
you kill Pedro. The obligation to
give P10,000.00 is valid but the
obligation to give a car is void
because it is dependent upon an
impossible condition..
4. ONLY THE CONDITION VOID. — If
the obligation is a pre-existing
obligation, and, therefore, does
not depend upon the fulfillment of
the condition which is impossible,
for its existence, only the
condition is void
e.g D incurred an obligation in
the amount of P10,000.00 in favor
of C. If C later agreed to kill X
before D pays him, the condition
“to kill X” is void but not the
pre-existing obligation of D “to
pay C.
1. PHYSICAL LOSS – when a thing
perishes
2. LEGAL LOSS– when a thing goes out
of commerce
3. CIVIL LOSS– when a thing
disappears in such a way that its
existence is unknown, or even if
known, it cannot be recovered
1. In an obligation to give, the
fulfillment of the resolutory
condition extinguishes the
obligation, and the parties shall
return to each other what they have
received. The effects of the
fulfillment of the condition are
retroactive.
2. In an obligation to do or not to
do, it is the duty of the courts
to determine the retroactive
effect of the fulfillment of the
resolutory condition
a reciprocal obligation, also known as
a reciprocal agreement is a duty owed
by one individual to another and vice
versa. It is a type of agreement that
bears upon or binds two parties in an
equal manner.
One party is bound to perform a
prestation in exchange for the other
party's performance.
1. To demand fulfillment of the
obligation with damages; or
2. To demand rescission of the
obligation with damages.
The remedies of the injured party are
alternative, subject to the exception that if
he has chosen fulfillment and it becomes
impossible, then he can still seek rescission.
"the failure to use ordinary care"
through either an act or omission.
That is, negligence occurs when:
somebody does not exercise the amount
of care that a reasonably careful
person would use under the
circumstances;
Negligence is the omission to do
something which a reasonable man,
guided upon those considerations which
ordinarily regulate the conduct to
human affairs, would do, or doing
something which a prudent and
reasonable man would not do..
1. CONTRACTUAL NEGLIGENCE (CULPA
CONTRACTUAL) – or negligence in
contracts resulting in their
breach. This is not a source of
obligation but it makes the debtor
liable for damages by reason of his
negligence in the performance of a
pre-existing obligation;
2. CIVIL NEGLIGENCE (CULPA
AQUILIANA) – or negligence which
is a source of obligation between
the parties not bound by a pre-
existing contract. The other term
is tort or quasi-delict;
3. CRIMINAL NEGLIGENCE (CULPA
CRIMINAL) – or negligence
resulting in the commission of a
crime.
It is a day certain which must
necessarily come, although it may not
be known when. The arrival of the
period determines either the
demandability of an obligation or its
termination.
 • certain event • uncertain event

• refers only to the future

• a condition may refer to a past
• determines the effectivity event unknown to the parties
of an obligation
• will determines the birth or the
• The court may fix the termination of an obligation
duration of a period when
it depends upon the will • depends upon the sole will of the
of the debtor debtor will invalidate the
obligation;
• there is no retroactive
effect, unless there is an • the happening of a condition has
agreement to the contrary retroactive effect.

1. Suspensive period (ex die) – the

obligation becomes effective upon the
arrival of a day certain which has
been fixed
2. Resolutory period (in diem) – the
obligation takes effect at once but
terminates upon the arrival of the
day certain.

1. Legal – when it is provided by law

2. Voluntary– when it arises from the
stipulation of the parties
3. Judicial– when it is fixed by the
court

1. Definite – when the term is fixed

2. Indefinite– when the term is not

fixed