Chapter 3: Different Kinds of Obligations
Resolutory (condition subsequent) –
(CIVIL CODE)
Section 1: Pure and Conditional
Obligations
Section 2: Obligations with a Period
Section 3: Alternative Obligations
Section 4: Joint and Solidary
Obligations
Section 5: Divisible and Indivisible
Obligations
Section 6: Obligations with a Penal
Clause
CATEGORY:
SECTION 1: PURE AND CONDITIONAL
OBLIGATIONS
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)
Bawat obligasyon na ang pagganap ay hindi
nakadepende sa hinaharap o sa hindi tiyak na
kaganapan o kaya sa nakalipas na pangyayari na
hindi alam ng partido ay dapat maipatupad kaagad.
Bawat obligasyon na naglalaman ng napatigil na
kondisyon ay dapat maipatupad din ng walang
pagkiling sa epekto ng mga pangyayari.
Discussion:
Condition – future and uncertain event upon which
the existence or extinguishments of an obligation is
made to depend.
Pure Obligation – one which does not contain any
condition or term upon which its fulfillment is made
to depend.
Conditional Obligation – kind of obligation which
is subject to condition.
1. Suspensive (condition
precedent/antecedent) – its fulfillment
gives rise to the obligation, if not fulfilled, no
obligation will arise.
2.
extinguishes the obligation which is already
existing.
Past Event Unknown to the Parties to the
Contract
If it has happened – the obligation immediately
exists purely and simply.
If it has not happened –  there is no obligation at all.
Application of Past Events Unknown to the
Parties: When Proper
The future knowledge or proof of the past event, but
not the past event itself is the only possibility of
applying a past event as a condition in an obligation.
Traditional Classifications of Conditions
Classified by Manresa
As to effect:
Suspensive – when the performance or
fulfillment of the condition results in the birth or
acquisition of the rights contemplated in the
obligation.
Resolutory – results in the extinguishment of
the rights which have previously arisen out of the
obligation.
As to Cause / Origin :
Potestative – depends upon the will of the
debtor
Casual – depends upon chance and/or upon the
will of the third person
Mixed – depends partly upon the will of a party
to the obligation and partly upon chance and/or
the will of a third person.
As to Possibility:
Possible – when the condition is capable of
fulfillment according to nature, law, public policy or
good customs. (Art. 1183)
Impossible – not capable of fulfillment according to
nature, law, public or good customs. (Art. 1183)
As to mode:
Positive – when the condition involves the doing of
an act. (Art. 1184)
Negative – when the condition involves the
omission of an act. (Art. 1184)
As to Divisibility
Divisible – when the condition is susceptible of
partial performance.
Indivisible – when the condition is not susceptible
of partial performance.
As to numbers:
Conjunctive – when there are several conditions in
an obligation and all of which must be performed.
Alternative – when there are several conditions in
an obligation but only one must be performed.
As to form :
Express – when the condition is expressly
stated.
Implied – when the condition is not expressly
stated but merely inferred from the conduct of
the parties.
Case Illustration: Tolomeo Ligutan and Leonidas
dela Llana vs. CA and Security Bank and Trust
Company
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)
Kapag ang may utang ay  ibinigkis  kanyang
sarili upang bayaran ang kanyang pag
kakautang  kapag ang kanyang
pamamaraan/kakayahan ay pinahihintulutan
siya upang gawin ito, ang obligasyon ay
itinuturing  bilang isa na may  takdang
panahon, na napapailalim sa mga probisyon  ng
Article1197
 When the debtor binds himself to pay forms
of promise or commitment, the obligation is
deemed with a period or term.
 The moment of payment is dependent upon
the will of the debtor.
Note:    As the time of payment is not fixed, the
same must be first fixed first before any action for
collection should be allowed. This means, the
creditor cannot immediately file an action for
collection of the sum promised to be paid.
 
Phrases Indicating A Term or Period
1. A commitment to pay “little by little”
2. “As soon as possible”
3. “As soon as I have money”
4. When the creditor agreed “to wait until such
time the debtor could pay the full
indebtedness.”
5. Obligation to be paid “in partial payments”
 Case
1. R. no. L – 5515
Levy Hermanos Vs. Pedro Paterno
Facts:
1. Pedro Paterno (defendant) executed a
document in favor of Levy Hermanos
(plaintiff), indicating that a balance of
P6,177.35 will be payable in partial
payments.
2. The defendant made several payments and
later claimed to establish the installment of
P30.00 per month payment.
3. The plaintiff disagreed and brought suit and
asked that he should be paid the sum of
P5,862.35 (unpaid balance) or that a period
be specified within which he should pay the
same, in case the court should deem such
manner of payment more equitable.
4. During the trial it was agreed by the parties
that the sum which the defendant owed the
plaintiff was P5,317.35
5. In view of the evidence adduced during the
trial, a monthly payment of P200 would be
reasonable compliance with the agreement
to pay the debt in installment. The payment
will be rendered on or before the 15th of
each month.
6. The defendant appealed that:
a) The obligation is one of payment by
installment, its fulfillment cannot be
required immediately;
b) No fixed day was specified for its
fulfillment;
c) Payment is undetermined or was not
fixed by parties when they executed the
contract.
ISSUE:
            Whether or not the defendant should pay
the plaintiff according to the period fixed by court.
HELD:
Yes. The trial court acted in accordance with the law
in exercising said power by fixing the duration of the
period on the basis that the payment of the debt
should be made at the rate of P200.00 a month.
There was no abuse of judicial discretion in fixing
such a rate, considering the importance of the
obligatin and the absence of any stipulation of the
interest in favor of the creditor.
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.
Sa mga obligasyon condisyonal, ang pagtatamo ng
karapatan, pati na rin ang pagtapos o kawala ng
mga natamong karapatan  ay nakasalalay sa mga Illustration:  Joey promises to support Rachel
pangyayari ng mga kaganapan na bumubuo ng until Rachel reaches her majority age, which
kundisyon. means the obligation is already effective but
will terminate once Rachel turns 18.
Case Illustration: Parks vs Province of Tarlac
Other classifications:

1. Legal –  when period is fixed by law;

CATEGORY: SECTION 2: OBLIGATIONS
2. Voluntary – when the period is agreed upon by
WITH A PERIOD
the parties;
Article 1193
3. Judicial – when the period is fixed by the court
Obligations for whose fulfillment a day certain for the performance of the obligation or for its
has been fixed, shall be demandable only when extinguishment
that day comes.
“On or About Period”
Obligations with a resolutory period take effect
“On or about” a given date means only a few days
at once, but terminate upon arrival of the day
after the stated date, but not a remote date or one
certain.
fixed by the obligor.
A day certain is understood to be that which
Requisites for a valid term or period:
must necessarily come, although it may not be
known when. 1. It must be future;

If the uncertainty consists in whether the day 2. It must be certain, that is, sure to come but may
will come or not, the obligation is conditional, be extended by mutual agreement;
and it shall be regulated by the rules of the
preceding Section. (1125a) 3. It must be possible physically and legally.

Ang mga obligasyon na kung saan ang katuparan ay Case Illustration:  Compañia General De Tabacos
naitakda na sa tiyak na araw ay mahihingi lamang De Filipina vs. Araza (7 Phil 455)
sa pagdating ng araw na naitakda.

Ang mga obligasyon na may resolutory period ay

Article 1194
magkakabisa agad, ngunit ito ay matatapos sa
pagdating ng tiyak na araw. In case of loss, deterioration or improvement
of the thing before the arrival of the day
Ang tiyak na araw ay malinaw na kailangang
certain, the rules in Article 1189 shall be
dumating, bagaman maaaring hindi alam kung
observed.
kailan.
Sa oras ng pagkawala, pagkasira o pagpapabuti ng
Kung may pag-aalinlangan sa pagdating ng araw na
gamit bago dumating an tinakdang araw, ang mga
ito o hindi, ang obligasyon ay kondisyonal, at ito ay
patakaran na nasa Artikulo 1189 ang dapat sundin.
pinapatakbo ng patakaran ng susunod na seksyon.
Discussion:
Discussion:
This article speaks of loss, deterioration or
Period and term have the same meaning and are
improvement of the thing before the arrival of the
used interchangeably.  It consists in a space or
day certain.
length of time upon the arrival of which, the
demandability or extinguishment of an obligation is  
determined.
Condition of the Effect
General classification of terms or period in Thing
Roman Law

1. Ex Die – a term or period with a suspensive

Lost*
effect, which means the obligation becomes effective
 Without fault of Obligation is
only from the arrival of a certain day.
the debtor extinguished
Illustration:  Joey promises to support Rachel  Fault of the Obligation to pay
from the death of Rachel’s father, which means damages
debtor
the obligation only begins from the death of
Rachel’s father.
Deteriorates
2. In Diem – a term or period with a resolutory
 Without fault of The impairment is
effect, which means the obligation will subsist up to
the debtor borne by the creditor
a certain day and it terminates upon the arrival of
that day.
  Fault of the The creditor may
debtor choose to rescind with
indemnity for
damages, or have it
fulfilled, but still with
indemnity for damages
Improvement
 By its nature Inures to the benefit of
the creditor
 At the expense The debtor shall have
of the debtor no other right than that
granted to the
usufructuary.
*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.
Illustration:
Jay obliged himself to sell his yacht to Zola at half
its purchasing price on Zola’s graduation, provided
Zola graduates on time. On April 25, 2016, Zola
graduated, on time and with honors. However, the
day before his graduation, Typhoon Hayan
destroyed the yacht. Since the loss happened before
the day certain, and the loss was due to a fortuitous
event, the obligation of Jay to sell his yacht to Zola
is extinguished.
Article 1195
Anything paid or delivered before the arrival of
the period, the obligor being unaware of the
period or believing that the obligation has
become due and demandable, may be
recovered, with the fruits and interests.
(1126a)
Anumang bagay na nabayaran o naipadala bago
dumating ang takdang panahon, ang nangutang na
hindi alam ang takdang panahon o naniniwalang ang
obligasyon ay tapos na at nagawa na, ay maaring
maibalik pa kasama ang bunga at interest.
Discussion:
*Situations when there can be no recovery even if
conditions in the article are present;
1. When the obligation is reciprocal and there
has been premature performance on both
sides;
2. when the obligation is a loan on which the
debtor is bound to pay interest: and.
3. When the period is exclusively for the
benefit of the creditor because the debtor by
paying in advance loses nothing.
Note: There is no case indicated on this article.
Illustration:
On December 10, 2015 Nitzel owed 150,000.00 to
Digna then the debtor agreed to pay the sum of
150,000.00 with 1% monthly interest or 12% per
annum. Then on January 5, 2016 Nitzel thought that
her obligation is already due and demandable
therefore she paid her debt to Digna with the sum of
150,000.00 plus the 12% interest. On this case,
since Nitzel is unaware of the period, she can
recover the interest that she paid to Digna because
it state on this article that “the obligor being
unaware of the period or believing that the
obligation has become due and demandable, may be
recovered, with the fruits and interests.”
CATEGORY: SECTION 3: ALTERNATIVE
OBLIGATIONS
Article 1199
A person alternatively bound by different
prestations shall completely perform one of
them.
The creditor cannot be compelled to receive
part of one and part of the other undertaking.
(1131)
Ang taong kahaliling mananagot sa ibat-ibang
kabayaran o pananagutan ay kailangan kumpletong
isagawa ang isa sa kanila.
Ang Nagpapautang ay hindi maaring piliting
tumanggap ng bahagi ng isa at ng iba pang
pananagutan.
Discussion:
Kinds of Obligation according to object:
1. Simple Obligation – there is only one object
2. Compound Obligation – two or more
prestations, it may be:
Kinds of Distributive Obligation:
Alternative Obligation – debtor is alternatively
bound with various prestations that are due but the
performance of one  of them is sufficient to
extinguish the obligation.
[ill. John borrowed P50,000 cash from Shiela.  It
was agreed that John has the alternative to pay
Shiela either in  P50,000 cash or an Iphone 6Splus,
or a 40” LED TV. ]
2.1 Conjuctive Obligation – w/ several  
prestations and all of them are due
2.2 Distributive  Obligation – two or more of 
the prestations is due
Kinds of Distributive Obligation:
Facultative Obligation – debtor is bound to
perform one prestation is due to deliver one thing
with a reserved right to choose another prestation or
thing as substitute for the principal.
[ill. Gigi, upon failure to pay her debt to Carlo in 30
days,  will mortgage her land to secure her debt
which shall be payable in 90 days ]
Creditor cannot be compelled to receive
parts of the different prestations (par2)
In the 1st  example (Alternative Obligation) ,
Creditor cannot be compelled to receive part of each
of the choices (Cash, TV, CP) for the satisfaction of
the obligation.  However, if the creditor agrees to
receive portion of each, there is no prohibition.  The choice shall produce no effect except from
There is novation in the prestation.
Case Illustration: Felipe Agoncillo, and his wife,
Marcela Mariño vs. Crisanto Javier, Florencio Alana,
and Jose Alano
Article 1200
The right of choice belongs to the debtor,
unless it has been expressly granted to the
creditor.
The debtor shall have no right to choose those
prestations which are impossible, unlawful or
which could not have been the object of
obligation.
Ang karapatang pumili ay napapabliang sa
nagpautang, maliban na lamang kung ito ay
ipinapahayag at pinapayagan ito ng nagpautang.
Ang nangutang ay walang karapatan na pumili sa
mga prestasyon kung saan ay napaka imposible,
labag sa batas o kung saan ay hindi naman bagay
ng obligasyon.
Agoncillo vs. Javier
Facts: Three debtors got a loan from Marino and
bound themselves to pay P2,7000.00. The loan was
secured by a mortgage of a house and lot. It was
agreed that if upon the maturity of the debt, the
debtors are insolvent, they would cede the house
and the lot to Marino. If the house and lot would not
be sufficient to cover the debt, the balance would be
secured by the mortgage of 4 parcels of land
belonging to one of the debtors. The titles were
delivered to Marino. As the debt was not paid,
Marino sued the debtors.
Issue: Whether or not the stipulation of the parties
is valid?
Held: This stipulation is valid. It is simply an
alternative obligation, which is expressly allowed by
the law. The agreement to convey the house and lot
at an appraised valuation in the event of failure to
pay the debt in money at its maturity is, however, in
our opinion perfectly valid. It is simply an
undertaking that if the debt is not paid in money, it
will be paid in another way. As we read the contract,
the agreement is not open to objection that the
stipulation is a pacio comisorio. It is not an attempt
to permit the creditor to declare a forfeiture of the
security upon the failure of the debtor to pay the
debt of maturity. It is simply provided that if the
debt is not paid in money it shall be paid in another
specific way by the transfer of the property at a
valuation. Of course such an agreement unrecorded,
creates no rights in rem, but as between the parties,
it is perfectly valid, and specific performance by its
terms may be enforced unless prevented by the
creation of superior right in favor of the third
person.
Article 1201
the time it has been communicated. (1133)
Ang  piniling prestation  ay hindi magkakabisa
maliban sa oras na it ay ipinaalam.
Discussion:
The notice of selection or choice of prestation may
be communicated in writing, verbally, impliedly or
by any other unequivocal means.
Effects of choice or selection:
1. The obligation will be limited only to the chosen
or selected prestation with all the natural
consequences arising from it;
2. The choice is irrevocable, otherwise, the other
pary might be exposed to damages which may arise
from costly preparation in waiting for the
performance of the announced prestation.
The performance is not binding if the debtor simply
performed his choice of prestation without
announcing it to the creditor. The debtor can recover
what he had delivered, performed, or paid, under
the law on quasi-contracts.
The law grants the debtor to make the choice unless
the creditor is expressly granted the said right.
When making the choice, the law does not require
that the choosing party first secure the conformity of
the other party, because that will only frustrate the
clear intention of the law and the alternative nature
of the obligation.
Effect of delay in making a selection
The delay in making a selection does not constitute
to losing the selection.  However, if before any
choice is made, a case is filed in court, an issue may
arise regarding the prestation that will be enforce.
The Code is silent on the point of who will make the
selection, although there are three possibilities:
1. the court will make the choice;
2. the court may order the debtor, or
3. the creditor will make the choice within a
certain period.
Moreove, when there is a delay in the selection of
the prestation, the fair resolution is to punish the
one who is responsible to exercise the right of choice
and caused the delay.  If the debtor caused the
dealy, the courd should authorize the creditor to
make the choice because this gives the impression
that the debtor has waived his right by causing the
delay.  The same rule applies if it is the creditor who
incurred the delay in making the choice or selection.

Case Illustration: Ong Guan Can vs. The Century

Insurance Co. (40 Phil. 192)