STUDY GUIDE 3

Pure and Conditional Obligation

I. Definitions
Define or give the meaning of the following:
1. Condition
 Condition is a future and uncertain event, upon the happening of which, the effectivity or
extinguishment of an obligation (or right) subject to it depends. (Article 1179).

2. Civil loss

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 Civil loss is when a thing disappears in such a way that its existence is unknown; or even

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if known, it cannot be recovered, whether as a matter of fact or of law. (Article 1189).

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3. Reciprocal obligations
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 Reciprocal obligations ate those which arise from the same cause and in which each part
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. (Article 1191).
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4. Pure obligation
 Pure obligation is one which is not subject to any condition and no specific date is
mentioned for its fulfillment and is, therefore, immediately demandable. (Article 1179).
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5. Potestative condition
 Potestative condition is a condition suspensive in nature and which depends upon the sole
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will of one of the contracting parties. (Article 1182).

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II. Discussions
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1. Illustrate an obligation subject to:

a) Suspensive condition
o According to Article 1179, when an obligation is subject to a suspensive
condition, the happening of the obligation will depend upon the fulfillment of the
condition.

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 For example, Luffy will give his ship to Sanji if he wins the cooking competition.
This one is a suspensive condition because, once Sanji fulfilled the condition,
which is to won the race, the obligation will rise which is to Luffy give his ship to
Sanji. In other words, the obligation is suspended until Sanji wins the cooking
competition.

b) Resolutory condition

o In Article 1179, resolutory condition or one the fulfillment of which will

extinguish an obligation (or right) already existing. This is demandable at once.

For example, Luffy lets Zoro use his ship until he becomes a seaman. This one is
a resolutory condition because Luffy’s obligation is demandable at once which is
to let Zoro use his ship and will be extinguished once the condition fulfilled which

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is when Zoro becomes a seaman.

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What is the effect of the fulfillment of the condition in a conditional obligation?

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There will be two effect of the fulfillment of the condition in a conditional
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obligation according to Article 1181, it can be:
1. Acquisition of rights- this one is in the obligations subject to suspensive
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condition, the acquisition of rights by creditor depends upon the happening of the
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event which constitutes the condition. In this one, once the condition is fulfilled,
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an obligation arises.
2. Loss of rights already acquired- this one is in the obligations subject to a
resolutory condition, the happening of the event which constitutes the condition
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produces the extinguishment or loss of rights already acquired. In other words,

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once the condition is done, the obligation will be terminated or ended.

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2. Give two (2) cases when the conditional obligation is valid although the condition
depends entirely upon the will of the debtor. Explain.
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1) According to Article 1182, if the obligation is a pre-existing one and, does not
depend for its existence upon the fulfillment of the obligation. In here, only
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the condition will be void while the obligation is still valid since the existence
of the obligation does not depends on the condition’s fulfillment.

2) Next, according to Article 1182, when resolutory condition depends upon the
will of the debtor, it is considered valid. In here, the position of the debtor

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 when the condition is resolutory is the same as that of the creditor when the
condition is suspensive.

3. May an obligor be liable under an obligation subject to a suspensive condition although

the condition has not yet been fulfilled? Explain.
Yes, according to the Article 1186, if the obligation is a suspensive condition, and
the debtor actually prevents the fulfillment of the condition, and he acts voluntarily, he
can be held liable. The debtor is liable because he voluntarily prevents the condition to
happen to avoid his obligations.

4. In an obligation to give a parcel of land subject to a suspensive condition, who is entitled

to the fruits that accrued during the pendency of the condition once said condition is

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fulfilled?

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When it was a unilateral obligation to suspensive condition, the fruits belong to

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the debtor. Because according to the Article 1187, fruits and interest shall be appropriated

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by the debtor. Unless they agreed or stipulated that the fruits will belong to the creditor.
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While in reciprocal obligation to suspensive condition, the fruits are deemed mutually
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compensated. Meaning, the debtor is not obliged to give the fruits to the creditor, as well
as the creditor is not obliged to pay the interest to the debtor.
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5. State the rules in case the thing to be delivered

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a) is lost with the debtor’s fault; without his fault;

o If the thing is lost with the debtor’s fault:
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 According to Article 1189, paragraph 2, the debtor is liable to pay the

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damages that affects the creditor and the cost of the thing that is lost.

o If the thing is lost without the debtor’s fault:

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 According to Article 1189, paragraph 1, the debtor is not liable for any
damages and obligation shall be extinguished. Because no one shall be
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liable for any fortuitous event.

b) deteriorates with the debtor’s fault; without his fault;

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o If the thing deteriorates with the debtor’s fault:

 According to Article 1189, paragraph 4, the creditor may choose between
two remedies, it is either the recission or fulfillment of the obligation.
Both included indemnity for damages.

o If the thing deteriorates without the debtor’s fault:

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  According to Article 1189, paragraph 3, the value of the thing that will be
delivered will depreciate and the value of the thing will reduce.

III. Problems
Explain or state briefly the rule or reason for your answer.
1. D (debtor) borrowed P20,000 from C (creditor) payable on or before August 30. Before
the arrival of the due date, C agreed to the promise of B to pay C if B wants. Can C insist
that B pay not later than August 30?
No, the creditor cannot insist B to pay not later than August 30, because according
to the Article 1182, when the agreement depends upon partly on the will of the third
party and the debtor’s will to pay, it is considered valid, this one applies in this situation,
wherein, the creditor cannot demand the third person to pay him not later than August
30, because as mentioned on the case, they agreed on the promise of the third person to

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pay the creditor if only he wants. Therefore, the creditor cannot demand payment from B

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not later than August 30.

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2. Suppose in the same problem, D obliges himself to pay C P10,000 after C has paid his
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obligation to T. Is the obligation valid?
In this case, the condition mentioned is considered as suspensive condition which
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means the obligation will only arise only if the condition is already fulfilled. In here, D
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only obliges himself to pay C, if and only if C paid the third party, which is T. And in
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accordance to Article 1182, the conditional obligation is considered void when the
suspensive condition depends upon will of the debtor. Therefore, the obligation of the
debtor is void. This only means that, the debtor is not liable to pay the creditor if the
creditor is not yet paid to the T.
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3. S (seller) agreed to sell to B (buyer) a specific car for P200,000, delivery of the car and
the payment of the price to be made on June 15. Suppose S delivered the car on June 15
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but B failed to pay the price, what are the remedies of S?

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According to the 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. Therefore, if the B failed to pay the car, the aggrieved party which is S may
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choose between two remedies. It can be (a) action for specific performance (fulfillment)
of the obligation with damages, or (b) action for rescission of the obligation also with
damages. B should only choose one between the two remedies.

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 4. S sold a parcel of land to B for P240,000 payable in installments of P20,000 a year. The
land was delivered to B who obtained ownership thereof. After B had paid P200,000, he
could no longer continuing paying in view of financial reverses but he was willing to pay
the balance of P40,000 if given more time. Thereupon, S sued for recission under Article
1911. If you were the judge, would you grant recission?
According to Article 1191, the court shall decree the recission claimed, unless
there be just cause authorizing the fixing of a period. If I were to be the judge, I will
grant the recission of S in favor of a term of period for the performance of B, since B is
willing to fulfill his obligation to pay the maintaining balance that cost P40,000 but
needs time, due to the view of his financial reverses, not because he does not want to pay
the unpaid balance.

5. D (debtor) binds himself to pay C (creditor) a sum of money. Give the three cases when

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the obligation of D is demandable at once by C?

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o First case, the obligation is demandable at once if it is a pure obligation.
Because according to the Article 1179, pure obligations are obligations

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which is demandable at once, and is not subject to any condition and no
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specific date is mentioned.
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o Second case, if the obligation is subject to a resolutory condition.
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According to Article 1179, in resolutory condition, the obligation is

already demandable at once and it will be extinguished due to the
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fulfillment of the condition.

o Third case, if the obligation is subject to a resolutory period.

According to Article 1193, in resolutory condition, same as stated above,
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it is already demandable and will take effect at once, but it will be

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extinguished upon arrival of the certain period.

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