DIFFERENT KINDS OF OBLIGATION 1

DIFFERENT KINDS OF OBLIGATION

Section 1. Pure and Conditional Obligation

ART. 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)

Tagalog:
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:

Meaning of Pure Obligation 

- one which does not contain any condition or term upon which its fulfillment is made to
depend.

Example:
1.) Mr. Fee promises to pay Mr. Receive P5,000.
2.) I promise to give my sister cell phone on demand.

In both examples, the obligations are demandable at once although instant performance is not
required.

Meaning of Conditional Obligation

A conditional obligation is one whose demandability is subject to the happening of a condition.
A condition is a future or uncertain event, upon the happening of which, the effectivity or
extinguishment of an obligation (or right) subject to it depends.

Two principal kinds of condition.

1.) Suspensive condition – a condition that suspends the effectivity of obligation until condition is
fulfilled.

Example: “I promise to give you car if you marry Linda”

Q: What is the suspensive condition?

Q: What is the obligation?
Q: Can you demand for the car if you will not marry Linda?

2.) Resolutory Condition – a condition which extinguishes the obligation upon its fulfilment.
Here, the obligation is demandable at once, but when the condition is fulfilled, the obligation is
extinguished and the parties shall return to each other what they have received.

Example:
I will let you use my car until you finish your degree in Business Administration.

Q: What is the resolutory condition?

Q: What is the obligation?
Q: Can you demand for the car at once?
Q: When you have finish your degree in BA, can you still demand for the use of the same car?

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)

Tagalog
 DIFFERENT KINDS OF OBLIGATION 2

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
Article 1197

 When the debtor binds himself to pay forms of promise or commitment, the obligation is deemed with a
period or term.
Ø  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”

Art 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.

Tagalog
Sa mga obligasyon condisyonal, ang pagtatamo ng karapatan, pati na rin ang pagtapos o
kawala ng mga natamong karapatan  ay nakasalalay sa mga pangyayari ng mga kaganapan na
bumubuo ng kundisyon.

Principal conditions
The above provision classifies the principal conditions into suspensive and resolutory conditions.

SUSPENSIVE RESOLUTORY

The fulfillment of the event The fulfillment of the event

will give rise will extinguish
to an obligation an obligation already existing

A suspensive condition is a future or uncertain event, the happening of which give birth to the
obligation.

(ex.) Algy Reguir Promises to give Miss Capio a condo unit if she pass the bar exam.

The obligation cannot be demanded at once bur becomes demandable only upon Miss Capio
passing the Bar.

Resolutory condition is an event the passing of which extinguishes the obligation.

(ex.) A promises to pension B in the amount of five thousand per month until such time that she
gets married.

The obligation to give monthly pension starts immediately. But the moment B is married the
obligation stops. Marriage is the resolutory condition as it extinguishes the obligation.
 DIFFERENT KINDS OF OBLIGATION 3

Article 1182. When the fulfillment of the condition depends upon the sole will of the debtor,
the conditional obligation will 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.

Tagalog
Kung ang pag ganap ng isang kundisyon ay nakadepende lamang sa may pagkakautang, ang
kondisyonal na obligasyon ay walang bisa. Kung ito naman ay nakasalalay sa pagkakataon o di kaya sa
kalooban ng ikatlong persona, ang obligasyon ay magkakabisa ng naayon sa probisyon ng
pamantayang ito.

Kinds of Conditions under the provision:

a.) Potestative condition- one which depends upon the will of one of the contracting parties.

Example:
 I promise to give you P1,000, if you build a house for me in three months.

b.) Casual condition- depends exclusively upon chance or other factors (upon the will of a third person),
and not upon the will of the contracting parties.

Examples:
 I will give you my land if a war breaks out next month.
 I will give you P10,000 if Mr. A goes to Hongkong next week.

c.) Mixed condition- one which depends upon the will of one of the contracting parties and other
circumstances, including the will of a third person.

Example:
 I will give you a house if you marry Carolina.
 I will give you a car if Mr. Y gives me P30,000.

An obligation dependent upon the will of a third person is valid.

Art. 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.

Tagalog
Imposibleng kondisyon, na kasalungat ng magandang kinagisnang kaugalian o  mga pampublikong
patakaran at mga pinagbabawal ng batas ay dapat ipawalang-bisa ang obligasyon o pananagutan na
naka salaysay sa kanila. Kung ang obligasyon ay nahahati, ang bahagi na hindi apektado ng imposible
at hindi makatarungang kondisyon ay may bisa.
Ang kundisyon na hindi gawin ang imposibleng bagay ay ipinagpapalagay na hindi napag
kasunduan.

1.) Possible and Impossible conditions

a.) Possible condition – a condition that is capable of fulfillment

Example: I will give you P5,000 if you can spell you name correctly.

b.) Impossible condition – a condition that is incapable of fulfillment or cannot be physically done
(physical impossibility) or which is contrary to law (juridically impossible)
 DIFFERENT KINDS OF OBLIGATION 4

Examples
 Mr. D obliged himself to give P30,000 to Mr. C if Mr. C can swim across the Pacific Ocean (Physical
impossibility)
 Mr. D obliged himself to give P30,000 to ABC Co. if ABC Co. will not remit the SSS contributions of its
employees. (juridical impossibility for being contrary to law)

2.) Effect of impossible or unlawful condition of obligation

a.) Impossible conditions shall annul the obligation that depends upon them
b.) The obligation and the condition are void.

Thus, in the example above, where Mr. D obliged himself to give P30,000 to ABC Co. if ABC Co.
will not remit the SSS contributions of its employees, even ABC Co. will not remit the SSS contributions
of its employees it cannot demand payment from Mr. D.

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 (hindi maawat) that the event
will not take place. (1117)

Tagalog
Ang kalagayan na ang ilang mga kaganapan mangyari sa isang takdang panahon ay maaaring
mawala na ang obligasyon hanggang sa dumating ang takdang panahon na ito ay wala ng bisa o kung
ito ay walang kadudaduda na ang pangyayari at hindi na mangyayari.

Example:
A promised to give B a parcel of land if B will marry his daughter, C, this year. If C died or
married someone else, or B has not still married C within the said year, the obligation of A to give is
extinguished.

When No Period is Stipulated – the rule in second paragraph of Article 1185 is applicable.

Example:
A promised to give B a parcel of land if B will marry his daughter C. if C died or married someone
else, the obligation of A to give is extinguished.

Art. 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)

Ang obligasyon  para sa  kondisyon na may mga pangyayari na hindi magaganap sa nakatakdang
panahon ay magkakaroon lamang ng bisa mula sa pagkalipas ng oras na nakasaad or kung naging
malinaw na hindi na ito maaaring mangyari.

Sakaling walang panahon ang naitakda, ang kondisyon ay dapat ituring na nangyari na sa panahong
napagnilayan, nang may pagsangalang-alang sa kalikasan ng obligasyon.

Discussion:
The condition that some event will not happen at a determinate time will make the obligation
effective when:
a.) the determinate time has elapsed without the event having occured;

Example:
Jun obligated himself to deliver a piece of land to Mario on the condition that Mario shall not
run for Vice-Mayor in their municipality within 9 years.
More than 9 years had elapsed without Mario running for Vice-Mayor.  The obligation to deliver
the piece of land becomes effective.
DIFFERENT KINDS OF OBLIGATION 5

b.) it has become evident that the event will not occur.

Example:
 Jun obligated himself to deliver a piece of land to Mario on the condition that Mario shall not
run for Vice-Mayor in their municipality within 9 years.
Before 9 years had elapsed, (say 6 years) the Municipality became totally submerged by lahar
and ceased to be a municipality.  The residents had to transfer to other municipalities.  
In this case, even before the lapse of 9 years it is clear that the obligation has become effective
because of the disappearance of the Municipality.  
It is not evident that Mario can never run for Vice-Mayor anymore in that Municipality because
it ceased to be one.

Art. 1186. The condition shall be deemed fulfilled when obligor voluntarily prevents its
fulfillment.

Tagalog
Ang kondisyon ay masasabing natupad na kung ang may obligasyon mismo ang boluntaryong
pumigil sa pagtupad nito.

Discussion:
This article refers to constructive fulfillment of the condition.

Constructive fulfillment  – refers to an obligation prevented by the obligor from happening.

For constructive fulfilment to operate, the following requisites must be present:

(a) Suspensive - the happening of the condition gives rise to an obligation

Example.
Mitch binds herself to deliver a determinate car to Lester if he marries Weena. The obligation is
only demandable upon the happening of the condition that is, if Lester marries Weena. The obligation is
suspended and not yet demandable.

(b) the obligor actually prevents its fulfillment.

Example.
Shane promised to sell his land to Yael if Yael would be able to secure a loan from a certain
bank. Later on, Shane changed his mind about selling his land. He induced the bank not to give Yael a
loan.
Under the above article, the condition is deemed complied with and Shane is liable to sell his
land. Shane should not be allowed to profit or benefit by his own fault or bad faith.

(b) He acts voluntarily

Example.
Suppose the inducement made by Shane was prompted by some other reason, is there
constructive fulfillment?
Yes. The law does not require that Shane act with malice or fraud as long as his purpose is to
prevent the fulfillment of the condition. Article 1186, however, does not apply if the act of the obligor is
in the exercise of a right.
Hence, when the obligor committed an act voluntarily which is not intended to prevent the
fulfillment of the condition (mother’s hospitalization) but nevertheless resulted to in the frustration of
the condition, there is no constructive fulfillment.

Art 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.
DIFFERENT KINDS OF OBLIGATION 6

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)

Tagalog:
Ang epekto ng kondisyonal na obligasyon na magbigay, kapag ang kondisyon ay naisakatuparan
na, dapat bumalik ito sa araw na binuo ang obligasyon. Maliban na lang kapag ang obligasyon ay
nagpatupad ng kapalit na gawain sa bawat partido, ang bunga at tubo habang nakatigil ang kondisyon
ay dapat naipalagay na upang magkaroon ng parehong kabayaran. Kapag ang obligasyon ay nasa
iisang parte lang, ang nangutang ay nararapat na makatangap ng bunga at tubo, maliban na lang sa
likas na kalagayan ng obligasyon dapat din na ipagpalagay na ang intension ng taong gumagawa ng
katulad nun ay magkaiba.
Sa obligasyon na dapat gawin at hindi dapat gawin, ang korte ang magpapasya sa bawat kaso, ang may
bisa sa nakaraan na epekto ng kondisyon ay naipatupad na.

1. Effects of the obligation to give:

Once the condition is fulfilled, the effects of the conditional obligations shall retroact to the day of
the constitution of the obligation and not on the date when the condition was fulfilled.

Example
On Jan. 1, 1999 A agreed to give B a parcel of land if he passes the May, 1999 CPA exams. If B passes
the CPA exams in May, 1999, he is entitled to the land effective Jan. 1, 1999 because B’s right over the
land retroacts to the date when the obligation was constituted

2.) As to the fruits and interest

The effect of conditional obligation to give, as a rule, do not retroact to the date of the constitution
of the obligation. The following rules shall govern:

a) In reciprocal obligation (like a contract of sale) - the fruits and interest during the pendency of the
condition shall be deemed to have been mutually compensated.

Example:
A agrees to sell and B agrees to buy A’s parcel of land if B passes the May, 2021 CPA exams. If B
passes the May, 2021 CPA Board, the obligation becomes demandable. B is entitled to all the interests
that his money (with which to pay A) may earn while A is entitled to the fruits which the parcel of land
may have produced during the pendency of the condition.

b.) In unilateral obligation – the debtor shall appropriate the fruits and interests received during the
pendency of the condition unless a contrary intention appears.

Example . X agreed to give Y a parcel of land if Y passes the CPA Board in May, 2021 exams.
Pending the happening of the condition, X is entitled to the fruits which the land may produce, X will
deliver only the parcel of land if the condition is fulfilled.

ART 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)

Tagalog
Ang nagpapautang ay maari, mbago matupad ang kundisyon, ay gumawa ng nauukol na
hakbangin upang mapanatili ang kanyang karapatan.
Ang nagpautang ay maaaring mabawi ang anuman na naibayad kung ito ay sa pagkakamali mula sa
suspensive condition.

Preservation of Creditor’s Rights.

Pending the happening  of the suspensive condition, the creditor cannot compel the debtor to
perform the prestation. All that the creditor has in the meanwhile is a mere expectancy contingent to
the happening of the condition.
 
Example:
DIFFERENT KINDS OF OBLIGATION 7

Whenever, Mr. A who is a father of Mr. B promised to give a parcel of land, provided that the
latter finished his Bachelor of Law. Mr. B, in order to preserve his right against Mr. A may take
appropriate actions such as causing registration and put annotation at the back portion of the title
covering said parcel of land, so that even if the parcel of land is alienated by Mr. A, the buyer will take
that land subject to the right to Mr. B.
 
No Preference
It is not a preference  for   debtor for what obligation he has to owe credit constantly,  otherwise
the appropriate action would be better for the creditor’s right preservations.

Debtor’s right to recover payment made before fulfillment of condition

If the payment made by mistake or ignorance of the debtor before the conditions happens , it
should be recovered by means of accion reivindicatoria if it was a determinate thing or solutio indebiti.
If the payment made with knowledge of the conditions herein stipulated, whatever has been
paid cannot recovered, because it impliedly waived such conditions.
 
Fruits from Thing
Solution indebiti should apply Article 2159-  whoever in bad faith accepts an undue payment,
shall pay legal interest if a sum of money is involved, or shall be liable for fruits received or which should
or should have been received if the thing produces fruits.
 

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:

Tagalog:
  Kung ang kondisyon o kasunduan ay naipatupad na at ang layunin nito ay ipagpaliban ang mga
pananagutan ng pagbibigay ng mga ito , ang mga sumusunod ay dapat ipatupad kung may mga
pagbabago, pagkawala, o pagkasira sa mga panahong suspensido ang kondisyon.

(1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished;

Kung ang bagay ay mawala na walang kasalanan ang may utang ang pananagutan ay
mawawala din.

(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;

Kung ang pagkawala ng bagay ay kasalanan ng may utang, mananagot siya magbayad ng
danyos at ipagpapalagay ang gayon bagay ay hindi na muling mababawi pa.

(3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the
creditor;

Kung ang bagay ay kumupas o sumama na, ang may utang ay walang kasalanan, ang
pagpapagawa o pagbabalik ng dating kaanyoan ay sa sagutin ng nagpapautang.

(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;

Kung ang pagkupas o pagbaba ng halaga ay kagagawan o kasalanan ng may pagkakautang

ang nagpapautang ay magpapasiya upang pawalan saysay/kansilahin ang obligasyon at
pagsasakatuparan noon na may kabayaran sa danyos alin man sa dalawa ang pipiliin nya.

(5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the
creditor;
DIFFERENT KINDS OF OBLIGATION 8

Kung ang bagay ay umunlad ng natural o ng panahon, ang kaunlaran ay sa pakinabang ng

nagpapautang.

(6) If it is improved at the expense of the debtor, he shall have no other right than that granted to the
usufructuary. (1122)

Kung ang pagunlad ay kagagawan ng may utang wala siyang karapatan maliban sa karapatan
ipinagkaloob ng usufructuary o pag bibigay ng karapatan upang magamit ito.

Art 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.

Tagalog
Kung sakalit ang mga kondisyon ay hindi naisakatuparan na siyang naging sanhi sa
pagbabalewala ng kasunduan, ang anumang naibayad o naibigay ng bawat partido ay kinakailangang
magsaulian.

Paliwanag sa Pamamagitan ng Halimbawa:

Si Pedro at Juan ay nagkasundo na bibilhin ni Juan ang palayan na mga isang ektarya ni Pedro
kung ito ay hindi dadaanan ng highway road. Nagbigay na ng paunang bayad si Juan kay Pedro ngunit ng
mga isang taon ay natuloy ang proyekto ng gobyerno kayat kinakailangang ibigay ni Pedro ang pera
ibinigay ni Juan.

Article 1191. The power to rescind the obligation 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 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.

Tagalog:
Ang kapangyarihan upang kasilahin ang obligasyon ay ipinagpapalagay na isang resiprokal, kung
sakali isa sa mangingutang ay hindi tumupad kung ano ang dapat na naka atang sa kanya.

Ang na dihadong partido ay mamimili sa pagitan ng pagsasakaituparan o pag kansila ng kanilang

obligasyon, na mayroon karampatan kabayaran  ng mga damyos sa alin man kalakaran. Siya ay maaring
hingin ang pagkansila, kahit na mas pinili niya ang tuparin, kung ang huli ay magiging imposible na.

Ang hukuman ay mag uutos sa pagkansila ng mga singilin, maliban lamang kung mayroon makatarungan
dahilan upang itakda ang tiyak na panahon.

Ito naman ay nanganghulugan na wala siyang makakasama doon sa karapatan ng ibang tao na siyang
nagmamay-ari na ng bagay, alinsunod sa atikulong 1385 at artikulong 1388 at sa batas ng pagsasangla.

Example
Juan and Maria entered into a contract where the latter would sell a parcel of land to Maria and
in turn, the former would pay in “two gives,” each payment a month a part. This means that if the parcel
of land was deliver on January 1, the first payment would be February 1 and the second, March 1. The
first part of the payment was made. However, the last payment was not.
DIFFERENT KINDS OF OBLIGATION 9

Juan rescinded the contract, invoking the special provision granting him the power to rescind in cases
of nonfulfillment. Was the rescission valid?

Ans: Yes, the rescission was valid. There is no doubt that Maria violated the reciprocity of
obligations between her and Juan. This same non-fulfillment gives rise to Juan’s right to cancel or
dissolve the contract.

Art 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.

Kapag ang parehong partido ay nagkasala sa hindi pagtupad sa anumang obligasyon, ang
pananagutan ng unang lumabag ang mabibigyan ng karampatang kahatulan ng hukuman . Ngunit kung
hindi matiyak kung sinu sa mga partido ang hindi sumusunod o tumupad sa kontrata ay parehong hindi
makakatanggap ng anu mang kapakinabangan shparehong managit sa kanilang pagkakamali.

1.) When it CAN be determined who first violated the contract

The liability of the first infractor shall be equitably tempered or reduced. This rule is fair
because the second infractor also derived or through he would derive some advantage by his own act or
neglect.
(example page 70)

1.) When it CANNOT be determined who first violated the contract.

The contract shall be extinguished. This rule is likewise just, because it is presumed that both at
about the same tried to reap some benefit.

MR. JOSHUA HANGGANG DITO LANG

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Section 2. OBLIGATIONS WITH A PERIOD

Art 1193. Obligations for whose fulfillment a day certain has been fixed, shall be demandable
only when that day comes.
Obligations with a resolutory period take effect at once, but terminate upon arrival of the day
certain.
A day certain is understood to be that which must necessarily come, although it may not be known
when.
If the uncertainty consists in whether the day will come or not, the obligation is conditional,
and it shall be regulated by the rules of the preceding Section. (1125a)

Tagalog
Ang mga obligasyon na kung saan ang katuparan ay naitakda na sa tiyak na araw ay mahihingi lamang
sa pagdating ng araw na naitakda.
Ang mga obligasyon na may resolutory period ay magkakabisa agad, ngunit ito ay matatapos sa
pagdating ng tiyak  na araw. Ang tiyak na araw ay  malinaw na kailangang dumating, bagaman
maaaring hindi alam kung kailan.
Kung may pag-aalinlangan sa pagdating ng araw na ito o hindi, ang obligasyon ay kondisyonal,
at ito ay pinapatakbo ng patakaran ng susunod na seksyon.

Discussion:
Period and term have the same meaning and are used interchangeably.  It consists in a space or
length of time upon the arrival of which, the demandability or extinguishment of an obligation is
determined.
DIFFERENT KINDS OF OBLIGATION 10

General classification of terms or period in Roman Law

1.) Obligation with a period

a). Ex Die – a term or period with a suspensive effect, which means the obligation becomes
effective only from the arrival of a certain day.

Illustration: Joey promises to support Rachel from the death of Rachel’s father, which means
the obligation only begins from the death of Rachel’s father.

b). In Diem – a term or period with a resolutory effect, which means the obligation will subsist
up to a certain day and it terminates upon the arrival of that day.

Illustration: Joey promises to support Rachel until Rachel reaches her majority age, which
means the obligation is already effective but will terminate once Rachel turns 18.

Other classifications:
1. Legal –  when period is fixed by law;
2. Voluntary – when the period is agreed upon by the parties;
3. Judicial –  when the period is fixed by the court for the performance of the obligation or for its
extinguishment

“On or About Period”

“On or about” a given date means only a few days after the stated date, but not a remote
date or one fixed by the obligor.

Requisites for a valid term or period:

1. It must be future;
2. It must be certain, that is, sure to come but may be extended by mutual agreement;
3. It must be possible physically and legally.

Art 1194. Incase of loss, deterioration or improvement of the thing before the arrival of the
day certain,the rules in article 1189 shall be observe. 1. Loss of a thing without debtor’s fault.

Sa oras ng pagkawala, pagkasira o pagpapabuti ng gamit bago dumating an tinakdang araw,

ang mga patakaran na nasa Artikulo 1189 ang dapat sundin.

1. Loss of a thing without debtor’s fault.

Example:
Mr.A obliged himself to give Mr.B his car worht 200,000 if Mr. B will sell Mr.A’s property. The car
was lost without the fault of Mr.A. The obligation is extinguished and Mr.A is not liable to Mr.B if Mr.B
sells the property. A person, as a general rule, is not liable for a fortuitous event.

2. Loss of thing through debtor’s fault. Same example stated above, incase of lost by negligence of
Mr.A, Mr.B will be intitled to demand damages.

3. Deterioration of thing without debtor’s fault.

In accident without the fault of Mr.A, the car windshield was broken, thereby reducing its value
to 190,000. Mr.B will have to suffer the deterioration or impairment in the amount of 10,000.

4. If incase that the Deterioration of thing through Mr.A’s fault, The obligation may be cancelled with
damages in favor of Mr.B. In this case,Mr.A is liable to pay Mr.B 200,000, the value of the car before its
deterioration plus incidental damages if any.

Fulfillment of the obligation also with damages. Mr.A is bound to Mr.B to give the car and pay
10,000 plus incidental damages if any.

5. Improvement of thing During the pendency of the condition.

 DIFFERENT KINDS OF OBLIGATION 11

Mr.A painted the car with his own expenses. In this case Mr. A will have the right granted to a
usurfructuary with respect to improvements made on the thing held in usurfruct.

USUFRUCT- The right to enjoy the use and fruits of a thing belonging to another.

Art 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)

Tagalog
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.

Example:
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.”

Art 1196 Whenever in an obligation a period is designated, it is presumed to have been

established for the benefit of both the creditor and the debtor, unless from the tenor of the same or
other circumstances it should appear that the period has been established in favor of one or of the
other. (1127)

Tagalog
Kung kailan sa isang obligasyon may panahon na itinalaga iyon ay ipinagpapalagay na
itinakda para sa pakinabang ng magkapwa ang nagpapautang at ang nangungutan, maliban kung
kula sa usapan na katulad at ibang pangyayari iyon ay maipapakita na ang panahon ay itinalaga
para sa pakinabang ng isa o sa kabila.

Presumption when a period is designated.

When a period is designated in the performance of an obligation, it is presumed that the period
is intended for the benefit of both the creditor and debtor such as a loan with interest.

Reasons why creditor cannot be compelled to accept before the arrival of the period.

1. Payment of interest. The interest expected to be realized will be lessen if premature payment is done;
2. Desire of the creditor to have his money invested safely instead of having it in his hands.
3. Under the usury law, there is a special prohibition of payment of interest in advance for more than a
year.

BENEFIT OF TERM- 

a.) for both parties - in case of doubt the creditor cannot demand payment and the debtor cannot make
an effective tender and consignation of payment, before the period stipulated.

b.) for the benefit of the creditor-  the creditor may demand performance at any time, but the debtor
cannot compel him(creditor) to accept payment before the period expires.

c.) for the benefit of the debtor - he may oppose a premature demand for payment, but may validly pay
at anytime before the period expires.
DIFFERENT KINDS OF OBLIGATION 12

BENEFIT OF TERM IN CONTRACTS OF LOAN

a.) for both parties - there is interest and period stipulated

b.) for the benefit of the debtor - gratuitous or without interest

NOTE:
Even if there is no interest stipulated, the period may still benefit both parties, if the creditor
receives benefit from the period stipulated. For instance, Fruits from the products which were a part of
the land mortgage by the debtor.

Art 1197 If the obligation does not fix a period, but from its nature and the circumstances it
can be inferred that a period was intended, the courts may fix the duration thereof.
The courts shall also fix the duration of the period when it depends upon the will of the debtor.
In every case, the courts shall determine such period as may under the circumstances have been
probably contemplated by the parties. Once fixed by the courts, the period cannot be changed by
them. (1128a)

Tagalog
Kapag ang obligasyon ay hindi nagtalaga ng tiyak na panahon, subalit mula sa kanyang natural
at mga pangyayari iyon ay maipagpapalagay na ang panahon ay binalak, ang hukuman ang siyang mag
tatakda ng lawig noon.
Ang hukuman ang siya rin magtatakda nang haba ng panahon kung iyon ay sasang ayon sa
kagustuhan ng may utanag lamang.
Sa bawat pangyayari, ang mga hukuman ang siyan mag papasiya sa gayong panahon sa ilalim
ng pangyayaring mamari iyon ang balakin ng mga partido. Kapag naitalaga na ng hukuman, ang
panahon itinakda ay hini na maari pang baguhin nila.

Court May Fix Term

1.When the term of a lease has been left to the will of the lessee; ex. Babayaran kita Kung kelan
ako magkakapera
2.Or when the obligation does not fix a period

Note: the Court cannot fix a definite term when the obligation is payable on demand

Action To Fix Term

An action that can only be vindicated under this article is an action to request the court to fix a
term which the debtor must comply with.

Effect of Term
Once the term has been fixed by the Court, it is already a part of the contract which cannot be
changed without the consent of both parties. If the period fixed by court expires, it is when the debtor
commences default.

Art. 1198. The debtor shall lose every right to make use of the period:
Mawawala ang lahat ng karapatan ng umutang upang magamit ang panahon na itinakda sa
kanya kung:

(1) When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty
or security for the debt;
1.) Hindi man lang siya nakapagbayad ng kanyang pagkakautang sa panahong ibinigay sa
kanya maliban kung nagbigay siya ng prenda para sa kanyang utang;

(2) When he does not furnish to the creditor the guaranties or securities which he has promised;
2) kung hindi man lang nagbigay ng anuman kasigurahan ng pagbabayad ang umutang;

(3) When by his own acts he has impaired said guaranties or securities after their establishment, and
when through a fortuitous event they disappear, unless he immediately gives new ones equally
satisfactory;
3) kung dahil din sa kanyang kapabayaan ang nasabing prenda ay nawala dahilan sa mga
pagkakataong hindi sinasadyang pagkakataon maliban kung ito kanyang pinalitan kaagad;
DIFFERENT KINDS OF OBLIGATION 13

(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to the
period;
4. kung ang may utang ay lumabag ng kasunduan/usapan, na kung saan ang nagpapautang ay
sumang-ayon sa panahon;

(5) When the debtor attempts to abscond. (1129a)

4) kung ang umutang ay nagtangkang tumakas sa kanyang pagkakautang.
Examples in pae 77-79)

*****end*****

References:

 https://attorney.org.ph/legal-news/302-pure-and-conditional-obligations https://
lspuoblicon2015.wordpress.com/2016/03/26/art-1179/
 https://lspuobligationsandcontracts2014.wordpress.com/2015/01/06/article-1180/
 https://lspuoblicon2017blog.wordpress.com/2017/03/17/article-1182/


Art. 1198