ART 1181
obligation
Conditional Obligation
Acquisition of right – the acquisition of rights
by the creditor depends upon the happening of
the event (SUSPENSIVE CONDITION)
Loss of rights already acquired – the happening
of the event which constitutes the condition
produces the extinguishment or loss of rights
already acquired (RESOLUTORY CONDITION)
Suspensive condition – GIVE RISE TO THE
OBLIGATION the obligation is suspended until
the happening of the uncertain event which
constitutes the obligation (ex. Bibigyan kita ng
1M kapag nanalo ka sa boxing)
Resolutory conditions – the happening of the
event will EXTUNGUISH the obligation. (ex. I
will give u 10k monthly allowance until u
graduated in college)
ART 1182
Potestative – SUSPENSIVE condition which
depends upon the SOLE WILL of one contracting
parties.
Potestative on debtor + suspensive =
void. Upon will of DEBTOR - nakadepende sa
sole will ni debtor which is VOID (walang
effect) (kasi hindi makakapag demand yung
creditor kung nakadepende sa debtor
Potestative on debtor + resolutory =
valid (bec it merely causes the extinguishment
or loss of rights already acquired by the
debtor. The debtor is naturally interested on its
fulfillment.
Potestative on the part of creditor +
suspensive = valid (bec the creditor is always
interested in the fulfillment of the
If an obligation is a PRE-EXISTING one, the
obligation remains valid and only the condition
is invalid.
Casual – valid, depends upon the chance OR
the will of the third person. (alin sa dalawa)
Ex. Nangako si A which is a building
contractor kay B which is the owner na kapag
may nasira dun sa ginawang bahay by any
earthquake si A yung sasagot sa gastos ng pag
papaayos and it is valid for 10yrs after magawa
yung bahay.
CHANCE – masira yung bahay because
of earthquake
Mixed – valid, depends partly upon chance
AND partly upon the will of a third person
(pareho)
Ex. Nangako si A which is a building contractor
kay B which is the owner na kapag may nasira
dun sa ginawang bahay by any earthquake at
napatunayan ng panel of arbitrators na isang
dahilan yung construction defect kung bat
nasira yung bahay then si A yung sasagot sa
gastos ng pag papaayos
BOTH chance and third person should
be present. In this case the chance is yung
pagkasira ng bahay due to earthquake and the
third person is the panel.
ART 1183
Refers to suspensive conditions wherein it
applies only where the impossibility already
existed at the time the obligation was
constituted.
Impossible conditions – a condition that is not
capable of fulfilment in its nature.
If related to OBLIGATIONS TO DO –
both obligation and condition are VOID
If related to OBLIGATIONS NOT TO DO –
the obligation is demandable at once
Kinds of impossible conditions
1. Physically – cannot exist or
cannot be done
2. Legally – contrary to law,
morals, good customs, public
order, or public policy
Effects of impossible conditions:
1. Conditional obligation void – both the
condition and obligation are void. (the
obligor know that he can’t fulfill the
obligation then he has no intention of
doing it)
2. Conditional obligation valid – Same as
if there WERE NO OBLIGATION since
the obligation is NOT TO DO an
impossible thing.
3. Only the affected obligation is void –
yung possible condition lang yung valid
4. Only the condition is void – pag may
pre-existing contract like nangutang ako
sa kaibigan ko ng 10k and sabi ko
babayaran kita kapag pinatay mo si
ganto, yung condition na patayin si
ganto ay void pero yung obligation ko
na magbayad ng utang is valid.
ART 1184
Positive (suspensive) condition – A condition
that some event will happen at a determinate
time.
The obligation is EXTINGUISH as soon as:
 The time expires
 It has become indubitable that the
event will not take place although the
time is not yet expired.
ART 1185
Negative condition – a condition that some
event will not happen at a determinate time.
(OBLIGATION NOT TO DO)
The obligation becomes EFFECTIVE as soon as:
 The time indicated elapsed
 It has become evident that the event
will not occur
ART 1186
Constructive fulfillment – condition shall be
deemed fulfilled kapag kusang loob pinrevent
ng debtor yung fulfillment.
(ex. I obliged to give my friend a car if she
passed the bar exam then before ng exam
pinoison ko sya, so di sya makakapasa kasi hindi
sya makakapag exam, I voluntarily prevented
the fulfillment so under this law I am still bound
to deliver the car that I have promised.
(SUSPENSIVE CONDITION)
THE SAME RULE APPLY WITH RESOLUTORY
CONDITION
ART 1187
Suspensive – condition that cause the birth of
the obligation,
kapag nangyari na yung condition it will
cause the obligation the birth effect meaning
magiging effective na yung
obligation from the moment na ang condition
ay na-meet. NO FULFILMENT NO
OBLIGATION
Retroactive – it has effect from a date in the
past before it was approved.
Ex. On June 20, 2022, I promised Y that I
will give her a parcel of land if she passed the
board exam in July 18, 2022. If she passed the
exam then it was as if she was entitled to the
land on June 20, 2022.
Effects of fulfillment of suspensive condition:
the obligation becomes effective and
demandable
In obligation TO GIVE – retroact to the day of
the constitution of the obligation,
In obligation TO DO or NOT TO DO – the courts
shall determine in each case, the retroactive
effect of the condition that has been complied
with.
Retroactive effects as to fruits and interest
In RECIPROCAL OBLIGATION - No retroactive
effect since they are mutually compensated.
In UNILATERAL OBLIGATION – No retroactive
effect and the debtor shall appropriate the
fruits unless there was a contrary intent.
ART 1888
Pending the fulfillment of the suspensive
condition, the parties have the rights to
preserve their rights.
1ST – Preservation of the creditor’s right, the
creditor can have his right annotated on the
title of the property to avoid alienation or
concealment of the property of the debtor.
2nd – the debtor has right to recover what he
has paid by mistake because the debtor may or
may not be able to fulfill the condition
imposed.. SOLUTION INDEBITI (No person shall
enrich himself at the expense of the other)
ART 1189
SUSPENSIVE CONDITION
Kinds of loss
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
Rules in case of loss, deterioration, or
improvement of thing during pendency of
suspensive condition
1. Loss of thing without debtor’s fault –
the obligation is EXTINGUISH. (A person
is not liable for fortuitous event)
2. Loss of thing through debtor’s fault –
creditor is entitled to DEMAND
DAMAGES plus incidental damages if
any
3. Deterioration of thing without debtor’s
fault – creditor will have to suffer the
deterioration or impairment
4. Deterioration of thing through debtor’s
fault – creditor can demand rescission
with damages plus incidental damages
if any OR demand fulfillment of
obligation with damages plus incidental
damages if any.
5. Improvement of thing by nature or by
time – Creditor will benefit to the
improvement
6. Improvement of thing at expense of
debtor – Debtor has a right of a
USUFRUCTUARY
 Note: Usufruct is the right to
enjoy the use and fruits of a thing belonging to
another
ART 1190
Effects of fulfillment of resolutory condition
In obligation to give:
1. The obligation is extinguished
2. The parties should return or restore to
each other what they have received
including the fruits and interest
3. RULE 1889 will apply to the one who
has duty to return in case of loss,
deterioration or improvement of the
thing.
In obligation to do or not to do:
The courts are given the power to
determine the retroactivity of the fulfillment of
the condition.
ART 1191
RIGHT TO RESCIND
1. Exist only in RECIPROCAL OBLIGATIONS
(obligation which arise from the same
cause)
2. Can be demanded only if the parties is
ready, willing and able to comply with
his own obligations and the other is not.
(if may kakayahan kai deliver yung
obligation mo and yung isa ay hindi)
3. The right is not automatic or absolute.
Apply to the court for decree of
rescission
Exception:
When the object is not yet
delivered
The contract states that
either party can rescind
4. The remedies of the injured or
aggrieved party are alternative and not
cumulative (isa lang, hindi pwede
dalawa)
Remedies:
Rescission plus damages
Fulfillment of the obligation
plus damages
Restitution – returning of the object
Rescission – cancellation
Prestation - subject matter of the obligation
Kinds of obligation according to the person
obliged:
1. Unilateral – only one party is obliged to
comply with prestation
2. Bilateral – both parties are mutually
bound to each other. May be reciprocal
or non-reciprocal.
a) Reciprocal obligation
b) Non reciprocal obligation
ART 1192
Where both parties are guilty of breach:
1. First infractor known – kung sino yung
unang lumabag ng obligation, the
liablity of the first infractor should be
equitably reduce.
2. First infractor cannot be determined –
the contract shall be deemed
extinguished and each shall bear his
own damages.