PART 2 NOTES
AND PASSIVE)
DIFFERENT KINDS OF OBLIGATION
- According to demandability (demandability
of the obligation)
1. PURE – not subject to any conditions or
period.
Ex. Pio promised to lend his book to
Josh. (DEMANDABLE AT ONCE)
2. CONDITIONAL – is subject to a condition
(uncertain future event)
Ex. Pau promised Jo to build a house if
Jo graduates cum laude.
Other examples of condition: Job
promotion; winning a legal case in
court; passing an exam; marriage;
accepted in a job, etc.
3. WITH A PERIOD- is a subject to a period
(a certain date or future event)
Ex. Pop promised Pat a Rolex watch
with serial no. 1-A, if Pop’s dog, Aw-aw,
dies.
Other examples: one’s birthday, fixed
date, paying little by little, time to time,
or when money is available, or when
based on one’s ability or capacity to
pay.
- According to parties liable:
1. UNILATERAL
2. RECIPROCAL
- According to plurality of object
1. SIMPLE (
2. ALTERNATIVE
3. FACULTATIVE (with only one object
agreed to be delivered, but the debtor
may substitute it with another.)
Note: The amount is payable at once to any creditor,
Ex. Don promised to give Joe his Apple
except if agreed to be payable on different dates.
laptop with serial no 1223. Before
Example: X and Y promised to pay C and D jointly and
delivery, Don has the option to
severally Php 50,000, half of an Jan 1 and half on June 1.
substitute the laptop with a Yamaha Jet
ski.
In cases of losing the thing due and the debtor is at
fault;
- Loss of the laptop (Principal Object) –
debtor is liable for damages
- Loss of the Jet ski (Substitute) – debtor is
not liable but still bound to deliver the
laptop
- According to plurality of subject (ACTIVE
1. SIMPLE with only one debtor and one
creditor)
Ex. Ann obliged herself to give may, her
18-karat gold necklace.
2. JOINT (when an obligation has two or more
debtors, who are bound proportionately to
deliver or perform to two or more creditors)
Each of the obligation is separate and
distinct from that of the others.
Ex. D and E promised to pay X and Y
Php60,000 jointly.
Upon maturity, if X collects from D, D is only
bound to pay Php15k only to X. (60k divided
by number of parties)
- SEPARATE AND DISTINCT OBLIGATIONS
means that D’s obligation to X is separate
and distinct from 1) D’s obligation to Y; 2)
E’s obligation X; 3) E’s obligation to Y.
Words to express that obligation is JOINT:
Jointly, proportionately, pro rata, non-
comunada, non-comandante.
3. SOLIDARY (must be expressed in stipulation;
provided by law; or by nature of the
obligation)
Words to express solidarity: CO-maker, joint
and several, pro-indiviso, in solidum, using
the pronoun “I” instead “We”
Example: I promise to pay C and D, 50k on
Jan 1 of the following year, signed by X and
Y.
Upon maturity, either X or Y, is bound to
pay either C and D, Ph50,000.
- According to performance:
1. DIVISIBLE – the obligation is susceptible
or capable of partial performance or
delivery or its performance can be
measured by number of days, or metric
units.
Ex. 1) Dan promised to pay his loan to
Ina pf Php20,000 in four monthly
 installments starting January to April 20
AA.
2) Watts obliged to build Wep a 200sq
meter bungalow in one year for
P2,000,000.
2. INDIVISIBLE – Obligation is not
susceptible of partial performance.
Ex 1) Dan promised to pay his loan to
ina of Php 20k on Feb 10
2) Watts obliged to give Wep a FJ
Cruiser with plate No LM 25.
- According to Sanctions for breach
1. With a penal cause (an accessory
contract which provides for penalty in
case of non-performance or non-
delivery of the thing promised without
just cause)
Ex 1) Dan promised to pay his loan to
Ina php 20k on Feb 10. In case of failure
to pay, Dan shall be liable to Ina an
additional P500 per day of delay
reckoned from Feb 10.
In case, the penal clause serves to replace the provision
for paying interest. In some cases, the clause may
replace the delivery of fruits (civil and natural)
2. Without a penal cause – Simply without
an agreement of penalty in case of
delay
TYPES OF CONDITION
1. SUSPENSIVE – the obligation is suspended until
the fulfillment or happening of the condition.
Ex. D promised to give C, a ring if C graduates
from college.
2. RESOLUTORY – the obligation is extinguished
upon the fulfillment or happening of the
condition.
Ex. D promised to give C P100 per day until C
graduates college.
TYPES OF PERIODS
1. SUSPENSIVE – the obligation is suspended until
the happening or arrival of the period.
Ex. D promised to give C, a ring on C’s 23 rd
birthday.
2. RESOLUTORY – the obligation is extinguished
upon the happening of the period.
Ex. D promised to give C100 per day until C’s
23rd birthday.
AN OBLIGATION WHICH IS SUBJECT TO EITHER
RESOLUTORY CONDITION OR RESOLUTORY PERIOD is
demandable at once. (Same as PURE OBLIGATION)
Obligations that are demandable at once
1. Pure obligation
2. Obligation which is subject to resolutory
condition
3. Obligation which is subject to resolutory period
SUSPENSIVE OR RESOLUTORY CONDITIONS
Could either be:
a. POTESTATIVE – the condition depends upon the
will of the debtor or creditor;
Ex. D promised to pay C Php50K if C will vacate
form his house.
b. CASUAL – the condition depends upon a
chance, hazard or will of a third person; Ex. D
promised to pay C Php50k if C can survive the
Amazon Jungle for 30 days.
c. MIXED – the condition depends PARTLY on the
will of the debtor or creditor AND partly on
chance and will of a third person
d. IMPOSSIBLE – the condition is contrary to law,
good morals or public policy
EFFECTS OF VARIOUS SUSPENSIVE CONDITIONS ON
OBLIGATION
a. POTESTATIVE (dependent on the sole will of the
debtor)
b. IMPOSSIBLE (contrary to law etc.)
= both obligation and condition are VOID. But if the
obligation is pre-existing, the obligation remains VALID
and the court may fix the period for paying the debt.
c. POTESTATIVE (dependent on the sole will of the
creditor)
d. CASUAL OR MIXED
= Both obligation and Condition are VALID
e. POSITIVE suspensive condition (Ex. D promised
C, Php 50k, if C gets married before Dec 31,
2020) = If Jan 1, 2021, C remains single, then the
obligation is extinguished.
f. NEGATIVE suspensive condition (Ex. D promised
to refund C’s entire school tuition if C is not
married at the end of 2020) = if on Jan. 1, 2021,
 C is sill unmarried, then the obligation becomes
due and demandable.
RETROACTIVE EFFECT OF CONDITIONAL OBL. TO GIVE
1. When obl. With suspensive cond. Acquires
force: upon the happening of the event
2. When retroactive effect applies: If debtor
promises to deliver the same object to two
creditors both subject to a suspensive
condition, the 1st creditor has a better right over
the 2nd creditor even if his condition is not yet
fulfilled. Hence, the 1st creditor may institute an
action to preserve his right, such as:
1. Annotating a notice of pending litigation on
the title of the object;
2. Filing an Adverse Claim with the Register of
Deeds/Assessor;
3. File a court action to stop delivery of the
object to the 2nd creditor.
3.In case delivery was made by the debtor to the 2 nd
creditor:
a. 2nd creditor acquires REAL RIGHT over the property if
he is in good faith; (Real right is one attaches to the
property, the person who attains possession of the
property will have the right to use, right to mortgage.)
(1st creditor remedy: File a claim for damages against
the debtor)
b.If he is a buyer with bad faith, the 2nd
creditor acquires no legal right over the
property. Hence, the 1st creditor can
demand delivery of the thing in court.
OBLIGATION AS TO PARTY/IES LIABLE
1. Unilateral – only one party is obliged to
deliver/perform. (May promised to give Juan a
dog)
2. Reciprocal (Bilateral) – both parties are either
passive/active subject
Ex. Contract of Sale (Where there is a seller and
a buyer)
- The seller is obliged to deliver the object
- The buyer is obliged to deliver the payment
Hence both parties are obliged to deliver
WHEN RESCISSION IS A REMEDY IN RECIPROCAL
OBLIGATIONS:
Remedy of 1. Specific performance + damages; or
Injured Party 2. Rescission + damages (only in case of
substantial breach)
THESE REMEDIES ARE AVAILABLE ONLY IN THE
ALTERNATIVE… However, if the thing is already in the
hands of a third person who is a buyer in good faith,
then the injured party can proceed to rescission.
NOTE: Obligation of parties in case of RESCISSION:
Return the objects they respectively received by virtue
of the contract. RESCISSION can either be JUDICIAL or
EXTRAJUDICIAL.
OBLIGATIONS subject to a PERIOD (articles 1195-1998)
Example: D promised to pay C Php50k on Jan 1 of the
following year.
1. When a period is designated by the parties, it is
presumed to have been established for the
benefit of both;
2. If no period is designated; when the period is
dependent on the debtor’s will; or when debtor
pays when his means permit him to do so, then
the Creditor can go to Court so the latter may
fix the period.
Ex. D promised to pay C Php 10k as soon as
possible.
3. When debtor losses the benefit of a Period:
a. When after entering a contract, debtor
becomes insolvent (few assets left not
enough to pay for his obligation), except
when he gives guaranties or security for the
debt;
b. When debtor does not furnish the
guaranties or security he promised;
c. When debtor has impaired the guaranties
or security by his own acts or thru
fortuitous events, unless he immediately
furnishes new ones;
d. When debtor violates any undertaking un
consideration of the period; or
e. When debtor attempts to abscond (escape
or invade)
Obligations According to PLURALITY OF OBJECT:
1. SIMPLE (with only one subject)
2. ALTERNATIVE (with two or more objects
promised but the delivery of any of the object
shall extinguish the obligation)
 Ex. Lea promised to give Fe on her graduation
either a Sony Tv, a HD stereo, or a cash of 50k.

If not agreed, the debtor has the right of choice. The

moment the debtor communicates his choice to the
creditor, the obligation becomes a “Simple” one.

By agreement, the creditor may have the right to

choose. In the same token, communication of his choice
to the debtor shall make the obligation “Simple”.

The creditor can have the right of choice if agreed

between them.

Loss of the thing:

Debtor’s fault:

A) If one thing should be lost, the Creditor may choose

from the remaining objects plus indemnity for damages;

B) If all things were lost, the debtor is bound to pay the

Creditor the value of the object which disappeared last
plus damages;

Creditor’s fault:

A) If one thing should be lost, the debtor can

choose to cancel the obligation and collect
payment of damages from the creditor.
B) If all things were lost, the creditor pays debtor
the value of all the things plus payment of
damages

Note: If a thing is lost without the debtor’s fault

(fortuitous event), the obligation shall be extinguished.