OBLIGATION AND CONTRACT

LAW- is a rule or norm of conduct, just and obligatory, promulgated by competent authority, for
common observance and general welfare.

WHY WE NEED TO FOLLOW THE LAW?

-We need to follow the law in order for us to be safe.
-We need to follow the law because if we don’t follow it we will face consequences and penalties.
-Law is useless if it don’t have penalty.

1987 Philippine Constitution

-the highest law in the Philippine
-other laws must follow this constitution
-dapat lahat ng gagawin na batas ay hindi against dito

DEMOCRATIC FORM OF GOVERNMENT- it is ruled by people/ the people is over the law.
ELECTED OFFICIALS- they represent us/people.

DO YOU CONSIDER YOURSELF AS A PART OF THE COMMUNITY?

-yes, dahil nakatira ako dito chos

KAPAG SINABING “NO TRESPASSING”, YOU ARE NOT THE OWNER OF THE HOUSE/PROPERTY AND
YOU ENETERD, MAYROON BANG LIABILITY DOON?
-meron kang liability because pumasok ka sa isang property na hindi ikaw ang nagma may-ari.
-exemption of absolute when the owner gives his friends or family permission/authority to enter
his/her property.
-exemption when you give consent/permission/authority.

ARTICLE 1156- an obligation is a juridical necessity to give, to do, or not to do.

JURIDICAL NECESSITY- based on law and subject to courts action.

TO GIVE- an obligation to give, the delivery of the thing to the creditor.
TO DO- refer to all kinds of works and services.
Ex. Marie will clean a house for a certain amount.
NOT TO DO- refrain from doing actions.
Ex. Life insurance company said that you are not allowed to ride a plain or else your
insurance life will be gone.

WOULD IT BE POSSIBLE IF YOU ARE GIVEN A CHANCE TO CREATE A LAW, RULES, OR REGULATIONS
THAT IS INCONSISTENT WITH THE CONSTITUTION?
-it would not be possible to make a law that is not consistent with the constitution because we have
this 1987 constitution that is the highest form of law and other laws must be consistent in following
this 1987 Philippine constitution.
-Whenever we make a law that is not consistent with the constitution is considered unconstitutional
and if it’s unconstitutional that law cannot be in force and it will be considered illegal because of its
unconstitutionally.

ELEMENTS OF OBLIGATION/ THE ESSENTIALS

1. JURIDICAL TIE/LEGAL TIE/- is the one that binds parties together in an obligation.
Ex. Contract- if you signed a contract, it is binding you and other parties.

2. ACTIVE SUBJECT/ OBLIGEE/ CREDITOR

-one that demands the parties the fulfillment or performance of the obligation.
-sila yong nag-iintay at nagtatanong kung kailan matatapos ang mga trabaho.
-mga nagpapautang, they are considered as creditor.
3. PASSIVE SUBJECT/ OBLIGOR/ DEBTOR
-one that performs or fulfills the obligation.
-s/he is doing the obligation.
-mga umuutang, they are considered as debtor.
-Ex. Paying debt.

4. PRESTATION- subject matter, object of the obligation.

CAN THE SALE OF SHABU BE AN OBJECT OF AN OBJECT OF OBLIGATION?

-no, because it is illegal, and any lawful/illegal/elicit object or action cannot be considered or cannot
be an object of obligation.

CAN A WIND BE AN OBJECT OF OBLIGATION?

-the wind/air cannot be an object of obligation because the air is an earth’s natural resource and no
one owns it unless this air is put into a container and with that the air is considered as an object of
obligation.

THEY WILL GIVE YOU 10,000 IF YOU WILL KILL PEDRO

-no, because it is illegal, and any lawful/illegal/elicit object or action cannot be considered or cannot
be an object of obligation.

OBJECT
-it is an essential record of obligation.
-it is synonymous with the prestation and subject matter.

ARTICLE 1157- Obligation arises from;

1. LAW- - is a rule or norm of conduct, just and obligatory, promulgated by competent authority, for
common observance and general welfare.
Ex. Law on taxation, we are obliged to pay our taxes or else we have to face consequences.
-It is our obligation to follow the law.

2. CONTRACT- it is a meeting of mind between two persons whereby one binds itself with a respect to
another to give something or to render service.
-there’s a mutual understanding
Ex. Bargaining of seller and buyer.

3. QUASI-CONTRACT- it is certain lawful voluntary and unilateral act keeping rise to a juridical relation
to the end that no one shall adjustly enrich himself at the expense of another.
-there’s no contract, no mutual understanding.

2 KINDS OF QUASI-CONTRACT
1. NEGOTIORUM GESTIO- voluntary administration of the property, business affairs of a third person
without his consent or without authority.
-there’s no contract because there’s no consent of the other person.
Ex. You fed your neighbor’s dog because they are not at home.

2. SOLUTIO INDEBITI- Undue payment; arises when a person unduly delivers a thing through
mistake to another who has no right to demand it.
-payment by mistake

4. ACTS AND OMISSION PUNISHABLE BY LAW

FELONY- are committed not only by means of deceit (dolo) but also by means of fault (culpa)

5. QUASI DELICTS/TORT- wrong committed independent of a contract without criminal intent

-it is not your intention to hurt someone but because of your action something happened
-Ex. You shouted that there’s a bomb and because of that someone got an heart attack.
ARTICLE 1158- Obligations derived from law are not presumed. Only those expressly determined in
this Code or in special laws are demandable, and shall be regulated by the precepts of the law which
establishes them; and as to what has not been foreseen by the provisions of this book (1090)

-refers to legal obligations or obligations arising from law. They are not presumed because because
they are considered a burden upon the obligor. They are the exception, not the rule. To be
demandable, they must be clearly set forth in the law, i.e., the Civil Code or special laws.

Agreement Unnecessary. – The law cannot exist as a source of obligations, unless the acts to which
its principles may be applied exist. But once those acts or facts exist, the obligations arising therefrom
by virtue of express provisions of the law are entirely independent of the of the parties. Such
obligations and their correlative rights are govern by the law by which they are created.

Obligation Not Presumed. – Under the terms of this article, obligations derived from law are not to
be presumed. Only those expressly provided for in this code or in special laws are enforceable.

ARTICLE 1159- Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith.

ARTICLE 1160- Obligations arises from quasi-contracts shall be subjected to the provisions of Chapter
1, Title XVII of this book.
-Unauthorized management; arises whenever a person voluntary takes charge of the agency or
management of another’s abandoned business or property without the latter’s authority

ARTICLE 1161- Civil obligations arising from criminal offenses shall be governed by the penal laws,
subject to the provision of Article 2177, and of the pertinent provisions of Chapter 2, Preliminary Title,
on Human Relations, and of Title XVIII of this Book, regulating damages. (1092a)

Every person criminally liable is also civilly liable

Ex. If a person kill, s/he is criminally liable at the same time civilly liable, civilly liable because s/he has
the damages. S/he have actual, nominal, and exceptary damages.

IS EVERY PERSON CRIMINALLY LIABLE IS ALSO CIVILLY LIABLE ABSOLUTE?

-No, if the offender is insane or mentally ill
-No, if the offender died
-It is not absolute when the other party did not file a case to the offender
-There’s no criminally liable and civilly liable when the person who committed a criminal act is already
dead except when you have family or relative, they will give the remaining assets of the suspect or
they will pay the liabilities.

If the offender is acquitted s/he is no loner criminally liable but can be considered civilly liable for
the damages
-exemption of civilly liable when the person died or walang pamilya

Civil liability- you are obliged to pay for the damages because someone is hurt or the property is
damage, or there family is hurt by your actions or words.

WHAT IS INCLUDED IN CIVIL LIABLITY

1. RESTITUTION- to restore
-if we borrow a thing and we accidentally destroy it the we have the obligation to restore the thing to
its old appearance.

2. REPARATION OF THE DAMAGE COST- to repair

-if we borrow a thing and we accidentally destroy it then we have the obligation to repair it.
3. INDEMNICATION OF CONSEQUENTIAL DAMAGE
-it is synonymous to compensation/paying
-if we accidentally lost the thing that we borrow, then we are obliged to replace it or pay it.

ARTICLE 1162- Obligations derived from quasi-delicts shall be governed by the provisions of Chapter
2, Title XVII of this Book, and by special laws (1093a)

ARTICLE 1163- Every person obliged to give something is also obliged to take care of it with proper
diligence of a good father of a family, unless the law or the stipulation of the parties requires another
standard of care (1094a)

-a person is obliged to take care of something entrusted by him/her.

-for example, binigyan ka ng ring para ibigay kay B, then you are obliged to take care of it with a
proper diligence of a good father of a family. If you misplaced the objectt then you are liable for that,
you have to replace it or you have to pay it.

Obligations of one obliged to give something

1. Preserve the thing- you need to protect the thing na ipinagkatiwala sa’yo against any harm/danger
in order for it not to be damage or lost because if it is lost/damage then you are liable for that.
Hangga’t nasasaiyo ang isang bagay na ipinagkatiwala kelangan mo itong pangalagaan.
2. Deliver the thing- you need to deliver the thing because you are the courier

ARTICLE 1164- The creditor has a right to the fruits of the thing from the time the obligation to deliver
it arises. However, he shall acquire no real right over it until the same has been delivered to him.
(1095a)

Fruits- services, actions, assets

-Ownership over the thing though, is only required when such an object is delivered to him
-Masasabi mo lang na saiyo ang isang bagay kapag naideliver na ito saiyo

Example:
Anne sold her dog to Janine for 15,000 pesos and while in the possession of Anne, the dog gave birth
to a puppy in which Janine is is the one entitled to the puppy if Janine has already paid the amountof
15,000 pesos to Anne.

PERSONAL RIGHT- right against the debtor- to give, to do, or not to do

REAL RIGHT- right against the whole world

Example:
1.If Anne was a creditor to a house and Janine was the debtor and both agreed that the payment for
the rent of the house would be monthly. Janine upon paying is what we call REAL RIGHT. But upon
Anne expecting Janine to pay every month is what we call PERSONAL RIGHT

ARTICLE 1165- When what is to delivered is a determinate thing, the creditor, in addition, to the right
granted him by Article 1170, may compel the debtor to make the delivery.

If the thing is indeterminate thing, he may ask that the obligation be complied with at the expense of
the debtor

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not
have the same interest, he shall be responsible for any fortuitous event until he has effected the
delivery (1096a)
DETERMINATE THING
-particularly designated or physically segregated from all others at the same class
-the thing is specific, the thing said is with full details or description
-we can easily determine the thing
-all details are said
-Ex. Black ballpen panda .5, Blue corner white t-shirt round neck size small

INDETERMINATE THING
-not particularly designated or physically segregated from all others of the same class
-the opposite of determinate thing
-the thing is not specific
-Ex. Laptop, T-shirt, Cellphone

Remedies of the creditor when the debtor fails to perform his obligation
A. obligation to deliver a determinate thing
1. to compel the debtor to make the delivery- to ask the debtor to deliver the thing/as the
debtor to deliver the object of obligation
2. to demand damages-

B. Obligation to deliver a generic or indeterminate

1. to ask that the obligation be complied with at the expense of the debtor
2. to demand damages- you have the right to demand for the damages because s/he violated
the terms and condition of a contract

FORTUITOUS EVENT- unforeseen events, though foreseen were inevitable

ARTICLE 1166- The obligation to give a determinate thing includes that of delivering all its accessions
and accessories, even though they may not have been mentioned. (1097)

Gen. Rule :
Obligation to deliver the object includes with it the accessories and accessions.

Exception to the Rule:

a. Required by law
b. Exclusion is expressly stipulated by the parties.

Accession- it includes everything which is produced by a thing or is incorporated or attached there to

either naturally or artificially
Ex. Alluvial deposits, keys of house and lot- accessory

Accessory- things which are attached or joined to another thing by way or ornament or fir its use or to
render it more perfect.

ARTICLE 1167- If a person obliged to do something fails to do it, the same shall be executed at his cost

The same rule shall be observed if he does it in contravention of the tenor of the obligation.
Furthermore, it may be decreed that was has been poorly done be undone. (1098)

-an obligation to do, example to perform an act or to render service. It contemplates three situations
whereas the debtor fails to perform an obligation to do, perform obligation to do but contrary to the
terms thereof, and performs an obligation to do but in a poor manner.
-Creditors right against the debtor in an obligation to do something
a. if the debtor fails to perform his obligation
1. the creditor may have the obligation performed by himself or a third person at the expense of
the debtor
2. to demand damages- any negligence of the debtor has punishments/we demand the payment
of damages

b. if the obligation is performed in contravention of the tenor of the agreement

1. the creditor may charge the expenses of the execution against the debtor
2. to demand damages

c. if the obligation has been poorly done

1. the creditor may ask that it be undone at the debtors expense
2. to demand damages

ARTICLE 1168- When the obligation consists in not doing, and the obligor does what has been
forbidden him, it shall also undone at his expense.

-Not to do a certain thing or act. The thing done or act performed shall be undone at the expense of
the obligor. Damages may be claimed against him.
Example: In a contract of lease of house, the lessee obligated himself not to make any improvements
without the consent of the lessor.

Creditors right against the debtor if the debtor does what has been forbidden to him
1. to ask it to be undone at the debtors expense-
2. to demand damages-

DURA LEX SED LEX- the law is harsh but that is the law
VOX POPULI, VOX DEI- the voice of the people is the voice of god

ARTICLE 1169- Those obliged to deliver or to do something incur in delay from the time the obligee
judicially or extra judicially demands from them the fulfillment of their obligation.

DELAY- nonfulfillment of obligation with respect to time.

When is delay incurred?

-Delay is incurred when the obligee/creditor judicially or extra judicially demands the fulfillment of an
obligation.

-Avoid delay, do the obligation on time.

Obligee/Creditor- they are considered as active subject,

Judicially- incurs order/ incurs intervention.
Extra Judicially- outside court.
Judicial Demand- demand letter coming from the court.

Example
Installment appliances, kapag hindi nabayaran on time magkakaroon ng demand letter and you have
to answer.

ARTICLE 1170- Those who in the performance of their obligations are guilty of fraud, negligence, or
delay, and those who in any manner contravene the tenor thereof, are liable for damages. (1101)
-Talking about the grounds to pay the liablity for damages

Fraud- voluntary and deliberate activate in the fulfillment of obligation to cause damage to another
person/party
-malicious intent to cause damage
-Ex. A and B entered in an agreement that B will provide workers to A (a manpower company)
for 5 years in amount of 10,000,000 million pesos, after 1 year their contract is still okay but after 2
years B doesn’t want to give workers anymore. He pull out those workers that he gave to A and he
give it to C then C is liable because he didn’t finish the contract and he has an intention na wag bigyan
ng workers si A kasi mas mataas ang kikitain niya kay C.

-As a general rule if C has no idea with regard to any matter to A and B contract then C is not liable.
However, if C has a knowledge and he also created a way to destroy A or he is accessory to the crime
then C is liable.

Negligence- without malicious intent to cause damage.

-this is the omission of diligence required.

TWO KINDS OF NEGLIGENCE

1. CULPA CONTRACTUAL- negligence in the performance of a contract.
-There’s a contract
Ex. Taxi driver and the passenger, contract of courage- the taxi driver assures that the passenger
when she arrived at her pointed destination is she is safe. When there’s an accident happened along
with the negligence of the taxi driver then the taxi driver is liable to the passenger.
-the contractual driver should assure that his passenger is safe because if there’s something bad
happened to the passenger then driver is liable
2. CULPA AQUILLANA- negligence committed independent of a contract without criminal intent or
without malicious to cause damage.
-Similar to quasi-delicts.
-There’s no contract.
-Ex. You shouted that there’s a bomb inside the mall and someone has an heart attacked because of
such action that you made then you are liable for that.

Delay- non fulfillment of an obligation with respect to time.

THREE KINDS OF DELAY/DEFAULT

1. Mora Solvendi- delay on the part of the debtor.
2. Mora Accipiendi- delay on the part of the creditor.
3. Compensation Morae- delay of the both parties.

When is delay incurred?

-delay is incurred when the obligee/creditor judicially or extra judicially demands the fulfillment of an
obligation.

Grounds for liability to pay damages

1. Fraud- voluntary and deliberate act to evade the fulfillment of obligation in order to cause damage
to another person/party.
2. Negligence- omission of the diligence required.
3. Delay- non fulfillment of an obligation with respect to time
4. Contravention of tenor of agreement- violation of the agreement/changes the agreement without
notifying the other party, no consent or authorization from other party.

ARTICLE 1171- Responsibility arising from fraud is demandable in all obligations. Any waiver of an
action for future fraud is void.
Fraud- malicious intent to cause damage. There’s intention to cause damage and if there’s intention
to cause damage therefore it is immediately demandable. The offender is automatically liable to pay
damages because there’s intention.

-Things the offender will not do intentionally

-The offender knows already what he will do. The offender know that hindi siya tutupad sa pinag-
usapan/di siya tutupad sa pangako niya.
-you cannot reduce damages.
-If the other party did not do his job intentionally then you can ask to pay for the damages
immediately.

Ex. A and B had an agreement that B will provide workers sa mall and A already paid, after few
months of their contract B did not give workers because B wants the mall to be destroy because mas
malaki yong kita niya sa kabilang mall. Then A has the right to demand for the damages because the
intention is there. There’s intention to cause damage.

Any waiver of an action for future fraud is void.

Future fraud- voluntary and deliberate activate in the fulfillment of obligation to cause damage to
another person.
-void/not valid
- defend for future scammers

-This will be the defense for those people who will become scammers.
”In case I haven’t do/done my obligation wala na akong magiging penalty”- You cannot add this in any
contract.
-Hindi mo pwedeng ilagay sa isang contract na kapag hindi mo nagawa ang isang bagay ay wala ka ng
penalty/charges.
-Kahit nakalagay ang future fraud sa contract can still considered void/not valid.

ARTICLE 1172- Responsibility arising from negligence in the performance of every kind of obligation is
also demandable, but such liability may be regulated by the courts, according to the circumstances.
(1103)

-Demandable
Negligence- no malicious intent to cause damage.
-maybe regulated by the court (the court can reduce the damage/liability because the
act is not intended)
-court can lessened the liabilities if the act is unintentionally.

Difference between FRAUD and NEGLIGENCE

-Fraud is an intentional to cause damage while Negligence is not an intentional to cause damage
-In responsibility to Fraud we cannot reduce the damages/liabilities however responsibilities arising
from Negligence the court can reduce the liabilities because it is not an intended act to cause damage

ARTICLE 1173- The fault or negligence of the obligor consists in the omission of that diligence which is
required by the nature of the obligation and corresponds with the circumstances of the persons, of
the time and of the place. When negligence shows bad faith, the provisions of Articles 1171 and 2201,
paragraph 2, shall apply.

If the law or contract does not state the diligence which is to be observed in the performance, that
which is expected of a good father of a family shall be required. (1104a)

-Proper diligence of a good father of the family

-We must use proper diligence of a good father of the family if it is not mentioned in the terms and
conditions of a contract but if it is written or you and the other party agreed that ordinary standard of
care then that will be used but if it is not mentioned there and wala ring sinabi ang batas then
automatically we will folow the proper diligence of a good father of the family. However if the law
said that extraordinary standard of care then we will follow that.

-We must follow proper diligence of a good father because once we failed to observe the proper
diligence that will lead you to damages. You will be liale to pay for the damages because we did not
follow the proper diligence.

ARTICLE 1174- Except in cases expressly specified by the law, or when it is otherwise declared by
stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be
responsible for those events which could not be foreseen, or which, though foreseen, were inevitable.
(1105a)

Fortuitous Event- unforeseen events/through foreseen, they are inevitable.

-unavoidable (e.g natural calamities)

Example
-If the death of the horse is caused by thunderstorm. The death of the horse extinguishes the
obligation because of the fortuitous events.
-Kapag ang ipinagkatiwala sayo ay namatay sa isang fortuitous event hindi mo na sagotin iyon,
provided that the debtor exerted proper diligence of a good father of the family.
-Kapag namatay ang ipinagkatiwalang hayop sayo dahil sa fortuitous event hindi mo na kasalanan iyon
-If the horse died because of fortuitous event then it’s not your fault anymore
-If you are the debtor and the horse died because unforeseen event then you’re not liable for that
because the death of the horse is due to fortuitous events

What if there is delay on the part of the debtor and nagkaroon ng fortuitous event. Is the debtor
liable?
-The debtor is liable because he delayed to do his obligation and is liable for damages.

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)

Pure Obligation- without a term nor subject to a condition are immediately demandable
Ex. Promised to give you 10,000 pesos.

Conditional Obligation- with a condition

Ex. I obliged myself to give you 10,000 pesos if you kiss Camille.

TWO KINDS OF CONDITIONAL OBLIGATION

1. Suspensive Conditional Obligation- is a condition that suspense the effectivity of the obligation
until the condition is fulfilled.
Ex. He obliged himself to give me 10,000 pesos but I should pass the CPA examination first.
-There must “SHOULD” in the sentence.
-The obligation is not immediately demandable because the other person must fulfill the obligation
first before they demand the object of obligation.
-We need to fulfill the condition first before we demand the object of obligation.

2. Resolutory Conditional Obligation- a conditional obligation which extinguishes the obligation upon
the happening of the condition.
-There must ‘UNTIL’ in the sentence
-After the condition the obligation is extinguish
-If the condition is fulfilled then that extinguishes the obligation.
-The obligation is immediately demandable because we have to deliver thing promised. You have to
edliver the thing you promised to reward
Ex. A obliged himself to give B a cellphone until B passed the CPA examination
-the phone is immediately demandable, after A promised to give a cellphone then B has the right to
demand for the delivery of the cellphone. After B passed the CPA examination then that’s the time B
will return the cellphone to A because the law provides under the resolutory conditional obligation
that it extinguishes the obligation upon the happening of the condition
-The phone is immediately demandable then it will be returned to the person who gave it after the
condition is done or fulfilled.

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.

-Permit him, it depends on the debtor if when will she pay. It depends on him kung kailan siya
magkakapera at kung anong date siya makakabayad
-nanggagaling sa debtor kung kailan siya makakabayad. If s/he said “I wil pay you on December 25,
2022” then with that we have a period/time. We will determine the specific date for that.
-The other party has the right to pay the set amount because that’s his promised. There’s a specific
date and time, this fall in under obligation with a period.
-If the condition is with time and date this falls in under obligation with a period.
-OBLIGATION WITH A PERIOD- it talks about specific date, time, and day kung kailan gagawin ‘yong
obligation.

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.

-It talks about conditional obligation, upon the happening of the condition. If the other party didn’t
fulfilled the obligation then he cannot demand for the delivery of the object/reward. You need to
fulfill the condition first before you demand for the reward. However, if you didn’t fulfill the condition
then you cannot demand for the reward even if the other party promised because according to Article
1181 “shall depend on the happening of the event which constitutes the condition”

Art. 1182. When the Fulfillment of the condition depends upon the solve will of the debtor, the
conditional obligations shall be void. If it depends upon chance or upon the will of a third party, the
obligations shall take effect in conformity with the provision of this code.

KINDS OF CONTIONAL OBLIGATION

1.Potestative Condition- depends solely upon the will;
-Ex. A promised to give B 50,000 if B will bald his hair

2.Casual Condition- depend solely by chance;

-One which depends on upon chance or other factors, and not upon the will of the contracting parties
-Depends upon the chance
-It is a condition given by chance (There’s IF, IF EVER, ETC)
-Ex. I will give you a cellphone if I win a major prize in Lotto tomorrow.

3.Mixed Condition- a will of the other contracting parties and other circumstances, including the will
of a third person
-A contract agreed upon both parties including another third party
-Ex. A will give B Php 30,000 if B will marry C
Article 1183. Impossible conditions, those contrary to the good customs or public policy and those
prohibited by law shall annul the obligation which depend upon them. If the obligation is divisible,
that part thereof which is not affected by the impossible or unlawful condition shall be valid.

Impossible Condition- the condition imposed is not capable of being capable of being performed
physically.
Ex. I will give you 10,000 if you could turn the glass into gold
I will give you 10 million pesos if you could turn my short hair into long now.

Illegal or Illicit Condition- when the condition imposed is contrary to law, good custom or public
policy.
Ex. I will give you 10,000 pesos if you destroy the Catholic church.
I will give you 10,000 pesos if you kill Marie.

I WILL GIVE YOU 10,000 PESOS IF YOU’LL MARRY MR. MONTERO AND I WILL GIVE YOU ANOTHER
10,000 PESOS IF YOU’LL MRS. MONTERO
-Both of the example condition is impossible because with first condition Mr. Montero has a wife and
with second condition is illegal, killing is illegal.

I WILL GIVE YOU 10,000 PESOS IF YOU CLEAN MY HOUSE AND ANOTHER 20,000 IF YOU’LL JOIN ME
WITH USING SHABU/MARIJUANA
-First condition is possible because cleaning a house is valid but with the second condition is
impossible because using shabu/marjuana is illegal.
-If the condition is valid other party can do it so that they can get the promised reward but if the
condition is illegal/invalid then the other party can decide whether they want to do it or not.

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 that the event will not take
place.
Positive Condition- refers to the fulfillment of an event or performance of an act.
Ex. I will give you a car if you marry X on Dec. 10, 2022 (if december 10, 2022 comes and he still not
married X then that extinguishes the obligation)

Article 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.I

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)

Negative Condition- refers to the non fulfillment of an event

Ex. I will give you a car if you will not marry X on Dec. 10, 2022 then the condition is fulfilled and
then a person can now ask for the object of obligation/promised reward
(if a person marry X before Dec. 10, 2022 then that extinguishes the obligation)

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

Article 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.

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)

Article 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 has paid by mistake in case of suspensive
condition.

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.

The provision of this article apply only to:

Obligations to deliver a determinate or specific thing.

In case the suspensive condition is fulfilled.

What can happen to the thing during the pendency of the condition?

Loss of the thing- it is understood that thing is lost when it perishes, goes out of commerce of man,
or disappear in such a way that existence is unknown or it cannot be recovered.

Deterioration of the thing- a thing deteriorates when its value is reduced or impaired which not
amount to total loss. In other words the thing still exist at the time the condition is fulfilled.

Improvement of the thing- a thing is improved when its value is increased or enhanced by nature
or by time or at the expense of the debtor.

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

(2)If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is
understood that the things 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.

SC,Honda civic model 2016 with plate number AA 1111, SC obliged himself to give the
determinate car to CD,if CD passes the bar exam in November. but during the pendency of the
condition the car was lost through the fault of SC, in this case the obligation is extinguished. But if
it is lost through the fault of SC, he is obliged to pay the damages to CD

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

SC, House and lot at Brgy.Mapagmahal 1000 sq.m worth 1M, SC obliged himself to give the
specific house to CD, if CD marries AT. During the pendency of the condition the house was
partially damaged by an earthquake, in this case the impairment is to be borne by CD. But if it
deteriorates through the fault of SC, SC may choose between the recission or cancellation of the
obligation and its fulfillment, with indemnity for damages in either case.

(5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of
the creditor.

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

For example the market value of the car increased. Who will be benefited? the improvement shall
inure to the benefit of the creditor. But if it is improved at the expense of the creditor, he shall have
no other rights than that granted to the usufructuary or the right to enjoy the property.

Article 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.