C.

Different Kinds of Obligations

Kinds of obligation includes:

 Pure and Conditional obligations
 Obligations with a period
 Alternative obligations
 Joint and solidary obligations
 Divisible and indivisible obligations
 Obligations with a penal clause

Pure Obligations
If the obligation is not subject to a period or condition. Period is future and certain event.

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.

There is room for uncertainty in periods. This is because it is known that the period is going to
happen BUT we will not know when it is going to happen ex. Death. A case when it would happen,
but it is certain that the event will happen.

It is a certain event that will happen but the happening of such or exact date thereof is not known.

Conditional Obligations
If the obligation is subject to a future and uncertain event.

Different if the event upon which the obligation is hinged is who between A and B will die
first. thrust here is no longer the fact of death taking place, but which of them dies first. It
becomes then a future and uncertain event, a condition.

In this case, It is not the occurrence of death which is the incident constituting the condition
or period. It is only an element. What we are looking here is who would die first.
Uncertainty lies with the order.

If there is a condition or period in the obligation:

 If the period and condition are suspensive in character: Condition suspends both
effectivity and demandability of the obligation. Period will only suspends the demandability
of the obligation, but it has no effect on the effectivity of the obligation.

 If the period and condition is resolutory: it will have no relation to the creation or
demandability of the obligation because in both cases, the obligation is already existing and
demandable. It will only affect the existence of the obligation in so far as extinguishment is
concerned.
Note: YES, it is possible that a past event will be constituted as a condition. The past event may be a
condition if the same is unknown to the parties. What actually constitutes the condition is the
acquisition of the knowledge of the parties of the happening of the past event.

If payment is made before it is due in an obligation with a period, there is an obligation to

recover what has been given plus fruits and interest. However, there is no counterpart provision in
a suspensive condition. But, even if there is no counterpart provision, the rules on solutio indebiti
will be applicable.

Different classes of conditions:

1. Suspensive and Resolutory
2. Potestative, casual, mixed
3. Possible and impossible
4. Positive and negative
5. Divisible and indivisible
6. Conjunctive and disjunctive
7. Joint and solidary
Note: Enumeration is not mutually exclusive. There can be different combinations of conditions.

1. Suspensive and Resolutory

Suspensive
GR:
Article 1186. The condition shall be deemed fulfilled when
the obligor voluntarily prevents its fulfillment.
Exception: The condition will not be deemed fulfilled if the debtor acts out of the enforcement of
his right.

Rights and obligations of the parties in a suspensive condtion:

Before fulfillment, we do not have an obligation to speak of. The right of the creditor is only
inchoate. Thus, he cannot demand fulfillment of the obligation. However, the creditor is not
completely powerless. The creditor may take appropriate actions to protect his right.

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 he has
paid by mistake in case of a suspensive condition.

Ex. In reserva troncal, the reservatarios must survive the reservista. The rights of the reservatarios
are subject to the a suspensive condition – reservatarios shall survive the reservista. The reservista
acquires full ownership of the property, thus may dispose of the property. The 3rd person who
would acquire the property would acquire it subject to reserva troncal.

The problem would arise if we are dealing with a registered property. Under our torrens system,
the buyer in good faith would have to rely on what appears of the title. If the buyer is in good faith
and has no knowledge about the reserva affecting the titled property and title does not show that it
is subject to reserva troncal, the buyer can acquire the property free of the lien imposed by the
reserva truncal. Thus, the reservatarios must ask the Register of Deeds for the annotation of his
rights on the title of the property.
 Rules in case of loss, deterioration or improvement of the
object during the pendency of the obligation

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:
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 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;
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;
5. If the thing is improved by its nature, or by time, the
improvement shall inure to the benefit of the creditor;
6. If it is improved at the expense of the debtor, he shall
have no other right than that granted to the
usufructuary.

(Loss) A thing is considered loss when it perishes, or goes out of commerce, or disappears in such a
way that its existence is unknown or it cannot be recovered.

Rights given to the usufructuary:

1. Debtor cannot ask for reimbursement of his expenses;
2. Debtor has a limited right of removal
3. Debtor may set off improvements against any damage he caused
The Court shall determine the rules to obligation to and not to do.

Effect if the suspensive condition is fulfilled: It will give rise to the birth of the obligation.

We consider the obligation to be existing upon the constitution of the obligation because we
recognize the rule of retroactivity under Art. 1187. Provision provides that 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.
Reason for this rule: Condition is only accidental to the obligation. Had the parties known
beforehand that the condition would be fulfilled, they would have bound themselves under a pure
obligation.

As for the fruits and income received by debtor during the pendency:
 In case of reciprocal obligation, the fruits and interests are deemed mutually compensated.
  In case of unilateral obligation, the debtor owns the fruits and interests because the
obligation is gratuitous, unless from the nature and circumstances of the obligation it can be
inferred a different intention was intended by parties.
 In case of obligations to do and not to do, the court will determine.

Resolutory
The happening of the condition will terminate the obligation.

2. Potestative, Casual, mixed

Prohibited: when potestative and suspensive condition is dependent of the will of the debtor.
Potestative condition is one which is dependent on the will of the parties. It is only when the
potestative condition is dependent on the will of the debtor that is prohibited when
combined with a suspensive condition.

3. Possible and impossible conditions

The imposition of an impossible condition will NULLIFY the obligation.

Difference of imposition of impossible condition in wills and obligation: If an impossible condition

is imposed on a testamentary disposition, the same will only be deemed as not imposed.
However, if it is imposed in an obligation, it will nullify the obligation. This is because in
testamentary dispositions, even if the condition is removed, there would still be something which
would support the consideration of the donation-liberality of the donor. However, in ordinary
obligations, condition forms part of the obligation.

Note: The IMPOSSIBILITY should exists at the time of the constitution of the condition.
 If the impossibility takes place after the constitution of the condition, it will not affect the
validity of the obligation, but it will simply extinguish the same thing (extinguished, but it
may still have consequences unlike if from the very beginning it is already void from the
start.)