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Art 1179-1188 (With Explanation) (AutoRecovered)
Art 1179-1188 (With Explanation) (AutoRecovered)
Sec. 1. - Pure and Conditional Obligations What is really contemplated by the law is the
knowledge to be acquired in the future of a past event
ART. 1179. EVERY OBLIGATION WHOSE PERFORMANCE which at the moment is unknown to the parties
DOES NOT DEPEND UPON A FUTURE OR UNCERTAIN interested, for it is only in that sense that the event can
EVENT, OR UPON A PAST EVENT UNKNOWN TO THE be deemed uncertain. This knowledge determines
PARTIES, IS DEMANDABLE AT ONCE. whether the obligation will arise or not.
Example:
EVERY OBLIGATION WHICH CONTAINS A RESOLUTORY Sean is the owner of a parcel of land which is
CONDITION SHALL ALSO BE DEMANDABLE, WITHOUT being claimed by X. Last week, the Supreme Court has
PREJUDICE TO THE EFFECTS OF THE HAPPENING OF rendered a final decision upholding the right of Sean.
THE EVENT. However, Sean has not yet received the notice that he
had won the case. Now, Sean obliged himself to sell the
Pure Obligation- one whose effectivity or land to B for a definite price, should he win the case
extinguishment does not depend upon the fulfillment against X.
or non-fulfillment of a condition or upon the expiration Under the facts, Sean would be bound to sell
of a term or period. the land to B upon receipt of the notice that he had won
the case against X.
Elements of a Pure Obligation:
a) Not subject to a condition Explanation: Now there are actually two principal kinds
b) Not subject to a term/period of Condition pabalik balik tayo dito mamaya so dapat i-
Characterized by the quality of immediate master na since almost all articles is involved ito.
demandability, but there must be a reasonable Suspensive or Resolutory.
period of grace.
Two Principal Kinds of Condition
Example:
Pogi promise to deliver his specific to Ganda Suspensive condition
Ganda promise to give pogi 10,000 on demand. • (Condition precedent/antecedent)
• Fulfillment of the condition will give rise to an
Conditional Obligation obligation.
one whose consequences are subject in one • Demandability of the obligation is suspended
way or another to the fulfillment of a condition. until the happening of a future and uncertain
Effectivity is subject to the fulfillment of a event which constitutes the condition
condition. • The birth, perfection or effectivity of the
contract subject to a condition can take place
Example: only if and when the condition happens or is
Pogi promises to give a car to Ganda if she passes the fulfilled.
board exam. • If the suspensive condition does not take place,
the parties would stand as if the conditional
Condition - a future and uncertain event, upon the obligation had never existed.
happening of which, the effectivity or extinguishment of • There can be no rescission of an obligation that
an obligation (or rights) subject to it depends. is still non-existent, the suspensive condition
not having been fulfilled
Supposed I will give 10,000 to Anna and it was lost Pag walang fault si debtor tapos partial loss
without my fault because it was robbed, despite having (deterioration) si creditor ang magsusuffer.
security guards and putting it in a safe. Is my obligation
to give 10,000 to Anna extinguished? No, because (4) Deterioration of thing through debtor’s fault
money is generic, and a generic thing never perishes so I Example:
am still obliged to give 10,000 to Anna. (Generic thing is In this case, B may choose between:
a class or species that is unsegregated, undivided and a) Rescission (or cancellation) of the obligation
without any particularity. Generic thing never perishes, with damages [in this case, X is liable to pay Y
therefore it can never be extinguished) P100,000, the value of the car before its
deterioration plus incidental damages]
b) Fulfillment of the obligation with damages [In (1) In obligations to give – When the resolutory
this case, X is bound to Y to give the car and pay condition in an obligation to give is fulfilled, the
P10,000 plus incidental damages obligation is extinguished and the parties are
obliged to return to each other what they have
(4) If it deteriorates through the fault of the debtor, received under the obligation.
the creditor may choose between the rescission of the a. There is a return to the status quo. In
obligation and its fulfillment, with indemnity for other words, the effect of the
damages in either case fulfillment of the condition is
retroactive.
(5) Improvement of thing by nature or by time – a b. In case the thing to be returned is
thing is improved when its value is increased or legally in the possession of a third
enhanced by nature or by time or at the expense of the person who did not act in bad faith, the
debtor or creditor. remedy of the party entitled to
restitution is against the other.
Example:
c. The obligation of mutual restitution is
Suppose the market value of the car increased, who
absolute. It applies not only to the thing
gets the benefit?
received but also to the fruits and
interests.
The improvement shall inure to the benefit of Y. In as
d. In obligations to give subject to a
much as Y would suffer in case of deterioration of the
suspensive condition, the retroactivity
car through a fortuitous event, it is but fair that he
admits exceptions according as the
should be compensated in case of improvement of the
obligation is bilateral or unilateral.
car instead.
The reason for the difference is quite plain. The
(5) If the thing is improved by its nature, or by time,
happening of the suspensive condition gives birth to the
the improvement shall inure to the benefit of the
obligation. On the other hand, the fulfillment of the
creditor
resolutory condition produces the extinguishment of
the obligation as though it has never existed. The only
(6) Improvement of thing at expense of debtor.
possible exception is when the intention of the parties is
Example: otherwise.
During the pendency of the condition, X had the car
painted and its seat cover changed at his expense. EXAMPLE:
In this case, X will have the right granted to a
usufructuary with respect to improvements made on D obliges himself to allow C to use the former’s car until
the thing held in usufruct. D returns from the province. Upon the return of D from
the province, C must give back the car.
Usufruct – is the right to enjoy the use of fruits of a
thing belonging to another The effect of the happening of the condition is to annul
the obligation as if it had never been constituted at all.
(6) If it is improved at the expense of the debtor, he In this case, the parties intend the return of the car.
shall have no other right than that granted to the
usufructuary. (2) In obligations to do or not to do. — In some
obligations, the courts shall determine the
If the debtor installed several rare parts, in short debtor retroactive effect of the fulfillment of the
ang nag improve. What would happen? Walang resolutory condition (par. 2.) as in the case
Karapatan yung debtor over the improvements, hindi where the condition is suspensive. (Art. 1187,
niya pwedeng tanggalin, he’s only granted the par. 2.) The courts in the exercise of discretion
usufructuary (pinapagamit mo sa iba yung gamit mo or may even disallow retroactivity taking into
enjoyment of using other people’s property) account the circumstances of each case.
Article 1190: When the conditions have for their Applicability of Article 1189 to party with obligation to
purpose the extinguishment of an obligation to give, return.
the parties, upon the fulfillment of said conditions,
shall return to each other what they received. In the example above, D is the debtor and C, the
creditor, pending fulfillment of the resolutory condition
In case of loss, deterioration or improvement of the — the return of D from the province. Upon the
thing, the provisions which, with respect to the debtor, happening of the condition. D becomes the creditor
are laid down in the preceding article shall be applied with a right to demand the return of the car and C, the
to the party who is bound to return. debtor, with the obligation to return the car.
As for obligations to do and not to do, the provisions Stated in another way, the happening of a resolutory
of the second paragraph of article 1187 shall be condition has the same effect on the creditor as the
observed as regards the effect of the extinguishment suspensive condition has, on the debtor — an obligation
of the obligation. arises. The fulfillment of the resolutory condition
converts the creditor into debtor, and the debtor into
Effects of fulfillment of Resolutory condition.
creditor. Hence, the applicability of the provisions of EXAMPLES: Donation; In a contract of loan, the lender
Article 1189 in case of loss, deterioration, or has the obligation to give. After the lender has complied
improvement of the thing; and pending the fulfillment with his obligation, the debtor has the obligation to pay.
of the condition, the parties are entitled to the rights
granted by Article 1188. (2) Bilateral. — when both parties are mutually bound
to each other. In other words, both parties are debtors
I’ll give you my car, and you’ll give me wifi if you and creditors of each other. Bilateral obligations may be
graduate. In resolutory kapag nafulfill na yung condition reciprocal or non-reciprocal.
mag rereturn na ng mga gamit.
(a) Reciprocal obligations are those which arise from the
I’ll give you my car if you give me your phone if you pass same cause and in which each party is a debtor and
the oblicon exam. Supposed that you passed the oblicon creditor of the other, such that the performance of one
sub what would happen? Nothing, because it’s a is designed to be the equivalent and the condition for
suspensive condition and not a resolutory condition, it’s the performance of the other. The general rule is that
not subject to Article 1190. they are to be performed simultaneously or at the same
time such that each party may treat the fulfillment of
PAR 2. (preceding article) what is incumbent upon the other as a suspensive
condition to his obligation (see Art. 1169, last par.), and
Supposed that Ronielyn, a serial gambler, we entered its non-fulfillment, as a tacit or implied resolutory
into an obligation, that I will give her a land now condition, giving him the right to demand the rescission
provided that she will not go to any casino or gambling of the contract, i.e., it may be exercised even if it is not
station. After a month, pumasyal siya sa casino. Yan ba provided in the agreement of the parties.
ay extinguishing the obligation. Maeextinguish yung
obligation and ibabalik yung land. Can she claim that EXAMPLE: In a contract of sale in the absence of any
she’s the owner of the land for that month na tumira stipulation, the delivery of the thing sold by the seller is
siya doon. conditioned upon the simultaneous payment of the
purchase price by the buyer, and vice versa.
Habang nakatira siya doon, inani niya yung mga prutas
at gulay na andoon, amounting to 5,000 pesos. With the The seller is the creditor as to the price and debtor as to
obligation extinguished, what will happen to the fruits? the thing, while the buyer is the creditor as to the thing
When the obligation is extinguished, due to the and debtor as to the price.
happening of the event, the fruits and interest will go
back to the creditor, why? Because as if there’s no (b) Non-reciprocal obligations are those which do not
obligation that took place. Kung walang obligation then impose simultaneous and correlative performance on
that earnings sana will go to the creditor’s income, so both parties. In other words, the performance of one
the debtor have to return it. party is not dependent upon the simultaneous
performance by the other
ARTICLE 1191: The power to rescind obligations is
implied in reciprocal ones, in case one of the obligors EXAMPLES:
should not comply with what is incumbent upon him.
(1) D borrowed from C P50,000.00. C, on the other
The injured party may choose between the fulfillment hand, borrowed D’s car. The performance by D of his
and the rescission of the obligation, with the payment obligation to C is not conditioned upon the performance
of damages in either case. He may also seek rescission, by C of his obligation and vice versa.
even after he has chosen fulfillment, if the latter
should become impossible. Although D and C are debtors and creditors of each
other, their obligations are not reciprocal. The
The court shall decree the rescission claimed, unless obligation of D arises from the contract of loan, while
there be just cause authorizing the fixing of a period. that of C, from the contract of commodatum. The
obligations are not dependent upon each other and are
This is understood to be without prejudice to the rights not simultaneous. Article 1191 applies only if the
of third persons who have acquired the thing, in reciprocity arises from the same cause.
accordance with Articles 1385 and 1388 and the
Mortgage Law. (2) The contract between S and B states: “In the event S
exercises the right to repurchase [land sold by S to B] x x
Power to rescind the obligation x and becomes the owner of the premises, he shall be
obliged to give B the right of lease and execute a lease
Kinds of obligation according to the person obliged. contract.”
(1) action for specific performance (fulfillment) of The right to rescind by the injured party (the one who
the obligation with damages; or has performed what is incumbent upon him) is not
(2) action for rescission of the obligation also with absolute. It is always provisional, i.e., contestable and
damages. subject to scrutiny and review by the courts.
EXAMPLE:
In a contract of sale of a car between S and B, it (1) Resort to the courts. — The rescission contemplated
was agreed that S, the owner, would deliver the car and by Article 1191 is a judicial rescission. (par. 3.) The
the necessary document duly signed by him to B at the injured party has to resort to the courts to assert his
house of C on December 1, and B would deliver the rights judicially (e.g., to recover what he has delivered
payment at the same place and on the same date. under the contract) for the same article provides
that . . . “the court shall decree the rescission
If S does not comply with his obligation. demanded, unless there be just cause authorizing the fi
xing of a period.” No person can take justice in his own
(a) B may, in an action for specific performance, hands and decide by himself what are his rights in the
demand the delivery of the car with damages; or matter. The other party must be given an opportunity to
be heard.
(b) B may demand from the court the rescission of the
contract also with damages. (2) Power of court to fi x period. — The court has
discretionary power to allow a period within which a
When a party demands rescission in reciprocal person in default may be permitted to perform his
obligations he, in effect, treats the non-fulfillment by obligation if there is a just cause for giving time to the
the other party of his obligation as a resolutory debtor, as where the default incurred was not willful or
condition. could be excused in view of the surrounding
circumstances.
Court may grant guilty party term for performance.
(3) Right of third persons. — Rescission creates the
The court shall decree the rescission claimed unless obligation of mutual restitution. However, if the thing,
there should be just cause for granting the party in subject matter of the obligation, is in the hands of a
default a term for the performance of his obligation. third person who acted in good faith, rescission is not
(par. 3.) available as a remedy.
Obviously, this exception applies only where the guilty (4) Slight or substantial violation. — The general rule is
party is willing to comply with his obligation but needs that rescission will not be granted for slight or casual
time to do so and not where he refuses to perform. breaches of contract. The violation should be
substantial and fundamental as to defeat the object of
Remedies are alternative. the parties in making the agreement. Thus, in a case, it
was held that delays on four (4) occasions in the
The remedies of the injured or aggrieved party are payment of rentals for a few days substantial violations
alternative and not cumulative, that is, he is privileged in a contract of lease to justify rescission because the
to choose only one of the remedies, and not both, law is not concerned with trifles.
subject only to the exception in paragraph 2, to wit: he
(5) Waiver of right. — The right to rescind may be The injured party has 2 option:
waived, expressly or impliedly. Thus, the acceptance by
Demand specific performance plus damages
the seller of the land sold as security for the balance of
the price is an implied waiver of the right to rescind in Rescission plus damages
case of non-payment by the buyer. His remedy is to
recover the balance. ARTICLE 1192: In case both parties have committed a
breach of the obligation, the liability of the first
Rescission of contract without previous judicial decree. infractor shall be equitably tempered by the courts. If
it cannot be determined which of the parties first
(1) Where automatic rescission expressly stipulated. — violated the contract, the same shall be deemed
The parties, may validly enter into an agreement that extinguished, and each shall bear his own damages.
violation of the terms of the contract would cause
cancellation thereof even without judicial intervention Where both parties guilty of breach. The above article
or permission or termination. This stipulation is in the contemplates two situations.
nature of a resolutory condition. Where the contract
itself contains such a stipulation the right to rescind is (1) First infractor known. — One party violated his
not “implied” but expressly recognized. Hence, Article obligation; subsequently, the other also violated
1191 is not applicable his part of the obligation. In this case, the
liability of the first infractor should be equitably
(2) Where contract still executory. — In the absence of reduced.
stipulation to the contrary, the right to rescind a (2) First infractor cannot be determined. — One
contract must be invoked judicially; it cannot be party violated his obligation followed by the
exercised solely on a party’s own judgment that the other, but it cannot be determined which of
other has committed a breach of the obligation. them was the first infractor. The rule is that the
However, although there is no performance yet by both contract shall be deemed extinguished and each
parties, but one is ready and willing to comply with shall bear his own damages. In effect, the court
what is incumbent upon him, and the other is not (see shall not provide remedy to either of the
Art. 1169, last par.), the willing party may, by his own parties, who must suffer the damages allegedly
declaration, rescind the contract without a previous sustained by them.
judicial decree of rescission. In such case, it is not
necessary that there be a stipulation providing for “The above rules are deemed just. The first one is fair to
automatic rescission. both parties because the second infractor also derived,
or thought he would derive, some advantage by his own
In any case, where the extrajudicial rescission is act or neglect. The second rule is likewise just because it
contested by the other party, he is free to resort to is presumed that both at about the same time tried to
judicial action, and only the final decision of the court reap some benefit.”
can finally settle whether the rescission was proper or
not. Liability ng first infractor will be reduced or equitably
tempered by the court ibig sabihin titimbangin ng court
Reciprocal obligation - obligations that have two parties kung ano yung makatarungan kasi kung hindi nagviolate
being mutually compensated. (i.e. deed of sale: the yung isang party and isa lang yung violator ang dami ng
other person promised to give you 1M, and then you pwedeng remedyo, damages, rescission, specific
promised that person that you will give the item so it’s a performance with damages. Eh kaso nagviolate rin yung
two way) isa edi ang remedy is magbabalance ang court kung ano
yung tama na maging penalty ng first infractor, incase
Unilateral Obligation - are like deed of donation, the however that the first infractor cannot be identified the
donor has the obligation to give you the property but obligation will be extinguished and each of them will
you as the do-nee do not have any obligations to the bear their own damages (for example: Nag infract ako
donor. and nag infract din siya and di alam kung sino nauna
then you will bear your own damages paano kung yung
Question: Si Anna umutang siya kay Jack ng 5k, damage ko 5,000 tapos yung damage niya 1M, each
kinabukasan umutang naman si Jack kay Anna ng 5k. parties would still bear their own damages, even if it’s
Can we call it a reciprocal obligation? No, because it’s unfair.
not reciprocal, remember that a reciprocal obligation
must come from a single event, dapat isa lang yung
usapan, they are mutually obliged to one another but
their obligation is not reciprocal.