ACC 216 – Pointers for the 2nd Exam

Chapter III – Kinds of Obligations

1. Distinguish pure obligations from conditional obligations.

 Pure obligations, under Article 1179, are obligations whose performance does not depend upon any
conditions and no specific date is mentioned for its fulfillment, hence, making it demandable at
one. While, Conditional obligations are obligations where the acquisition of rights, as well as the
extinguishment or loss of those already acquired, shall depend upon the happenings of the event
which constitute the condition and makes the obligation demandable.

2. Define the two (2) types of conditional obligations.

 Suspensive Condition – also known as condition precedent or condition antecedent, is the
happening of which gives rise to the obligation. The demandability of the obligation is suspended
until the fulfillment of this condition.
 Resolutory Condition – also known as condition subsequent, is the happening of which
extinguishes the rights already existing. This condition it similar to pure obligations where it is
demandable at once.

3. Differentiate suspensive condition from resolutory condition:

a. As to the effect of fulfillment, and
 The effect of the fulfillment of suspensive condition activates the demandability of
the obligation. Under Article 1187, there are also retroactive effects for fulfilling
suspensive conditions in obligations to give: (1) In obligations to give, the effects go
back to the day the obligation was created; (2) In reciprocal obligations to give, the
fruits and interest are deemed to have been mutually compensated, hence there are no
retroactive effects; (3) In obligation to do or not to do, there is no set rule on the
application of retroactivity, the courts should use their discretion after taking the
parties' intentions into account. (4) In unilateral obligations, there is no retroactivity
because the obligation is gratuitous in nature, unless the parties intend otherwise.

 The effect of the fulfillment of the resolutory condition extinguishes the obligation
already existing. Under Article 1190, (1) In obligations to give, in the fulfillment of
the resolutory condition, the obligation is extinguished (Article 1181) and the parties
are obliged to return to each other what they have received under the obligation. If
the thing to be return is in the possession of a third party who did not act in bad faith,
the remedy of the party entitled to the restitution is against the other. (2) In
obligations to do or not to do, the provisions of the second paragraph of Article 1187
shall be observed as regards the effect of the extinguishment of the obligation.

b. As to the effect of non-fulfillment.

 The effect of non-fulfillment the suspensive condition is that the obligation or right
will not be created or become effective. However, the effect of non-fulfillment for
resolutory condition is e the obligation or right continues to exist. The possible
effect of non-fulfillment of a resolutory condition is that the obligation or right will
not be extinguished.

4. What are the effects of the fulfillment of suspensive condition in:

 a. Real obligations, and
 Article 1187 states 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.

b. Personal obligations.
 Article 1187 states 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.

5. What are the rights of the parties before the fulfillment of the condition?
a. As to the creditor, and
 According to Article 1188, the creditor may, before the fulfillment of the condition,
bring the appropriate actions for the preservation of his rights.
b. As to the debtor.
 Accordign to Article 1188, the debtor may recover what during the same time he
has paid by mistake in case of a suspensive condition. This is a case of solution
indebiti.

6. What is the effect of LOSS, DETERIORATION & IMPROVEMENT in an obligation to deliver a

determinate thing subject to a suspensive condition?
a. If the loss, deterioration & improvement happened with the debtor’s fault, and
 According to Article 1189, if the thing is lost with the debtor’s fault, 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. In case of deterioration, the creditor may choose between the
rescission of the obligation and its fulfillment, with indemnity for damages in either
case. Lastly, in case of improvements at the expense of the debtor, he shall have no
other right than that granted to the usufructuary.

b. If the loss, deterioration & improvement happened without the debtor’s fault.
 According to Article 1189, thing is lost without the fault of the debtor, the
obligation shall be extinguished. In case of deterioration, the impairment is to be
borne by the creditor. Lastly, If the thing is improved by its nature, or by time, the
improvement shall inure to the benefit of the creditor.

7. What is a Potestative Condition?

 Potestative Condition – is a condition suspensive in nature and which depends upon the sole will of
one of the contracting parties.

8. Determine the validity of the following obligations that are with a suspensive condition:
a. Suspensive potestative condition that exclusively depends upon the will of the debtor.
 The conditional obligation is void, if it is dependent solely on the will of the debtor
and the condition is suspensive in character (Art. 1182). The reason for this is the
validity and compliance is left to the will of the debtor (Article 1308) and it cannot,
therefore, be easily demandable. However, if the obligation is a pre-existing one,
and therefore, does not depend for its existence upon the fulfillment by the debtor of
the potestative condition, only the condition is void. Here, the condition is imposed
not on the constitution of the obligation but on its fulfillment.
 b. Suspensive potestative condition that exclusively depends upon the will of the creditor.
 If it is dependent exclusively upon the will of the creditor, it is considered as a valid
conditional obligation (Article 1182).
c. Resolutory potestative condition.
 If the condition is resolutory in nature, the obligation is valid although its fulfillment
depends upon the sole will of the debtor (Article 1182). The fulfillment of the
condition merely causes the extinguishment of the obligation (Article 1181), hence,
the debtor is naturally interested in it fulfillment.

9. What are impossible conditions?

 Impossible conditions are conditions that cannot be fulfilled either physically or legally. The
impossible conditions shall annul the obligation which depends upon them. If the obligation is
divisible, that part thereof which is not affected by the impossible or unlawful condition shall be
valid (Article 1183).

10. Define obligations with a period.

 Obligation with a period is one whose effects or consequences are subjected in one way or another
to the expiration or arrival of said period or term (Article 1193).

11. What are the requisites of a valid period or term?

 The requisites of a valid period or term are:
1. It is happening in the future
2. It is certain
3. It is not an impossible condition

12. Distinguish an obligation with a condition from an obligation with a term.

 An obligation with a condition in terms of fulfillment, fulfillment is an uncertain event. However,
for obligation with a term, fulfillment is a certain event. In terms of time, obligation with a
condition may refer to past events unknown to the parties, while obligation with a term refers only
to the future. In terms of influence on the obligation, the obligation with a condition causes an
obligation to arise or to cease. But obligation with a term merely fixes the time for the
efficaciousness of the oblige. As for effect when left to the debtor’s will, obligation with a
condition invalidates or voids the obligation. On the other hand, obligation with a term empowers
the court to fix the duration thereof. Lastly, there is a retroactive effect on obligation with a
condition but none for obligation with a term.

13. What are the kinds of terms?

 The kinds of terms are:
a. According to effect:
i. Suspensive period or Ex die –obligation begins only from a day certain upon the arrival
of period
ii. Resolutory period or In diem – the obligation is valid up to a day certain and terminates
upon arrival of the period.
b. According to source:
i. Legal period – when it is provided for by laws
ii. Conventional or voluntary period – when it is agreed to by the parties
iii. Judicial period – when it is fixed by the court
c. According to definiteness:
i. Definite period – when it is fixed or it is known when it will come.
ii. Indefinite period – when it is not fixed or it is not known when it will come.

14. For whose benefit the period in obligations is established?

 Article 1196 states Whenever in an obligation a period is designated, it is presumed to have been
established for the benefit of both the creditor and the debtor, unless from the tenor of the same or
 other circumstances, it should appear that the period has been established in favor of one or of the
other.

15. What is the effect of a fortuitous event on an obligation with a period?

 As general rule, in case of loss of thing due to a fortuitous event the debtor is not liable (Article
1174).

16. What are the instances where the debtor loses his right to make use of the period?
 Article 1198 states the debtor shall lose every right to make use of the period:
i. When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt;
ii. When he does not furnish to the creditor the guaranties or securities which he has
promised;
iii. When by his own acts he has impaired said guaranties or securities after their
establishment, and when through a fortuitous event they disappear, unless he immediately
gives new ones equally satisfactory;
iv. When the debtor violates any undertaking inconsideration of which the creditor agreed to
the period;
v. When the debtor attempts to abscond.

17. Distinguish Facultative Obligations from Alternative Obligations.

 Facultative obligation is one where only one prestation is due but the debtor may substitute
another (Article 1206). However, Alternative obligation is one where several prestations are due
but the performance of one is sufficient (Article 1206). They differ in number of prestation
because facultative obligation has one prestation although substitution is allowed, while
alternative obligation has several prestations but with compliance with one is sufficient. In terms
of right of choice, in facultative obligation only the debtor has the right of substitution, while in
alternative obligation, the right of choice is given to the creditor or third person. In terms of loss
through fortuitous event, in facultative obligation, the loss of the thing due extinguishes the
obligation, but in alternative obligation loss of one or more alternatives through fortuitous event
does not extinguish the obligation.

18. When shall an alternative obligation become a simple obligation?

 Article 1202. The debtor shall lose the right of choice when among the prestations whereby he is
alternatively bound, only one is practicable. The effect of only one prestation is practicable, the
obligation is converted into a simple obligation.

19. What is the effect of loss of objects in alternative obligations?

a. If the loss is due to a fortuitous event, and
 Under Article 1204, if some of the objects are lost or have been impossible even
through the fault of the debtor, the creditor is not liable since he has the right of
choice and the obligation can still be performed. However, if all of the objects are
lost due to a fortuitous event the obligation is extinguished.

b. If the loss is due to the debtor’s fault.

 Under Article 1204, if some of the objects are lost or have been impossible even
through the fault of the debtor, the creditor is not liable since he has the right of
choice and the obligation can still be performed. But, if all of the objects are lost
due to the debtor’s fault, the creditor shall have the right to indemnity for damages,
since the obligation can no longer be complied with.

20. Distinguish joint obligations from solidary obligations.

 Joint Obligations are obligations in which each of the debtors is liable only for a proportionate part
of the debt or each creditor is entitled only to a proportionate part of the credit. In this obligation
 there are many obligations as there are debtors multiplied by the number of creditors (Article
1208).

 Solidary obligations are obligations in which each debtor is liable for the entire obligation, or each
creditor is entitled to demand the whole obligation (Article 1207). Moreover, Solidarity arises
when the obligation expressly so states or stipulation, when the law requires solidarity, or when the
nature of the obligation requires solidarity.

21. What are Joint Indivisible Obligations? Can this be considered as a form of a solidary obligation?
 Joint indivisible obligation joint indivisible obligation gives rise to indemnity for damages from the
time anyone of the debtors does not comply with his undertaking. The debtors who may have been
ready to fulfill their promises shall not contribute to the indemnity beyond the corresponding portion
of the price of the thing or of the value of the service in which the obligation consists (Article 1224).
 It cannot be considered as a form of a solidary obligation because only the prestation is indivisible or
subject matter is not physical divisible. The obligation is joint because the parties are merely
proportionately liable. Moreover, the indivisibility of an obligation does not necessarily give rise to
solidarity. Nor does solidarity of itself imply indivisibility (Article 1210).

22. Distinguish “Active Solidarity” from “Passive Solidarity”.

 Active solidarity is the solidarity on the part of the creditors, where any one of them can demand
the fulfillment of the entire obligation. While, Passive solidarity is the solidarity on the part of the
debtors, where any one of them can be made liable for the fulfillment of the entire obligation.

23. To whom payments should be made in a solidary obligation?

 Article 1214 states that the debtor may pay any one of the solidary creditors; but if any demand,
judicial or extrajudicial, has been made by one of them, payment should be made to him.

24. What are obligations with a penal clause?

 Obligations with penal cause is one which contains an accessory undertaking to pay a previously
stipulated indemnity in case of breach of the principal prestation, intended primarily to induce
fulfillment (Article 1226). Whereas, the penal clause is an accessory undertaking attached to an
obligation to assume greater liability in case of breach.

25. Can the creditor just choose the penalty over non-fulfillment?
 The general rule is a debtor cannot exempt himself from the performance of the obligation by
paying the penalty, save in the case where this right has been expressly reserved for him. Neither
can the creditor demand the fulfillment of the obligation and the satisfaction of the penalty at the
same time, unless this right has been clearly granted him. However, if after the creditor has
decided to require the fulfillment of the obligation, the performance thereof should become
impossible without his fault, the penalty may be enforced (Article 1227)