Name: Cerdenio, Joshua B.

Program & Year: AB Political Science - 4th Year

Law on Obligations and Contracts

1. What is the difference between suspensive and resolutory condition? What are its
effect in the creditors right to demand?

- Suspensive condition is when the fulfillment of the condition results in the acquisition
of rights arising out of the obligation, while on the other hand, resolutory condition is when the
fulfillment of the condition results in the extinguishment of rights arising out of the obligation. Its
effects to the creditors rights to demand is that the right of creditors to demand changes when
the certain conditions is fulfilled.

2. What is conditional obligation?

- One whose consequences are subject in one way or another to the fulfillment of a
condition. It is the kind of obligation that is happening or extinguished depending on the future
on the future or uncertain events.

3. State the rules in case the things to be delivered: (a) is lost with the debtor fault but
without delay, (b) deteriorates with the debtor fault without his fault.

a) is lost with the debtor fault but without delay:

 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.
 If loss is without the fault of the debtor, obligation is extinguished

(b) deteriorates with the debtor fault without his fault:

 When the thing deteriorates without the fault of the debtor, the impairment is to be borne
by the creditor
 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
4. Ben borrowed php 5000 from Jam payable on or before August 30. Before the arrival of
the due date, Jam agreed to the promise of Ben to pay Jam if Ben wants. Can Jam insist
that Ben pay not later than August 30? Explain your answer and cite the applicable rule
of law.

- No, Jam can't insist that Ben pay not later than August 30. Article 1180 "when the
debtor binds himself to pay forms of promise or commitment, the obligation is deemed with a
period or term". The moment of payment is dependent upon the will of the debtor. It is also
subjected in Article 1197 "If the obligation does not fix a period, but from its nature and the
circumstances it can be inferred that a period was intended, the courts may fix the duration
thereof." The courts shall also fix the duration of the period when it depends upon the will of the
debtor. Since that Jam agreed to the promise of Ben to pay Jam if Ben wants, hence, Jam
cannot insists Ben to pay Jam not later than August 30.

5. Give the cases when the obligee can demand the performance of an obligation even
before the arrival of the period agreed upon.

-According to Article 1198, the obligee can demand the performance of an obligation
even before the arrival of the period agreed upon:

1) When the debtor becomes insolvent. It means that the debtor becomes unable to perform or
pay the obligation, unless the debtor gives a collateral to guaranty and secured the debt. The
insolvency must occur after obligation has been contracted.

2) When debtor does no furnish guaranties or securities promised. It means that the debtor fails
to secure his debt or show collateral to the creditor, the debtor will lose his right to the period.

3) When guaranties or securities given have impaired or have disappeared. When the security
got destroyed due to debtor’s fault, and when it was destroyed due to fortuitous event, the
debtor should replace the thing with the same value.

4) When debtor violates an undertaking. This is when the debtor did not follow his undertaking,
the right to the period will be lost.

5) When debtor attempts to abscond. This one is when the debtor tries to escape his obligation.
His right to the period will be lost.
6. Dan binds himself to give php 10,000 to Tom upon the death of the father of Dan. Is the
obligation of Dan conditional or one with a period. Explain.

- This one is considered as an obligation with a period. According to Article 1193,

paragraph 3, a day certain is understood to be that which must necessarily come, although it
may be known when. Here, the day that D’s father will die is unknown, but it will certainly come.
Unlike when it is a conditional one, one characteristic of it is that, it is an uncertain event, means
it may or may not happen.

7. Define: alternative obligation, facultative obligation, and conjunctive obligation.

 Alternative Obligation - one where out of two or more prestations which may be given,
only one is due.
 Facultative Obligation - An obligation wherein only one object or prestation has been
agreed upon by the parties to the obligation, but which may be complied with by the
delivery of another or the performance of another prestation in substitution.
 Conjunctive Obligation - when all the objects or prestations are demandable at the
same time.

8. Under a contract, Mae promised to deliver to Ivan item one or item two or item three.
Ivan was given the right of choice. What is the liability of Mae in case, through his fault:

(a) item two is lost or destroyed

- According to Article 1205, if the thing is lost or destroyed through Mae's fault, Ivan can
choose from other items together with damages, or the price of the item two also with damages.

(b) all the items are lost or destroyed

- If all the things are lost or destroyed through Mae’s fault, in Article 1205, the creditor
which is Ivan has the right to demand the payment of the price of any one of the items together
with the right to indemnity for the damages.