LAW REVIEWER

ARTICLE 1179 - 1180

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.
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.

CONDITION

something uncertain or an event in the future that may or may not happen.

an obligation is subordinated.

ang isang condition ay pwede rin na isang past event.

PURE OBLIGATIONS

effectivity does not depend upon fulfillment or nonfulfillment.

characterized by immediate demandability.

“walang condition at walang dapat gawin.”

“one which is not subject to any condition and no specific date is mentioned for its
fulfillment and is, therefore, immediately demandable.”

EXAMPLE: the support of parents sa anak. (immediately demandable at walang

kondisyon)

CONDITIONAL OBLIGATIONS

“bago magcomply si debtor, dapat may condition.”

ang pagsasagawa ng obligation sa isang condition ay nakadepende kung may

fulfillment ba ng condition o wala.

kung hindi nafulfill ang condition, maeextinguish ang obligation.

kung nangyari ang condition, magkakaroon ng obligation ang debtor.

LAW REVIEWER 1
 CLASSIFICATION OF CONDITIONS
SUSPENSIVE

the fulfillment of condition results in the acquisition of rights arising out the
obligation.

a condition which suspends rights and obligations (or the validity of the entire
contract) until a certain future event occurs.

gives rise to the obligation.

EXAMPLE: your parents will give support provided you will pass LAW 1.

suspensive

kapag napasa mo ang LAW 1 dun ka pa lang bibigyang suporta.

obligation ay after ng fulfillment ng kondisyon na makapasa.

kapag napasa mo, may allowance ka.

kapag hindi, walang allowance.

PURELY PROTESTATIVE

the condition will be fulfilled only if the obligated party chooses to do so (kapag gusto
lang).

depends upon the will of a party to the obligation.

EXAMPLE: i will give you money if my means permits me.

purely protestative (nakadepende sa gusto or kakayanan ng magbibigay).

debtor scenario

EXAMPLE: i will give money if Maria is willing to receive it.

purely protestative (nakadepende kay Maria)

kung gusto lang tanggapin ni Maria

creditor scenario

CASUAL

one which depends upon a chance.

LAW REVIEWER 2
 not within the control of either party to a contract.

A casual condition is one which depends altogether upon chance, and not in the
power of the creditor.

EXAMPLE: i will give you money if Sara will lose and Leni will win the 2022
elections.

nakadepende sa chance or result ng elections.

beyond the control.

dependent upon the 3rd party.

MIXED (PROTESTATIVE + CASUAL)

is when the fulfilment of the condition depends partly upon the will of a party to the
contract and partly upon chance and/or will of a third person

third person means may ibang tao na involved, outside the circle of the debtor and
creditor, or someone who are not parties to the obligation or transaction.

depende sa will ng isa sa mga parties at sa ibang tao.

EXAMPLE: i will give money if my means permits me and if Sara will lose and Leni
will win the 2022 elections.

PROTESTATIVE (if his means permits him or kung kaya n’ya magbigay)

CASUAL (if Sara will lose and Leni will win)

ARTICLE 1181
ARTICLE 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.

SUSPENSIVE CONDITION

Condition then Obligation

No fulfillment of condition – No obligation.

The happening of a condition will give rise to the obligation.

The existence of the obligation is a mere hope

LAW REVIEWER 3
 EXAMPLE: your parents will give money if you get married at the age of 30

suspensive

kung ikakasal ka, may pera ka sa kanila.

kung hindi, walang pera.

RESOLUTORY CONDITION

Debtor becomes the Creditor, Creditor becomes the Debtor.

This is a condition the happening of which extinguishes that obligation.

The obligation is demandable at once but it shall be extinguished upon the

happening of the condition.

If it is the resolutory condition that is fulfilled, the obligation is extinguished.

Its effects flow, but over it, hovers the possibility of termination.

EXAMPLE: your parents will give support until you are 20.

resolutory

pag 20 ka na, hindi ka na nila susustentuhan.

EFFECTS OF CONDITIONS

SUSPENSIVE - WHEN IT GIVES RISE TO THE OBLIGATION

RESOLUTORY - EXTINGUISHES AN OBLIGATION

ARTICLE 1182
ARTICLE 1182 - When the fulfillment of the condition depends upon the sole will of
the debtor, the conditional obligation shall be void. If it depends upon chance or upon the will
of a third person, the obligation shall take effect in conformity with the provisions of
this Code.

EFFECT OF PROTESTATIVE CONDITION

If the protestative condition depends exclusively upon the will of the creditor, it is a
valid condition. Because it is the interest of the creditor, to make a condition fulfilled.

Kapag dependent upon the will of the debtor, it is not a valid condition. The
obligation will be considered void, not only the condition.

LAW REVIEWER 4
 IF IT IS PROTESTATIVE BUT SUBJECT TO SUSPENSIVE CONDITION, IT IS
VOID.

IF IT IS PROTESTATIVE BUT SUBJECT TO RESOLUTORY CONDITION, IT

IS VALID.

pag protestative at depende sa debtor, hindi valid ang condition.

EXAMPLE: i will give money to Maria if i want to.

invalid condition.

condition = pag gusto lang ni DEBTOR mamigay.

both condition and obligation are void to allow the debtor in having effectiveness
of the condition will make the obligation ineffective and illusary or walang kwenta.

EXAMPLE: i will give money to Maria until she marries at the age of 30.

valid condition.

resolutory.

based on creditor’s will and performance.

demandable immediately.

EFFECT OF CASUAL CONDITIONS AND MIXED

If the fulfillment of the condition depends upon chance and/or will of the third
person, the obligation and condition shall be valid.

depends upon chance and/or will of 3rd person, the condition is valid.

should depend on chance and 3rd person.

will establish an obligation upon the happening of condition.

ARTICLE 1183
ARTICLE 1183 - Impossible conditions, those contrary to good customs or public policy
and those prohibited by law 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. The condition not to do an impossible thing shall be considered as not
having been agreed upon.

LAW REVIEWER 5
 POSSIBLE CONDITION

Possible when capable of realizing not only according to the nature but also to the
law, good customs, and public policy.

EXAMPLE: i will give money to Maria if she marries at the age of 18.

possible.

the marriage is in accordance to the law.

IMPOSSIBLE CONDITION

Impossible when not capable of realization according to either the nature or the
law.

EXAMPLE: i will give money to Maria if she marries at the age of 14.

impossible.

the marriage is against the law (which is below 14 ang age ng pagpapakasal.)

EXAMPLE: i will give money to Maria if she can build a house on the moon.

impossible.

the condition is against the nature.

EFFECTS

Shall annul the obligation which depends upon the same (if impossible condition).

If the obligation is pre-existing, it does not depend upon the fulfillment of the
condition for its perfection. It is quite clear that only the condition is void.

The above discussion is the same with protestative condition that depends on the
will of the debtor.

impossible condition can nullify the obligation but if it is a pre-existing obligation

with impossible condtion, only the condition will be invalid.

impossible condition of an obligation may annul the entire obligation, not only the
condition that is impossible, according to A1183. however, an exception, in a pre-
existing obligation, only the impossible condition will be void.

pre-existing obligation = obligasyon na dati pa nakapataw sa debtor, or may dati na

s’yang responsibility.

LAW REVIEWER 6
 EXAMPLE: may utang ako kay Maria pero babayaran ko lang if nakasal s’ya at the
age of 15.

condition = pagkasal at the age of 15.

invalid/impossible dahil against the law.

obligation, pagbayad ng utang.

dahil pre-existing ang obligation which is ang pagbayad ng utang, magiging void
ang condition na makasal si Maria at the age of 15. kailangan pa rin magbayad ng
utang kahit hindi mafulfill ang condition kay Maria.

only the obligation shall be void if it is protestative dependent upon the will of the
debtor (suspensive).

resolutory protestative will be valid.

ARTICLE 1184-1185
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.

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. 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.

POSITIVE OBLIGATIONS

Positive if it involves a performance of an act or fulfillment of an event.

EXAMPLE: i will pay money to Maria provided she will achieve a prelim and midterm
grade of 90 in LAW.

involves a performance of an act.

positive.

NEGATIVE OBLIGATIONS

Negative if it involves nonperformance of an act or the nonfulfillment.

LAW REVIEWER 7
 EXAMPLE: i will give Maria money if she doesn’t have any absences.

negative.

hindi dapat gawin ang pag-absent (nonperformance, hindi dapat gawin ang bagay
na pinagbabawal).

EFFECTS OF POSITIVE AND NEGATIVE OBLIGATION

upon the happening of the event, it shall extinguish the obligation as the time
expires or if it becomes impossible to happen.

EXAMPLE: i will give money to Maria if she has no absences in the entire sem.

negative obligation.

umabsent si Maria = the obligation to give money is now extinguished. it is

impossible now fore her to comply with the obligation.

EXAMPLE: i will give money to Maria if she will recite in LAW 1.

pero, umabsent si Maria, or hindi s’ya nagrecite = the obligation is now

extinguished. it is impossible for her to comply kasi hindi s’ya nagrecite.

if the condition happened, whether positive or negative, if it did not occur, the
obligation will not be considered as established.

ARTICLE 1186
ARTICLE 1186 - The condition shall be deemed fulfilled when the obligor voluntarily prevents
its fulfillment.

CONSTRUCTIVE FULFILLMENT OF SUSPENSIVE CONDITIONS

when the debtor prevented the creditor from complying with the condition, the
prevention is considered to have been fulfilled.

the doctrine of constructive fulfillment of suspensive conditions only applies to

suspensive, not resolutory.

ang debtor dapat mapigilan ang creditor na makapagcomply.

EXAMPLE: i will give Maria a brand new car if she will give me flowers on June 10,
2021.

LAW REVIEWER 8
 para hindi mabigyan ni Maria ng flowers ang debtor, ipapasara o papakyawin ng
debtor ang mga flowers sa lahat ng flower shop sa buong Pampanga.

hindi makakapagcomply sa condition si Maria.

the condition is fulfilled kasi pinigilan ng debtor makapagcomply si Maria.

hindi na ngayon bibigyan ni debtor ng kotse si Maria.

ARTICLE 1187-1188
ARTICLE 1187 - The effect 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 fruit interest 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 interest 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.
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.

EFFECT OF SUSPENSIVE CONDITION BEFORE FULFILLMENT

if the obligation depends upon the suspensive condition, the demandability as well
as the acquisition or effectivity of rights arising from the obligation is suspended
pending the fulfillment of the fact or event which constitutes the condition.

pag nangyari ang suspensive condition, the demandability is immediately

demandable or demanded (the object of obligation to be immediately demanded to the
debtor by the creditor.)

hanggat hindi pa nangyayari ang suspensive condition, walang dapat gawin. hindi
muna magcocomply ang debtor at hindi pa pwede magdemand ang creditor.

AFTER FULFILLMENT

the debtor must now fulfill the obligation, and the debtor can demand the
performance.

RETROACTIVITY OF EFFECT OF SUSPENSIVE CONDITION

LAW REVIEWER 9
 upon the happening of suspensive condition, the effects of the obligation shall
retroact from the moment of birth of the obligation.

‘yung epekto ng obligation will take effect from the time the debtor and creditor
agreed.

OBLIGATIONS TO GIVE - the fruits and interest during the pendency of the
condition shall be deemed to have been mutually compensated.

UNILATERAL OBLIGATION - the debtor shall appropriate the fruits and

interests received unless from the nature and circumstances of the obligation,
it can be inferred that the intention of the person constituting the same was
different. The fruits and interests shall be received by the creditor.

OBLIGATIONS TO DO OR NOT TO DO - pag purely personal obligation, may

karapatan ang korte when shall the retroactive effect begin, kailan ba
mabibigay ang epekto ng obligation, sa birth ba ng obligation or sa happening ng
obligation.

EXAMPLE: nag-agree si Juan at si Pedro na bibigyan ni Pedro si Juan ng 10

kalabaw kung si Juan ay magaasawa. Nag-agree noong 2020. Sa 2029, kinasal si
Juan. Lahat ng epekto ng napagusapan noong 2020 will retroact, hindi lang 2029.
kung nanganak ang mga kalabaw ni Pedro, ibibigay nya lahat yon kay Juan because
it retroacts from the year of the birth of the obligation which is 2020.

kung 100 ang naging anak ng kalabaw, lahat ng 100 na yon ay ibibigay.

ARTICLE 1189
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.
EFFECT OF LOSS, DETERIORATION, OR IMPROVEMENT.

LOSS

it is considered a loss when it perishes, goes out of commerce, or when it

disappears in such way that its existence is unknown.

pag nawala at nawala dahil kasalanan ni debtor, the debtor will be liable of
damages.

LAW REVIEWER 10
 pag nawala pero hindi kasalanan ng debtor, the obligation will be extinguished.

EXAMPLE: kung magdedeliver ako ng car kay Maria, bago ko nadeliver ang car,
nanakaw ito dahil nakalimutang ilock ang kotse/naiwan ang susi sa loob ng kotse.

the debtor will be liable.

kung 1 million ang halaga ng kotse, 1 million ang babayaran ng debtor.

EXAMPLE: same scenario na magdedeliver ng car, pero tinamaan ng kidlat ang

kotse habang dinedeliver ng debtor dahil maulan.

maeextinguish ang obligation.

beyond the debtor’s control dahil caused by nature.

DETERIORATION

it is considered deteriorated kapag bumaba ang value ng object.

pag hindi kasalanan ng debtor ang pagbaba ng value ay borne sa creditor.

pag kasalanan ng debtor, the creditor should be choosing between bringing an

action for rescission of the obligation, or demand for damages or action for
specific performance.

EXAMPLE: if a car originally worth 1.5 billion deteriorated over time dahil sa
paggamit, if it is without the fault of the debtor & the value of the thing
deteriorated, it shall be borne by the creditor.

kung 1.4B ang kotse at bumaba ang value, hindi magbibigay si debtor ng
400,000. the impairment is on the creditor.

EXAMPLE: kung ang kotse laging dinadaan ng debtor sa malubak na daan, the
debtor will be held liable.

act of rescission (creditor) - icancel na lang ang obligation, o i-nullify ang

obligation.

IMPROVEMENT

pag nag-improve ang bagay by its nature or by time, the benefit would be
solely for the creditor.

kung may kinalaman ang debtor sa improvement, may karapatan syang

magdemand sa creditor, or ipareimburse ang ginawa ng debtor.

LAW REVIEWER 11
 the debtor may set off improvements he may have made in the property any
damage to the same.

EXAMPLE: kung tumaas ang value ng kotse, from 1 million to 2 million, creditor
ang magbebenefit.

EXAMPLE: kung gumastos ang debtor para mapaganda ang kotse, may karapatan
ang debtor sa kotse. pwede n’ya ipatanggal provided can also seek for
reimbursement for necessary improvements at dapat gumagana pa rin.

ARTICLE 1190
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. In case of the loss, deterioration or improvement of the thing, the
provisions which, with respect to the debtor, are laid down in the preceding article shall be
applied to the party who is bound to return. As for obligations to do and 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.

EFFECTS OF RESOLUTORY CONDITION BEFORE FULFILLMENT

pag ang obligation ay subject sa resolutory condition, immediately, the obligation is

demandable. pag nangyari na ang resolutory condition, the obligation will be
extinguished.

upon the happening of resolutory condition, the debtor will be placed in the
position of creditor.

pag resolutory condition, magcocomply immediately si debtor.

EXAMPLE: i will give Maria money monthly until she graduates and have her degree.

obligation = 10k monthly (immediately demandable)

pag gumraduate na, wala nang 10k monthly.

RESOLUTORY CONDITION AFTER FULFILLMENT

if the resolutory condition is not fulfilled, the rights are consolidated. the rights or
condition will become absolute. the obligation will last forever.

LAW REVIEWER 12
 if the resolutory condition is fulfilled, then whatever may have been paid or
delivered by or both parties shall be returned upon the happening of the resolutory
condition.

EXAMPLE: kung si Maria hindi makakapagtapos, forever na ang 10k monthly.

EFFECT OF LOSS, DETERIORATION, OR IMPROVEMENT (BEFORE THE

HAPPENING OF RESOLUTORY CONDITION)

the rules of Article 1189 shall be applied.

upon the happening of resolutory condition, the position or situation of debtor and
creditor will be reversed.

EXAMPLE: meron dapat ibalik pala si Maria after gumraduate, yung interest rate ng
10k. yung value ay hindi na gaya back nung binibigyan pa sya ng allowance, dapat
iraise ni Maria ang value nang 11k, 12k, or depending sa inflation rate. however, if
nagkaroon ng increase sa value ng peso, pwedeng 9k na lang ang ibalik ni Maria.

ARTICLE 1191
ARTICLE 1191 - The power to rescind the obligation is implied in reciprocal ones, in case one
of the obligors should not comply with what is incumbent upon him.The injured party may
choose between the fulfillment and rescission of the obligation, with the payment of damages in
either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should
become impossible. The court shall decree the rescission claimed, unless there be just cause
authorizing the fixing of a period.

CONCEPT OF RECIPROCAL OBLIGATION

created or established at the same time which result in mutual relationships of

creditor and debtor between parties.

both parties have obligation.

if one of the parties fail to comply with what is incumbent upon him, there is a right
on the part of the other to rescind or ask for cancellation.

RECIPROCAL OBLIGATION (PAREHAS MAY OBLIGATION)

example is sa tindahan pag bibili ng suka. para makuha ang suka, kailangan
magbayad. kailangan ng tindera ang pera pambayad para ibigay nya ang suka.

LAW REVIEWER 13
 NECESSITY OF JUDICIAL ACTION

the right to rescind is a right which belongs to the injured party alone but juridically
invoked. dadalhin sa husgado.

pwedeng mapagusapan para hindi na kailangan ng judicial action or hindi na

madala sa korte.

EXAMPLE: si Juan bibili ng lupa kay Pedro for 1 million at si Pedro ibebenta nya kay
Juan ang lupa. hindi mabigay ni Pedro ang lupa kay Juan dahil hindi pa ito
nakakapagbayad.

kung ang isa ay ready na, yung isa hindi pa ready magcomply, then yung party
na ready na magcomply can ask for rescission of obligation.

in this case, Pedro can ask for rescission or cancellation of the obligation and the
contract of sale can be cancelled.

pwede magfile sa korte si Pedro to rescind the agreement. judicial action is

necessary for the obligation to be rescinded.

pwede naman hindi na pumunta sa husgado to rescind the obligation, the

exception to that is when the obligation it says provide that the injured party
may cancel the obligation.

si Pedro at Juan may agree that if one of the parties failed to comply to their
obligation, the injured party may cancel the obligation, may rescind the
obligation in judicial action, or hindi na need pumunta sa korte. that is
extrajudicial rescission. pwede mapag-usapan.

NATURE OF BREACH

for the rescission to happen, the breach complained of must be substantial as to defeat
the object of the parties in entering the agreement.

hindi pagcomply ng other party.

failure to comply by the other party should be substantial and should not be a
mere petty issue.

ALTERNATIVE REMEDIES OF INJURED PARTY

may ask for a specific performance.

LAW REVIEWER 14
 in case one of the parties should not comply with what is incumbent upon him, choose
between fulfillment or rescission of the obligation, with damages in both cases.
However, the injured party can’t seek both.

JURIDICAL DISCRETION TO DECREE RESCISSION

courts shall decree a rescission claimed unless there is a just cause authorizing the
fixing period (unless the parties are given the right to extrajudicially rescind the
obligation.)

the general rule, the courts are only the ones who can receive the obligation.

general rule = judicial rescission

exception = extrajudicial rescission (when only the injured party is given that right.)

EFFECT OF RESCISSION

parties must be placed as far as practicable in their situations.

both parties will be placed in their situation before the obligation was established.

EXAMPLE: same scenario nila Juan at Pedro. pero yung lupa ay kay Pedro pa rin, at
hindi mapapasakamay ni Juan ang lupa dahil nacancel ang contract of sale.

EFFECT UPON 3RD PERSON

if the third person acquired the thing which is object of the obligation legally,
rescission is no longer an option of the injured party.

only remedy is to proceed against the guilty party for damages.

EXAMPLE: si Juan binenta ang lupa kay Pedro provided na after makuha ni Pedro ang
lupa ay magbabayad sya ng 1 million after 1 month. pero 1 month na hindi pa bayad
ang lupa, at binenta pa kay Kulas ang lupa. so nakay Kulas na ang lupa. hindi
nagcomply si Pedro kay Juan na magbayad at binenta pa sa 3rd person.

if Kulas knows that the land is yet to be paid, he is liable for damages.

if Kulas is unaware, then only Pedro is held liable.

ARTICLE 1192
ARTICLE 1192 - In case both parties have committed a breach of the obligation, the liability of
the first infractor shall be equitably tempered by the courts. If it cannot be determined which of

LAW REVIEWER 15
 the parties first violated the contract, the same shall be deemed extinguished, and each shall bear
his own damages.

the rules laid down in this article are deemed just.

if both parties committed breach to each other, then the liability shall be tempered by
the court.

both parties may kasalanan, bahala na ang husgado kung sino ang mas marami or mas
konti.

mas marami = s’ya ang magbabayad ng damages minus sa kasalanan nung may
konting kasalanan.

ARTICLE 1193
ARTICLE 1193 - Obligations for whose fulfillment a day certain has been fixed, shall be
demandable only when that day comes. Obligations with a resolutory period take effect at once,
but terminate upon arrival of the day certain. A day certain is understood to be that which must
necessarily come, although it may not be known when. If the uncertainty consists in whether the
day will come or not, the obligation is conditional, and it shall be regulated by the rules of the
preceding Section.

CONCEPT OF TERM/PERIOD

period - a time interval that affects the demandability of the obligation whether it
suspenses it or produces the extinguishment of obligation.

compared to a condition, a period is bound to happen.

TERM/PERIOD VS CONDITION

TERM OR PERIOD CONDITION

- interval of time - fact or event

- future and certain - future or uncertain

- necessarily will come, hindi lang alam kung

- may or may not happen
kailan

- exerts an influence upon the demandability or - exerts an influence upon the very existence of
obligation extinguishment the obligation itself

LAW REVIEWER 16
 - doesn’t have retroactive effect unless there is an
- has retroactive effect
agreement to the contrary

- if exclusively left to the debtor’s will, the - if exclusively left to the debtor’s will, the very
existence of obligation is not affected existence of the obligation is affected

CLASSIFICATION OF TERM OR PERIOD

SUSPENSIVE AND RESOLUTORY

kung kailan lang dumating ang suspensive period, dun pa lang magiging
demandable ang obligation.

pag nangyari na ang resolutory term, dun pa lang mawawala ang obligation ni
debtor kay creditor.

EXAMPLE: i will only give Pedro money if her mother will die.

contains a suspensive term or period (death is certain among humans, hindi

lang alam kung kailan darating)

EXAMPLE: i will give Pedro money every month until her mother dies.

contains a resolutory term (pag namatay na ang nanay ni Pedro, hindi na nya
bibigyan ng pera si Pedro)

LEGAL, CONVENTIONAL, AND JUDICIAL

legal = term granted by law (example is payment of taxes).

conventional = term agreed upon by the parties.

judicial = galing sa judge or fixed in courts, kung kelan magiging demandable o

maeextinguish ang obligation.

DEFINITE OR INDEFINITE

definite = fixed time or date

EXAMPLE: every 15th of April, i shall give Pedro money.

definite dahil stated ang time kung kailan bibigyan ng pera, which is April
15.

indefinite = hindi natin alam

LAW REVIEWER 17
 even if the period will happen; it is a period, although, it may not be known by
the obligation. it is still a period kahit hindi natin alam kung kailan
dadating.

if there is uncertainty whether the event will happen, then it is not a period,
but rather a condition.

EFFECT OF TERM OR PERIOD

obligation with suspensive term is effective upon establishment, but once the term
occurs, it becomes demandable. if it is suspensive, it only suspends the demandability.
hanggat hindi dumadating ang period na ‘yon, hindi pa pwedeng magdemand ang
creditort. pero kapag nag-arrive na ang suspensive period, pwede na magdemand
ang creditor kay debtor.

obligation with resolutory term, the performance is demandable at once, but

extinguished upon the arrival or expiration of the term. a resolutory term is
immediately demandable. but upon the happening of resolutory term, the obligation
of the debtor to the creditor is now extinguished.

EFFECT OF FORTUITOUS EVENT

FORTUITOUS EVENT - event which canot be foreseen, or even though foreseen, it is

inevitable and it will result to the inability by the debtor to comply with its obligation.

relieve the contracting parties from the fulfillment of their respective obligation
during the term or period.

EXAMPLE: There was a case decided by the Supreme Court in Victoria Planters
(debtors) vs Victorias Milling Co (creditors) during WW2. Sugar planters are
obliged to deliver sugarcanes to the sugar milling company. The period of the
obligation for the planters is for 10 years, from 1940 to 1950, they are obliged to
deliver. During WW2, planters were unable to deliver because of the chaos. For a
period of 3 years, from 1942-1945, they were unable to comply with the obligation.
The milling company said the period should be extended up until 1953 because of
the 3-year gap in the delivery wherein the planters were unable to deliver. The
planters said that they can’t deliver because there was a fortuitous event, so it is
only up to 1950 when we can deliver. The Supreme Court sided with the farmers.
From the period of 1942-1945 the obligation is suspended because of the fortuitous
event. But upon the arrival of 1946-1950, the debtors will continue to deliver

LAW REVIEWER 18
 sugarcane to the company. The obligation of the planters were suspended, but
continued after the occurence of the fortuitous event.

ARTICLE 1194-1195
ARTICLE 1194 - In case of loss, deterioration or improvement of the thing before the arrival of
the day certain, the rules in Article 1189 shall be observed.
ARTICLE 1195 - Anything paid or delivered before the arrival of the period, the obligor being
unaware of the period or believing that the obligation has become due and demandable, may be
recovered, with the fruits and interests.

EFFECT OF ADVANCE PAYMENT OR DELIVERY

only applies to obligations to give.

the debtor should be unaware of the period or believed that the obligation has
become due and demandable.

the debtor may recover what has been paid or delivered with fruits of interest
provided the due date has not yet arrived.

EXAMPLE: Akala ay January 1 ang due date ng bayad, pero February 1 talaga
ang due date. So nalaman nya nung January 10 na hindi pa pala due ang Jan 1. So
pwede nyang irecover on January 10 ang binayad nyang payment including fruits
and interest. Pero sa pagdating ng February 1, kailangan n’ya nang magbayad dahil
‘yun talaga ang due date.

ARTICLE 1196
ARTICLE 1196 - 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.

BENEFIT OF TERM OR PERIOD

creditor can’t demand the performance of the obligation before the expiration of
the designated period.

neither can the debtor perform the obligation before the expiration of the such period.

LAW REVIEWER 19
 until the arrival period, the creditor can’t demand performance from the debtor
for compliance.

ARTICLE 1197
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. In every case, the courts shall determine such period as may under the circumstances
have been probably contemplated by the parties. Once fixed by the courts, the period cannot be
changed by them.

JUDICIAL TERM OR PERIOD

fixed by the competent court.

WHEN THE COURTS CANNOT FIX A JUDICIAL TERM, WHAT ARE THE
INSTANCES THAT THE COURTS MAY FIX A TERM?

if the obligation does not fix a period not from its nature and circumstances, it can
be inferred that a period was intended by the parties. (hindi lang nailagay yung
fixed period na gusto pero base sa pinag-usapan, malalaman na ang intensyon
talaga ay mayroong period ang obligation. in this case, court ang bahala
magbigay ng fixed period.)

if the duration of the period depends upon the will of the debtor.

unlike a condition, if it is dependent upon the debtor, it is invalid. but in a period, the
courts will fix a term.

courts cannot fix a period when an obligation is pure and simple dahil immediately
demandable ang mga ‘to.

LAW REVIEWER 20