Buslaw 1

De La Salle University
Comlaw Department
Obligations and Contracts
Book IV, New Civil Code
Title 1, Chapter 3[S1]
Pure & Conditional Obligations
Classification of Obligations

Primary classification of obligation under the civil code;

a. Pure and Conditional Obligation

b. Obligation with a Period
c. Alternative and Facultative Obligation (Multiple OBJECTS)
d. Joint and Solidary Obligation (Multiple SUBJECTS)
e. Divisible and Indivisible obligation
f. Obligation with a Penal Clause
Classification of Obligations

Secondary classification of obligation under the civil code;

a. Unilateral and Bilateral Obligation

b. Real and Personal Obligation
c. Determinate and Generic Obligation
d. Civil and natural Obligation
e. Legal, Conventional and Penal Obligation
SECTION 1. – Pure and Conditional Obligations
ARTICLE 1179. Every obligation, whose performance does not depend upon
a future or uncertain event, or upon 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 effect of the happening of the event.

Pure Obligations are obligations that are simply that, obligations.

 No if’s, no but’s
 No maybe’s nor when
 Just the obligation
Pure Obligations are demandable at once
SECTION 1. – Pure and Conditional Obligations
Conditional Obligations depends on a future or uncertain event or a past
uncertain event to give rise to the obligation or extinguish it.

Kinds of Conditions:
Supensive Condition – or one which holds the obligation in abeyance until
the condition is met.
Resolutory Condition – or one which extinguishes the obligation if and when
the condition is met.

So when can an obligation be demandable at once?

When it is pure
When it is subject to a resolutory condition
When it is subject to a resolutory period
SECTION 1. – Pure and Conditional Obligations
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 provision of article 1197.

An obligation with a Period is one that depend on a future and certain event
to give rise to or extinguish the obligation.

When the debtor binds himself to pay

 “little by little” These are
 “as soon as possible”
Obligations with a
 “from time to time”
Period
 “at any time I have money”
 “in partial payments”
 “when I am in a position to pay”
SECTION 1. – Pure and Conditional Obligations
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 constitute the condition.

**this article reiterates the distinction between a suspensive (or antecedent) condition and a resolutory
(or subsequent) condition

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 condition of this Code.

**this article opens up more discussions on conditions

SECTION 1. – Pure and Conditional Obligations
CONDITIONS:
Classifications of Conditions
1) As to Effect
 Suspensive Conditions – the happening of the condition gives rise to the
obligation
 Resolutory Conditions – the happening of the condition extinguishes the
obligation

2) As to Form
 Express Condition – or expressly stated
 Implied Condition – or implied in the terms of the contract
SECTION 1. – Pure and Conditional Obligations
CONDITIONS:
Classifications of Conditions
3) As to Possibility
 Possible Conditions
 Impossible Conditions

4) As to cause or origin
 Potestative Condition – depends on the will of only one of the parties**
 Casual Condition – depends on the will of a third party or by chance
 Mixed Condition – depends party on the will of one party and a third party or
chance.
*Not all obligations with a potestative condition is void. Only obligations
that depend on the sole will of the debtor is void
SECTION 1. – Pure and Conditional Obligations
CONDITIONS:
Classifications of Conditions
5) As to Mode
 Positive Conditions – the happening of the condition fulfills the condition
 Negative Conditions – the non-happening of the condition fulfills the condition

6) As to Multiple Number
 a. conjunctive – multiple condition, all of which must be complied
 b. disjunctive – multiple condition, if only one is fulfilled----OK na!

7) As to Divisibility
 Divisible – capable of partial performance
 Indivisible – must be complied with completely
SECTION 1. – Pure and Conditional Obligations
ARTICLE 1183. Impossible conditions, those contrary to good customs of
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 the unlawful condition shall be valid.

The condition not to do an impossible thing shall be considered as not

having been agreed upon.

Void Conditions
Fulfillment of an impossible Condition
Conditions contrary to law, good customs and public policy
SECTION 1. – Pure and Conditional Obligations
ARTICLE 1184. The condition that some event happen at a determinate time
shall extinguish the obligation as soon as the time expires or has become
indubitable that the event will not take place.

ARTICLE 1185. The condition that some event will not take happen at a
determinate time shall render the obligation effective from the moment the
time indicated has elapsed, or it has become evident that the event cannot
occur

If no time has been fixed, the conditioned shall be deemed fulfilled at

such a time as may have probably been contemplated, bearing in mind the
nature of the obligation.

(Conditions with a time frame)

SECTION 1. – Pure and Conditional Obligations
ARTICLE 1186. The condition shall be deemed fulfilled when the obligor
voluntarily prevents its fulfillment.

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 fruits and 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.

In obligations to do and not to do, the court shall determine, in each case, the
retroactive effect of the condition that has been complied with.
SECTION 1. – Pure and Conditional Obligations
Retroactive Effect of Fulfillment of Suspensive Conditions

In obligation to give – an obligation to give subject to a suspensive condition

becomes demandable only upon the fulfillment of the obligation
In obligation to do or not to do - no fixed rule is provided as the courts shall
determine the effects depending on the circumstances
In reciprocal obligation - there is no retroactivity because the fruits and interest
received during the pendency of the condition are deemed to have been
mutually compensated
SECTION 1. – Pure and Conditional Obligations
ARTICLE 1188. The creditor may, before fulfillment of the condition, bring
the appropriate actions for the preservation of his right.

The debtor may recover what during the same time he had paid by
mistake in case of a suspensive condition.

1st paragraph is similar with negotiorum gestio

2nd paragraph is similar to solutio indebiti

The article refers to protecting the rights of the parties prior to the fulfillment of
a suspensive condition.
SECTION 1. – Pure and Conditional Obligations
ARTICLE 1189. When the condition has 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 disappear
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
recision of the obligation and its fulfillment, with indemnity for the damages in either case;
(5) If the thing is improved by its nature, or by the time, the improvement shall inure to the
befit 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.
SECTION 1. – Pure and Conditional Obligations
Requisites for the Application of 1189
 the obligation is a real obligation;
 the object is a specific or determinate thing;
 the obligation is subject to a suspensive condition;
 the condition is fulfilled; and
 there is loss, deterioration, or improvement of the thing during the pendency of
the condition
SECTION 1. – Pure and Conditional Obligations
ARTICLE 1190. When the condition have for their purpose the
extinguishment of an obligation to give, the parties, upon the fulfillment of
the said conditions, shall return to each other what they have received.

In case of loss, deterioration or improvement of the thing, the provision

which, with respect to the debtor, are laid down in the precceding article
shall be applied to the party who is bound to return.

As for the obligation to do and not to do, the provisions of the second
paragraph of article 1187 shall be observed as regards to the effect of the
extinguishment of the obligation.

Essentially, whenever an obligation that allows the other party to use a specific thing is
extinguished, then the obligation carries with it the duty to return what has been delivered.
SECTION 1. – Pure and Conditional Obligations
ARTICLE 1191. The power to rescind obligations 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 the 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 should decree the rescission claimed, unless there be just cause
authorizing the fixing of a period.

This is understood to be without prejudice to the rights of third persons

who have acquired the thing, in accordance with articles 1385 and 1388 and
the Mortgage Law.
SECTION 1. – Pure and Conditional Obligations
This article specifically provides the relationships of the parties in a reciprocal
obligation, or one where the parties are mutually obligated to each other, in the event
where one fails to fulfill their obligation.
The right to rescind is implied in all reciprocal obligations in the event a party
defaults.
 Rescission of contract means the cancel the contract
The right to rescind belongs to the innocent party. (No, “it’s not you, it’s me…”
instance)
The innocent party may choose to between cancelling the obligation or enforcing the
same.
Rescission of contracts is a judicial action and only the court can declare that an
obligation is rescinded. Parties may mutually agree to cancel the contract but it will
not a rescission, but a Novation of the original contract.
SECTION 1. – Pure and Conditional Obligations
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 the parties first violated the
contract, the same shall be deemed extinguished, and each shall bear his own
damages.

This article deals with both parties being at fault in the obligation, typically reciprocal
obligations. The fault of one who started the issue shall be tempered by the fault of the
other party. Otherwise, the obligation will be extinguished with each bearing their own
separate losses.
Obligations and Contracts
Book IV, New Civil Code
Title 1, Chapter 3[S2]
Obligations with a Period
SECTION 2. – Obligation with a Period
ART. 1193. Obligations for whose fulfillment a day certain has been fixed,
shall be demandable only when that day comes.

Obligation with 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 consist in whether the day will come or not, the
obligation is conditional, and it shall be regulated by the rules of the
preceding Section.

Obligations with a Period is similar in most cases with Conditional Obligations except
for the fact that the period is certain to happen while conditions are not.
SECTION 2. – Obligation with a Period
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.

****** see comments under Article 1189******

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 interest.

****** see comments under Article 1160******

SECTION 2. – Obligation with a Period
ARTICLE 1196. Whenever in a 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 the other.

*** all obligation with period is in benefit of both parties unless contrary is proven ***

DEBTOR – benefit of forgetting about you until due date arrives

CREDITOR – benefit of earning interest while obligation is existing and save
the bother of running after debt until after due date arrives
SECTION 2. – Obligation with a Period
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 court
may fix the duration thereof.

The court shall also fix the duration of the period when it depends upon
the will of the debtor.

In every case, the court 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 change by them.

This article tackles obligations with a period, but there is no period indicated.
SECTION 2. – Obligation with a Period
ARTICLE 1198. The debtor shall lose every right to make use of the period:

(1) When after the obligation has been contracted, he becomes insolvent, unless
he gives a guarantee or security for the debt:
(2) When he does not furnish to the creditor the guaranties or securities which he
has promised;
(3) 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 satisfactorily;
(4) When the debtor violates any undertaking, in consideration of which the
creditor agreed to the period;
(5) When the debtor attempts to abscond.
SECTION 2. – Obligation with a Period
When does the obligor lose the benefit of the Period
1st Paragraph – Insolvency (not enough cash) vs Bankruptcy (not enough assets)
Insolvency makes obligor lose the benefit of the period unless he
or she gives sufficient security/collateral
2nd Paragraph- When the security/collateral promised was not furnished to the
creditor
3rd Paragraph – When the security/collateral provided was impaired by the
debtor or when by fortuitous event the security/collateral
disappears.
4th Paragraph – When the debtor violates the terms on which the period was
based on.
5th Paragraph – When the debtor attempts to escape
Buslaw 1
Study Guide
MODIFIED TRUE OR FALSE
1. A pure obligation can be subject to a time frame within which to accomplish
the obligation.
2. A condition is always a future event the results of which cannot be known
by the parties.
3. An obligation to pay a sum of money if La Salle, the strongest team in the
league, wins the championship is a valid conditional obligation.
4. An obligation to pay a sum of money if it rains next year is a conditional
obligation.
5. An obligation to pay a sum of money if it rains next week is a conditional
obligation.
6. If Jose promises to paint Mario’s house if Jose is not late tomorrow is a valid
conditional obligation.
MODIFIED TRUE OR FALSE
7. A period in an obligation must always be a future event.
8. A period in an obligation set must specify the date to be valid.
9. Suspensive period or conditions suspends the validity or extinguishment of
an obligation.
10. Resolutory obligations are demandable at once.
11. Pure obligation are demandable at once.
12. It is possible to have a pure obligation subject to a period.
13. In an obligation to give a specific thing subject to a suspensive condition,
any improvements, loss or deterioration to the object is bourne by the
obligee.
14. There is very little difference between a period and a condition.
15. Pure obligations are the simplest types of obligations.
MODIFIED TRUE OR FALSE
16. An obligation to pay when the debtor has money is uncertain and thus not
valid.
17. Not all potestative conditions are void conditions.
18. Impossible conditions are not valid conditions.
19. Fulfillment of conditions cannot be dependent on the will of the debtor.
20. An obligation to pay the creditor when the debtor feels like paying the
obligation is void.
21. A obligation to pay when the sun rises tomorrow is absurd and is thus void.
22. An obligation entered into by Jose to pay a sum of money to Joy if Joy will
let Jose copy her answers in an examination is valid.
23. All obligations must have a specific name to be valid.
24. It is possible for an obligation to be subject to a period and a condition.
ENUMERATIONS/DEFINITIONS
1. What are the primary kinds of obligation under the laws of obligations?
2. What is a condition in an obligation?
3. What is a period in an obligation?
4. What are the kinds of conditions?
5. What obligations are demandable at once?
6. What are the kinds of condition or periods as to effect?
7. What are the kinds of conditions as to form?
8. What are the kinds of conditions as to cause or origin?
9. What are the void conditions?
10. What are the rules in the case of improvement, deterioration and loss in a
real obligation to deliver a specific thing?
ENUMERATIONS/DEFINITIONS
11. For whose benefit is the period presumed to have been established?
12. When does the debtor lose the benefit of the period?
13. When does the occurrence of an event within a given period of time,
considered not to have occurred?
14. When can the courts fix the period in an obligation?
15. What are the rules the govern instances where both parties in an obligation
is at fault?
PROBLEM SOLVING
Problem 1. – Gavin promised to deliver a specific dog to Trichie on Wednesday
next week. Come Friday next week, Trichie remembered the promise of Gavin
and given that the obligation of Gavin is two days overdue, Trichie filed an
action for specific performance with damages due to delay. Will the case of
Trichie prosper? Justify.
Problem 2. – Bobby promised to pay Jeremy P50,000 if Jeremy will paint
Bobby’s room according to the design Bobby made? After making this promise,
the parties promptly forgot about the promise until after 5 years. At that time,
Jeremy remembered the promise of Bobby and thus went to Bobby’s house with
all the painting supplies and would like to comply with the condition that
Bobby imposed to be able to get the promised P50,000. Bobby refused to let
Jeremy paint the room because he already had the room painted last year.
Jeremy sued Bobby for the P50,000 he was promised. Can he do so? Justify.
PROBLEM SOLVING
Problem 3. – Anton promised to deliver to Mita a specific dog if Mita will
graduate this school year. After graduating within the school year, Mita went to
Anton to ask for the dog but Anton told her that the dog he promised had
caught distemper and despite all efforts to save the dog, the dog died. At this
point, Anton had mentioned the dog had given birth to 5 puppies before it died.
Because of this, she also asked for the 5 puppies from Anton. Anton argued
that his obligation has already been extinguished, and even if hasn’t Mita is
only entitled to the dog and not the puppies because his obligation to deliver
the dog has not arisen yet when the puppies were born, besides the agreement
was only deliver the dog and not the puppies.
 Is the obligation of Anton extinguished by fortuitous event? Justify.
Is Mita entitled to the puppies? Justify.
PROBLEM SOLVING
Problem 4. – Dana promised to trade with Honeybee her collectible One
Direction CD for a One Direction Shirt from their concert in Manila on or before
Sunday next week. As time passed, Dana began to have separation anxiety over
her collectible item and decided to make a duplicate copy of the CD that she can
instead pass on to Honeybee. Honeybee on the other hand had decided to get
the One Direction printed T-shirts from Divisoria instead buying the shirt at the
concert because it was too expensive. On due date, they each discovered what
the other has done and sued each other for breach of contract. If you were the
judge before whom this case has been brought to, how would you decide the
case in accordance with the laws of obligations and contracts? Justify.
Buslaw 1