KINDS OF OBLIGATION

November 09, 2023

EVA U CAMMAYO, CPA, Ph.D.
PRIMARY CLASSIFICATION UNDER
CIVIL CODE
• Pure and conditional obligations
• Obligations with a period
• Alternative and facultative obligations
• Joint and solidary obligations
• Divisible and indivisible obligations
• Obligations with a penal clause
 Art 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 effect of the happening of the
event.
 Pure Obligations
• One which is not subject to any condition and no specific date is
mentioned for its fulfillment and is, therefore, immediately
demandable
• One that does not depend upon a future or uncertain event, not on a
past event unknown to the parties, and is not an obligation with a
resolutory condition
• Example: A simple promissory note to pay a certain amount.
• I promise to pay Mr. Rosario ten thousand pesos (10,000).
• I promise to pay Mr. Agustin ten thousand pesos (P10,000) upon the
demand of of Mr. Agustin.
 obligation is demandable at once
• when it is pure
• when it is subject to a resolutory condition
• whent it is subject to resolutory period. When an obligation becomes
demandable at once but is extinguished after the lapse of the period
 What is an example of a resolutory condition?

• A resolutory condition is a future event that determines whether an

obligation or liability exists.
• A resolutive condition is an arrangement between the parties that an
agreement will end in the event of certain circumstances.
 Example 1: the contract can be terminated when a license for use of a
catering establishment is withdrawn.
• Example 2, if someone promises to pay for a car repair, the failure to
repair the car would relieve the person of the promise to pay
 Conditional Obligation
• Is one whose consequences are subject in one way or another to the
fulfillment of a condition.
• is an obligation whose occurrence depends on an uncertain event.
• Condition is a future and uncertain event, upon the happening of
which, the acquisition or extinguishment of an obligation subject to it
depends.
 Characteristics of a condition
• Future and uncertain.
• Past but unknown to the parties. Example 1: A agrees to sell his horse
to B but unknown to both the parties the horse had already died at the
time of making the contract. Example 2: Eva is the owner of a parcel of
land. The same land is being claimed by Anna. The court decided the
case in favor of Eva, but notice is not yet received by Eva. Eva agreed to
sell the land to a third party should she win the case. in this case, Eva
will be obliged to sell the land to the third person upon receipt of the
notice that she had won the case.
• Must not be impossible. One that is capable of fulfillment, legally or
physically.
 Kinds of condition
• 1. Suspensive- fulfillment of the condition results in the acquisition of rights arising out of the obligation. The
demandability of the obligation is suspended until the happening of the uncertain event which constitutes the
condition.
EXAMPLE: I will give you P1,000 if you pass the LECPA
• 2. Resolutory- fulfillment of the condition results in the extinguishment of rights arising out of the obligation.
EXAMPLE. I give you P1,000 monthly until you graduate from College.
• 3. Potestative- fulfillment of the condition depends upon the sole will of one of the contracting parties to the
obligation
“I promise to give you P1,000 if you build a house for me in three months.”
article 1180 (duration of period depends upon
the will of the debtor
• 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.
• what depends upon the debtor’s will is not whether he should pay or
not for indeed he binds himself to pay. What is left only to his will is
the duration of the period.
• a period is a future and certain event upon the arrival of which the
obligation subject to it either arises or is extinguished.
• if the debtor and the creditor cannot agree as to the specific time for
payment, the court shall fix the same on the application of either party.
other cases (when the debtor binds himself to
pay)
• little by little
• as soon as possible
• from time to time
• at any time I have the money
• in partial payments
• when I am in a position to pay
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.
• effect of happening of condition
acquisition of rights-in obligations subject to a suspensive condition,
the acquition of rights by the creditor depends upon the happening of
the event which constitutes the condition
loss of rights already acquired- in obligations subject to as resolutory
condition, the happening of the event which constitutes the condition
produces the extinguishment or loss of rights already acquired.
 Examples
Acquisition of rights
• T, testator, in his last will and testament gave some property to H (heir)
provided T would die within two (2) years
• The surrender of the sweepstakes ticket is a condition precedent to the
payment of the prize.
loss of right already acquired
• X binds himself to support Y until Y graduates from college
• S sold to B a paercel of land subjec to S’s right of repruchase.
• A lease contract expressly stipulates that R (lessor) may terminate the
lease in case his children shall need the leased premises.
 Article 1182

When the fulfillment of the

condition depends upon the sole will
of the debtor, the conditional
obligation shall be void.
 example
• 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 leaving unaffected the obligation
itself. The condition is imposed not on the birth of the obligation but
on its fulfillment.
• D borrowed P10,000 from C payable within 2 months. subsequently, D
promise to pay C after D sells his car to which C agreed. in this case,
only the condition is void but not the pre-existing obligation of to pay
C.
examples where the potestative condition depends solely on the
will of the debtor-both the condition and the obligation are void
i will pay you if I want
i will pay you after I receive a loan from a bank
i will pay you after I recover what X owes
i will pay you after i harvested fish
i will pay you upon the sale of the house in which i live
i will pay you the price of the forest concession you sold me upon my
operation of the same
i will continue to lease your property for as long as I need the
premises and pay the rent
classification of conditions
• as to effect
suspensive
resolutory
• as to form
express- the condition is clearly stated
implied-the condition is merely inferred
• as to possibility
possible-capable of performance, legally and physically
impossible
classification of condition
• as to cause or origin
potestative- the condition depends upon the will of one of the
contracting parties
casual- the condition depends upon chance or upon the will of a third
person. Example: X obliges himself in favor of Y to give Php10,000 to Y
if he wins a case in the Supreme Court
mixed-the condition depends partly upon chance, and partly upon
the will of a third person
 classification of condition
• as to mode
positive-consists in the performance of an act
negative-consists in the omission of an act
• as to numbers
conjunctive-there are several conditions and all must be fulfilled
disjunctive-only one or some of the conditions must be fulfilled
• as to divisibility
divisible-the condition is susceptible of partial fulfillment
indivisible-the condition is not susceptible of partial fulfillment
SUSPENSIVE CONDITION DEPENDS
UPON THE WILL OF THE CREDITOR
• If the condition depends upon solely on the will of the creditor, the
obligation is valid
• example: I will pay you upon your demand

• RESOLUTORY CONDITION DEPENDS UPON THE WILL OF THE DEBTOR

• the obligation is valid.
EXAMPLE. Sale with pacto de retro. Here, the debtor is the seller. The
fulfillment of the condition merely causes the extinguishment of rights
already acquired. The debtor is naturally interested in its fulfillment.
 art 1193. Obligation with a period
• obligations for whose fulfillment a day certain has been fixed, shall be
demandable only when that day comes.
• obligation with a resolutory period take effect at once, but terminate
upon the arrival of the day certain
• a day certain is understood to be that which much necessarily come,
although it may not be known when.
• 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.