DIFFERENT K I N D S OF

O B L I G AT I O N S
Article1179 to 1 2 3 0
 Pure
Conditional
With a Term or Period

P R I M A RY
Alternative
C L A S S I F I C AT I O N
OF
O B L IG AT IO N S Joint
Solidary

Divisible
Indivisible
With a Penal Clause
 Unilateral and Bilateral
Obligations
Real and Personal Obligations

S E C O N D A RY
C L A S S I F I C AT I O N Determinate and Generic
OF Obligations
O B L IG AT IO N S
Civil and Natural
Obligations

Legal, Conventional, and

Penal Obligations
PURE AND CONDITIONAL
O B L I G AT I O N S
 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.
A RT I C L E 1 1 7 9
Every obligation which
contains a resolutory
condition shall also be
demandable, without
prejudice to the effects of the
happening of the event.
 One whose effectivity or
extinguishment does not
depend upon the fulfillment or
non-fulfillment of a condition or
upon the expiration of a term
or period, and which, a s a
P U R E O B L I G AT I O N consequence, is characterized
by the quality of immediate
demandable.

Example:
John obliges himself to pay Ryan a s u m
of P10,000.00 at 1 2 % per annum.
 John obliges himself to
pay Ryan a s u m of
P10,000.00 when his
PROBLEM
allowance arrives, or
upon the demand of
Ryan.
 An obligation is one whose
consequences are subject in
C O N D IT IO N A L one way or another to the
O B L I G AT I O N
fulfillment of a condition.
 It is every future and
uncertain event, upon the
happening of which, the
effectivity or extinguishment
of an obligation (or right)
subject to it depends .
CONDITION

Example:
Robert will pay Lalaine Php
1,000.000.00 when cars will fly.
 S h e will leave all her
properties to
Howard upon her
PROBLEM
death.
Is this an obligation with a
condition?
 CHARACTERISTICS OF A CON DITION

Future and uncertain

• It is not enough that it be future; it must also be

uncertain
. but unknown
Past

• It m a y refer to a past event unknown to the

parties
 EXAMPLE

Jack promised to deliver Jill Php 100,000.00 if

the number of Filipinos who migrated to the
United States in 1 9 7 2 exceeds 5 0 0
Louis promised Kate to acquire the lot of Sienna
for Php 3,000,000.00 if it is more than 5 0 0
square meters.
 TW O P R IN C IPA L
K IN D S OF
CONDITION
SUSPENSIVE CONDITION R E S O L U TO RY C O N D I T I O N

• The fulfillment of this • The fulfillment of this

condition gives rise to an
obligation (or right).
• D e m a n d is suspended until
that future and uncertain
event happens.
Example:
I will lend you the car if it will
rain this Thursday.
condition will extinguish
the obligation (or right)
already existing.
Example:
Jake will give Rianne her
monthly allowance of
P20,000 until she graduates
from college.
 DISTINCTIONS
SUSPENSIVE CONDITION
• If fulfilled, the obligation (or
right) becomes effective
• If the condition does not take
place, the tie of the law
(juridical or legal tie) does not
appear.
• Rights are not yet acquired but
there is hope of expectancy
that they will soon be
acquired.
R E S O L U TO RY C O N D I T I O N
• If fulfilled, the obligation
is extinguished
• While the condition does
not exist, the juridical
tie is consolidated.
• Rights are already
acquired, but subject to
the threat of
extinction .
 O B L IG ATIO N S
D E M A N D A B L E AT
ONCE
Pure Obligations (Article 1179, par.
1) When it is subject to a resolutory
“Every obligation whose performance does period (Article 1193, par. 2)
not depend upon a future or uncertain event, “Obligations with a resolutory period take
or upon a past event unknown to the effect at once but terminate upon arrival of
parties, is demandable at o nce …” the day certain.”

1179 1179 1193

When it is subject to a
resolutory condition (Article
1179, par. 2)
“Every obligation which contains a
resolutory condition shall also be
demandable…”
 When the debtor binds
himself to pay when his
means permit him to do so,
A RT I C L E 1 1 8 0 the obligation shall be
deemed to be one with a
period, subject to the
provisions of Article 1197.
 It is a future and certain
event upon the arrival
P E R IO D of which the obligation
to it either arises or is
extinguished.
1. The debtor promises to pay when his
m e a ns permit him to do so.
2. Other cases – A s when the debtor binds
himself to pay:
a. “little by little”
W H E R E D U R AT I O N
b. “as soon a s possible” OF P E R I O D
c. “from time to time” DEPENDS UPON
d. “as soon a s I have the money” TH E W IL L O F
TH E D E B TO R
e. “at any time I have the money”
f. “in partial payments”
g. “when I a m in a position to pay”

Obligations with a period will be discussed thoroughly in Articles 1193-1198.

 In conditional obligations,
the acquisition of rights, as
well as the extinguishment
or loss of those already
A RT I C L E 1 1 8 1 acquired, shall depend upon
the happening of the event
which constitutes the
condition.
S U S P E N S IV E
C O N D ITIO N Article 1 1 7 9
R E S O L U TO RY
CONDITION
 Nica promised Junine to bring
the fruits harvested from
Junine’s farm to the market if
PROBLEM she will furnish Nica a truck.

Is the obligation subject to a

suspensive or resolutory condition?
 Carl binds himself to support
Karen’s studies until she
graduates from college.
PROBLEM

Is the obligation subject to a

suspensive or resolutory condition?
 When the fulfillment of the
condition depends upon the
sole will of the debtor, the
conditional obligation shall be
void. If it depends upon
A RT I C L E 1 1 8 2 chance or upon the will of a
third person, the obligation
shall take effect in conformity
with the provisions of this
Code.
 A s to the effect
A s to form
A s to possibility
C L A S S IF IC AT IO
N OF A s to cause or origin
CONDITIONS
A s to mode
A s to number
A s to divisibility
 A S TO T H E E F F E C T

R E S O L U TO RY C O N D I T I O N

• the happening of which • the happening of which

gives rise to the extinguishes the
obligation obligation
 A S TO F O R M

EXPRESS IMPLIED

• The condition is clearly • The condition is merely

stated. inferred.
 A S TO T H E P O S S I B I L I T Y

POSSIBLE IMPOSSIBLE

• the condition is capable • the condition is not

of fulfillment, legally and capable of fulfillment,
physically legally or physically
 A S TO C A U S E O R O R I G I N *

P OT E S TAT I V E CAS UAL MIXED

• the condition • the condition • the condition

depends upon depends upon depends partly
the will of one of chance or upon upon chance and
the contracting the will of a third partly upon the
parties person will of a third
person
 A S TO M O D E

POSITIVE N E G AT I V E

• the condition consists in • the condition consists in

the performance of an the omission of an act
act
 A S TO N U M B E R

CONJUNCTIVE DISJUNCTIVE

• there are several • there are several

conditions, and all must conditions and only one
be fulfilled or s ome of them must
be fulfilled.
 A S TO D I V I S I B I L I T Y

DIVISIBLE INDIVISIBLE

• the condition is • the condition is not

susceptible of partial susceptible of partial
performance performance
 A condition suspensive in nature
P O T E S TAT IV E and which depends upon the
CONDITION sole will of one of the
contracting parties.
 “ W H E N TH E FU LFILLM E N T O F TH E
C O N D ITIO N D E P E N D S U P O N THE S O L E
WILLOF THE
D E B TO R , TH E C O N D ITIO N A L
O B L IG ATIO N S H A L L BE
VOID.”
• Potestative Condition
• It depends upon the sole will of the debtor.
• Conditional obligation shall be void.

How about if it depends upon the sole will of the creditor? Is the
obligation valid?
 SUSPENSIVE CONDITION

D E P E N D S UPON THE D E P E N D S UPON THE

WILL OF THE D E B TO R WILL OF THE C R E D I TO R

• Conditional obligation is VOID. • If the condition depends

• I will pay you if I want. exclusively upon the will of the
• I will pay you after I receive a loan from creditor, the obligation is valid.
the bank. • I will pay you m y debt upon your
• Only the condition is void, the demand.
obligation still subsists.
• This applies if there is a pre-existing
obligation exists.
• Jake borrowed P10,000 from Michelle,
payable within 2 months. Michelle then
informed Jake that she will pay him
when she sells her car.
 R E S O L U TO RY C O N D I T I O N

D E P E N D S UPON THE D E P E N D S UPON THE

WILL OF THE D E B TO R WILL OF THE C R E D I TO R

• The obligation is valid. • The obligation is valid.

• The fulfillment of the condition
merely causes the
extinguishment or loss of rights
already acquired (Article
1181).
• Pacto de retro – Contract of Sale
with Right to Repurchase
 If the suspensive condition
depends upon chance or upon the
will of a third person, the
obligation subject to it is valid.

Example:
CAUSAL A BC Contractor binds itself in favor of
CONDITION Louise, owner, to repair the house on its
expense for any d a m a g e caused to her
house by any earthquake occurring within
1 0 years from its completion.

Marvic will sell his land to Edna if he wins

the case which is pending before the
Supreme Court.
 If the suspensive condition depends
partly upon chance a n d partly
upon the will of a third person, the
obligation subject to it is valid.

Example:

MIXED CONDITION ABC Contractor binds itself in favor of

Louise, owner, to repair the house on its
expense for any damage caused to her
house by any earthquake and if the
assessor finds out that the construction
defects contributed to the damage.

I will give you Php 50,000 if you will marry

Jake in the year 2025.
 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
A RT I C L E 1 1 8 3 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 a s not having been
agreed upon.
 SUSPENSIVE CONDITIONS

The impossibility of the condition should exist at the time

the obligation was constituted; otherwise, Article 1 2 6 6
governs.

Article 1266.
“The debtor in obligations to do shall also be released
when the prestation becomes legally or physically
impossible without the fault of the obligor.”
 It is when the condition is
n o t c a p a b l e of realization
according to nature
IM P O S S IB L E (physically impossible
conditions), law, public
CONDITION policy, or good customs
(legally impossible
conditions)
 KINDS OF I M P O S S I B L E C O N D I T I O N S
PHYSICALLY I M P O S S I B L E
• B y nature of things, cannot exist
or cannot be done.
• I will pay you P1,000,000 if it will
not rain for one year in the
Philippines.
• If you could carry 1,000 kilograms
of sand on your shoulder, I will
marry you.
LEGALLY I M P O S S I B L E
• These are contrary to law, morals,
good customs, public order, and
public policy.
• I will give you P1,000,000 if you –
• Will kill X (law)
• Will be m y common-law wife
(morals)
• Will disrespect your parents (good
customs)
• Will organize a coup d’ etat against
the government (public order)
• Will no appear as witness in a
criminal case (public policy)
 E F F E C TS O F
IM P O S S IB L E
CONDITIONS
If the condition is to do an impossible thing, both the condition and the
obligation are void.
• Ex. I will give you a diamond ring if you can make a ma n rise from the dead.

If the condition is not to do (negative) the impossible thing, disregard the

condition but the obligation remains valid and is rendered pure
obligation.
• Ex. I will give you a diamond ring if you cannot make a square that is at the s ame time a
rectangle.
If the obligation is divisible, the part thereof not affected by the
impossible condition is valid. Only the affected obligation is void.
• Ex. I will give you a diamond ring if you sell m y land, and a car, if you will kill Pedro.
If the obligation is a pre-existing obligation, and, therefore, does not
depend upon the fulfillment of the impossible condition, for its existence,
only the condition is void.
• Ex. Yssa borrowed Php 10,000 from Riri. If Riri later agrees to kill Leo before Yssa pays him,
only the condition to kill Leo is void but the pre-existing obligation to pay Riri is valid.
 The condition that s o m e
event happen at a
determinate time shall
extinguish the obligation
A RT I C L E 1 1 8 4
a s soon a s the time
expires or if it has become
indubitable that the
event will not take place.
 • It is the happening of the
event at a determinate
time. The obligation is
extinguished:
POSITIVE • A s soon a s the time expires
( S U S P E N S IV E ) without the event taking
CONDITION place; or
• A s soon a s it has become
indubitable that the event will
not take place although the
time specified has not yet
expired
 AARON OBLIGES HIMSELF TO
GIVE L E O N P1 0 0 , 0 0 0 IF LEO N
W ILL M ARRY C L A R IC E B E F O R E
LEON REACHES THE AGE
OF 23.
a. Aaron is liable if Leon marries Clarice before the
age of 23.
b. Aaron is not liable if Leon marries Clarice when
he is already 2 3 or beyond 23.
c. If Leon dies prior reaching the a ge of 2 3
without marrying Clarice, the obligation is
already extinguished because the condition will
no longer take place.
 The condition that s o m e event
will not happen at a
determinate time shall render
the obligation effective from
the moment the time indicated
ha s elapsed, or if it ha s
become evident that the event
A RT I C L E 1 1 8 5 cannot occur.
If no time ha s been fixed, the
condition shall be deemed
fulfilled at such time a s m a y
have probably been
contemplated, bearing in mind
the nature of the obligation
 It is an event which will not happen at a
determinate time. The obligation shall
become effective and binding:
• from the moment the time indicated
has elapsed without the event
taking place; or
• from the moment it has become
N E G AT I V E evident that the event cannot occur,
C O N D IT IO N although the time indicated has
not yet elapsed.

If no time is fixed, the circumstances

shall be considered to determine the
intention of the parties. This rule
m a y also be applied to a positive
condition.
 AARON O B L IG E S H IM S E L F TO G IV E
L E O N P 1 0 0 , 0 0 0 IF LEON WILL NOT
M A R RY
CLARICE BEFORE LEON R E A C H E S THE AGE
OF 23.

a. Aaron is not liable if Leon marries Clarice before

the age of 23.
b. Aaron is liable if Leon marries Clarice when he
is already 2 3 or beyond 23.
c. If Leon dies prior reaching the a ge of 2 3 without
marrying Clarice, the obligation becomes
effective because the condition that Leon will not
marry Clarice is fulfilled.
 The condition shall be
deemed fulfilled when
A RT I C L E 1 1 8 6 the obligor voluntarily
prevents its fulfillment.
 1. The condition is
suspensive;
2. The obligor (creditor)
R E Q U IS ITE S prevents the
fulfillment of the
condition; and
3. He acts voluntarily.
Sienna agreed to give a 5 % commission to
Yssa if Yssa could sell the property at a
certain price. Yssa found a buyer who h a s
decided to buy the property upon the
terms of Sienna. To evade the payment of
the commission, Sienna sold the property
to the buyer at a lower price without EXAMPLE:
Yssa’s help.

Is Sienna liable to give Yssa the 5 %

commission?
 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
A RT I C L E 1 1 8 7 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 s ame was different.
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.
 E F F E C TS O F F U L F IL L M E N T
OF SUSPENSIVE
CONDITIONS
The obligation becomes effective from:
• General Rule: It retroacts to the day the
obligation was constituted.
• No retroactivity with reference only to:
a. Fruits and interests
b. Period of prescription
 NO R E TR O A C TIV E E F F E C TS A S
TO T H E F R U I T S A N D
INTEREST
• In unilateral obligations, the debtor gets the fruits and
interests unless there is a contrary intent.
• Ex. In 2005, Alex promised Bruno his land if he passes the bar in
2006. If the condition is fulfilled, is Alex liable to also give the fruits
for the period of one year? No, the law expressly provides unless
there is a contrary intent.
• In reciprocal obligations, the fruits and interests during
the pendency of the condition shall be deemed to
compensate each other.
• Ex. In 2005, Alex promised to sell Bruno his land, and Bruno
promised to pay if Clarice passed the Bar E x a m s of 2006. Clarice
passed. Alex must sell the land, Bruno must pay. Alex is not obliged
to give the fruits of the land, neither is Bruno liable to give the
6 % legal interest of the money.
 The creditor may, before the
fulfillment of the condition,
bring the appropriate actions
for the preservation of his
A RT I C L E 1 1 8 8 right.
The debtor m a y recover what
during the s a m e time he
has paid by mistake in case
of a suspensive condition.
 R IG H TS P E N D IN G F U L F IL L M E N T
OF SUSPENSIVE
CONDITION
RIGHTS OF CREDITOR
• He m a y take or bring appropriate
actions for the preservation of
his right, a s the debtor m a y
render nugatory the obligation
upon the happening of the
condition. He m a y g o to the
court to prevent the alienation
or concealment of the property,
or to have his right annotated
on the title to the property in
the registry of deeds.
RIGHTS OF D E B TO R
• He is entitled to recover what he
has paid by mistake prior to the
happening of the suspensive
condition. This right is granted to
the debtor because the creditor
m a y or m a y not be able to fulfill
the condition imposed and
hence, it is not certain that the
obligation will arise. (Principle of
Solutio Indebiti)
 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:
(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 p a y damages; it is understood that the thing is
lost when it perishes, or g o e s out of commerce, or
disappears in such a way that its existence is unknown or it
A RT I C L E 1 1 8 9 cannot be recovered;
(3)W h e n the thing deteriorates without the fault of the
debtor, the impairment is to be borne b y the creditor;
(4)If it deteriorates through the fault of the debtor, the
creditor m a y choose between the rescission of the obligation
and its fulfillment, with indemnity for d a m a g e s in either
case;
(5)If the thing is improved b y its nature, or b y time, the
improvement shall inure to the benefit 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.
The obligation is a The object is a The obligation is
real obligation; specific or subject to a
determinate thing; suspensive
condition;
REQUISITES

The condition is There is loss, deterioration,

fulfilled; and or improvement of the
thing during the
pendency of the
happening on one
condition.
 • A 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.
LO S S
RULE O N L O S S
• Without the fault of the debtor –
obligation is extinguished
• Through the fault of the debtor –
payment of d a m a g e s
 • It is when the value of thing is
reduced or impaired.

RULE O N DETERIORATION
• Without the fault of the debtor –
D E T E R I O R AT E impairment borne by the creditor
• Through the fault of the debtor -
creditor m a y choose between:
• Rescission of the obligation with
indemnity for damages.
• Fulfillment of the obligation with
indemnity for damages.
 • It is when the value of the thing
increased or is enhanced.

RULE O N IMPROVEMENT
• B y its nature or by time – benefit of
the creditor
• At the expense of the debtor -
IMPROVEMENT debtor’s right is that granted to a
usufructuary (right to u s e and fruits
while the thing is with the debtor)
• If the improvements are useful or for
mere pleasure, he shall have no right to
be indemnified. He m a y however
remove the improvements if it would
not cause a n y d a m a g e s to the thing.
• He m a y set off the improvements he
m a d e on the property against a n y
d a m a g e s to the same.
 In 2007, Greg promised to give
Ruel his car if Ruel passed the
2 0 0 9 Civil Engineering
Licensure Exam. While waiting
for the results, the car was
destroyed by fire without
PROBLEM Greg’s fault.
What is the liability of Greg?

If the car was stolen because

of Greg’s negligence, what
is the liability of Greg?
 The stolen car which was
promised by Greg to Ruel was
recovered. However, by reason
of Greg’s negligence, the car
PROBLEM suffered some scratches, and
the windshield was broken.

What are the remedies of Ruel?

 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
A RT I C L E 1 1 9 0 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.
A s for the obligations to do and not to
do, the provisions of the second
paragraph of article 1 1 8 7 shall be
observed a s regards the effect of
the extinguishment of the obligation
 1 . The obligation is
extinguished;
2 . B ecau se the obligation is
extinguished and considered to
have no effect, the parties should
restore to each other what they
have received;
3. Aside from actual things received,
EFFECTS WHEN
R E S O L U TO RY
the fruits or the interests thereon
C ON D I T I ON IS should also be returned after
FULFILLED deducting of course the expenses
made for their production,
gathering and preservation;
4. The rules given in Art.1189 will
apply to whoever has the duty to
return in case of the loss,
deterioration, or improvement of
the thing.
 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 m a y choose between the
fulfillment and the rescission of the
obligation, with the payment of d a m a g e s in
either case. He m a y also seek rescission,
even after he h a s chosen fulfillment, if the
A RT I C L E 1 1 9 1 latter should become impossible.
The court shall 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 1 3 8 5 and 1 3 8 8 and the
Mortgage Law.
 It me a ns the right to cancel (or
resolve) the contract or
reciprocal obligations in case of
non-fulfillment on the part of
one.

R IG H T T O R E S C IN D Rescission here is not predicated

on injury to economic interests
on the part of the creditor
(Article 1 3 8 0 and 1381) but on
the breach of faith by the debtor,
which breach is violative of the
reciprocity between the parties.
In case one of the obligors does
not comply with what is
incumbent upon him, the
aggrieved party m a y choose
between the two remedies: R E M E D I E S IN
• Action for specific performance
(fulfillment) of the obligation with RECIPROCAL
damages; or O B L I G AT I O N
• Action for rescission of the
obligation with damages.
 1. It exists only in reciprocal obligations;
2. It can be demanded only if the plaintiff is ready,
willing, and able to comply with his own obligation and
the other is not;
3. The right to rescind is not absolute;
a. Trivial causes or slight breaches will not
cause rescission;
b. If there be a just cause for fixing the period within
which the debtor can comply, the court will not
decree rescission;
C H A R A C T E R IS T IC S
O F T H E R I G H T TO c. If the property is now in the hands of an innocent
third party who h as lawful possession of the same.
RESCIND 4. The right to rescind needs judicial approval in
certain cases, and in others does not need such
approval;
a. Judicial approval is needed when there has already been
delivery of the object;
b. Judicial approval is not needed when there has been no
delivery yet.
5. The right to rescind is implied to exist and therefore,
need not be expressly stipulated upon. (Art.1191);
6. The right to rescind m a y be waived, expressly or
impliedly.
 Sienna sold a parcel of land to Berne
for Php 240,000 payable in
installments of Php 20,000 a year. The
land was delivered to Berne who
obtained ownership thereof. After
Berne had paid Php 200,000, she could
no longer continuing paying in view of
PROBLEM financial reverses, but she is willing to
pay the balance of Php 40,000 if
given more time. Thereupon, Sienna
sued for rescission under Article 1991.

If you were the judge, would you grant

the rescission?
 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
A RT I C L E 1 1 9 2 cannot be determined which of
the parties first violated the
contract, the s a m e shall be
deemed extinguished, and each
shall bear his own damages.
 First infractor k n o w n
• One party violated his obligation;
subsequently, the other also violated his
part of the obligation. In this case, the
liability of the first infractor should be
equitably reduced.
First infractor c a n n o t b e d e t e r m i n e d
R U LE IF • One party violated his obligation followed by
B O TH the other, but it cannot be determined which
PA RT I E S of them was the first infractor. The rule is
that the contract shall be deemed
ARE extinguished and each other shall bear his
GUILTY O F own damages.
BREACH
In effect, the court shall not provide
remedy to either of the parties,
who must suffer the d am ag e s
allegedly sustained by them.