1179  I will give B a monthly allowance of 3,00

- Every obligation whose performance does not depend until he graduates from college. It will
upon a future or uncertain event, or upon a past even extinguished once B has graduated from
unknown to the parties, is demandable at once. college.
- every obligation which contain a resolutory condition *it is demandable if its:
shall also be demandable, without prejudice to the - pure
effects of the happening of the event -resolutory

 Pure Obligation  Condition

 not subject to any condition and no specific date  Uncertain and future event
is mentioned for its fulfillment thus immediately  Knowledge to be acquired in the future of a
demandable past event which at the moment is unknown –
 i.e: D obliges himself to pay C 1,000 pesos. It is contemplated by law
immediately demandable because there is no  X is the owner of a land that is being
date and condition mentioned in the fulfillment claimed by Y. SC has gave a final decision
 If it has just been contracted, a period must have upholding the right of X but he hasn’t
been intended but the performance depend received the notice yet. He obliged
upon the nature of the obligation and the himself to sell his land to Z should he win
circumstances the case. So, X would be bound to sell the
 D binds himself to pay C 1,000 pesos “upon land to B upon the arrival of the notice
demand of C” -> Obligation is immediately due that he had won the case.
and demandable
1180
 Conditional Obligation -when the debtor binds himself to pay when his means
 Consequences are subject in one way or another permit him to do so, the obligation shall be deemed to
to the fulfillment of a condition be one with a period, subject to the provisions of article
 Condition -> future and uncertain event, the 1197
happening of which, its effectivity or
extinguishment of an obligation subject to it  Period
depends.  A future and certain event upon the arrival of
Characteristics: which the obligation subject to it either arises
1. Future and uncertain or is extinguished
2. Past but unknown o Debtor promises pay when his means permit
*condition must not be impossible  What depends upon the debtor’s will is not
whether he should pay or not for indeed
Principal kinds: he binds himself to pay
1. Suspensive condition (precedent/antecedent)  If they cannot agree on the specific time of
 Fulfillment which will give rise to an payment, the court shall fix the same on
obligation the application of either party
 Demandability of the obligation is suspended 1181
until the happening of the uncertain event’ -in conditional obligations, the acquisition of rights, as
 Obligation arises well as the extinguishment or loss of those already
 i.e: I will sell you the land if it is acquired shall depend upon the happening of the event
adjudicated to me in the division of my which constitutes the condition
deceased father’s estate. My obligation
will only arise after the condition is 1. Acquisition of rights
fulfilled  If suspensive: depends upon the happening of
the event which constitutes the condition
2. Resolutory Condition (subsequent)  If it does not take place and it is certain that it
 Fulfillment of which will extinguish an will not happen: parties would stand as if the
obligation already existing conditional obligation had never existed
 Obligation is extinguished  i.e: X put in his will that H will receive
some of his property provided that X
 would die within two years. H would only 1. Conditional obligation void
acquire right to his property once X died  When the potestative condition depends solely
within two years. (if no time = period). If X upon the will of the debtor, the conditional
died after two years, situation will still be obligation shall be void because its validity and
the same. compliance is left to the will of the debtor (thus
2. Loss of rights already acquired it cannot be easily demanded)
 If resolutory: the happening of the event which  No juridistical tie is created
constitutes the condition produces the  I will pay you if I want
extinguishment or loss of rights acquired.
 My support for Y until he graduates from 2. Only the condition void
college will be extinguished once the  If the obligation is a preexisting – does not
condition is fulfilled depend for its existence upon the fulfillment
by the debtor of the potestative condition,
1182 only the condition is void leaving unaffected
-when the fulfillment of the condition depends upon the obligation itself
the sole will of the debtor, the conditional obligation  The condition is imposed on the fulfillment of
shall be void. the obligation
-if it depends upon chance or the will of a third person,  B borrowed P10,000 from A payable
obligation shall take effect in conformity with provisions within two months. B promised to pay C
of 1115 “after B sells his car” to which C agreed.
Only the condition is void and not the
pre-existing obligation.

Depends upon will of creditor:

-obligation is valid
 I will pay you my indebtedness upon your
demand”

Resolutory depends upon will of debtor

 Obligation is valid tho its fulfillment depends
upon the sole will of the debtor. Fulfillment of
the condition results to the loss of rights already

 Causal condition
 If the suspensive condition depends upon
chance or upon the will of a third person,
obligation is a valid
 X, a contractor, obliges himself to fix Y,
owner, to repair at X’s expense any
damage that may be caused to the
building by any earthquake within 10 yrs
from the construction.
 Mixed Condition
 Obligation is valid if the suspensive condition
depends partly upon chance and the will of a
third person
 X, a contractor, obliges himself to fix Y,
owner, to repair at X’s expense any
 Potestative condition damage taking place after an earthquake
 Depends upon the sole will of one of the if proven that it is due to construction
contracting parties defects.

Suspensive depends upon will of debtor:

*conditional obligation whose fulfillment depends  Refers to positive (suspensive) condition
partly upon the will of the debtor and partly upon the  The happening of an event at a determinate
will of third person or upon chance is perfectly valid time. Obligation is extinguished as soon as (1)
time expires without the event taking place (2)
1183 it has become indubitable that the event will
-impossible conditions (unlawful, prohibited by law) not take place although time has not yet expired
shall annul the obligation which depends upon them.  X will give Y P10,000 if Y will marry Z
-if the obligation is divisible, that part thereof which is before Y reaches 25. X is liable if Y marries
not affected by the unlawful condition shall be visible C at the age of 25 or after. Obligation is
-refers to suspensive conditions extinguished as soon as B becomes 25 yrs
old. If Y dies before 25, the obligation is
Kinds of impossible conditions: extinguished.
1. Physically impossible conditions:
 Cannot exist or cannot be done in nature 1185
 I will pay you P10,000 if it wont rain in the -condition that some event will not happen at a
Philippines for a year determinate time shall render the obligation effective
2. Legally impossible conditions from the moment the time indicated has elapsed.
 When contrary to law, morals, good customs, -if no time: condition shall be deemed fulfilled at such
 public order/policy time as may have probably been contemplated
 X will give P1,000 if Y kills Z
 Negative condition
Effect:  Event will not happen at a determinate time
1. Conditional obligation void  Obligation shall become effective and binding
 Impossible conditions annul the obligation from the moment (1) the time indicated has
which depends upon them elapsed without the event taking place (2) it has
 Both condition and obligation are void become evident that the event cannot occur
2. Conditional obligation valid  X binds himself to B 10,000 if B is not yet
 If the condition is negative, obligation is pure married to C on December 20
 Negative condition may not to give an  Basta opposite ng positive!! If C dies, the
impossible thing obligation becomes effective
 I will sell you my land if you do not carry
20 cavans of palay on your shoulder 1186
3. Only the affected obligation void -condition shall be deemed fulfilled when the obligor
 If obligation is divisible, the part thereof not voluntarily prevents its fulfillment
affected by the impossible condition shall be
valid Constructive fulfillment of suspensive:
 I will give you 10,000 if you sell my land, 1. Condition is suspensive
and a car if you kill Pedro 2. Obligor prevents the fulfillment of the condition
4. Only the condition void 3. He acts voluntarily
 If the obligation is pre-existing, it does not  S promised to sell Y his land if Y would
depend upon the fulfillment of the impossible be able to secure a loan from a certain
condition. Only the condition is void. bank. S changed his mind then induced
 D borrowed 10,000 from C. C later agreed the bank not to give Y a loan.
to kill X before D pays him. The condition
to kill X is void but not the pre-existing Constructive fulfillment of resolutory:
obligation  With respect to the debtor who is bound to
return what he has received upon the fulfillment
1184 of the condition
-the condition that some event happen at a  X allows Y to occupy his house in MNL
determinate time shall extinguish the obligation as soon as long as X is assigned by their
as the time expires or if it has become unquestionable company in the province. When Y
that the event will not take place learned that X would be transferred to
 mnl, he was able to induce the  When B lost the case in court on Dec
president to assign another person 4, S must deliver the land and B must
instead of X. Obligation of X is pay 50k. S does not have to give the
extinguished because the fulfillment of fruits received from the land before
the resolutory condition was Dec 4 and B is not obliged to pay legal
voluntarily prevented by Y interests on the price since the fruits
and interests received are deemed to
1187 have been mutually compensated
-In obligation to do and not to do, the court shall
determine, in each case, the retroactive effect of the 2. In unilateral obligations
condition that has been complied with. (1120)  No retroactive effect because they are
*retroactive – taking effect from a date in the past gratuitous. Debtor receives nothing from the
 Retroactivity of Obligation creditor.
 Effect of the happening of suspensive conditions  Fruits and interests belong to debtor as long as
 Creditor cannot enforce his right between the it was produced within the period of the
creation of conditional and fulfillment of condition unless it should be inferred by the
suspensive condition debtor.
 Retroactive effects of fulfillment of suspensive
condition: 1188
1. In obligations to give -creditor may, before the fulfillment of the condition,
 Becomes demandable only upon the bring the appropriate actions for the preservation of his
fulfillment of the condition right
 Once the condition is fulfilled, its effect shall -debtor may recover what during the same time he has
retroact to the day when the obligation was paid by mistake in case of a suspensive condition
constituted
 Condition is only an accidental element of a 1. Rights of creditor
contract  May take or bring appropriate actions for
 Obligation CAN exist without being subject the preservation of his right, as the debtor
to a condition may render nugatory obligation upon the
 On Jan 20, S agreed to sell his land to B happening of the condition
for 50k should B lose a case involving  May go to court to prevent the alienation or
the recovery of another land. On April concealment of the property the debtor has
10, S sold his land to C. B lost the case
on Dec 4. 2. Rights of debtor
 Before Dec 4, B had no right to  Entitled to recover what he has paid by
demand the sale of land by S. When mistake prior to the happening
the condition was fulfilled on Dec 4, B  It is granted to the debtor because the
was entitled to the land starting Jan creditor may or may not be able to fulfill
20. B has more right than C. the condition imposed
2. In obligations to do or not to do  Solutio indebiti
 No fixed rule is provided
 Court will decide whether there is a
retroactive effect
 M

 To fruits and interests in obligations to give

1. In reciprocal obligations
 No retroactivity because the fruits and interests
received during the pendency of the condition
are deemed to have been mutually
compensated
1189 4. Deterioration of thing through debtor’s fault
 Rescission (cancellation) of the obligation with
damages. X is liable to pay Y 100k (value of car
before damages)
 Fulfillment of the obligation also with damages.
X is bound to Y to give the car and pay 10k
5. Improvement of thing by nature or by time
 Thing is improved when its value is increased
by time or at the expense of the debtor/creditor
 If the car’s market value increased, the
improvement shall inure to the benefit of
Y. he should be compensated in case of
improvement of the car.
6. Improvement of thing at the expense of debtor
 During the pendency, X had the car painted at
his expense. X will have the right granted to a
usufructuary w/ respect to improvements
made.
 Usufruct – right to enjoy the use and fruits of
thing belonging to another

Requisites: 1190
1. The obligation is a real obligation -When the conditions have for their purpose the
2. Object is a specific or determinate thing extinguishment of an obligation to give, the parties,
3. Suspensive condition upon the fulfillment of said conditions, shall return to
4. Condition is fulfilled and there is loss or improvement each other what they have received.
of the thing during the pendency of the condition  If the condition does not happen, the rights of the
creditor will become absolute. But if the condition
Kinds of LOSS happens, such rights will be extinguished, and the
1. Physical loss – when a thing perishes (house is obligation will be treated as if it did not exist.
burned)  Each party is bound to return to the other whatever
2. Legal loss – when a thing goes out of commerce has received. Every vestige of obligation is wiped
or becomes illegal (American dollars had become out through the process of mutual restitution.
illegal)  Return to the status quo (effect of the
3. Civil loss – when a thing disappears in such a way
fulfillment of the condition is retroactive)
its existence is unknown and cannot be recovered
 If the thing to be returned is in possession of a
(dog went missing)
third person who did not act in bad faith, remedy
of the party entitled to the restitution is against
Rules in case of loss (pendency of suspensive condition)
the other. Third person cant be sued
1. Loss of thing without debtor’s fault
 Obligation of mutual restitution is absolute
 X obliged himself to give Y his car worth 100k if
 Obligations to give subject to suspensive
Y sells X’s property. Car got lost w/o the fault of
condition, the retroactivity admits exceptions
X. Obligation is extinguished and X is not liable
according as the obligation is bilateral or
because it is due to fortuitous event
unilateral
2. Loss of thing through debtor’s fault
 X allows Y to use X’s car until X’s return
 Loss occurred because of the negligence of X. Y
from the province. Upon the return of X, Y
is entitled to demand damages.
must give back the car.
3. Deterioration of thing without debtor’s fault
 Thing deteriorates when it is value is reduced or
1191
impaired without the debtor’s fault
-power to rescind obligation is implied in reciprocal
 If the car got in an accident and there were
ones
damages (without the fault of x), Y will
have to suffer the damages and pay for it.
Kinds of obligation 1. Where automatic rescission expressly stipulated
1. Unilateral – only one party is obliged to comply with a. There must be written notice
a prestation 2. Where contract still executory
 Donation a. When there is no performance yet
2. Bilateral – when both parties are mutually bound to
each other. Both parties are creditors and debtors 1192
of each other. May be reciprocal or non-reciprocal -when both parties committed a breach of obligation,
a. Reciprocal obligations – arise from the same the liability of the first infractor shall be equitably
cause and in which each party is a debtor tempered by the courts
and creditor of the other -if no one ones to admit who violated the contract first,
b. Non-reciprocal – do not impose it will be extinguished and each shall bear damages
simultaneous and correlative performance  Where both parties are guilty of breach
on both parties. Performance of one party 1. First infractor known – one party
is not dependent upon the simultaneous violated his obligation, and the other
performance by the other also. Liability of the first infractor is
i. Obligations are not dependent reduced
upon each other 2. First infractor cannot be determined –
 Remedies in reciprocal obli: see def.
1. Choice of remedies (in case one of the obligors
does not comply with what is incumbent upont
him) Obligations with a period
a. Action for specific performance of the  One whose effects or consequences are
obligation w damages subjected in one way or another to the
b. Action for rescission of the obligation also expiration or arrival of said period or term
with damages  Period
2. Remedy of rescission for non-compliance  Future AND certain event upon the arrival of
a. Must be distinguished from the subsidiary which the obligation subject to it either arises
action for rescission by reason of lesion or or is terminated
damage  Day certain which must necessarily come, or
b. Remedy is granted for breach by the may it be unknown.
other contracting party that violates the 1193
reciprocity between them -obligations for whose fulfillment a day certain has been
fixed, shall be demandable only when that day comes
 Remedies are alternative -resolutory period terminates upon arrival of the day
 Can choose only one of the remedies certain
-a day certain -> must necessarily come, but unknown
Limitations on right to demand rescission when
1. Resort to the courts
a. To assert rights juridically Period and condition distinguished
2. Power of the court to fix period As to:
a. Power to allow a period within which a 1. Fulfillment
person in default may be permitted to a. Period – certain event which must
perform his obligation happen sooner or late at a date known
3. Right of the third person beforehand
a. If the thing is w a third person even if it b. Condition - uncertain
acted in good faith 2. Time
4. Substantial violation a. P – future
a. Rescission will not be granted for slight b. C – also past event unknown
breaches of contract 3. Influence on the obligation
5. Waiver of right a. P – fixes the time for efficaciousness
a. Right to rescind b. C – causes an obligation to rise or cease
4. Effect,when left to debtor’s will
Without previous judicial decree
 a. P – depends upon the will of the debtor expiration of the period, the debtor may not fulfill the
depends upon the court to fix the obligation and the creditor may not demand its
duration fulfillment w/o the consent of the other
b. C – depends upon the sole will of the
debtor to invalidate the obligation
5. Retroactivity of effects
a. P – arrival of period does not have
retroactive effect
b. C – has

Kinds of period or term

1. According to EFFECT
a. Suspensive period
i. Obligation arrives upon the
arrival of the period
b. Resolutory period
i. Obligation is valid up to a day
certain and terminated upon
arrival of the period
2. According to SOURCE
a. Legal Period
i. When it is provided for by laws
b. Conventional or Voluntary Period
i. Agreed to by the parties
c. Juridical
i. Fixed by the court
3. According to DEFINITENESS
a. Definite period
i. Fixed or known when it will
come
b. Indefinite period
i. Not fixed but period is intended
courts are empowered by law
to fix it

1194
-see 1189.

1195
-anything paid or delivered before the arrival of the
period, the obligor being unaware of it and that it is
due, may be recovered with the fruits and the interest

 Payment before arrival of period

 recovery of what has been paid my mistake
before the fulfillment of suspensive condition
 Debtor presumed aware of period – he has to prove
that he was unaware
 No recovery in personal obligations

1196
-period is presumed to have been established for the
benefit of both the creditor and debtor. Before the