OBLIGATIONS AND

CONTRACT
Kinds of Obligations
Pure and Conditional Obligations
 PURE OBLIGATION
• 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 effects of the happening of the
event. (1113)
 CONDITIONAL OBLIGATION
• Principal Kinds:
• Suspensive Condition
• Resolutory Condition
 SPECIFIC CLASSIFICATION
• Art. 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. (n)
 EFFECTS OF CONDITIONAL
OBLIGATIONS
• Art. 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.
(1114)
 KINDS OF CONDITIONS
• Art. 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. (1115)
 OTHER CLASSIFICATIONS
• As to Form: • Possibility:
• Express o Possible
• Implied o Impossible
• As to cause or Origin:
• As to numbers:
• Potestative
o Conjunctive
• Casual o Disjunctive
• Mixed
• As to mode: • As to divisibility
• Positive o Divisible
• Negative o Indivisible
 KINDS OF CONDITIONS
• Art. 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. (1116a)
 POSITIVE CONDITION
• Art. 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. (1117)
 NEGATIVE CONDITION
• Art. 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. (1118)
• Art. 1186. The condition shall be deemed fulfilled when the obligor
voluntarily prevents its fulfillment. (1119)
• Art. 1187. 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 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 same 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. (1120)
• Art. 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. (1121a)
• Art. 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:
• (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 disappears 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 rescission of the obligation and its
fulfillment, with indemnity for damages in either case;
• (5) If the thing is improved by its nature, or by 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. (1122)
• Art. 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 the 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. (1123)
• Art. 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 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 1385 and 1388 and the Mortgage Law. (1124)
• Art. 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. (n)