I.

Definitions
1. Condition is a future and uncertain event, upon the happening of which, the effectivity
or extinguishment of an obligation subject to it depends.

2. Civil loss when a thing disappears I such a way that its existence is unknown or even if
known, it cannot be recovered, whether as a matter of fact or of law.

3. Reciprocal Obligations There is no retroactivity because the fruits and interest

received during the pendency of the condition are deemed to have been mutually
compensated. This rule is necessary for purposes of convenience since the parties would
not have to render mutual accounting of what they have received. Fruits here may be
natural, industrial, or civil fruits.

4. Pure obligation Is one which is not subject to any condition and no specific date is
mentioned for its fulfillment and is, therefore, immediately demandable.

5. Potestative conditions A condition suspensive in nature and which depends upon the
sole will of one of the contracting parties.

II. Discussions
1. Illustrate an obligation subject to:
Suspensive condition the happening of which gives rise to the obligation

A will give B P1,000 if Duterte will beat Roxas in the 2016 election.

Resolutory Condition the happening of which extinguishes the obligation.

A will give B P1,000 until Duterte beats Roxas in the 2016 election.

What is the effect of fulfillment of the condition in a conditional obligation?

(Suspensive) A's obligation to B will arise

(Resolutory) A's obligation to B will be extinguished

2. Give two (2) cases when the conditional obligation is valid although the condition
depends entirely upon the will of the debtor. Explain.
(1) If the obligation is a pre-existing one and does not depend for its
existence upon the fulfillment of the obligation. If the debtor already has an
 obligation, only the condition will be void becau se the obligation's existence
does not depend upon the condition's fulfillment.
(2) If the condition is resolutory, and depends upon the debtor, it is
valid. It is the same as a suspensive condition that depends upon the creditor's
will.

3. May an obligor be liable under an obligation subject to a suspensive condition, who is

entitled to the fruits that accrued during the pendency of the condition once said
condition is fulfilled?

Yes. If the condition is suspensive, and the obligor actually prevents the
fulfillment of the condition, and he does this voluntarily, he can be held liable.
The obligor is liable because he prevented the condition from happening to
avoid his obligations.

4. In an obligation to give a parcel of land subject to a suspensive condition, who is entitled

to the fruits that accrued during the pendency of the condition once said condition is
fulfilled?
The debtor is entitled to the fruits of the land unless their stipulations
clearly states otherwise.

5. State the rules in case the thing to be delivered:

Is lost with the debtors fault; without his fault;
Without his fault If w/ debtor's fault, creditor is entitled to demand
damages plus incidental damages, if any. If w/o debtor's fault, obligation is
extinguished and debtor has no liability to the creditor.

Deteriorates with the debtors fault; without his fault.

Without his fault If w/ debtor's fault, creditor may choose between
rescission of obligation with damages OR fulfillment of obligation with damages. If
w/o debtor's fault, creditor will suffer the deterioration.

III. Problems
1. D (debtor) borrowed P20, 000 from C (creditor) payable on or before August 30. Before
the arrival of the due date, C agreed to the promise of B to pay C if B wants. Can C insist
that B pay not later than August 30.

No. C c annot insist that B pay earlier because the condition is "if B wants". The
obligation is void.

2. Supposed in the same problem, D obliges himself to pay C P10,000 after C has Paid his
obligation to T. Is the obligation valid?
 The obligation is valid because the suspensive condition does depend upon the
sole will of D.

3. S (seller) agreed to sell B (buyer) a specific car for P200, 000, delivery of the car and the
payment of the price to be made on June 15. Supposed S delivered the car on June 15
but B failed to pay the price, what are the remedies of S?

S can either demand action for specific performance (fulfillment) of the

obligation with damages, OR demand action for rescission of the obligation with
damages.

4. S sold a parcel of land to B for P240,000 payable in installments of P20,000 a year. The
land was delivered to B who obtained ownership thereof. After B had paid P200,000 he
could no longer continuing paying in view of financial reverses but he was willing to pay
the balance of P40,000 if given more time. Thereupon, S sued for rescission under
Article 1191. If you were judge, would you grant rescission?

No. I will not grant rescission because B is willing to pay the balance and only
needs more time. I will grant B a term for performance instead.

5. D (debtor) binds himself to C (creditor) a sum of money. Give the three cases when the
obligation of D is demandable at once by C?

(1) If D's obligation does not depend upon a future or uncertain event.
(2) If D's obligation does not depend upon a past event unknown to the parties
(3) If the obligation depends upon a resolutory condition.