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Obligation – means lying or binding

 Is a juridical necessity because in case of non compliance, the courts of justice may be called upon by the
aggrieved party to enforce its fulfilment or in default thereof, the economic value that it represents.

Essential Requisites:

1. Passive Subject (debtor or Obligor ) – The person who is bound to the fulfilment of the obligation; who has a
duty.
2. Active Subject ( Creditor or Obligee ) – who is entitled demand the fulfilment of the obligation he who has a
right.
3. Object or Prestation - ( Subject matter of the obligation ) – the conduct required to be observed by the
debtor. It may consist in giving, doing, or not doing.
4. A juridical or legal ( efficient cause ) – that which binds or connects the parties to the obligation
Wrong or Cause of action only arises at the moment a right has been transgressed or violated.

Kinds of Obligation according to the subject matter:


1. Real Obligation – ( Obligation to give ) is that in which the subject matter is a thing which the obligor must deliver to
the obligee.
2. Personal obligation - ( Obligation to do or not to do ) is that in which the subject matter is an act to be done or not to
be done. – “+ personal Obligation” and ” – personal Obligation”

Sources of Obligations

1. Law - when they are imposed by law ex. Pay taxes and obligation to support one family
2. Contracts - when they arise from the stipulation
3. Quasi Contracts - when they arise from lawful, voluntary and unilateral acts which are enforceable to the end that no
one shall be unjustly enriched or benefited at the expense of another. Ex. The obligation to return money paid by
mistake or which is not due
4. Crimes or Acts or Omissions punished by law – when they arise from civil liability which is the consequences of a
criminal offense.
5. Quasi delicts or torts - when they arise from damage caused to another through an act or omission, there being fault
or negligence, but no contractual relation exists between the parties.

Compliance in good faith – means compliance or performance in accordance with the stipulations or terms of the
contract or agreement.

Kinds of Quasi Contracts

1. Negotiorum Gestio – is the voluntary management of the property or affairs of another without the knowledge
or consent of the latter.
Ex. Nasunog bahay ko, nagmalasakit si kapitbahay. Dapat kong ireimburse (kptbhy) ang nagastos sa bahay ko.
2. Solutio Indebiti - is the juridical relation which is created when something is received when there is no right to
demand it and it was unduly delivered through mistake.
Ex. D nagkamali ng pagbabayad, naibayad nya kay T, Si T dpt ibalik nya. Kung napasobra nmn kay C ng bayad
dpt balik ni C.

Scope of civil liability


1. Restitution – Ibalik or bayaran ang ninakaw ng nagnakaw (car)
2. Reparation - Bayaran ang nadamage sa (car)
3. Indemnification for consequential damages – Bayaran ang ibang damage bukod sa nakita or alam
Requisites of Quasi-delict
1. There must be an act or omission 4. There must be a direct relation or connection of cause and
2. There must be fault or negligence effect between the act or omission and the damage
3. There must be damage caused 5. There is no pre-existing contractual relation between the party.

Duties of debtor in obligation to give a determinate thing

1. Preserve the thing – In obligation to give (real obligations), the obligor has the incidental duty to take care
of the thing due with the diligence of a good father of family pending delivery.
a.) Diligence of a good father – the phrase has been equated with ordinary care or that diligence which an
average ( a reasonably prudent ) person exercises over his own property.
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b.) Another standard of care – however, if the law or the stipulation of the parties provides for another
standard of care ( slight or extraordinary diligence ) said law or stipulation must prevail ( Art. 1163)
c.) Factors to be considered – The diligence required necessarily depends upon the nature of the
obligation and corresponds with the circumstances of the person, of the time, and of the place.

As a general rule - The debtor is not liable if his failure to preserve the thing is not due to his fault or
negligence but to fortuitous event or Force Majeure

d.) Reason for debtor`s obligation -


2. Deliver the fruits of the thing –
3. Deliver the accessions and accessories
4. Deliver the thing itself
5. Answer for damages in case of non fulfilment or breach

Art. 1164 – The Creditor has a right to be fruits of the thing from the time the obligation to deliver it
arises. However , he shall acquire no real right over it until the same has been delivered to him.

Different Kind of Fruits


1. Natural Fruits – the spontaneous products of the soil, and the young and other products of animals.
2. Industrial Fruits – are those produced by lands of any kind through cultivation or labor.
3. Civil Fruits – are those derived by virtue of a juridical relation (Ex. Rent Income, Leases and insurance)

Pesonal Right - is the right or power of a person ( creditor ) to demand from another ( debtor ), as a definite
passive subject, the fulfilment of the latter`s obligation to give, to do, or not to do. (karapatan mo na dhl nagdue)
Real Right - is the right or interest of a person over a specific thing ( like ownership, possession, mortgage ),
without a definite passive subject against whom the right may be personally enforced. ( ikaw talaga may-ari )

Art. 1165 When what is to be delivered is a determinate thing, the creditor, in addition to right granted him by
Article 1170, may compel the debtor to make the delivery
If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense
of the debtor.
If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have
the same interest, he shall be responsible for fortuitous event until he has affected the delivery.

Remedies of Creditor in Real Obligation

1. Specific Real Obligation - ( Obligation to deliver a determinate thing ), Remedies or Rights in case the
debtor`s fails to comply with the obligation.
a.) Demand Specific Performance or fulfilment (If it is still possible) of the obligation with a right to indemnity
for damages.
b.) Demand Rescission or Cancellation (In certain cases) of the obligation also right to recover damages.
c.) Demand Payment
2. Generic Real Obligation – ex. Ako si Buyer, compel si Seller kay Buyer, bibili sana ako ng bigas sa kanya
worth of 50k pero ang nangyari bumil ako kay Third Party which is C, ang halaga 55k yung 5k dpt
paluwalan ni Seller dhl nag breach sya sa contract.

In Paragraph 3 – An indeterminate thing cannot be the object of destruction by a fortuitous event because genus
nunquam perit ( Genus Never Perishes )

Art.1166 1. Accessions - are the fruits of a thing or additions to or improvements upon a thing (the
principal) ex. House or Trees on a Land; Rents, Air-conditioning in the car; profit or dividends accruing from a
shares of stock. 2. Accessories – are things joined to or included with the principal thing for the latter`s
embellishment, better use or completion. Ex. Key

Art.1167 – If a person obliged to do or something falls to do it, the same shall be executed at his cost.
This same rule shall be observed if he does it in contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been poorly done be undone.

Ex. If X binds a contract with me ( Buyer/Debtor ). Ipapagawa ni X sa iba, at kpg pinagawa na nya sa iba,
Expense ni X dpt.
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Art 1168 – When the obligation consists in not doing, and the obligor does what has been forbidden him, it
shall also be undone at his expense. Ex. Sinira ni Seller ang agreement nilagyan niya ng fence ng nde nmn dpt –
remedy nun shoulder ni seller ang expenses sa pagpapatanggal ng fence.

Art 1169 – Those obliged to deliver or to do something incur in delay from the time the oblige judicially or
extra-judicially demands from them the fulfilment of their obligation.
However, the demand by the creditor shall not be necessary in order that delay may exist:
(1) When the obligation or the law expressly so declared; or
(2) When from the nature and the circumstances of the obligation it appears that the designation of the
time when the thing is to be delivered or the service is to be rendered was a controlling motive for the
establishment of the contract; or
(3) When demand would be useless, as when the obligor has rendered it beyond his power to perform.
In reciprocal obligations, neither party incurs in delay if the other does not comply for is not ready to
comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfil
his obligation, delay by other begins.

Delay:
Ordinary Delay – is merely the failure to perform an obligation on time.
Legal Delay or Default or Mora - is the failure to perform an obligation on time which failure constitutes a
breach of the obligation.

Kinds of Delay
(1) Mora Solvendi – delay on the part of the debtor to fulfil his obligation
Effects of Delay: - The Debtor is guilty of breach or violation of the obligation
- He is liable to the creditor for interest ( if money ) or damages
- He is liable even for a fortuitous event when the obligation is to deliver a determinate thing
However, If the debtor can prove that the loss would have resulted just the same even if he
had not been in default , the court may equitably mitigate or reduce the damages.
(2) Mora Accipendi – delay on the part of the creditor
Effects of Delay: - The creditor is guilty of breach of obligations
- He is liable for damages suffered, if any or by the debtor
- He bears the risk of loss of the thing due ( Art. 1262 )
- Where the obligation is to pay money the debtor is not liable for interest from the time of
creditors delay; and
- The debtor may release himself from the obligation by the consignation or deposit in
court of the thing or sum due.
(3) Compensatio Morae - the delay of the obligation in reciprocal obligation ( like in sale ), i.e., delay of the
obligor cancels the delay of the oblige, and vice versa. The net result is that there is no actionable default on
part of both parties.
If it cannot be determined which of the parties is guilt of delay, the contract shall be deemed extinguished
and each shall bear his own damage.

When demand is not necessary to put debtor in Delay – General rule : delay by the debtor begins only from the
moment a demand.
(a.) When the obligation so provides – ex. D promised to pay at a curtained date without the need of any
demand. He is automatically in default. Si Debtor liable sya sa oras that judicial or extra-judicial demand
for payment is made upon him
(b.) When the law so provides – ex. Tax, Surcharges
(c.) When the time is of the essence- ex. At a reasonable if it is generic.
(d.) When demand would be useless ex. Imposible pa na maiperform ni S ang kanyang object or ma-ideliver
nya kung ito ay nawala through the fortuitous event.
(e.) When there is a performance by a party in reciprocal obligations ex. S is obligated to deliver the object
while B is obligated to pay a certain amount equals to delivery by S.
Art. 1170 – Those who in the performance of their obligation are guilty of fraud, negligence or delay and
those who in any manner contravene the tenor thereof, are liable for damages.

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Grounds for Liability
1.) Fraud ( deceit or dolo ) – intentional evasion , kind of malice or dishonesty
2.) Negligence (fault or culpa)- Voluntary act or omission, there being no bad faith or malice, which prevents
the normal fulfilment of an obligation.
3.) Delay ( Mora )
4.) Contravention of the terms of the obligation - This is the violation of the terms and conditions stipulated
in the obligation.
Art. 1171 Responsibility arising from Fraud is demandable in all obligations, Any waiver for future action is
void.
Waiver of action for past is Valid ex. Niloko ka ni S sa quality, nde mo kinasuhan si S, the waiver of action against
S for damages arising from the fraud , B can still bring an action against against S for damages arising from the
fraud.

Art 1172 – Responsibility arising from negligence in the performance of every kind of obligation is also
demandable, but such liability may be regulated by the courts, according to the circumstances.
Validity of waiver of action arising from negligence ex. S is liable for negligence, such as common carrier
1. Contractual Negligence (Culpa Contracted )– ex. Na kay S pa yung object ( horse ), since wla pang delivery
at na sa kanya pa at namatay ito S, will be liable.
2. Civil Negligence ( Culpa Aquiliana ) or Negligence – ( Tort or Quasi-Delicts ) ex. Kung sino may kasalanan
sya liable
3. Criminal Negligence –(Culpa Criminal ) – or negligence resulting in the commission of a crime – ex. S will
pay damages to B (if has ) but B cannot recover from S as twice for the same act.

Art. 1173 – The fault or negligence of the obligor consists in the omission of that diligence which is required by
the nature of the obligation and corresponds with the circumstances of the person , of the time and of the
place. When negligence shows bad faith, the provision of articles 1171 and 2201, paragraph 2, shall apply.
If the law or contract does not state the diligence which is to be observed in the performance, that
which is expected of a good father of a family shall be required. (1104a)

Fault or Negligence – is defined by the above provision (par.1) According to our supreme court “Negligence is the
failure to observer for the protection of the interest of another person, that degree of care, precaution and
vigilance which the circumstances justly demand, whereby such other person suffers injury.

Factors to be considered
1.) Nature of the obligation – ex. No smoking
2.) Circumstances of the person – ex. Tinulugan ng Security
3.) Circumstances of time – ex. Ang sasakyan walang headlight sa gabi
4.) Circumstance of the Place – ex Ang tulin ng sasakyan, parehas sa NLEX at Makati (100km)

Art. 1174 – Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or
when the nature of the obligation requires the assumption of risk, no person shall be responsible for those
events which could not be foreseen, or which thought foreseen were inevitable.
Fortuitous Event – is any event which cannot be foreseen or which, though foreseen, is inevitable
1. Acts of Man- strictly speaking, fortuitous event is an event independent of the will of the obligor but not
of other human wills.
2. Acts of God- They refer to what is called majeure or those events which are totally independent will of
every human beings.
Kinds of Fortuitous Event
1. Ordinary Fortuitous Events – or those are event which are common and which the contracting parties
could reasonably foresee (eg. Rain )
2. Extra-ordinary Fortuitous Events or those events which are uncommon and which the contracting parties
could not have reasonably foreseen (eg. Earthquake, Fire, War, Pestilence, unusual flood.)
Requisites of a Fortuitous Event
1.) The event must be independent of the human will or at least of the debtor`s will
2.) The event could not be foreseen, or if foreseen, is inevitable
3.) The event must be of such a character as to render it impossible for the debtor to comply with his
obligation in a normal manner

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4.) The debtor must be free from any participation in or the aggravation of, the injury to the creditor, that is,
there is no concurrent negligence of his part.
Exceptions:
1.) When expressly specified by law
1.a) The debtor is guilty of fraud, negligence or delay or contravention
Ex. No demand by B namatay si Horse sa puder ni S is not liable = Extinguish
After demanded by B namatay si Horse S is liable for damages because He is guilty of delay.
1.b) The debtor has promised to deliver the same ( specific ) things to two or more persons who do not
have the same interest.
Ex. S sold and promised to deliver the same car to B and C separately, S is liable even fortuitous event.
1.c) The obligation to deliver a specific thing arises from a crime (ex. Bentahan mula sa nakaw )
1.d) The thing to be delivered is generic. (ex kung generic nmn sigurado kaya nmn i-comply ni debtor un )
2.) When declared by stipulation
3.) When the nature of the obligation requires the assumption of risk.( ex. Insurance policy )

Art. 1175 Usurious Transactions shall be governed by special law.

Simple Loan or Mutuum – is a contract whereby one of the parties delivers to another, money or other
consumable thing, upon the condition that the same amount of the same kind and quality shall be paid. It may be
gratuitous or with a stipulation to pay interest.

Usury - is contracting for or receiving interest in excess of the amount allowed by law for the loan or use of
money, goods, chattels or credits.

Requisites for recovery of interest

1. The payment of interest must be expressly stipulated


2. The agreement must be in writing
3. The interest must be lawful ( Art. 1957 )

Art. 1176 – The receipt of the principal by the creditor, without reservation with respect to the interest, shall
give rise to the presumption that said interest has been paid.
The receipt of a later installment of a debt without reservation as to prior instalments, shall likewise
raise the presumption that such installments have been paid.

Presumption - is meant the inference of a fact not actually known arising from its usual connection with another
which is known or proved.
Ex. Anong nakikita natin possible yun ang paniniwalaan
Kinds of Presumpstion
1. Conclusive Presumption – one which cannot be contradicted, like the presumption that everyone is
conclusively presumed to know the law. Ex. ( Interest before Principal, )
2. Disputable or ( rebuttable ) Presumption – one which can be contradicted or rebutted by presenting
proof to the contrary, like the presumption established in Article 1176
Ex. Ako si Lessee, nde me nakabayad past 2 month and binayaran ko current month ang assumption nun
bayad na ako sa past 2 months.
When Presumptions in Article 1176 does not apply
1. With reservation as the interest –
2. Receipt without indication of particular instalment paid. – (contrary by the no.2)
3. Receipt for a part of the principal – error ni debtor na maningil ng interest mas nauna pa ang principal
4. Payment of taxes – There is no presumption that previous taxes have been paid by the payment of later ones
5. Non-Payment process –
Art. 1177 – The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may
exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his
person; them may also impugn the acts which the debtor may have done to defraud them.
Remedies available to creditors for the satisfaction of their claims
1.) Exact fulfilment ( specific performance ) with the right to damages.
2.) Pursue the leviable ( not exempt from attachment under the law ) property of the debtor.
3.) “after having pursued the property in possession of the debtor,” exercise all the rights (like the right to redeem )
and bring all the actions of the debtor (like the right to collect form the debtor of his debtor ) except those

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inherent in or personal to the person of the latter ( such as the right to vote, to hold office, to receive legal
support, to revoke a donation on the ground of ingratitude etc.)
4.) Ask the court to rescind or impugn acts or contracts which the debtor may have done to defraud him when he
cannot in any other manner recover his claim

Art. 1178 – Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has no
stipulation to the contrary.
Transmissibility of Rights exceptions:
1. Prohibited by Law
a. By the contract of Partnership
b. By the contract of Agency
c. By the contract of commodatum – one of the parties delivers to another something not consumable
d. ( e.g. car) so that the latter may use the same for a certain time and return it.
2. Prohibited by Stipulation of the Parties – When prohibited by stipulation of the parties, like the stipulation
of the parties, like the stipulation upon the death of the creditor, the obligation shall be extinguished, or that
the creditor cannot assign his credit to another.
Such stipulation, being contrary to the general rule, must be clearly implied for the wordings or terms of the
contract.

Chapter 3 Different Kinds of Obligations –


Classification of Obligations: ( under the civil code )
Primary Classification of Obligations “Arts.” Secondary Classification of Obligations “ Arts. ”
a. Pure and condition obligations ( 1179-1192) a. Unilateral and Bilateral Obligations (1169-1191)
b. Obligations with a period ( 1193-1198 ) b. Real and Personal Obligation (1163-1168)
c. Alternative (1199-1205 and Facultative Obligations (1206) c. Determinate and Generic Obligations ( 1165)
d. Joint and Solidary Obligations ( 1207-1222 ) d. Civil and Natural Obligations ( 1423 )
e. Divisible and Indivisible Obligations (1223-1225) e. Legal, Conventional and Penal Obligations
f. Obligations with a penal clause ( 1226-1230) (1157,1159,1161)

Sec.1 Pure and Conditional Obligations


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 contain a resolutory condition shall also be demandable without prejudice to the
effects of the happening of the event.

Pure Obligation - is one which is not subject to any condition and no specific date is mentioned for its fulfilment
and is, therefore immediately demandable

Conditional Obligation – is one whose consequences are subject in one way or another to the fulfilment of a
condition. Condition - is a future and uncertain event, upon the happening of which, the effectivity or
extinguishment of an obligation ( or right ) subject to it depends.

Characteristics of a Condition – 1.) Future and uncertain 2.) Past But Unknown

2 Principal Kinds of Condition


1. Suspensive Condition – (condition precedent or condition antecedent ) – or one the fulfilment of which will
give rise to an obligation ( or right ) ex. I will sell you the land if it is adjudicated to me in he division of my
deceased father`s estate. My obligation is demandable only after the condition is fulfilled – my becoming the
owner of the land. In the meantime, I am not liable to you
2. Resolutory Condition – ( condition subsequent ) or one the fulfilment of which will extinguish an obligation (
or right ) already existing. Ex. Magbabayad ako ng utang ko hanggang sa makagraduate si Creditor ng college.
I am demandable right now but it shall be extinguished or terminated kpg graduate na si Creditor )
When Obligation is demandable at once
1.) When it is pure (Art.1179, par. 1 )
2.) When it is subject to a resolutory condition (par. 2)
3.) When it is subject to a resolutory period ( Art.1193, par 2.)
Art.1180 – When the debtor binds himself to pay when his means a permit him to do so, the obligation shall
be deemed to be one of the period, subject to the provision of article 1197.
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Where duration of period depends upon the will of the debtor
Period- a future and certain event upon the arrival of which the obligation subject to it either arises or is
extinguished.
1.) The debtor promises to pay when his means permit him to do so
2.) Other Cases:
a.) Little By Little
b.) As soon as possible
c.) From time to tome
d.) At any time I have the money
e.) In partial payments
f.) When I am in a position to pay
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.

Effect of happening of condition

1.) Acquisition of Rights – ex. Suspensive Condition – makukuha mo lang karapatan sa Property kpg namatay
na tatay mo and another example if u r winning Sweepstakes lotto make it sure dala mo yung ticket mo to
claim the prizes.
2.) Loss of Rights already acquired – ex. Resolutory Condition a.) Susuportahan ko si Creditor hanggang sa
makagraduate sya at kpg nafulfill na un extinguished na ako b.)S has a right to repurchase what object his
being sold c.) A lease contract expressly stipulates that R, lessor, may terminate the lease premises. Here,
the happening of the condition depends upon the will of a third person.

Art. 1182 When the fulfilment 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.
Classification of Conditions –
(1) As to effect – (a.) Suspensive - the happening of which give rise to the obligation
(b.) Resolutory – the happening of which extinguishes the obligation

(2) As to form – (a.) Express – The condition is clearly stated


(b.) Implied – The condition is merely inferred.
(3.) As to possibility – (a.) Possible – The condition is capable of fulfilment, legally or physically
(b.) Impossible – The condition is not capable of fulfilment, legally or physically.
(4.) As to cause or origin – (a.) Potestative – The condition depends upon the will of one of the contracting parties
(b.) Casual- The condition depends upon chance or upon the will of a third person;
(c.) Mixed – The condition depends partly upon chance and partly upon the will of a third person
(5.) As to mode : - (a.) Positive The condition consists in the performance of an act.
(b.) Negative – The condition consists in the omission of an act.
(6.) As to numbers – (a.) Conjunctive – There are several conditions and all must be fulfilled; and
(b.) Disjunctive - There are several conditions and only one or some of them must be fulfilled
(7.) As to Divisibility – (a.) Divisible – The condition is susceptible of partial performance.
(b.) Indivisible - The condition is not susceptible of partial performance
Potestative Condition – A condition suspensive in nature and which depends upon the sole will of one of the contracting parties is
known as potestative condition
Where suspensive condition depends upon will of the debtor
(1.) Conditional Obligation Void – Ex Uncontrolled the will of debtor or lesse. ( I will pay you if, after, upon and etc. )
(2.) Only the Condition Void – Ex. Nangutang si Debtor, He promised that he will pay after 2 mos. Subsequently After He sold his
property (benefit by debtor )
Where suspensive condition depends upon will of the Creditor
Ex. - I will pay you my indebtedness upon your demand (benefit by the Creditor )
Where resolutory condition depends upon will of the debtor
Repurchase ( Pacto de retro )
Casual Condition – If the suspensive condition depends upon chance or upon the will of a third person, the obligation subject to it is
valid. Ex. 1.)Where X, building contractor, obliges himself in favour of Y, owner, to repair at X`s expense any damage that may be caused
to the building by any earthquake occurring within 10 years from the date of the completion of its construction. 2.) Where S binds
himself to sell his lang to B if wins a case which is pending before the supreme court.
Mixed Condition – The obligation is valid if the suspensive condition depends partly upon chance and partly upon the will of a third
person. Ex. 1.) Where X, building contractor, obliges himself in favour of Y, owner, to repair at X`s expense, any damage to the building
taking place after an earthquake if found by a panel of arbitrators that construction defects contributed in any way to the damages.
Both conditions must take place in order that X`s obligation will rise.

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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.
Two Kinds of Impossible Conditions:
1. Physical Impossible conditions – when they, in nature of things, cannot exist or cannot be done.
Ex. I will pay you 10k if it will not rain for one year in the Philippines/ or if you can carry 20 cavans of palay on yout shoulder.
2. Legally Impossible Conditions – when they are contrary to law, morals, good customs, public order or public policy.
Ex. I will pay you 10k kung gagawin mo ang pinagbabawal sa batas
Effect of impossible Conditions
(1) Conditional Obligation void – The reason behind the law is that the obligor knows his obligation cannot be fulfilled.
(2) Conditional Obligation valid – If the condition is negative, that is, not to do an impossible thing, it is disregarded and the
obligation is rendered pure and valid.
Ex. 1. I will sell you my land if you do not carry 20 cavans of Palay on your shoulder 2. I will sell you my land if you do not give
me a dog that talks.
(3.) Only the affected obligation void- If the obligation is divisible, the part thereof not affected by the impossible condition shall be
valid.
Ex. I will give you 10k if you sell my land, and a car, if you will kill Pedro. Explanations: The obligation to give is valid but the
obligation to give a car is void because it is dependent upon an impossible conditions.
(4.) Only the condition void – If the obligation is pre existing obligation and therefore, does not depend upon the fulfilment of the
condition which is impossible, for its existence, only the conditions is void.
Ex. D borrowed 10k from C. If C later agreed to kill X before D pays him, the condition “to kill X” is void but not the pre-existing
obligation of D to pay C.
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.
Positive Condition:
(1.) As soon as the time expires without the event taking place.
(2.) As soon as it has become indubitable that the event will not take place although the time specified has not expired.
Ex. X obliges himself to give B 10k if B will marry C before B reaches the age of 23
A.) Liable si X kpg pinakasalan ni B si C bago sya mag 23
B.) X is not liable kpg lumagpas na ng 23
C.) B dies at the age of 22. The obligation is extinguished because it has become indubitable that the condition will not take place.
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 obligation.
(1.) From the moment the time indicated has elapsed without the event taking place; or
(2.) From the moment it has become evident that the event cannot occur, although the time indicated has not yet elapsed
Ex. X binds himself to give B 10k if B is not yet married to C on December 30
A.) X is not liable to B if B marries C on December 30 or prior thereto
B.) X is liable kpg si B married C after December. In the latter case, the condition (not marrying C ) is fulfilled upon the expiration
of the time indicated.
C.) Suppose C dies on November 20 without having been married to B. The obligation is rendered effective because it is certain
that the condition not to marry C will be fulfilled. In this case, the obligation becomes effective from the moment of C`s death
on November 20 although the time indicated ( December 30 ) has not yet elapsed.
Art. 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfilment.
Constructive fulfilment of suspensive condition
There are 3 requisites for application of this article
1. The condition is suspensive
2. The obligor actually prevents the fulfilment
3. He acts voluntarily
Ex. a.) X agreed to give Y a 5% commission if the latter could sell the former`s land at a certain price. Y found a buyer who
definitely decided to buy the property upon the terms prescribed by X. To evade the payment of the commission agreed upon,
X himself sold to buyer the property at a lower price without the aid of Y.
In this case, it can be said that the due performance by Y of his undertaking, the condition for the payment of the
commission, was purposely prevented by X, and is deemed fulfilled.

b.) S promised to sell his land to Y if Y would be able to secure a loan from a certain bank. Later on, S changed his mind about
selling his land. He induced the bank not to give Y a loan.
Under the above article, the condition is deemed complied with and S is liable to sell his land. S should not be allowed
to profit by his own fault or bad faith.
Constructive fulfilment of resolutory condition
Ex. X obliges himself to allow Y to occupy the former`s house in Manila as long as X is assigned by their company in the province.
When Y learned that X would be transferred to Manila, he was able to induce the president of the company to assign another person in
place of X.
The obligation of X is extinguished because the fulfilment of the resolutory condition was voluntarily prevented by Y. Hence, Y
must vacate the house ( Art. 1190 )

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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 interest 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 obligation 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)

Retroactive effects of fulfilment of suspensive condition


(1.) In obligation to give – Ex. On January 20, S agreed to sell his parcel of land to B for 50k should B lose a case involving the
recovery of another parcel of land. On April 10, S sold his land to C. B lost the case on December 4.
Before December 4, B had no right to demand the sale of the land by S. When the condition, however, was fulfilled on
December 4 , It is as if B was entitled to the land beginning January 20. Hence, as between B and C, B will have a better right
over the land. (It is required however, under the property registration decree [Pres. Decree No. 1529, Sec. 51] that the promise
of S be annoted on the back of the certificate of title of the property to be binding against a third person like C.)

(2.) In obligations to do or not to do – Ex. A.)C Obligated himself to condone the debt of D, his lawyer should the latter win C`s case
in the supreme court. In this case, upon the fulfilment of the condition, shall not be entitled, unless the contrary has been
stipulated, to the earned interests of the capital during the pendency of the condition as the intention of C is to extinguish the
debt. Here, the fulfilment of the condition has a retroactive effect.
B.) Suppose, in the preceding example, the obligation contracted by C was to construct gratis the house of D upon the fulfilment
of the condition. In this case, unless the contrary clearly appears, there is no retroactive effect if the condition is fulfilled,
taking into consideration the nature of the obligation and the intent of the parties. Therefore, C is not liable to pay interest on
the money of the obligation to intervening period.

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