ANSWERS TO GUIDE QUESTIONS IN OBLIGATIONS AND CONTRACTS

May 5, 2020

1. Differentiate the effect(s) of a suspensive-potestative obligation that is

exclusively dependent on the will of the debtor and a suspensive-
potestative obligation that is dependent on the part of the creditor.

In a suspensive-potestative obligation where the condition is exclusively dependent

on the will of the debtor, the conditional obligation is deemed void because its
validity and compliance is left to the will of the debtor and it cannot, therefore, be
legally demanded. While, in a suspensive-potestative obligation where the condition
is exclusively dependent on the part of the debtor, the conditional obligation is valid.

2. Can there be a circumstance involving an impossible condition which can

still produce a valid obligation?

Yes. Article 1183 of the Civil Code contemplates of a situation where there can be a
valid obligation involving an impossible condition. First, if the condition is negative,
that is, not to do an impossible `thing it is disregarded and the obligation is rendered
pure and valid. Second, if the obligation is divisible, the part thereof not affected by
the impossible condition remains valid. And lastly, if the obligation is a pre-existing
obligation, and, therefore, does not depend upon the fulfilment of the condition which
is impossible, for its existence, only the condition is void.

3. When does an obligation with suspensive condition become effective?

An obligation with a suspensive condition becomes effective only upon the

happening of the event which constitute the condition.

4. What do you understand about the nature, characteristics and effects of a

party’s power to rescind?

The power to rescind is an equitable remedy given by the law to a party of an

obligation in cases where there is non-fulfillment or breach of obligation on the part
of the other contracting party. Basically, this right is implied to exist in a reciprocal
obligation. It can only demanded if the plaintiff is ready, willing and able to comply
with his own obligation and the other is not.

There are certain cases where judicial approval is necessary to invoke the right to
rescind such as when the object of the obligation has already been delivered. There
are also other cases where rescission can be performed without the judicial approval
such as in cases where there has been no devilry of the object.

As an effect to the exercise of one party’s power to rescind, the contract can be
declared void and be abrogated from the beginning. Rescission may also require
mutual restitution of the benefits each party may have received as a result of the
contract.

5. When does a conditional obligation become due and demandable?

A conditional obligation has two principal kinds: the suspensive condition and the
resolutory condition. Its demandability vary depending on the kind of condition
applied to a given circumstance. When the obligation is with a suspensive
condition, the obligation becomes due and demandable upon the happening of the
event that constitutes the condition. But when the obligation is with a resolutory
condition, the obligation here is immediately demandable.

Capsulized presentation of cases

Sagun vs. ANZ Global Services and Operations (Manila), Inc., 801 SCRA 243,
August 22, 2016

A perfected contract may exist, although the obligations arising therefrom — if

premised upon a suspensive condition — would yet to be put into effect.—While a
contract may be perfected in the manner of operation described above, the efficacy
of the obligations created thereby may be held in suspense pending the fulfillment of
particular conditions agreed upon. In other words, a perfected contract may exist,
although the obligations arising therefrom.

INTERNATIONAL HOTEL CORPORATION vs. FRANCISCO B. JOAQUIN, JR.

and RAFAEL SUAREZ, G.R. No. 158361 April 10, 2013

The condition shall be deemed fulfilled when the obligor voluntarily prevents its
fulfillment.

This provision refers to the constructive fulfillment of a suspensive condition,32

whose application calls for two requisites, namely: (a) the intent of the obligor to
prevent the fulfillment of the condition, and (b) the actual prevention of the fulfillment.
Mere intention of the debtor to prevent the happening of the condition, or to place
ineffective obstacles to its compliance, without actually preventing the fulfillment, is
insufficient.33chanroblesvirtualawlibrary.
THE WELLEX GROUP, INC., petitioner, vs. U-LAND AIRLINES, CO., LTD., G.R.
No. 167519. January 14, 2015

Determining the existence of fraud is not necessary in an action for rescission or

resolution under Article 1191. The existence of fraud must be established if the
rescission prayed for is the rescission under Article 1381.

Erlinda Bandoy vs. Court of Appeals, G.R. No. 150089, August 28, 2007

An obligation with a period is one for the fulfillment of which a day certain has been
fixed. A day certain is understood to be that which must necessarily come, although
it may not be known when The sale of the Bicutan property cannot be characterized
as a day certain because the event, though future, is not sure to happen.
Notwithstanding the representation made by petitioner that there are many buyers,
the fact remains that the property may not be bought at all. At best, the sale of the
property may be considered a condition because it is a future and uncertain event as
opposed to a period which is future and certain. But if such a condition indeed exists,
to be sure, the same was not imposed upon the birth of the obligation. Neither was
there any showing that there was novation. Thus, the obligation cannot even be
denominated as one with a condition.

Camp John Hay Development Corporation vs. Charter Chemical and Coating
Corporation, G.R. No. 198849, August 7, 2019

The power to rescind obligations is implied in reciprocal ones, in case one of the

SDwXDSA;.JIors 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.
Answers to guide questions
1. article 1193. period
2. article 1196: Mention the general rule and the tenor
3.