Pure And Conditional Obligation. 1f4s1z

Section 1 – Pure and Conditional Obligations Article 1179: Obligation demandable at once Every obligation whose performance does not depend upon a future or uncertain event, or does not depend upon a past even unknown to the parties, is demandable at once.  Pure obligation Every obligation which contains a resolutory condition, should also be demandable, without prejudice to the effects of the happening of the event.  Obligation subject to a resolutory condition Pure obligation:  an obligation without a condition or a term, and therefore demandable at once Conditional obligation:  an obligation with a condition imposed in its performance Obligation with a term or period:  an obligation subject to an event which is certain to happen Obligation is demandable at once when: 1. pure obligation 2. obligation subject to a resolutory condition Condition:  uncertain event which wields an influence on a legal relation  every future or uncertain event upon which an obligation or provision is made to depend Characteristics of Condition: 1. Future and uncertain 2. Past but unknown to the parties 3. Must be possible of performance Kinds of Condition: 1. Suspensive condition 2. Resolutory condition Suspensive condition:  it is a condition which suspends the effectivity of the obligation until the condition is fulfilled  it is the fulfillment of the condition that gives rise to the obligation Resolutory condition:  it is a condition which extinguishes the obligation if fulfilled or happened  it is the fulfillment of the condition that extinguishes the obligation Article 1180: If the debtor binds himself to pay when his means permit him to do so:  it is not a conditional obligation  it is considered as an obligation with a term or period, subject to the provisions of Article 1197 When his means permit him to do so:  ‘when I can afford’  ‘when I am able to’  ‘when I have money’ Debtor binds himself to pay when his means permit him to do so:  payment per se does not depend on the will of the debtor  only the time of payment depends on the will of the debtor Since the time of payment (not payment per se) depends upon the will of the debtor, immediate performance cannot be enforced.  Right of the creditor in this case: Go to the court and let the court fix the date of payment  Once fixed by the court, the obligation becomes demandable on the date fixed by the court. Period:  

it is a future and certain event, upon the arrival of which the obligation subject to it either arises or is extinguished space of time which has an influence on obligation as a result of a juridical act and either suspends their demandableness, or produces their extinguishment

Obligation with a term or period:  payable ‘as soon as possible’  ‘little by little’  ‘in partial payment’  ‘when I am in a position to pay’  ‘when I have money’

Article 1181: In conditional obligations: [perspective of the creditor] The acquisition of rights, as well as the extinguishment of those already acquired:  depends upon the happening of the event, which constitutes the condition Suspensive condition  also known as ‘condition precedent’  happening of this condition shall give rise to the acquisition of a right by the creditor  if the condition does not happen or is not met,  it is as if the condition obligation never existed Resolutory condition  also known as ‘condition subsequent’  rights acquired by the creditor are lost once the condition is fulfilled Article 1182: If the fulfillment of the suspensive condition depends upon the sole will of the debtor:  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 Kinds of condition under this article: 1. Potestative or facultative condition: o fulfillment of the condition depends upon the will of one of the contracting parties 2. Casual condition: o fulfillment of the condition depends exclusively upon chance and/or upon the will of a third person 3. Mixed condition: o fulfillment of the condition depends upon the will of one of the contracting parties and partly upon chance or the will of a third person Potestative on the part of the debtor:  If suspensive: o Both condition and obligation  If resolutory: o Both condition and obligation Potestative on the part of the creditor:  If suspensive: o Both condition and obligation  If resolutory: o Both condition and obligation Casual:  If suspensive: o Both condition  If resolutory: o Both condition Mixed:  If suspensive: o Both condition  If resolutory: o Both condition

are void are valid are valid are valid

and obligation are valid and obligation are valid and obligation are valid and obligation are valid

Rule: If suspensive condition and fulfillment of the condition depends upon the sole will of the debtor [potestative on the part of the debtor]:  Both condition and obligation are void More examples: 1. I will pay you after I receive a loan from a bank 2. I will pay you after I have harvested fish 3. I will sell you my house if I deem proper Note: The rule on suspensive potestative condition depending upon the will of the debtor:  is applicable only when the obligation shall depend for its perfection upon the fulfillment of the condition  is not applicable when the obligation is a preexisting one Example: 1. To Maria, I oblige myself to give you 500 pesos if I like it.  The rule is applicable  Condition and obligation are void 2. To Maria, I oblige myself to pay you 500 pesos that I owe you if I like it.  The rule is not applicable  Obligation is valid and enforceable Illustrative case: I will give you 10,000 pesos if I can sell my land this year  Mixed condition



Both condition and obligation are valid

Article 1183: Impossible conditions, those contrary to good customs or public policy, and those prohibited by law shall annul the obligation which depends upon them. The condition not to do an impossible thing shall be considered as not having been agreed upon. Effects: If the condition is to do an impossible or illegal thing:  Both condition and obligation are void If the condition is not to do an illegal thing:  Both condition and obligation are valid If the condition is not to do an impossible thing:  Disregard the condition  Obligation is valid If the obligation is divisible:  part of the obligation which is not affected by the impossible or unlawful condition, shall be valid Article 1184 and Article 1185: The condition that some events happen at a determinable time (positive condition) shall extinguish the obligation when: 1. the time expires without the event taking place, or 2. it becomes indubitable, clear, and evident that the event will not take place The condition that some events will not happen at a determinable time (negative condition) shall render the obligation effective when: 1. the time expires without the prohibited event taking place, or 2. it becomes indubitable, clear, and evident that the event will not take place If no time has been fixed:  condition shall be deemed fulfilled at such time as may have probably been contemplated, bearing in mind the nature of the obligation Illustrative case: I will give you P10,000 if by December 20, 2011, you have not yet married X. [negative condition]  If on December 20 you are not yet married, my obligation to deliver is effective.  If X had died, the obligation becomes effective because it is clear that the event cannot occur anymore. Question: Suppose before that date, you entered the convent to become a priest. Is the obligation effective on the date you entered the priesthood? Answer: Not certain, because you may choose to get out of the convent and contract a valid marriage with X. Article 1186: Constructive or presumed fulfillment:  Obligor or debtor voluntarily prevents the fulfillment of the condition, in which case the condition is considered fulfilled.  Obligation is effective Requisites of constructive or presumed fulfillment:  Fulfillment of the condition is prevented by the debtor  Prevention is voluntary on the part of the debtor Logic of the law:  one must not profit from his own fault Illustrative case: D obliges himself to sell his parcel of land to C if C could the 2011 A examination. By means of threat

or intimidation, D prevented C from taking the examination.  Even if C did not the examination, D is obliged to sell his land because he voluntarily prevented the fulfillment of the condition. Article 1187: Once the condition has been fulfilled:  Effects of conditional obligation to give shall retroact to the day of the constitution of the obligation If 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:  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 conditional obligations to do and not to do:  courts shall determine the retroactive effect of the condition that has been complied with in each case Before the fulfillment of the condition:  the said creditor may bring the appropriate actions for the preservation of his right In the case of a suspensive condition:  debtor may recover what has been paid by mistake during the same time  principle of solutio indebiti Notes: After the creation of the condition obligation but before the fulfillment of the suspensive condition:  creditor cannot demand the compliance of the debtor’s obligation because the creditor’s right during the period is only an expectancy Creditor’s right becomes effective and enforceable only when:  suspensive condition happens or is fulfilled If the suspensive condition is fulfilled:  the effects shall retroact from the date the obligation is constituted Reason?  Condition is only accidental and not an essential element of the obligation Rule: From the moment the essential elements concur, there is already an obligation. What is being awaited is the fulfillment of the suspensive condition to make the obligation effective and enforceable That is why the effects is commenced not from the time the accidental element or condition was fulfilled but from the time the obligation itself was constituted. Illutrative case: On May 25, 2011, S promised to sell his parcel of land to B for P10,000, if B will the A examination on May 25, 2014.  During May 25, 2011 to May 25, 2014, S remains to be the owner because the condition was not yet fulfilled

