Art 1186 exception to the suspensive condition

The condition shall be deemed fulfilled when the obligor voluntarily prevents the
fulfillment of the condition
3 requisities for this article:
 Condition must be suspensive
 Obligor prevents fulfilment of condition
 He acts voluntarily
Suspensive conditions become demandable only if the condition is fulfilled.
When the non-fulfilment of the condition can be attributed to the act of the debtor
himself.

Kung ang hindi pagkakaganap ng kondisyon ay pwedeng isisi o ibaling sa kagagawan ng

debtor mismo, ang debtor ay may pananagutan. Pagkat sabi ng batas, ang sinumang tao
na nagaact in bad faith ay binibigyan ng kaukulang parusa. Tumutukoy sa mga taong may
pananagutan ay hindi makaiiwas sa pananagutan na may kaakibat na kondisyon sa
pamamagitan ng hindi pagtupad sa kondisyon

Art 1187. Retroactive effect of fulfillment of suspensive

condition
“The moment the suspensive condition if fulfilled, it shall retroact to the very day the obligation
was constituted; the creditor and debtor have given their consent to the prestation”
Refers to the better right of a creditor.
“The obligation should be considered from the time it is constituted and not from the
time the condition is fulfilled.” To give

“No fixed rule is provided but retroactivity is still applicable. Courts are empowered
by the use of sound discretion and bearing in mind the intent of the parties to
determine the retroactivity of the suspensive condition. It includes the power to
decide that the fulfillment of the condition shall have retroactive effect or from
what date it shall take effect.” To do or not to do.

Retroactive effects to fruits and interests in obligations to give

Reciprocal obligations-there is no retroactivity because the fruits and interests received
during the pendency of the condition are deemed to have been mutually compensated.

Unilateral obligations-the debtor receives nothing from the creditor. There is usually
no retroactive effect because they are gratuitous.

Art 1188. Inchoate interest

The creditor may, before the fulfillment of the condition, bring the appropriate actions
for the preservation of his right. Debtor may recover what he has paid by mistake in
case of a suspensive condition.
Rights of a creditor- creditor may go to court to prevent the alienation or
concealment of the property of the debtor or to have his right annotated in the registry of property.
 Rights of a debtor- this is granted to the debtor because the creditor may or may
not be able to fulfil the condition imposed. However, debtor cannot recover what he has
prematurely paid once the suspensive condition is fulfilled.

Art 1189 rules in improvement, loss, and deterioration of the

thing during the pendency of the condition
Requisites:
 Real obligation
 Object is determinate thing
 Suspensive condition
 Condition is fulfilled
 There is loss, deterioration,or improvement of thing
Kinds of loss
Physical loss- a thing perishes may be due to a fortuitous event
Legal loss- a thing goes out of commerce or a thing becomes illegal yet there is
physical existence
Civil loss- a thing disappears in such existence that is unknown; even if known, it
cannot be recovered whether a matter of fact or of law
Rules in case of loss,deterioration,or improvement of
thing during pendency of the condition
Loss of thing w/o debtor’s fault A person is not liable for a fortuitous event

Loss of thing thru to debtor’s fault
Deterioration of thing w/o debtor’s fault
Deterioration of thing thru debtor’s fault
Improvement of thing by nature or time
Creditor may demand damages + incidental damages
if any
Creditor will have to suffer or bear the deterioration
of a certain amount that was impaired
Creditor may choose between
A. Rescission w/ damages; the value of thing
before deterioration and incidental damages
if any
B. Fulfillment of the obligation also with
damages
Improvement shall inure to the benefit of creditor

Improvement of thing at the debtor’s expense Debtor will have the right to usufructuary w/ respect
to improvement of thing

Usufructuary- subject to this is the naked owner

 He enjoys the use and fruits of a thing belonging to others.
RIGHTS GRANTED TO USUFRUCTUARY:
He may remove such improvements should it be possible to do so without damage to the
property. The USUFRUCTUARY may set off the improvements he may have made on the
property against any damages to the same.

Art 1190 fulfillment of resolutory conditions

Obligations to give
If an obligation is fulfilled, obligation is extinguished. The parties are obliged to return what they
have received under the obligation. There is a return to the status quo. The effect of the fulfillment of the condition
is retroactive. It is also as if it had never existed.
Obligations to do and not to do
The court shall determine the retroactive effect of the fulfillment of the resolutory condition.
Applicability of article 1189 to a party with obligation to
return
The fulfillment of the resolutory condition converts the creditor into a debtor and a debtor to a
creditor.

Art 1193 obligations with a period

Obligation with a period- consequences are subjected in one way or another to the
expiration of said period or term
Period- future and certain event upon arrival of which, the obligation may either arise or
terminated
A day certain-must necessarily come, although may not be known when.
PERIOD CONDITION
As to fulfillment Must happen sooner or later Uncertain if it’ll happen or not
As to time Refers only to future May refer also to the past event
unknown
As to effect, when left to It empowers the court to fix the Upon the sole will of the
debtor’s will duration thereof debtor invalidates the
obligation
As to retroactivity of effects unless there’s an agreement; Has a retroactive effect
arrival of period does not have
retroactive effect
JUST LIKE A CONDITION, PERIOD MUST BE POSSIBLE. IF IMPOSSIBLE,
OBLIGATION IS VOID.
KINDS OF PERIOD OR TERM
SUSPENSIVE Obligation begins only from a day certain
AS TO EFFECT CONDITION upon the arrival of period
(ex die)
RESOLUTORY Obligation is valid up to a day certain and
PERIOD(in diem) terminates upon arrival of a period
LEGAL PERIOD When it is provided by laws

ACCORDING TO SOURCE CONVENTIONAL It is agreed to by the parties

PERIOD
JUDICIAL PERIOD It is fixed by the court

ACCORDING TO DEFINITENESS DEFINITE Fixed or know that it will come

INDEFINITE It is not fixed or not known when it will
come. Period is not fixed but a period is
intended

Art 1195 PAYMENT BY OBLIGOR IN SOLUTIO INDEBITI, MAY RECOVER

FRUITS OR INTERESTS
It applies to obligations to give only.
DEBTOR ASSUMED AWARE OF PERIOD
The debtor bears the burden of proving that he was unaware of the period. The obligor
may no longer recover the thing or money once the period has arrived but he can recover the
fruits or interests thereof from the date of premature performance to the date of maturity of
obligation.

Art 1196 benefit from a period

Period fixed by the parties are presumed to have been established for the benefit of both the
creditor and debtor. Before the expiration of period debtor may not fulfill the obligation nor the
creditor may demand fulfillment.
In case there’s no interest, there may be other benefits by reason of the period. Creditor may not
be compelled to accept performance before the expiration of the period especially if he would be
prejudiced or inconvenienced
EXCEPTIONS TO THE GENERAL RULE
Term is for the benefit of the debtor alone- debtor may not be compelled to pay
prematurely but he may do so if he wants.
Term if for the benefit of the creditor alone- creditor may demand payment but cannot be
compelled to accept payment.
Years – 365 Months- number of days which they respectively have Period- 1st day
excluded

Art 1197 there is no period but a period is intended

The obligation does not fix a period, but from its nature and circumstances, a period is intended,
court may fix the duration thereof.
EXCEPTION TO THE GENERAL RULE
Whenever the court fixes the term of an obligation, it does not thereby amend or modify the
same. It merely forces or carries out the intention of the parties
No period is fixed but a period is intended- it can be inferred from its nature and circumstances
that a period was intended
Duration of the period depends upon the sole will of the debtor- the court must fix the duration of
the period to forestall the possibility that the obligations may never be fulfilled.
Legal effect where suspensive period/condition depends upon will of debtor
A. The existence of obligation is not affected. The respect to time is the only thing that’s left
to the will of debtor.
B. Fulfillment of obligation that depends upon the will of debtor.
Period fixed cannot be changed by the courts
 A. There is a period yet has already lapsed.
B. When the parties agreed and have given their consent to the period fixed by the court

Art 1198 debtor losing his right

A. When debtor becomes insolvent
The assets of debtor is less than his liabilities and makes him unable to pay his debt
B. When debtor does no furnish guaranties or securities promised
If he fails to furnish said security as promised, he shall lose his right to the period
C. When guaranties or securities given have been impaired or have disappeared
The obligation becomes immediately demandable if the debtor does not give a new
security.
D. When debtor violates an undertaking
E. When debtor attempts to abscond
Debtor attempts to escape his obligation. Therefore, he is acting in bad faith.

Art 1199 alternative obligations

Simple obligation One prestation only
compound obligation Two or more prestations
Conjunctive obligation Several prestations and all of them are
due
Distributive obligation Two or more prestations are due
Alternative obligation Performance of one is sufficient
Facultative obligation One prestation but debtor may
substitute another
Alternative obligations
Various prestations are due but the performance of one is sufficient as determined by choice that
belongs to the debtor. Performance must be complete

Art 1200 right of choice by the debtor

As a general rule, right to choose a prestation is given to the debtor. If nothing
has been said in the contract it is the debtor’s right to choose.

LIMITATIONS OF A DEBTOR’S RIGHT TO CHOOSE

A. The debtor cannot choose prestations that are unlawful, impossible, which could
not have been the object of the obligation
Impossible- physically impossible and legally impossible
Unlawful- prestations that are a violation to the law
 Could not have been the object of the obligation- object of lower or
higher quality
B. Debtor has no right to choose when there is only one that is practicable.
Only one prestation is practicable- Other prestations were lost
The debtor cannot choose a part of one prestation and part of another

Art 1201 choice shall produce no effect except from the time it has
been communicated
1. Effect of notice- until choice is made and communicated, obligation
remains alternative
 Notice of the election has been given to the creditor, it becomes a
simple obligation
 Once communicated, it cannot be changed without the consent of
either party
2. Proof and form of notice
 Burden of proving that such communication has been made is
upon him who made a choice.

Art 1202 Debtor loses his right of choice where there is only one practicable
If only one is practicable, the obligation is converted into a simple one

Art 1203 if through the creditor’s acts, debtor cannot make a choice, he may rescind the
contract
The right given to the debtor to rescind the contract and recover damages, IF
THROUGH THE CREDITOR’S FAULT, he cannot make a choice according to the terms of
the obligation.

Art 1204 if through the debtor’s fault all prestations have been lost, or has
become impossible for compliance, creditor shall have the right to indemnity for
damages.
EFFECT OF LOSS OF OBJECTS OF OBLIGATION
SOME OF THE OBJECTS- if some of the objects have been lost or have
become impossible through the fault of the debtor, debtor is not liable since the debtor still
ALL OF THE OBJECTS- the creditor shall have the right to damages since the
obligation can no longer be complied with.
BASIS OF INDEMNITY
The indemnity shall be fixed taking as a basis the value of the last thing which
disappeared or service which was last became impossible.

Art 1205 rules when prestations are lost

The right of choice may be given to the creditor IF the debtor expressly give the
right to him.
Rules in case of loss before creditor has made a choice

When a thing is lost through a fortuitous event
When a thing is lost through the debtors fault
When all the things are lost through a
fortuitous event
When all the things are lost through debtor’s
fault
Note: If the debtor has the right to choose, the last thing that was lost through his fault
will be the one that will be subject to indemnity.
Creditor may still choose any of the things that
are still available
Creditor may claim the any of the things
available or the price of the item that was lost
with a right to damages
The obligation shall be extinguished
Creditor may demand the payment of any of
them with a right to indemnity for damages

Art 1206 facultative obligations

Only one prestation has been agreed upon but the obligor may render another in
substitution.
EFFECT OF LOSS
Before substitution After substitution
st
1 item lost through Obligation extinguished Debtor is not liable because
fortuitous event his obligation now is to
deliver item 2
1st item lost through the fault Debtor liable for damages No effect
of debtor
2nd item lost through debtor’s No effect Debtor is liable for damages
fault
2nd item lost through No effect Obligation extinguished
fortuitous event

Art 1207 and 1208 joint and solidary obligations

 Individual obligation One obligor/one obligee
Collective obligation Two or more creditors/debtors
Joint obligation Whole obligation is to be paid/fulfilled proportionately by different debtors
and demanded by different creditors.
Solidary Obligations Each of the creditors are bound to render and each of the creditors has a right
to demand from any of the debtor the entire compliance with the prestation
COLLECTIVE OBLIGATION PRESUMED TO BE JOINT
 Plurality of parties and the share of each in the obligation is
specified
 Correlative rights and obligations of the parties are known
 There are as many debts as there are to debtors
 Credits as there are creditors
 Debts/and or credit are considered distinct and separate from one
another
 Each debtor is liable only for a proportionate part of debt
 Each creditor is entitled only to a proportionate part of a credit

Joint Liability Solidary Liability

Mancommunada Jointly/and or severally
Mancommunadamente Solidaria
Pro rata In solidum
Proportionately Together and/or separately
We promise to pay Individually and/or collectively
Juntos o separadamente
I promise to pay

In a joint obligation, novation, prescription, remission, compensation, confusion, and

other causes of modification does not extinguish nor modify the obligation except with
respect to the creditor or debtor affected, without extending its operation to any other
part of the debt or credit.

Solidary obligations
 When the obligation expressly so states
 Law requires solidarity
 Nature of the obligation requires solidarity
 Imposed in a final judgment against several defendants
Kinds of solidarity
According to the According to source
parties bound

Passive solidarity Solidarity among Conventional solidarity Solidarity agreed upon

debtors by parties
Active solidarity Solidarity among Legal solidarity Imposed by law
creditors
Mixed solidarity Solidarity on both Real solidarity Imposed by the nature of
parties the obligation