rescission of the obligation and its fulfillment,
with indemnity for damages in either case;
ART. 1188. The creditor may, before the fulfi
llment of the condition, bring the appropriate
actions for the preservation of his right. The
debtor may recover what during the same time
he has paid by mistake in case of a suspensive
condition.
Rights pending fulfillment of suspensive
condition.
(1) Rights of creditor. — He may take or
bring appropriate actions for the
preservation of his right, as the debtor
may render nugatory the obligation
upon the happening of the condition. It
applies by analogy to obligations
subject to a resolutory condition.
(2) Rights of debtor. — He is entitled to
recover what he has paid by mistake
prior to the happening of the
suspensive condition. This is a case of
solutio indebiti.
ART. 1189. When the conditions have been
imposed with the intention of suspending the
efficacy of an obligation to give, the following
rules shall be observed in case of the
improvement, loss or deterioration of the thing
during the pendency of the condition:
(1) If the thing is lost without the fault of the
debtor, the obligation shall be extinguished;
(2) If the thing is lost through the fault of the
debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it
perishes, or goes out of commerce, or
disappears in such a way that its existence is
unknown or it cannot be recovered;
(3) When the thing deteriorates without the
fault of the debtor, the impairment is to be
borne by the creditor;
(4) If it deteriorates through the fault of the
debtor, the creditor may choose between the
(5) If the thing is improved by its nature, or by
time, the improvement shall inure to the benefit
of the creditor;
(6) If it is improved at the expense of the debtor,
he shall have no other right than that granted
to the usufructuary.
Requisites for application of Article 1189.
Article 1189 applies only if:
(1) The obligation is a real obligation;
(2) The object is a specific or determinate thing;
(3) The obligation is subject to a suspensive
condition;
(4) The condition is fulfi lled; and
(5) There is loss, deterioration, or improvement
of the thing during the pendency of the
happening on one condition.
Kinds of loss.
(1) Physical loss. — when a thing perishes
as when a house is burned and reduced
to ashes; or
(2) Legal loss. — when a thing goes out of
commerce or when a thing heretofore
legal becomes illegal.
(3) Civil loss. — when a thing disappears in
such a way that its existence is
unknown or even if known, it cannot be
recovered.
Rules in case of loss, etc. of thing during
pendency of suspensive condition.
(1) Loss of thing without debtor’s fault -
The obligation is extinguished and
Debtor is not liable to Creditor even if
Creditor sells the property. A person, as
 a general rule, is not liable for a
fortuitous event.
(2) Loss of thing through debtor’s fault —
Creditor will be entitled to demand
damages plus incidental damages, if
any.
(3) Deterioration of thing without debtor’s
fault. — A thing deteriorates when its
value is reduced or impaired with or
without the fault of the debtor.
(4) Deterioration of thing through debtor’s
fault. — In this case, C may choose
between: (a) Rescission (or cancellation)
of the obligation with damages;
payment of debtor for the value of the
car before its deterioration plus
incidental damages, if any; or (b)
Fulfillment of the obligation also with
damages; debtor is bound to C to give
the car and pay damages plus incidental
damages, if any.
(5) Improvement of thing by nature or by
time. — A thing is improved when its
value is increased or enhanced by
nature or by time or at the expense of
the debtor or creditor. The
improvement shall inure to the benefit
of Creditor.
(6) (6) Improvement of thing at expense of
debtor. — In this case, Debtor will have
the right granted to a usufructuary with
respect to improvements made on the
thing held in usufruct.