GALINO, REIGNIELLE C.

BA 121 – LAW ON OBLICON

BSA – 2A

STUDY GUIDE

CHAPTER 3 SECTION 1

PURE AND CONDITIONAL OBLIGATIONS

I. DEFINITIONS
Define or give the meaning of the following:

1. 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.
(Article 1179).

2. CIVIL LOSS
Civil Loss is when a thing disappears in such a way that its existence is
unknown; or even if known, it cannot be recovered, whether as a matter of
fact or of law. (Article 1189).

3. RECIPROCAL OBLIGATIONS
Reciprocal obligations are those which arise from the same cause and in
which each party is a debtor and creditor of the other, such that the
performance of one is designed to be the equivalent and the condition for
the performance of the other. (Article 1191).

4. PURE OBLIGATION
Pure obligation is one which is not subject to any condition and no specific
date is mentioned for its fulfillment and is, therefore, immediately
demandable. (Article 1179).

5. POTESTATIVE CONDITION
Potestative condition is a condition suspensive in nature and which depends
upon the sole will of one of the contracting parties. (Article 1182).
II. DISCUSSIONS

1. Illustrate an obligation subject to:

a) SUSPENSIVE CONDITION
According to Article 1179, when an obligation is subject to a
suspensive condition, the happening of the obligation will depend
upon the fulfillment of the condition. In other words, the fulfillment of
the condition will give rise to the obligation.

b) RESOLUTORY CONDITION
In Article 1179, when an obligation is subject to a resolutory
condition, the fulfillment of which will extinguish an obligation (or
right) already existing. This is demandable at once.

What is the effect of the fulfillment of the condition in a conditional

obligation?

There will be two effect of the fulfillment of the condition in a conditional

obligation according to Article 1181, it can be:

▪ Acquisition of rights - this one is in the obligations subject to

suspensive condition, the acquisition of rights by creditor depends upon
the happening of the event which constitutes the condition. In this one,
once the condition is fulfilled, an obligation arises.

▪ Loss of rights already acquired - this one is in the obligations subject

to a resolutory condition, the happening of the event which constitutes
the condition produces the extinguishment or loss of rights already
acquired. In other words, once the condition is fulfilled, the obligation will
be terminated or ended.

2. Give two (2) cases when the conditional obligation is valid although
the condition depends entirely upon the will of the debtor. Explain.

▪ According to Article 1182, if the obligation is a pre-existing one and, does

not depend for its existence upon the fulfillment by the debtor of the
potestative condition, only the condition will be void while the obligation
is still valid since the existence of the obligation does not depends on
the condition’s fulfillment.

▪ Next, according to Article 1182, when resolutory condition depends

upon the will of the debtor, it is considered valid since the fulfillment of
 the condition merely causes the extinguishment or loss of rights already
acquired. In here, the debtor is naturally interested in its fulfillment. Also,
the position of the debtor when the condition is resolutory is the same
as that of the creditor when the condition is suspensive.

3. May an obligor be liable under an obligation subject to a suspensive

condition although the condition has not yet been fulfilled? Explain.

▪ Yes, according to the Article 1186, if the obligation is a suspensive

condition, and the debtor actually prevents the fulfillment of the
condition, and he acts voluntarily, he can be held liable since he
voluntarily prevents the condition to avoid his obligations.

4. In an obligation to give a parcel of land subject to a suspensive

condition, who is entitled to the fruits that accrued during the
pendency of the condition once said condition is fulfilled?

▪ When it was a unilateral obligation to suspensive condition, the fruits

belong to the debtor because according to the Article 1187, fruits and
interest shall be appropriated by the debtor unless they agreed or
stipulated that the fruits will belong to the creditor. While in reciprocal
obligation to suspensive condition, the fruits are deemed mutually
compensated meaning, the debtor is not obliged to give the fruits to the
creditor, as well as the creditor is not obliged to pay the interest to the
debtor.

5. State the rules in case the thing to be delivered:

1. is lost with the debtor’s fault; without his fault;

• According to Article 1189, paragraph 2, if the thing is lost with
the debtor’s fault, he is liable to pay the damages that affects
the creditor and the cost of the thing that is lost.

• According to Article 1189, paragraph 1, if the thing is lost

without the debtor’s fault, he is not liable for any damages and
obligation. It shall be extinguished because no one shall be
liable for any fortuitous event.

2. deteriorates with the debtor’s fault; without his fault.

• According to Article 1189, paragraph 4, if the thing
deteriorates through the fault of the debtor, the creditor may
choose between two remedies, it is either the rescission or
 fulfillment of the obligation. Both included indemnity for
damages.

• According to Article 1189, paragraph 3, if the thing

deteriorates without the fault of the debtor, the value of the
thing that will be delivered will depreciate and the value of the
thing will reduce. In other words, impairment is to be borne
by the creditor.

III. PROBLEMS
Explain or state briefly the rule or reason for your answer.

1. D (debtor) borrowed P20,000 from C (creditor) payable on or before

August 30. Before the arrival of the due date, C agreed to the promise
of B to pay C if B wants. Can C insist that B pay not later than August
30?

▪ No, the creditor cannot require B to pay by August 30 because,

according to Article 1182, when an agreement is based in part on the
will of the third party and the debtor's will to pay, it is considered valid.
This one applies in this situation, where the creditor cannot require the
third party to pay by August 30, because, as stated in the case, they
agreed on the third person's promise to pay the creditor if only he wants.
As a result, the creditor is unable to seek payment from B before August
30.

2. Suppose in the same problem, D obliges himself to pay C P10,000 after

C has paid his obligation to T. Is the obligation valid?

▪ In this case, the condition is a suspensive condition, which implies that

the obligation will only exist if the condition has already been fulfilled.
Under this circumstance, D is only obligated to pay C if and only if C
pays the third party, T. And, as per Article 1182, a conditional obligation
is void if the suspensive condition is dependent on the debtor’s will. As
a result, the debtor’s obligation is null and invalid. This simply implies
that if the creditor has not yet been paid to the T, the debtor is not
obligated to pay the creditor.

3. S (seller) agreed to sell to B (buyer) a specific car for P200,000,

delivery of the car and the payment of the price to be made on June
15. Suppose S delivered the car on June 15 but B failed to pay the
price, what are the remedies of S?
 ▪ According to Article 1191, reciprocal obligations include the power to
rescind obligations if one of the obligors fails to fulfill his obligations. As
a result, if B does not pay for the car, the offended party, S, has two
options. It might be (a) an action for specific performance (fulfillment) of
the obligation with damages, or (b) an action for rescission of the
obligation with damages as well. Between the two treatments, B should
only select one.

4. S sold a parcel of land to B for P240,000 payable in installments of

P20,000 a year. The land was delivered to B who obtained ownership
thereof. After B had paid P200,000, he could no longer continuing
paying in view of financial reverses but he was willing to pay the
balance of P40,000 if given more time. Thereupon, S sued for
rescission under Article 1911. If you were the judge, would you grant
rescission?

▪ Unless there is a reasonable cause permitting the establishment of a

period, the court shall declare the sought rescission, according to Article
1191. If I were the judge, I would approve S's rescission in favor of a
term of period for B's performance, since B is willing to fulfill his
obligation to pay the P40,000 keeping balance but need time due to his
financial reverses, not because he does not want to pay the outstanding
balance.

5. D (debtor) binds himself to pay C (creditor) a sum of money, Give the

three cases when the obligation of D is demandable at once by C?

▪ First case, when the obligation is a pure

Because, according to Article 1179, pure obligations are those that are
demandable immediately, and are not subject to any conditions, and are
not tied to any certain date.
▪ Second case, when the obligation is subject to a resolutory
condition
The obligation is demandable at once in a resolutory condition,
according to Article 1179, and it will be terminated due to the condition’s
fulfillment.
▪ Third case, when the obligation is subject to a resolutory period
According to Article 1193, resolutory period is already demandable and
will take effect immediately, but it will be extinguished with the arrival of
the specified term.