Law On Obligations

Different Kinds of Obligations

 When you say law on obligations, (1) you have the primary classification of obligations under the civil code, you
have pure obligations, conditional obligations
 (2) obligations with a period
 (3) alternative obligations
 (4) facultative obligations,
 (5) join and solidary obligations
 (6) divisible and indivisible obligations
 (7) obligations with a penal Clouse
 This will be dealt by a provisions of the civil of the Philippines
 There also have a secondary classification of obligations under the civil code:
-unilateral obligations and bilateral obligations
-unilateral when there is only one of the parties has the obligation to perform,
if its bilateral obligation, both of the contracting party have the obligation to perform,

real obligations
personal obligations
determinate obligations
generic obligations
civil obligations
natural obligations
legal conventional and penal obligations

conditions that will be tackled in the vid 3 lesson

pure obligations

conditional obligations

obligation with a period

DIFFERENT KINDS OF OBLIGATIONS

Section 1.- Pure and Conditional Obligations

Art . 1179. Every obligation whose performance does not depend upon a future or uncertain event , or upon a past
event unknown to the parties , is demandable at once.

 This refers to a pure obligations, it’s not subject to a future or uncertain event, if not subject to a condition
e.g., the contract states that this contract shall be effective upon signing of the contracting parties, upon signing by
the contracting parties, there is no more obligation, obligation realise, the obligation is already rendered effective.

 future or uncertain events- refers to a condition,

e.g., subject to passing is CPA board examination, subject to graduation provided that he already passed each
subject.

Pass event- e.g., atty.sales already graduate in a juris doctor degree

Every obligation which contains a resolutory condition shall also be demandable , without prejudice to the effects of the
happening of the event .

 it’s because when you say condition, it could be a resolutory condition or a suspensive condition,
when you say resolutory condition it’s immediately demandable, and when the condition happens that will
bring about the extinguishment of the obligation, and then

if its suspensive condition, the obligation shall not be delivered or performed yet until that suspensive condition
happens. So, the happening of the resolutory condition extinguishes the obligation, but in suspensive condition
the happening of the condition give rise to an obligation.
 e.g., (obligation which contains resolutory condition) during the graduation of LCC last august 27, the president
of the university, announced that the school will award 100,000 pesos for an alumni who will land in top ten in
whatever board examination, an alumni of LCC will be entitled of 100,000 that will be given by LCC
administration, announced during the graduation.

So that obligation of LCC to give that incentive is subject to a condition, the condition is landing in the top ten in
any board exam given by the PRC.

e.g., the contract of lease agreed upon, starts from the time the reviewee starts for the review of contract of
lease for a condominium unit, it will end when he finished taking the licensure examination for a specific year,
say that the examination will be on October 31, 2022, the agreement is from the start the review up to the time
that the reviewee has taken the board examination, that will be the contract of lease, terms and conditions.
When she has already taken the board exam, then the contract of lease automatically expire. It happens she
start for review, when that condition happens, that resolutory condition, the obligation on the part of lessor to
lease the land for someone in contract is already extinguish.

Definitions

 A pure obligation is not subject to any condition and period is mentioned for its fulfillment and is , therefore ,
immediately demandable .
 e.g., like the previous illustration/example, the contract was entered into today, and there’s a provision there
that it will be made effective immediately so there’s already a pure obligation there.

 Condition is a future and uncertain event , upon the happening of which , the effectivity or extinguishment of
the obligation ( or right ) subject to it depends.
 Go back to the example, have already the resolutory condition and suspensive condition, that in suspensive
condition the fulfillment of obligation is suspended until the time the condition is achieved or has happened,
Resolutory, it is immediately demandable and when that condition happens that will bring about the
extinguishment of obligation, that’s why we have here the effectivity or extinguishment of the obligation subject
to it depends.

 A conditional obligation is one whose consequences are subject in one way or another to the fulfillment of a
condition
 The resolutory condition and the suspensive condition

Illustrative Example

• Pure Obligation

1. XYZ Corporation " obliges itself to pay " C " P50,000 in a contract of loan
 That is immediately demandable because it’s not subject to any condition or a period

2. " D " binds himself to pay " C " upon demand of C , as the purchase price of the specific used car.
 E.g., you go to department store, you buy a dress upon payment, there’s already obligation of the seller to
transfer the ownership (example of pure obligation on the part of the seller)

• Suspensive Condition

I will sell you the land if it will be adjudicated to me in our pending extrajudicial partition in the division of my deceased
father's estate

 (That’s what the agreement states) so the sale of the land depends on the result of the case, extrajudicial
partition file in the court, if it will be adjudicated to the obligor, then that will be the time that the sale will be
push, so the suspensive condition there, is the adjudication in favor of the seller by that court where
extrajudicial partition is pending

• Resolutory condition

D , in payment of his debt to C , binds himself to give C P5,000 monthly allowance until C graduates from college.

 The purchase price will be paid until such time that the resolutory has happen (that’s the condition of graduating
from college)
Art . 1180. When the debtor binds himself to pay when his means permit him to do so , the obligation shall be deemed
to be one with a period , subject to the provisions of Article 1197 .

 When the debtor binds himself to pay when his means permit him to do so, if he has already financial capacity
to do, the law said that’s obligation with a period subject to the provisions of article 1197.
 Who is going to fix the period? If they cannot agree? When is that point, when the debtor has already the
financial means or capacity to pay if they cannot agree? It will be the court who fix the period, and that’s one of
the reason why when the agreement is when the debtor binds himself to pay when his means permit him to do
so, the obligation shall be deemed to be one of the period, it is because the period will be fix by the parties if
they cannot agree among themselves, then the court can fix the period.

A period is a future and certain event upon the arrival of which the obligation subject to arises or is extinguished.

 When it comes to condition, it’s a future and uncertain event, it may or may not happen, but when you say
period, future and certain event, say that on December 31 2022, this date will certainly come/ would arrive,
 So, distinguish a condition with a period both of them are future, the other one condition is uncertain, it may or
may not happen, period is certain to happen upon the arrival of which the obligation subject to it arises or is
extinguish, it’s because when it comes to period you also have suspensive period, and resolutory period.
Resolutory period, from today up to dec 31 2022, so it would already be demandable today and then the
obligation will be extinguished on dec 31 2022,
 But if its suspensive period, on December 31 2022 the obligation is going to be demandable when that
December 31 2022 already arrive, that’s why the obligation arises when the period has already arrived.

Art . 1181. In conditional obligations , the acquisition of rights as well as the extinguishment or loss of those already
acquired , shall depend upon the happening of the event which constitutes the conditions.

 What does this mean? This refer to conditional obligations

 When will there be acquisition of rights?
 And when will there be extinguishment or loss of those already acquired, as already said, it shall depend on the
happening of the event which constitute the condition
 The pervious example is subject to a resolutory condition, provided that she will review for the CPA licensure
examination, and that will be until she has already taken the exam this year. So, the contract of lease will
immediately demandable by the time the review starts for the review for that lease of a condominium unit and
then will be terminated by the time she has already taken the licensure exam this year
 The acquisition of right, the right to occupy the condominium unit
 The extinguishment of those already acquired, or the extinguishment or termination is after review shall depend
upon the happening of the event, which constitutes the condition,
 The condition there is you will review and she will finish up to CPA licensure exam actually taken


Illustrative example :

A lease contract expressly stipulates that " R " lesser , may terminate the lease in case his children shall need the lease
premises .

 So, there’s no period provided therein it’s subject to a condition that is the children of the lessor already need
the premises, the lessor can the lease, so the termination there will be the extinguishment of the obligation,
because that future and uncertain event where the children of the lessor will need, the lease premises is already
taken place or is already incumbent or present

Here the happening of the condition depends upon the will of a third person.

 The third person refers on the example are the children of the lessor,
 And that is also allowed, within the bounce of the law
 The fulfillment or happening of the condition depends upon the will of the third person, that’s why we have
art.1182
Art . 1182. When the fulfillment of the condition depends upon the sole will of the debtor , the conditional obligation
shall be void . If it depends upon chance or upon the will of the third person , the obligation shall take effect in
conformity with the provisions of this Code.

 What does this mean? Of no effect, if I wish to lease my premises, that depends upon the will of the
lessor/debtor.
 If I wish to lease it, that depends upon the will of the lessee,
 So that’s a void agreement in the contract, if the fulfillment of the condition depends upon the sole will of the
debtor, the conditional obligation shall be void
 It’s the conditional obligation that shall be rendered nugatory or void
 If it depends upon chance or upon the will of the third person , the obligation shall take effect in conformity with
the provisions of this Code, like the previous example, determination of the lease depends upon the object
necessity of the children of the lessor, that depends upon third person, the children are not a contracting party
but with a contract of lease enter into by the lessor and lessee.

 valid if it depends upon the will of the creditor - Debtor will pay upon demand
 Pre - existing obligation will remain valid , even the subsequent condition depends upon the will of the debtor
 Depends upon chance Damage to building after earthquake , the contractor will reconstruct upon
determination by building experts that the materials used were sub - standard.
 Example, contract for the construction of the house, there will be damage to the building after earthquake
and it was agreed upon the constructor will reconstruct upon determination by building expert that the
material used were substandard, so the condition there depends upon chance (earthquake that has
happened that caused damage to the building.
 And the obligation arises when the chance has happened, when that condition of damage has happened, the
constructor will reconstruct the building subject to the determination by building experts/engineer that the
material is substandard

 Suspensive condition depends upon the sole will of the debtor, upon the sole will of creditor or when the
resolutory condition depends upon the sole will of the debtor, valid if it depends upon the will of the debtor
then the pre-existing obligation will remain valid if the subsequent condition depends upon the sole will of
the debtor.

Discussion :

 Potestative Condition
 Where suspensive condition depends upon the sole will of debtor
 Where suspensive condition depends upon the sole will of the creditor - will pay upon demand
 Where resolutory condition depends upon the sole will of the debtor
 valid it depends upon the will of the creditor Debtor will pay upon demand
 Pre - existing obligation will remain valid , even the subsequent condition depends upon the will of the debtor .
 Depends upon chance and mixed Damage to building after earthquake , the contractor will reconstruct upon
determination by building experts that the materials used were sub - standard .
Art . 1183. Impossible conditions , those contrary to good customs or public policy and those prohibited by law shall
annul the obligation which depends upon them . If the obligation is divisible that part thereof which is not affected by
the impossible or unlawful condition shall be valid.

The condition not to do an impossible thing shall be considered as not having been agreed upon.

 Physically impossible conditions : If it will not rain within one year

 Example, of physically impossible condition, if it will not rain within this year, it will be very impossible

 Legally impossible conditions : Will kill X ; will not appear as witness in a criminal case - against public policy
 The condition is for the obligor to kill someone, not to appear as a witness in criminal case, that’s against public
policy, it’s because when it’s a criminal case the agreed party is the people of the Philippines

 Obligation is divisible : I will give you a commission of P10,000 if you could sell my land and car and if you kill
Pedro .
 Example I will you a commission of 10, 000 if you could sell my land and car and if you kill Pedro,
 Killing Pedro as a condition and giving commission are divisible, the giving of commission can stand, and that
impossible or illegal condition is void and the other condition shall stand
 The impossible condition contrary to low morals public policy prohibited by the law shall annul the obligation
which depends upon them
 And if the obligation is divisible, that obligation which is not affected by impossible or unlawful condition shall be
valid,
 So, giving of commission and killing of Pedro as a condition is an illegal/unlawful condition

Art . 1184. The condition that some event happen at a determinate time shall extinguish the obligation as soon as the
time expires or if it has become indubitable that the event will not take place.

 Let’s say the donation prompter note shall be rendered effective, when a marriage between John and Merry
took place on or before September 15, 2022, assume that now is September 27, 2022 and the hasn’t taken place
yet , the condition there that there will be a marriage that will happen on or before January (September) 15
2022 under 1184,
 The condition that some event happen at a determinate time shall extinguish the obligation, the obligation there
is already extinguish because the September 15 2022 has already lapsed
 As soon as the time expires or it has become indubitable that the event will not take place, it has already
expired because now September 27 2022

illustrative Example :

X obliges himself to give B P10,000 if B will marry C before B reaches the age of 23 .

To explain :

1. Before he reaches 23

2 . At the age of 23

3. Dies at the age of 22

Art. 1185. The condition that some event will not happen at a determinate time shall render the obligation effective
from the moment the time indicated has elapsed, or if it has become evident that the event cannot occur.

If no time has been fixed, the condition shall be deemed fulfilled at such time as may have probably been contemplated,
bearing in mind the nature of the obligation.

Illustrative Example:

X binds himself to give B P50,000 if B is not yet married to C on December 30.

 Unlike in 1184 condition is considered extinguish but in 1185 even if the event elapsed the obligation is effective
 X binds himself to give B 50,000 if B is not yet married to C on September 15, 2022, now is Sept 27 2022. B is not
yet married to C until today. Going back to art 1185 the condition did not happen the marriage taking place on
Sept 15 2022, so the condition that the event (the marriage) did not happen at the determinate time (sept 15,
2022).
 The effect will be shall render the obligation effective from the moment that time indicated has elapsed.
 By Sept 16,2022, the obligation there is already for fulfillment, why? The condition that the marriage will happen
on Sept 15 2022 did not happen, that’s why it’s already considered to have lapsed on Sept 16 2022.
 As you mean that there’s no time to fix. There’s no determinate that is being fixed. It shall be fixed. Bering in
mind the nature of obligation.
 For the circumstances surrounding the parties when the obligation was entered into by them.

Art. 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment.

 It’s a conditional obligation, and it’s the obligor who prevents the fulfillment, what will be the legal
consequence? It says that if the condition shall be deemed fulfilled

Illustrative Example:

X agreed to give Y a 5% commission if the latter could sell the former's land at a certain price. Y found a buyer who
definitely decided to buy the property upon the terms prescribed by X. To evade the payment of the commission agreed
upon, X himself sold the to the buyer the property at a lower price to the buyer the property at a lower price without
the aid of Y.

 (contract of agency) If the owner of the land prevented the agent there to receive his commission. The owner of
the land there is deemed to have prevented the fulfillment of the condition.

Art. 1187. The effects of a conditional obligation to give, once the condition has been fulfilled shall retroact to the day of
the constitution of the obligation. (refers to pendency of the condition)

 When it is conditional obligation, and the obligation is to give, to deliver once the condition has been fulfilled the
obligation to give already arises. And it retroacts to the day of constitution of the obligation or when the
agreement was entered into.

Nevertheless, when the obligation imposes reciprocal obligations upon the parties, the fruits and interests during the
pendency of the condition shall be deemed to have been mutually compensated.

 Conditional obligation is fulfilled and both of them are debtors and creditors of one another. We discuss when it
comes to fruit shall be delivered when the obligation to deliver already arises. And if it’s a reciprocal obligation,
the law said shall deemed to have been mutually compensated.

If the obligation is unilateral, the 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.

 If the obligation is unilateral, if the obligation is to deliver arises until fulfillment of the condition, there’s no
obligation yet to deliver what’s to be given.
 The debtor is given the right to appropriate the fruits and interest received, except when the agreement
expressly provide.
 Imagine, there’s a condition in the fulfillment of the obligation , the obligation to deliver arise, let say it is a
suspensive condition, arises, when that condition already happen.
 When respect to the fruits wala pa because the obligation to deliver hasn’t arise yet because the condition
didn’t happen yet.

In obligations to do and not to do, the courts shall determine, in each case, the retroactive effect of the condition that
has been complied with.
Illustrative Example of Art. 1187

C obliged himself to condone the debt of D, his lawyer, should the latter win C's case in the Supreme court.

In this case, upon the fulfillment of the condition, shall not be entitled, unless the contrary has been stipulated, to earn
interest of the capital during the pendency of the condition as the intention of C is to extinguish the debt. Here, the
fulfillment of the condition has a retroactive effect.

Art. 1188. The creditor may, before the fulfillment of the condition, bring the appropriate actions for the preservation of
his right.

The debtor may recover what during the same thing he has paid by mistake in case of a suspensive condition.

Note: Creditor will go to court to prevent alienation, concealment, misrepresentation.

 First sentence : Yes, the creditor can bring an action even the condition is not yet been fulfilled for what
purpose, preservation of right on the part of debtor. Let say on the part of the debtor to perform the deliver
when the condition is fulfilled, abuses, misuses, mis appropriate the thing to be delivered. The creditor there can
file appropriate action for the preservation of his right.
 Second sentence: The debtor already complied with his obligation when the suspensive condition hasn’t taken
place yet. The law gives the debtor to recover what he has paid by mistake, if the suspensive condition hasn’t
taken placed yet under 1188.

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 rescission of the obligation and
its fulfillment, with indemnity for damages in either case;

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(right
to enjoy the thing).

 This art 1189 speaks of an obligation subject to a suspensive condition, the rule governs the laws deterioration
or improvement of the thing during the pendency of the suspensive condition. Meaning the condition is yet to
take place it hasn’t taken place. It may or may not take place so if it is a suspensive condition that’s the exact
point when it give rise on the fulfillment of the obligation.
 (1) Its loss without the fault of the debtor during the pendency of the happening of the suspensive condition,
the rule is the obligation is shall be extinguished provided that the thing which is to be delivered, to be given, is
loss without the fault of the debtor.
 (2) If the thing is loss through the fault of the debtor during the pendency, the happening of the suspensive
condition he shall be obliged to pay damages to the creditor and the laws provided that the definition of the loss
here it is understood that the thing is loss when it perishes, or goes out of commerce maybe of no value
anymore and could no longer be subject of commercial transaction or of commercial value or disappears in such
a way that its existence is unknown, or it cannot be recovered, these are due to the fault of the debtor. The
debtor should oblige to pay the damages.
 (3) The deterioration is due to the fault of the debtor which going to borne the deterioration or impairment by
the creditor.
 (4) The creditor has the option between cancellation of the obligation or fulfillment, and in both the creditor is
entitled to damages.
 (5) No intervention, no expenses on the part of the debtor it improves by its nature, the improvement shall
belong to the creditor. But if the improvement is at the expense of the debtor is only that granted right to use it
for free. Until such time that it will be for delivery when the suspensive condition already happen.
 This rules speaks for an obligation subject to a suspensive condition.
 The happening of suspensive condition gives rise to the fulfillment of the obligation to give.
Art. 1190. When the conditions have for their purpose the extinguishment of an obligation to give, the parties, upon the
fulfillment of said conditions, shall return to each other what they have received.

 Conditional obligation subject to a resolutory condition. The happening of the condition there gives rise to the
extinguishment of an obligation. The example is that contract of lease for the condominium unit from start of
review of a reviewee up to the time of the licensure examination is finish. Once the exam is finish, the resolutory
condition there already happen, there’s already extinguishment of the obligation by the lessor and the lessee to
lease and to pay rental. The obligation shall return to each other what are they received. Once going to be
return the possession of the condominium unit shall be return to the lessor/owner.

In case of the loss, deterioration or improvement of the thing, the provision which, with respect to the debtor, are laid
down in the preceding article shall be applied to the party who is bound to return.

As for obligations to do and not to do, the provisions of the second paragraph of Article 1187 shall be observed as
regards the effect of the extinguishment of the obligation.

Art. 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply
with what is incumbent upon him.

 The contract of sale, the contract was already entered into, but the buyer doesn’t pay the purchase price
doesn’t want to comply. The seller their can cancel the obligation that’s reciprocal obligation. Both of them has
the obligation to fulfill. In the example the buyer doesn’t want to pay continue cancellation and it could be with
damages that maybe demanded by the seller party there.

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.

 He has choose fulfillment but still there’s no fulfilment it has become impossible can go back to rescission. The
party could go back into the recission.

The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.

 The court can also intervene, one of the parties can go to the court and apply for rescission of the agreement
and the court can decree.

This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance
with Article 1385 and 1388 and the Mortgage Law.

Art. 1192. In case both parties have committed a breach of the obligations, the liability of the first infractor shall be
equitably tempered by the courts. If it cannot be determined which of the parties first violated the contract, the same
shall be deemed extinguished, and each shall bear his own damages.

 This contemplates, both parties have infractions and for the court to settle the liability of first infractor shall be
equitably determine by the court.
Section 2 - Obligations with a Period

Art. 1193. Obligations for whose fulfillment a day certain has been fixed, shall be demandable only when that day
comes.

 Contract of loan payment on December 31 2022, so that’s an obligation the fulfillment of the payment will be on
dec 31 2022.

Obligations with a resolutory period take effect at once, but terminate upon arrival of the day certain.

 Example of resolutory period, from September 27 up to Dec 31 2022, resolutory immediately begin upon Sept
27 and will be terminated on Dec 31 2022.

A day certain is understood to be that which must necessarily come, although it may not be known when.

 During holy Friday next year, we don’t know what date it will fall. It would come but the determination maybe
known at the certain point.

If the uncertainty consists in whether the day will come or not, the obligation is conditional, and it shall be regulated by
the rules of the preceding Section.

Art. 1194. In case of loss, deterioration or improvement of the thing before the arrival of the day certain, the rules in
Article 1189 shall be observed.

 On or before December 31, 2022 is the period fix for the fulfilment of the obligation and the thing which is going
to be given or to be delivered suffered loss, distraction or improvement during the pendency, during the running
of period that reaches that suspensive period. The one that we already discuss will govern in 1189. In case of
loss, deterioration or improvement of the thing due to fault of the debtor or without the fault of the debtor. Or
at expense of the debtor or at no expense of the debtor.

Art. 1195. Anything paid or delivered before the arrival of the period, the obligor being unaware of the period or
believing that the obligation has become due and demandable, may be recovered, with the fruits and interests.

 There’s already a payment before the arrival of the suspensive period, like we had discussed already, there’s
delivery happening before the arrival of the suspensive condition. In period before the arrival of the period the
obligor is unaware and there’s already delivery the law gives him right to demand the recovery together with
the fruits and the interest.

Art. 1196. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of
both the creditor and the debtor unless from the tenor of the same or other circumstances it should appear that the
period has been established in favor of one or of the other.

 The payment is on or before Dec 31 2022, it’s a contract of loan, the period of payment is intended for the
benefit of the creditor and the debtor. The debtor know when is going to pay, the creditor know also when the
payment hall be received and the creditor know when the payment was not received on such day. E.g., Payable
without need of demand there will already liability for payment of interest or compounded interest even.
 Benefit of both creditor and the debtor if a period is designated in an obligation unless the contrary appear. It
should appear that the period has establish in favor of the other.

Art. 1197. If the obligation does not fix a period, but from its nature and the circumstances it can be inferred that a
period was intended, the courts may fix the duration thereof.

The courts shall also fix the duration of the period when it depends upon the will of the debtor.

In every case, the courts shall determine such period as may under the circumstances have been probably contemplated
by the parties. Once fixed by the courts, the period cannot be changed by them.

 It’s an obligation with the period but they were not able to fix the period by the party so the conflict now is on
the issue of a period. They cannot agree, they could go to the court and the court can fix the period.
 When they reach the court for fixing of a period because there’s conflict of the period the court shall render
everything. The evidences will be presented and offered by the parties and the circumstances surrounding the
parties when they were, when the agreement was entered into.
Art. 1198. The debtor shall lose every right to make use of the period:

1) When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or security for the
debt;

2) When he does not furnish to the creditor the guaranties or securities which he has promised;

3) When by his own acts he has impaired said guaranties or securities after their establishment, and when through a
fortuitous event they disappear; unless he immediately gives new ones equally satisfactory;

4) When the debtor violates any undertaking, in consideration of which the creditor agreed to the period;

5) When the debtor violates any undertaking, in consideration of which the creditor agreed to the period;

6) When the debtor attempts to abscond.

 (1) There’s an obligation, there’s a period for the fulfilment of the obligation but the debtor becomes insolvent,
was the right now of the creditor, the debtor loss the right to make use of the period. The creditor can now
demand for payment, in the remaining asset of the debtor, unless he gives a guarantee or security of the debt.
 There’s an agreement that the debtor will furnish the creditor, the guarantees or securities which he has
promise but wasn’t able to furnish. The period there was no longer available to the debtor.
 The right to make use of the period is lost by the debtor.
 There’s violation of the undertaking, when the debtor attempt to abscond are the instances when the debtor
shall lose every right to make use of the period.

Section 3

Alternative and Facultative Obligations

Art. 1199. A person alternatively bound by different prestation shall completely perform one of them.

The creditor cannot be compelled to receive part of one and part of the other undertaking.