COBLAW 1 | Articles 1156-1192 | Mr.

Heffron

ARTICLE DESCRIPTION ADDITIONAL NOTES

NO.

Article 1156 An obligation is a juridical necessity to give, to do or Four essential requisites of an

not to do. (n) Juridical tie connotes that in case of
noncompliance, there will be legal sanctions. An
obligation is nothing more than the duty of a person
(obligor) to satisfy a specific demandable claim of
another person.
obligation:
- Passive subject: also known as
debtor or obligor; he who has a
duty of giving, doing, or not
doing and the one who is bound
to the fulfillment of the
obligation.
- Active subject: also known as
creditor or obligee; possessor of
the right and the one who has
the power to demand the
fulfillment of the obligation.
- Object or prestation: the subject
matter of the obligation; it is the
conduct in which the debtor
should act upon and without the
prestation, there is nothing to
perform.
- Juridical or Legal Tie: also called
efficient cause, which binds the
parties to the obligation and the
reason why the obligation exists.

Article 1157 When an obligation consists in the delivery of an Example: The obligation to repay a loan
indeterminate or generic thing, the creditor cannot or indebtedness by virtue of an
demand a particular one. agreement. Quasi-contracts. – When
they arise from lawful, voluntary and
Obligations arise from: unilateral acts which are enforceable to
1. Law; the end that no one shall be unjustly
2. Contracts; enriched or benefited at the expense of
3. Quasi-contracts; another.
4. Acts or omissions punished by law; and
5. Quasi-delicts. (1089a)

Article 1158 Obligations derived from law are not presumed. Only
those expressly determined in this Code or in special
laws are demandable, and shall be regulated by the
precepts of the law which establishes them; and as
to what has not been foreseen, by the provisions of
this Book.
The law cannot exist as a source of
obligations, unless the acts to which its
principles may be applied exist. But
once those acts or facts exist, the
obligations arising therefrom by virtue
of express provisions of the law are
entirely independent of the parties.
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Article 1159 “Obligations arising from contracts have the force of
law between the contracting parties and should be
complied with in good faith.” provides that
“Obligations emerging from contracts have the force
of law between the contracting parties.
Article 1160 Obligations derived from quasi-contracts shall be
subject to the provisions of Chapter 1, Title XVII, of
this book. (n)
Article 1161 Civil obligations arising from criminal offenses shall
be governed by the penal laws, subject to the
provisions of article 2177, and of the pertinent
Validity of Contract – Autonomy of Will
(Autonomy - independence)
This article speaks of contractual
obligations arising from contracts or
voluntary agreements. It presupposes
that the contract entered into is valid
and enforceable. Terms of the contract
should, therefore, not be contrary to
law, morals, good customs, public
policy, or public order. If the contract
does not violate any of these
limitations, it should be given effect,
notwithstanding the absence of any
legal provision at the time it was
entered into which governs it.
Falsification of Contract –
unauthorized insertion of additional
stipulations does not void the whole
contract, it shall still be enforced,
disregarding only the additional
stipulation.
Quasi-contract is a juridical relation
which arises from a lawful, voluntary,
and unilateral act or acts executed by
somebody from the benefit of another
and for which the former must be
indemnified to the end that no one shall
be enriched or benefited at the
expense of another.
Concept of Quasi-Contract
1. Act giving rise to quasi-contract
must be lawful distinguishing it
from delict;
2. Act must be voluntary
distinguishing it from
quasi-delict which is based on
fault or negligence;
3. Act must be unilateral
distinguishing it from contract
which is based on agreement
*Civil liability arising from crimes or
delicts. This article deals with civil
liability for damages arising from crimes
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provisions of Chapter 2, Preliminary Title, on Human
Relations, and of Title XVIII of this Book, regulating
damages. (1092a)
Article 1162 Obligations derived from quasi-delicts shall be
governed by the provisions of Chapter 2, Title XVII of
this Book, and by special laws. (1093a)
Article 1163 Every person obliged to give something is also
obliged to take care of it with the proper diligence of
a good father of a family, unless the law or the
stipulation of the parties requires another standard of
care. (1094a)
or delicts.
When the accused in a criminal
prosecution is acquitted on the ground
that his guilt has not been proved
beyond reasonable doubt, a civil action
for damages for the same act or
omission may be instituted. Such action
requires only a preponderance of
evidence.
Concept of Quasi-Delicts
- Whoever by act or omission
causes damage to another, there
being fault or negligence, is
obliged to pay for the damages
done. Such fault or negligence, if
there is no pre-existing
contractual relation between the
parties, is called a quasi-delict.
This Article speaks of an obligation to
take care of a determinate thing which
an obligor is supposed to deliver to
another. (Pineda)
Obligation to give (real obligations), the
obligor has the incidental duty to take
care of the thing due. (De Leon)
Reason for Provision
- Unless diligence is exercised,
there is danger that the property
would be lost or destroyed.
- Thus, rendering illusory the
obligations (Paras)
Diligence Required
- Depends upon the nature of the
obligation and corresponds with
the circumstances of the person,
of the time, and of the place
(Art. 1173)
General Rule
- Ordinary diligence
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- Known as “diligence of a
good father of a family”
- Diligence which a
reasonably prudent
person exercises over his
own property

Exception
- Another standard of care
- Slight or extraordinary
diligence
- The law or stipulation of
the parties must prevail
- **parties may agree upon
diligence which is more or less
than of a good father of a family
- **it is contrary to public policy to
stipulate for absolute exemption
from liability

Effect of Breach
- Liability for damages is imposed
upon the debtor who fails to
exercise the diligence of a good
father of a family (Tolentino)
- The loss of things while in the
custody of the obligor but
without negligence or fault on
his part, but to fortuitous events,
he is exempted from
responsibility. (Tolentino)

Article 1164 The creditor has a right to the fruits of the thing from
the time the obligation to deliver it arises. However,
he shall acquire no real right over it until the same
has been delivered to him. (1095)
The right to the fruits includes the right
to three kinds of fruits – natural,
industrial and civil fruits.
Two Rights
1. Personal Right – the right or
power of a person to demand
from another – to give, to do, or
not to do.
2. Real Right – a power over a
specific thing (like the right of
ownership or possession) and is
binding on the whole world.

Article 1165 When what is to be delivered is a determinate thing, Obligation to give – consist in the
the creditor, in addition to the right granted him by delivery of a movable or immovable
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article 1170, may compel the debtor to make the
delivery.
If the thing is indeterminate or generic, he may ask
that the obligation be complied with at the expense
of the debtor.
If the obligor delays, or has promised to deliver the
same thing to two or more persons who do not have
the same interest, he shall be responsible for any
fortuitous event until he has affected the delivery.
(1096)
Article 1166 The obligation to give a determinate thing includes
that of delivering all its accessions and accessories,
even though they may not have been mentioned.
(1097a)
Article 1167 If a person obliged to do something fails to do it, the
same shall be executed at his cost.
This same rule shall be observed if he does it in
contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been
poorly done be undone. (1098)
thing to the creditor. Example:
Obligation to deliver the thing in sale,
deposit, pledge, donation, antichresis.
Accession — are the fruits of a thing or
addition to or improvements upon a
thing (the principal)
Ex. Trees on a land; air-conditioner in a
car; rent of a building
Accessories — are things joined to or
included with the principal thing for the
latter embellishment
Ex. key of a house, frame of a picture,
bracelet of a watch
Right of Creditor to Accessions and
Accessories
- The general rule is that all
accessions and accessories are
considered included in the
obligation to deliver a
determinate thing although they
may not have been mentioned
- This rule is based on the
principle of law that the
“accessory follows the principal”
- Unless otherwise stipulated, an
obligation to deliver the
accessions or accessories of a
thing does not include the latter.
Remedies of Creditor in Positive
Personal Obligation
1. If the debtor fails to comply with
his obligation to do, the creditor
has the right:
a. To have the obligation
performed by himself, or
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by another, unless
personal considerations
involved at the debtor
expense
b. To recover damages
2. In case the obligation is done in
contravention of the terms of
the same or is poorly done, it
may be ordered that it be
undone if it is still possible to
undo what was done

Performance by a third person

- A personal obligation to do, like
a real obligation to deliver a
generic thing, can be performed
by a third person
- While the debtor can be
compelled to make the delivery
of a specific thing, a specific
performance cannot be ordered
in personal obligation to do
because this may amount to
involuntary servitude

Article 1168 When the obligation consists in not doing, and the
obligor does what has been forbidden him, it shall
also be undone at his expense. (1099a)

Article 1169 Those obliged to deliver or to do something incur in The words “in delay” should be
delay from the time the obligee judicially or translated to mean default (Paras)
extrajudicially demands from them the fulfillment of
their obligation. Meaning of Delay
1. Ordinary delay
However, the demand by the creditor shall not be a. Merely the failure to
necessary in order that delay may exist: perform an obligation on
time
(1) When the obligation or the law expressly so 2. Legal delay/default/mora
declare; or a. The failure to perform an
obligation on time which
(2) When from the nature and the circumstances of failure, constitute a
the obligation it appears that the designation of the breach of obligation
time when the thing is to be delivered or the service
is to be rendered was a controlling motive for the **No delay in an obligation not to do,
establishment of the contract; or nonfulfillment may take place but delay
is impossible for the debtor fulfills by
(3) When demand would be useless, as when the not doing what has been forbidden him
obligor has rendered it beyond his power to perform.
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In reciprocal obligations, neither party incurs in delay
if the other does not comply or is not ready to
comply in a proper manner with what is incumbent
upon him. From the moment one of the parties fulfills
his obligation, delay by the other begins. (1100a)
Article 1170 Those who in the performance of their obligations
are guilty of fraud, negligence, or delay, and those
who in any manner contravene the tenor thereof, are
liable for damages. (1101)
Article 1171 Responsibility arising from fraud is demandable in all
obligations. Any waiver of an action for future fraud is
void. (1102a)
Article 1172 Responsibility arising from negligence in the
performance of every kind of obligation is also
demandable, but such liability may be regulated by
the courts, according to the circumstances. (1103)
Article 1173 The fault or negligence of the obligor consists in the
omission of that diligence which is required by the
nature of the obligation and corresponds with the
circumstances of the persons, of the time and of the
place. When negligence shows bad faith, the
provisions of articles 1171 and 2201, paragraph 2,
shall apply.
If the law or contract does not state the diligence
which is to be observed in the performance, that
which is expected of a good father of a family shall
be required. (1104a)
Fraud
- Intentional evasion of the normal
fulfillment of an obligation
- Doing something in bad faith or
with malice in the fulfillment of
the obligation
- The fraud is committed after the
valid execution of the contract
(incidental fraud)
- The remedy is a claim for
damages
Refers to incidental fraud. The court
has no power to mitigate or reduce the
damages to be awarded.
The court has a wide discretion in fixing
the measure of damages. Negligence is
not as serious as fraud because it is not
deliberate. When both parties are
negligent, the fault of one may cancel
or neutralize the negligence of the
other.
Meaning of Fault or Negligence
- Fault or negligence is defined by
the above provision. According
to the Supreme Court,
“negligence is the failure to
observe for the protection of the
interests of another person, that
degree of care, precaution and
vigilance which the
circumstances justly demand,
whereby such other person
suffers injury”
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Article 1174 Except in cases expressly specified by the law, or
when it is otherwise declared by stipulation, or when
the nature of the obligation requires the assumption
of risk, no person shall be responsible for those
events which could not be foreseen, or which, though
foreseen, were inevitable. (1105a)
This article is a continuation to ART.
1173. ART. 1174 explains a fortuitous
event that may have arisen during the
event of doing the obligation. It is an
event which cannot be foreseen such
as sudden coming of a storm which is
considered an Acts of God or known as
majeure or any other unexpected event
such as robbery, insurrection which is
considered Acts of man.
The Philippine Civil Code distinguishes
between two kinds of fortuitous events
namely:
1. Ordinary fortuitous events or those
which are common and which the
contracting parties could reasonably
foresee e.g. rain.
2. Extra-ordinary fortuitous events
which are uncommon and which the
contracting parties could not have
reasonably foreseen e.g. earthquake,
fire, unusual flood.
In case of a fortuitous event there are
still rules to be observed: When
expressly specified by law. : a) the
debtor is guilty of fraud, negligence, or
delay, or contravention of the tenor of
the obligation. (Arts. 1170. 1165, par.3)
Example : S is obliged to deliver a
specific horse to B on August 10. S did
not deliver the horse on said date. If, on
August 11, the horse died because it
was hit by lightning, S is not liable if no
demand was made by B. His obligation
was extinguished. If the horse died
after a demand was made by B, S is
liable for damages because he is guilty
of (legal) delay. In this case the
obligation of S to deliver the horse is
also extinguished but it is converted
into monetary obligation to pay
damages. (Art.1165).b) the debtor has
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promised to deliver the same

(specific)thing to two or more persons
who do not have the same interest.
Example: If S sold and promised to
deliver.

Article 1175 Usurious transactions shall be governed by special Interest. Interest is the charge for the
laws. (n) privilege of borrowing money or the
income from lending the money to the
borrower. It can either be MORATORY,
one which is a result from the delay of
payment or performance of an
obligation or COMPENSATORY, a)
penalty or indemnity for damages
imposed by law or by the courts and b)
giving money or its equivalent in return
for something.

Usury Defined. Usury is the practice of

making unethical/illegal monetary loans
that unfairly enrich the lender.

Special Law on Usury. The Usury Law,

also known as Act. 2655, took effect on
the 1st day of May 1916. This law
provided a legal rate of interest of 6%
annually and a contractual rate of not
more than 12% annually if the loan is
secured and 14% if not so secured. The
Usury Law was legally ineffective
during the Martial Law under the Res.
No. 224 on December 3, 1982 and
justified through the Central Bank
Circular. No. 905 dated January 1, 1983.

Article 1176 The receipt of the principal by the creditor without A receipt issued by the lessor dated
reservation with respect to the interest, shall give rise June 1, 1904 to the lessee converting
to the presumption that said interest has been paid. the rent for the month, shows that the
rent for the prior month (May) had
The receipt of a later installment of a debt without already been paid. The presumption is
reservation as to prior installments, shall likewise rebuttable and not conclusive.
raise the presumption that such installments have
been paid. (1110a)
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Article 1177 The creditors, after having pursued the property in
possession of the debtor to satisfy their claims, may
exercise all the rights and bring all the actions of the
latter for the same purpose, save those which are
inherent in his person; they may also impugn the acts
which the debtor may have done to defraud them.
(1111)
Rights of the Creditors
1. to levy attachment and
execution upon all the property
of the debtor, with exceptions.
(see Footnotes P 137.)
2. to exercise all the rights and
actions of the debtor, except
such are inherently personal to
him;
3. to ask for the rescission of the
contracts made by the debtor in
fraud of their rights
Liability of Debtor’s property
Article 2236. The debtor is liable with
all his property, present and future for
the fulfillment of his obligations, subject
to the exemptions provided by the law.
Exercise of Debtor’s Right with
exceptions
1. the creditor has an interest in
the right or action, because of
the insolvency of the debtor,
2. malicious or negligent inaction of
the debtor as to endanger the
claim of the creditor
3. the credit is demandable and
liquidated
4. the debtor’s right must be
patrimonial, or susceptible of
being transformed to patrimonial
value
Exceptions
1. right to existence
2. rights or relation of a public
character
3. rights of consisting powers
● power to administer
● power to carry out an agency or
deposit,
● power to accept an offer for a
contract
● non-patrimonial rights, (rights
arising from family relations)
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● patrimonial rights subject to

execution, such as pension or
government gratuity
● patrimonial rights inherent in the
person of the debtor, ( right to
revoke a donation by reason of
ingratitude)

ACCION Subrogatoria – In ACCION

SUBROGATORIA, once the creditor
has exhausted the property of debtor,
he can step into the shoes of the
debtor and sue the debtor’s debtor.The
requirement is that, there must be a
prior exhaustion of property.

1. The debtor’s assets must be

insufficient to satisfy claims
against him
2. The creditor must have pursued
all properties of the debtor
subject to execution
3. The right of action must not be
purely personal
4. The debtor whose right of action
is exercised must be indebted
to the creditor.

Accion Pauliana:-impugn the acts

which the debtor may have done to
defraud them (1177) – This has the
same concept as Art1381
P3(Rescissible Contracts): “Those
undertaken in fraud of creditors when
the latter cannot in any other manner
collect the claims due them.”This
allows the creditor to attack contracts
contracted by a debtor towards
another:Significance:(1) If the debtor
has no property(2) but, saw
transactions by the debtor as regards
the sale of his property.
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Article 1178 Subject to the laws, all rights acquired in virtue of an Classification of obligations are as
obligation are transmissible, if there has been no follows, to with;
stipulation to the contrary. (1112) 1. Pure
2. Conditional
Unless expressly provided , all rights acquired from 3. With a term
an obligation are transmissible in accordance with 4. Alternative
the law. 5. Joint
6. Solidary
7. Divisible
8. Indivisible
9. With penal clause

Other provisions of the Civil Code,

however Impliedly admit other classes
of obligations,to wit;
1. Unilateral and bilateral
2. determinate and generic
3. legal,conventional and penal

Article 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.
Every obligation which contains a resolutory
condition shall also be demandable, without
prejudice to the effects of the happening of the
event. (1113)
Pure Obligation- one whose effectivity
or extinguishment does not depend
upon the fulfillment or non-fulfillment of
a condition or upon the expiration of a
term or period.
Elements:
a) Not subject to a condition
b) Not subject to a term

● Characterized by the quality of

immediate demandability,but
there must be a reasonable
period of grace.
● *Immediate demandability: It
does not mean outright but
speaks of a reasonable time;
depends on the nature and
complexity of the obligation.
● Simple Obligation does not
equal pure Obligation. Former
speaks of an obligation with only
one prestation,while the latter
speaks of an obligation that
does not depend on a condition
or period.

Obligations that are immediately

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demandable:
1. Pure obligations (Art 1179)
2. Obligations with resolutory
condition (Art. 1179, par.2)
3. Obligations with resolutory
period (Art. 1193, par.2)
4. Obligations with a condition not
to do an impossible thing(Art.
1183, par.2)

Article 1180 When the debtor binds himself to pay when his ● Should the debtor bind himself
means permit him to do so, the obligation shall be to pay when his meanspermit
deemed to be one with a period, subject to the him to do so, the obligation is
provisions of article 1197. (n) one with a period and not
subject to a condition
● Since the duration of the period
is left to the discretion of the
debtor, it is subject to 1197 or
where the courts shall fix the
duration of the period by
which he shall pay the
obligation. Thus in cases falling
under this article, the creditor
should file an action to fix a
period for the payment of the
obligation.

Indications of a term or period:

When the debtor binds himself to pay –
● when his means permit him to
do so
● little by little
● as soon as possible
● from time to time
● as soon as I have the money
● in partial payment
● when in the position to pay

Article 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 condition. (1114)

Article 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 a third person, the obligation shall take effect
in conformity with the provisions of this Code. (1115)
2 kinds of Potestative:
● simple potestative condition
– presupposes not only a
manifestation of will but also the
realization of an external act
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e.g. “if you sell your house”; “If I go to

Madrid, I promise to sell you my house”.

● purely potestative condition1

– depends solely and
exclusively upon the will
e.g. “if I like it” or “if I deem it proper”; “I
promise to sell you my house on such a
date if I deem it convenient.”

Note:
Simple potestative conditions approach
the nature of a mixed condition.
(Caguioa) Hence, it is valid.
Purely or strict potestative conditions
on the other hand destroys the efficacy
of the legal tie. Note that it is only
when the potestative condition
depends exclusively upon the will of the
debtor that the conditional obligation is
void. (Tolentino)
● Simple potestative – valid;
● purely potestative (creditor)–
valid; purely potestative
(debtor) - void

a) Potestative on the part of the

Creditor
- if the fulfillment of the condition
is dependent upon the sole will
of the creditor the obligation is
VALID

Example: I will give you a car on the

condition that you go to Baguio on or
before Dec 10, 1965.

b) Potestative on the part of the

Debtor
i) Suspensive condition: -
If a suspensive condition
is solely dependent upon
the will of the debtor, the
obligation is VOID.
Example: I’ll give you a
diamond ring if I go to
Tokyo this year.
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ii) Resolutory condition: - A

condition which is both
potestative and
resolutory is VALID, even
though the fulfillment of
the condition is
dependent upon the will
of the debtor

Example: I’ll give you a car until I return

from Baguio.

Article 1183 Impossible conditions, those contrary to good Possible conditions – those which are
customs or public policy and those prohibited by law valid and allowed by law; proper
shall annul the obligation which depends upon them. conditions.
If the obligation is divisible, that part thereof which is
not affected by the impossible or unlawful condition Impossible conditions – contrary to
shall be valid. good customs or public policy or
prohibited by law
The condition not to do an impossible thing shall be
considered as not having been agreed upon. (1116a) 2 Kinds:
1. Physically impossible – when the
realization of the event
constituting the condition is
incompatible with or contrary to
nature.
2. Juridically impossible – when
contrary to law, morals, good
customs, and public policy.

* Illicit conditions – those which tend to

restrain or fetter the exercise of those
rights or powers arising from the
natural or civil liberties of man
* Immoral conditions – those which
tend to compel a person to execute
an act contrary to good customs.

Note: In the case of illicit and

immoral conditions, the illicit act
provided for in the contract must refer
to that of one of the parties but not
where the illicit act is the act of a third
person. The illicit character of the act is
not determined by the act or fact in
itself, but by its effects upon one of the
parties
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Article 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. (1117)
Article 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. (1118)
Positive conditions – those that
depend on the fulfillment of an event.
Negative conditions – those which
depend on the unhappening of an
event.
● If the condition is positive
(that an event should occur
within a determinate period, the
obligation is extinguished from
the moment the period
lapses or it has become
indubitable that the event will
not take place.
Example: I’ll give you a car if you marry
X on or before Dec10, 1992. My
obligation to give the car is
extinguished if onDec 11, 1992 X is still
single or if before Dec 10, 1992 Xdies,
because by then it is evident that you
can no longer marry X.
● If the condition is negative
(that some event would not
happen within a determinate
time), the obligation becomes
effective from the moment the
period lapses, or if it has
become evident that the event
cannot occur.
Example: I’ll give you my car if you do
not marry X on or before Dec 10, 1992.
If on Dec 11, 1992 you have not married
X, you can demand delivery of the car.
If X dies before Dec 11, 1992 you can,
on the death of X, demand delivery of
the car without waiting for Dec
11, 1992,because it is evident that you
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Article 1186 The condition shall be deemed fulfilled when the
obligor voluntarily prevents its fulfillment. (1119)
Article 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.
Nevertheless, when the obligation imposed
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, 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.
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. (1120)
can no longer marry X.
Constructive Fulfillment of Conditions
If the debtor prevents the creditor from
fulfilling the condition of the obligation,
the condition is deemed fulfilled
and the obligation demandable.
It is essential that the obligor
must have actually prevented the
obligee from complying and that it must
have been voluntary and willful.
Requisites:
1. Condition is suspensive
2. Debtor actually prevents the
fulfillment of the condition
3. He acts voluntary/intention
Example: Dean Ulan will give Anjo
P50,000 if Dean Ulan and DeanJara will
run around the campus. If only Dean
Jara only ran, Art 1186 will apply
UNLESS if it was not Dean Ulan’s
intention and fault not to run.
Retroactive effects of fulfillment of
suspensive condition
(1) In obligations to give- An
obligation to give subject to a
suspensive condition becomes
demandable only upon the
fulfillment of the condition.
However, once the condition is
fulfilled, its effects shall retroact
to the day when the obligation
was constituted.
The reason is because the
condition is only an accidental
element of a contract. An
obligation can exist without
being subject to a condition.
Consequently, once the
event which constitutes the
condition is fulfilled thus
resulting in the effectiveness of
the obligation, its effects must
 COBLAW 1 | Articles 1156-1192 | Mr. Heffron
Article 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 time
he has paid by mistake in case of a suspensive
condition. (1121a)
logically retroact to the moment
when the essential elements
which gave birth to the
obligation have taken place and
not to the moment when the
accidental element was fulfilled.
*Note:applicable only to
consensual contracts
(perfected upon meeting of the
minds) and not to real
contracts(perfected by delivery)
(2) In obligations to do or not to do-
No definite rule. The courts are
empowered by the use of sound
discretion and bearing in mind
the intent of the parties, to
determine in each case, the
retroactive effect of the
suspensive condition that has
been complied with. It includes
the power to decide that the
fulfillment of the condition shall
have no retroactive effect or
from what date such retroactive
effect shall take effect.
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.
● Action for prohibition restraining
the alienation of the thing
pending the happening of
the suspensive condition;
● Action to demand security if
the debtor has become
insolvent;
● Action to set aside
alienations made by the
debtor in fraud of creditors;
● Actions against adverse
 COBLAW 1 | Articles 1156-1192 | Mr. Heffron
Article 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. (1122)
Article 1190 When the conditions have for their purpose the
possessors to interrupt the
running prescriptive period;
● To have the rights annotated in
the registry.
●
(2) Rights of the debtor- He is
entitled to recover what he has
paid by “mistake” prior to the
happening of the suspensive
condition
Requisites:
(1) The obligation is a real obligation
(to give);
(2) The object is a specific or
determinate thing;
(3) The obligation is subject to
a suspensive
condition(resolutory is also
applicable accdg to ULAN)
(4) The condition is fulfilled; and
(5) There is loss, deterioration, or
improvement of the thing during
the pendency of the condition
Application: The loss, deterioration
or improvement should take place
after the obligation is perfected and
before the condition is fulfilled.
● Obligor/debtor has hope or
 COBLAW 1 | Articles 1156-1192 | Mr. Heffron

extinguishment of an obligation to give, the parties, expectancy during the

upon the fulfillment of said conditions, shall return to pendency of the condition
each other what they have received. ● If resolutory condition
happens, debtor will
In case of the loss, deterioration or improvement of reacquired whatever he may
the thing, the provisions which, with respect to the have paid or delivered to
debtor, are laid down in the preceding article shall be the obligee/creditor
applied to the party who is bound to return.

As for the 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. (1123)

Article 1191 The power to rescind obligations is implied in The general provision on rescission of
reciprocal ones, in case one of the obligors should reciprocal obligations. Speaks of the
not comply with what is incumbent upon him. right of the aggrieved party to choose
between two remedies
The injured party may choose between the fulfillment - An action for specific
and the rescission of the obligation, with the performance
payment of damages in either case. He may also - An action for rescission
seek rescission, even after he has chosen fulfillment,
if the latter should become impossible. Kinds of Obligation according to the
person obliged
The court shall decree the rescission claimed, unless 1. Unilateral
there be just cause authorizing the fixing of a period. a. When only one party is
obliged to comply with a
This is understood to be without prejudice to the prestation
rights of third persons who have acquired the thing, 2. Bilateral
in accordance with articles 1385 and 1388 and the a. When both parties are
Mortgage Law. (1124) mutually bound to each
other
b. Both are debtors and
creditors to each other

Article 1192 In case both parties have committed a breach of the Rules:
COBLAW 1 | Articles 1156-1192 | Mr. Heffron

obligation, the liability of the first infractor shall be 1. the liability of the first infractor
equitably tempered by the courts. If it cannot be shall be equitably tempered by
determined which of the parties first violated the the courts.
contract, the same shall be deemed extinguished, a. fair to both parties
and each shall bear his own damages. (n) because the second
infraction also derived,
or thought he would
derive, some advantage
for his own act or neglect
2. 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 damage
a. it is presumed that both
at about the same time
tried to reap some benefit