PURE AND

CONDITIONAL
OBLIGATIONS
 Article 1179

Pure obligation, Conditional Obligation,

Meaning of Condition under the law.
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 contain a resolutory condition shall also be demandable, without prejudice to
the effects of the happening of the event. (1113)

Pure Obligation
• not subject to any condition
• no specific date mentioned
• immediately demand
Conditional Obligation
• is one whose consequences are subject in one way or another to the fulfillment of a
condition.

What is condition under the law?

- future and uncertain event,
- upon the happening of which,
- the acquisition or extinguishment of an obligation (or right) subject to it depends.
 Characteristics of a

condition.
• Future and uncertain - For an event to be distinguished as this

characteristic of a condition, it is not enough that it be future; it must

also be uncertain.

• Past but unknown - this characteristic of a condition may pertain to

a past event unknown to the parties

A condition must not be impossible. (according to Article 1183 of the Civil

Code)
ART. 1179

Two principal kinds of condition

1. Suspensive condition - fulfillment of the condition will give rise to the obligation.
• The demandability of the obligation is suspended until the condition is fulfilled.

2. Resolutory condition - fulfillment of the obligation will extinguish an obligation.

• The obligation is demandable now but it shall be terminated upon fulfillment of the
condition.

When obligation is demandable at once.

• when it is pure obligation
• when subject to a resolutory condition
• when subject to a resolutory period (Article 1193)
 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.

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

extinguished.

Example:
The debtor promises to pay when his means permit him to do so.
As when the debtor binds himself to pay 'little by little'.
Other phrases from the debtor that indicates a period:
'..as soon as possible'
'..as soon as i have money'
'..from time to time'
'..in partial payments'
'.. when I am in the position to pay'
ART. 1181

In conditional obligations, the acquisition of rights , as well as the

extinguishment or loss of those already acquired, shall depends
upon the happening of the event which Constitutes the condition.

SUSPENSIVE RESOLUTORY

The fulfillment of the event The fulfillment of the event

will give rise will extinguish

To an obligation To an obligation already

existing
 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)

CLASSIFICATION OF CONDITION

I. As to effect: III. As to possibility

A. Suspensive— The happening of which gives A. Possible— The condition is capable of
rise to the obligation. fulfillment, legally, and physically.
B. Resolutory— extinguishes the obligation. B. Impossible—not capable of fulfillment, legally,
and physically.
II. As to form:
A. Express— The condition is clearly stated. IV. As to cause or origin
B. Implied— The condition is merely inferred. A. Potestative
B. Causal
C. Mixed
 ARTICLE 1182.

A.POSITIVE

V. As to mode:
B.NEGATIVE

VI. AS TO NUMBERS: VII.As to divisibility:

A.CONJUNCTIVE A.Divisible

B. Disjunctive B. Indivisible
 POTESTATIVE
CONDITION
A condition suspensive in nature and which depends upon the sole will of one of the contracting parties
is known as a potestative condition.

Where suspensive condition depends upon will of the debtor.

Conditional obligation void. - Where the potestative condition depends solely upon the debtor's will, the
conditional obligation shall be void because its validity and compliance is left to the debtor's will. (Art.
1308.) and it cannot, therefore, be easily demanded. In order not to be liable, the debtor will not fulfill the
condition. There is no burden on the debtor and consequently, no juridical tie is created. (Art. 1156.)

EXAMPLE:
Dean is to give Chris P5000 if Dean goes to the mall.

Only the condition void. - If the obligation is a pre-existing one and, therefore, does not depend for its
existence upon the fulfillment by the debtor of the potestative condition, only the condition is void leaving
unaffected the obligation itself. Here, the condition is imposed not on the birth of the obligation but on its
fulfillment.
EXAMPLE:
Henry borrowed P10M from Mr. William payable within 30 days. Subsequently, Henry
promised to pay Mr. William after he sells his Hensworth Park Mansion to which Mr. William agreed.

Where suspensive condition depends upon will of creditor.

If the condition depends exclusively upon the will of the creditor, the obligation is valid.

EXAMPLE:
Jade is to give Alex P10,000 if Alex goes to Manila.

Where resolutory condition depends upon will of Debtor.

The fulfillment of the condition merely causes the extinguishment or loss of rights already acquired. (Art.
1181.) The debtor is naturally interested in its fulfillment. The position of the debtor when the condition
is resolutory is exactly the same as that of the creditor when the condition is suspension.

EXAMPLE:
Luke sells his house to Mika with the right of repurchase.
 CASUAL AND MIXED
CONDITION
Casual Condition
If the suspensive condition depends upon chance or upon the will of a third person, the obligation subject
to is valid.

Mixed condition
Tye obligation is valid if suspensive condition depends partly upon chance and partly upon the will of a
third person.
Where suspensive condition depends partly upon will of debtor
According to marrsa, the use of the word "exclusive" (now"sole") maked it clea that conditional obligations
whose fulfillment depends partly upon the will of the debtor and partly upon the will of a third person, or
upon chance are perfectly valid.
 ART. 1183
Conditions that are impossible or bad. The obligation that rests on conventions, public policy, or legal
prohibitions shall be void. If the responsibility is subdivided, the portion that is unaffected by the
impossibility or illegal condition will be considered legitimate. The requirement to refrain from doing
something that is impossible will be seen as not having been agreed upon.

Two Kinds of Impossible Conditions

1. Physically Impossible Conditions
Ex. A will pay B ₱100,000 if B will swim across the Pacific Ocean.

2. Legally Impossible Conditions

Ex. H will give S ₱50,000 if -
- S will kill F (against the law); or
- will be the mistress of G (against morals); or
- will slap his father (against good customs); or
- will publicly advocate the overthrow of the government (against public order); or
- will not appear as a witness against W in a criminal case (against public policy)
 ART. 1183
Effect of the impossible conditions
(1) Conditional agreements are void. - Unrealistic circumstances nullify the
which is their responsibility. The duty as well as the condition is false. The obligor is aware of the law, which is why it

exists. He is unable to fulfill his commitment. He has no intention of adhering to his responsibility

Effect of Impossible Conditions

1. Conditional obligation void
Ex. Q will give O ₱30,000 if O jumps over the moon.

2. Conditional obligation valid

Ex. P will give K ₱45,000 if K will not kill A.

3. Only the affected obligation void

Ex. D will give T ₱10,000 if T sells D's land, and a car, if T kills L.

4. Only the condition void

Ex. R borrowed ₱20,000 from E. If E later agreed to kill N before R pays him, the condition "to kill N" is void but not the

pre-existing obligation of R "to pay R".

 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.

Example:
Jasan obliges himself to give Celine Php 20,000 if Celine will marry Mark before Celine reaches the age 25.

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.

Example:
Jasan binds himself to give Celine Php 20,000 if Celine is not yet married to Mark on December 30.
 ART. 1186

Article 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents

its fulfillment. (1119)

Constructive fulfillment of suspensive conditions.

There are three requisites for the application of this article:

1. The condition is suspensive;
2. The obligor actually prevents the fulfillment of the condition; and
3. He acts voluntarily
 CONSTRUCTIVE FULFILLMENT

OF RESOLUTORY CONDITIONS.

Article 1186 applies also to an obligation subject to a resolutory condition

with respect to the debtor who is bound to return what he has received upon
the fulfillment of the condition.
 Art. 1187

The effects of a conditional obligation to give, once the condition bas been fulfilled, shall retroact to the day of the
constitution of the obligation. Nevertheless, when the obligation imposes reciprocal prestations upon the parties, the
fruits and interest during the pendency of the condition shall be deemed to have been mutually compensated. If the
condition 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)

Retroactive effects of fulfillment of suspensive condition

In obligations to give - An obligation to give subject to a suspensive condition becomes only demandable only upon the
fulfillment of the condition. The reason is because the condition is only an accidental element of an contract. An
obligation can exist without being subject to a condition.

In obligations to do or not to do - With respect to the retroactive effects of the fulfillment of a suspensive condition in
obligations to do or not to do, no fixed rule has been provided.
 ART. 1187
Retroactive fruits and interests in obligations to give.

Reciprocal obligations or Reciprocal Agreement is a duty owned by one individual to another and vice versa. It is a
type of agreement that bears upon or binds two parties in an equal manner. There is no retroactivity because the
fruits and interests received during the pendency of the condition are deemed to have been mutually
compensated. This rule is necessary for purposes of convenience since the parties would not have to render
mutual accounting of what they have received. Fruits here may be natural, industrial, or civil fruits.

In unilateral obligations There is usually no retroactive effect because they are gratuitous. The debtor receives
nothing from the creditor. Thus, fruits and interests belong to the debtor unless from the nature and other
circumstances it should be inferred that the intention of the person constituting the same was different.
 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 time he has paid by mistake in case of a suspensive condition. ( 1121a)

Rights pending fulfillment of suspensive condition:

(1) Rights of Creditor - He may take or bring appropriate actions for the preservation of his right, as a debtor may render nugatory the
obligation upon the happening of the condition.

He may go to court to prevent the alienation or concealment of the property the debtor has bound himself to deliver, or to have his right
annotated on the title to the property in the registry of deeds.

(2) Rights of Debtor - He is entitled to recover what he has paid by mistake prior to the happening of the suspensive condition. The
creditor may or may not be able to fulfill the condition imposed and hence, it is not certain that the obligation will arise. This is a case of
Solutio Indebiti.

The payment before the fulfillment of the condition must be 'by mistake' ; otherwise, the debtor is deemed to have impliedly waived the
condition.
Retroactive effects as to fruits and interests in obligations to give.
 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:
ART. 1189

Rules in case of loss, of thing during pendency of suspensive condition

Kinds of Loss
Loss in civil law may be: 1. Loss of thing without debtor’s fault - obligation shall be extinguised
1. Physical Loss 2. Loss of thing through debtor’s fault - he shall obliged to pay damages
2. Legal Loss 3. Deterioration of thing without debtor’s fault - impairment is to be borne by the
3. Civil Loss creditor
4. Deterioration of thing through debtor’s fault
a. Rescission
b. Fulfillment of the obligation also with damages
5. Improvement of thing by nature or by time - improvement shall inure to the
benefit of the creditor
6. Improvement of thing at expense of debtor - shall have no other right thant
that granted to the usufructuary
 ART. 1190
Pure and Conditional Obligation
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.
In case of 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 no 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)

Example:
X obliges himself allows Y to use the further car until X returns from the province, Upon the return X from the
province Y must give back the car.
The effect of the happening of the condition is to annul the obligation as if it had never been constituted at all. In this
case, the parties intend the return of the car.
 ARTICLE 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 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.
The court shall decree the rescission claimed, unless there be just cause
authorizing the fixing of a period.
This is understood to be without prejudice to the rights of third persons who
have acquired the thing, in accordance with articles 1385 and 1388 and the
Mortgage Law. (1124)
 ART. 1191
Kinds of obligation according to the person obliged:
1. Unilateral
-When only one party is obliged to comply with a prestation
2. Bilateral
-When both parties are mutually bound to each other
-Both parties are debtors and creditors of each other
a. 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.
b. Non-reciprocal obligations
-Are those conditions which do not impose simultaneous and correlative performance on
both parties.
-The performance of one party is not dependent upon the simultaneous performance by
the other.
 REMEDIES OF RECIPROCAL OBLIGATIONS
(1) Choice of remedies - In case one of the obligors does not comply with what is incumbent upon him, the

aggrieved party may choose between two (2);

(a) Action for specific performance (fulfillment) of the obligation with damages; or
(b) Action for recission of the obligation also with damages.
Recission is the remedy available to an oblige when the obligor fails to comply with his obligation, to abrogate

their contract as if it was never entered into, with the right to recover.

(2) Remedy of rescission for non-compliance - The principal action for rescission for non- performance under

article 1191 must be distinguished from subsidiary action for rescission by reason of lesion or damage under

article 1381. And cancellation of a contract based, for example, on defect in the consent (see Arts. 1318, 1330.)

and not on violation by a party of his obligation.

EXAMPLE:
In contract of sale of a car between S and B, it was agreed that S, the owner, would deliver the car and the

necessary document duly signed by him to B at the house of C on December 1, and B would deliver the payment

at the same place and on the same date.

 Court may grant guilty

party term for

performance
So, the court shall order recission or a claim where in there is
a cancellation or repeal of law, order, or agreement except
there is a justifiable reason to give the parties for not
fulfilling what they have to do.
 4. Substantial violation - Rescission will typically not be
granted for minor contract violations; instead, the violation
LIMITATIONS ON RIGHT TO
must be serious enough to negate the purpose for which the
parties entered into the agreement. As a result, it was
DEMAND RESCISSION. determined in a case that the law is not concerned with
trifles and that four instances of late rent payments for a
few days did not constitute major violations of a lease
agreement to warrant revocation
1. Resort to the courts. – The rescission

contemplated by Article 1191 is a judicial

rescission or one granted by a court. 3. Right of third person - If the obligation's subject matter is
in the hands of a third person who acted in good faith,
rescission is not an available remedy according to article
2. Power of court to fix period. – The court has
1385 & 1388
discretionary power to allow a period within which

a person in default may be permitted to perform

5. Waiver of right - the right to rescind may be waived,
either explicitly or implicitly. As a result, the seller's
his obligation. acceptance of the sold land as security for the balance of
the price is an implied waiver of the right to rescind in the
event of nonpayment by the buyer. His remedy is to restore
the balance.
 RECESSION WITHOUT PREVIOUS

JUDICIAL DECREE (ARTICLE 1191)

1. Where automatic recession expressly stipulated -
when both parties has agreement to cancel the contract
if there is a violation without judicial intervention.
Example:
When X has already downpayent to Y because X will
buy the house to Y but after further inspection X
discover that Y intentionally hid the poor physical
condition of the home. X told it to Y about the condition
of the house and cancel the contract. Y accept on
cancelling the contract because Y violated the condition
on the contract on which the whole house must have a
good condition. Therefore, X got his money back from Y
because the contract is cancelled.
2. Where contract still executory -
Example:
Equipment lease. the lessor will provide the
equipment while the lessee will pay for using the
equipment. And if the lessor doesn't yet provide
the equipment and the lessee doesn't pay yet.
And the lessee wants to cancel the contract and
he notify the lessor that he wants to cancel the
contract and the lessor agrees then the contract
is cancelled.
 ART. 1192

In case both parties have committed a breach of the obligation, 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.

Where both parties guilty of breach.

The above article contemplates two situations.

(1) First infractor known. — The party has breached its obligations; As a result, the other person also violated his part of
the obligation. In this In this case, the liability of the first infractor should be appropriately mitigated.

(2) First infractor cannot be determined. - One party is his Obligation is followed by the other, but we cannot decide which
of them the first infractor was. In principle, a contract is concluded lapses, each inflicting its own damage. That means
Contracts are not enforced. In fact, the court does not provide Remedies for a Party Allegedly Affected worn by them.

“The above rules are deemed just. The first one is fair to both parties because the second infractor also derived, or
thought he would derive, some advantage by his own act or neglect. The second rule is likewise just because it is
presumed that both at about the same time tried to reap some benefit.” (Report of the Code Commission, p. 130.)
THANK YOU
 REFERENCES

Civil Code of the Philippines

De Leon, H., & De Leon, H., Jr. (2014). The law on obligations and contracts.
https://www.studocu.com/ph/document/batangas-state-university/management
accounting/law-201-law-on-obligations-and-contracts/34657558?origin=home-recent-2

De Leon, H., & De Leon, H., Jr. (2021). The law on obligations and contracts (12th ed.) [Book]. REX
Book Store.
 GROUP 1 REPORTERS
Leaders: COLMENAR, MANYLENE ABUTIN GALLARDO, JAMES DAVID
Dominguez, Clark Kiraly CONDOL, ROBERT LANS JOSE MARCIAL
De Vera, Daniel DAZO, GIANNA KYLENE PUGAY GAMAYO, MERRYLEEN JOY
DE GUIA, THEA FELICCI CAMPUSPOS
Caragay, Jean Ashley A.
DE GUZMAN, HAROLD CHRISTIAN
MAKINANO
Members: DE VERA, ALEJANDRANICOLE
ABAY, KATE IEZEL BALAO DELA CRUZ, SOPHIA NICOLETTE
ALARAS, VHEA CELESPARA PALUMPON
BAITA, ARGELA FAITH P. DELA PAZ, SHARMAINE
BORJA, KRISTINE JOY VILLARUBIA
ROGELIO DELOS SANTOS, LEBRON JAMES
APLACA
CARIN, MARIE EUGENE
DIME, NAOMI KAYE GARCIA
CASTAÑEDA, NICOLE
FERNANDO, MA. GIRLIE ADRIANO
CELESTIAL FLORES, PRUDENCE JERALD
CENDAÑA, MONICA FILOTEO FULLENTE, PRINCESS JANISE L.