Course Code: BAM 128

Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

Lesson Title: DIFFERENT KINDS OF OBLIGATIONS Part 1 Materials:

Pure and Conditional Obligation Student Activity Sheet

Lesson Objectives:

At the end of this module, I can: References:

1. Define pure and conditional obligation. Law on Obligations and Contract

by Win Lu Ballada
2. Discuss the rules on loss, deterioration and improvement

Productivity Tip:
It is a known fact that one of the hardest things to do is get things started. But just like
the tag line of one of the world’s famous shoe brand, “JUST DO IT” believe me, all
you really need to do to get things started is to simply just do it. Happy learning!

A. LESSON PREVIEW/REVIEW

1) Introduction (2 mins)

In the previous modules, you learned the meaning of obligation, its requisites and its
sources. By now, it is also expected that you understand the nature and effect of obligation.

Now, be ready to learn the different

kinds of obligation. We have at least
ten primary kinds of obligation and
these are the following:

1. Pure Obligation
2. Conditional Obligation
3. Obligation with a Term or Period
4. Alternative Obligation
5. Facultative Obligation
6. Joint Obligation
7. Solidary Obligation
1
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

8. Divisible Obligation
9. Indivisible Obligation
10. Obligation with a Penal Clause

In this module, I will discuss with you the pertinent provisions of pure obligation and conditional obligation.

B. MAIN LESSON

1) Activity 1: Pre-Printed Content Notes (13 mins)

PURE OBLIGATION:
It is an obligation which is not subject to terms or condition.

Example:
The debtor obliges himself to pay the creditor Php500.00.

The above example is an obligation that is not subject to terms or condition, therefore, it is demandable
immediately.
For you to understand conditional obligation better, you must first learn the meaning of condition and kinds of
condition.

Condition – is a future and uncertain event, the happening of which can give rise or extinguish an obligation.

Kinds of Condition:

(as to effect)
1. Suspensive Condition (Condition Precedent or Condition Antecedent) – a condition which fulfillment will
give rise to an obligation.

Example:
I will give you Php100,000.00 if you pass the CPA board exam.

2. Resolutory Condition (Condition Subsequent) – a condition which fulfillment will extinguish an obligation.

Example:
I will give you Php10,000.00 monthly until you graduate from college.
2
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

Now that you already understand the concept and kinds of condition, let us now move on to our discussion
about conditional obligation. So, what is the meaning of conditional obligation?

CONDITIONAL OBLIGATION:
It is an obligation which is subject to condition.

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.

Like what we have discussed a while back, I just want to stressed out the legal concept stated in Article 1181.
The acquisition of rights or loss of rights already acquired shall depend on the happening of the condition.

EFFECTS OF CONDITION:

Potestative Condition – a condition suspensive in nature and which depends upon the sole will of one of the
contracting parties.

1. Where Suspensive Condition Depends Upon the Will of the Debtor

Example:
I will give you Php100,000.00 if I want

Where suspensive condition depends upon the will of the debtor, the obligation is VOID.

2. Where Suspensive Condition Depends Upon the Will of Creditor

Example:
I will pay you my loan amounting to Php100,000.00 upon you demand.

In the above given example, the condition is suspensive in nature and it depends upon the will of the creditor.
Did you notice that the above statement comes from the debtor? In effect, his statement may be understood
as, he is willing to pay anytime the creditor demands the payment of the loan.

If the suspensive condition depends upon the will of the creditor, the obligation is VALID.

3. Where the Suspensive Condition Depends Upon a Chance

3
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

Example:
I will give you Php10,000 if a won the lottery within the next 5 years.

Where the suspensive condition depends upon chance, the obligation is VALID.

4. Where the Suspensive Condition Depends upon the Will of a Third Person

Example:
I will sell you my house and lot if I won a case which is pending in the Regional Trial Court.

Where the suspensive condition depends upon the will of a third person, the obligation is VALID.

5. Where the Resolutory Condition Depends Upon the Will of the Debtor

Resolutory condition is a condition which fulfillment extinguishes the obligation. Do you think the debtor is
interested in the fulfillment of a resolutory condition?

In the example above under the resolutory condition, “I will give you
Php10,000 monthly until you graduate from college”.

Who is the debtor?

You are right! I am the debtor! Because I am the one who is bound to
give you Php10,000 until you graduate from college.

So, do you think I will be happy when you finally graduated?

Of course! I will be happy, not only for the fact that you graduated but because my obligation to give you
Php10,000 monthly is finally over or extinguished!

Now, going back to the real topic, where the resolutory condition depends upon the will of the debtor, the
conditional obligation is VALID.

EFFECTS OF OTHER KINDS OF CONDITIONS:

Article 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, the part thereof which is
not affected by the impossible or unlawful condition shall be valid.

4
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

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

As the above-mentioned article implies, the obligation is VOID if the condition is an:
1. Impossible conditions
Example: I will give you Php10,000 if you fly to the moon.
2. Condition contrary to good customs
Example: I will give you Php10,000 if you slap your mother.
3. Conditions contrary to public policy
Example: I will give you Php10,000 if you will not appear as witness against A.
4. Conditions prohibited by law
Example: I will give you Php10,000 if you kill A.

RIGHTS PENDING FULFILLMENT OF SUSPENSIVE CONDITION:

Article 1188. The creditor may, before the fulfillment of the condition, bring he
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.

RULES ON LOSS, DETERIORATION or IMPROVEMENT OF THING DURING PENDENCY OF

SUSPENSIVE CONDITION

Loss:
a. Without the fault of the debtor – the obligation shall be extinguished
b. With the fault of the debtor – he shall be obliged to pay damages

So, when do we considered the thing loss?

The thing is considered 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.
Deterioration:
a. Without the fault of the debtor – the impairment is to be borne or shouldered by the creditor
b. With the fault of the debtor – the creditor may choose between rescission (cancellation or revocation) of the
obligation or fulfillment of the obligation, with indemnity in either case.

Improvement:
a. Improved by its nature or by time – improvement shall inure to the benefit of the creditor.

5
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

b. Improved at the expense of the debtor – he shall have no other right than that granted to the usufructuary
(right to use someone else’s property).

The following are the requisites so that these rules become applicable:
1. The obligation is a real obligation
2. The object is specific
3. The obligation is subject to a suspensive condition
4. The condition is fulfilled
5. There is loss, deterioration or improvement of the thing during the pendency of the suspensive condition

2) Activity 2: Skill-building Activities (with answer key) (18 mins + 2 mins checking)

Exercise I

1. Distinguish between pure and conditional obligation.

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________.

2. Distinguish between suspensive and resolutory condition.

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________.

3. Illustrate 3 examples of conditional obligation subject to suspensive and resolutory condition.

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
_______________________________________.

3) Activity 3: Check for Understanding (5 mins)

6
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

ORAL RECITATION. TRUE or FALSE. Call a student to answer the following questions. Explain the
answers.

__________1. Pure obligation is one which is not subject to terms or conditions.

__________2. Conditional obligation is one whose consequences are subject in one way or another to
the fulfillment of a condition.

__________3. Condition is a future and certain event.

__________4. Suspensive condition is one which fulfillment will extinguish an obligation.

__________5. When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void.

__________6. Potestative condition is where the condition is resolutory and depends upon the sole will
of one of the contracting parties.

__________7. When the thing deteriorates without the fault of the debtor, the debtor shall have no
other right than that granted to the usufructuary.

__________8. If the thing is lost without the fault of the debtor, the obligation is extinguished.

__________9. The debtor may recover what during the same time he has paid by mistake in case of a
suspensive condition.

__________10. If the condition is negative, that is, not to do an impossible thing, it is disregarded and
the obligation is rendered pure and valid.

A. LESSON WRAP-UP

Activity 4: Thinking about Learning

Congratulations for finishing this module! Shade the number of the module that you finished

Did you have challenges learning the concepts in this module? If none, which parts of the module helped you
learn the concepts?
7
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

________________________________________________________________________________________
________________________________________________________________________________________
______________________________.

Some question/s I want to ask my teacher about this module is/are:

________________________________________________________________________________________
________________________________________________________________________________________
______________________________.

Learning Scores Action Plan

Date
Target/Topic

What module# did

What contributed to the quality of your
you do? What were What were your
What’s the performance today? What will you do
the learning targets? scores in the
date today? next session to maintain your performance
What activities did activities?
or improve it?
you do?

FAQs

The two kinds of impossible conditions are 1) physically impossible conditions which are the things
which cannot exist or cannot be done and 2) legally impossible condition which are those contrary to
law, morals, good customs, public order and public policy.

8
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

Positive suspensive condition is the happening of an event at a determinate time. The obligation is
extinguished 1) as soon as the time expires or 2) as soon as it has become indubitable or obvious that
the event will not take place. (Article 1184)

Example: I will give you Php10,000 if you will marry X before you reach the age 35.

I will be liable to you if you marry X before you reach the age 35. But as soon as you reached your age
35 without the condition taking place or if X died making it impossible for you to get married, then the
obligation is extinguished.

Negative condition is a condition that some event will not happen at a determinate time. The obligation
shall become effective 1) from the moment the time indicated has elapsed or 2) from the moment it has
become evident that the event cannot occur (Article 1185)

Example: I will give you Php10,000 if you will NOT YET be married to X on January 1, 2025.

I will not be liable to you if you get married on or before January 1, 2025. But if you get married after the
said date or if X died before the said date, the obligation is rendered effective.

The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment provided that
the condition is suspensive, the obligor actually prevents the fulfillment of condition and he acts
voluntarily.
When the conditions have for their purpose the extinguishment of an obligation to give
(resolutory condition), the parties, upon the fulfillment of said conditions, shall return to each other
what they have received.
The effects of a conditional obligation to give (suspensive condition), once the condition has been
fulfilled, shall retroact to the day of the constitution of the obligation.

KEY TO CORRECTIONS

1) Activity 2: Skill-building Activities

1. Distinguish between pure and conditional obligation.

A pure obligation is one which is not subject to any term or condition, while a conditional
obligation is one which is subject to the fulfillment of a condition.
9
FLM 1.0
 Course Code: BAM 128
Student Activity Sheets: Module #4

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

2. Distinguish between suspensive and resolutory condition.

A suspensive condition is a condition where fulfillment of which will give rise to an
obligation, whereas resolutory condition is a condition where fulfillment of which will
extinguish an obligation already existing.

2) Activity 3: Check for Understanding (5 mins)

Exercise I. TRUE or FALSE

1. TRUE 2. TRUE 3. FALSE, UNCERTAIN 4. FALSE, GIVE RISE 5. TRUE Article 1182

6. TRUE 7. FALSE 8. TRUE 9. TRUE 10. TRUE

10
FLM 1.0