Union Christian College

City of San Fernando, La Union

SCHOOL OF BUSINESS SCIENCES

SEATWORK 1

Name: Sobremonte, Joyce Anne B. Rating: __________

Course/Yr./Time: BSBA 2 Score: __________

Instruction: Submit your OUTPUT on or before 1:00 PM on February 3, 2024.

1. Define Conditional Obligation

A conditional obligation is one the fulfillment of which is a subject to a

certain conditions which may be an event, which may or may not happen.
It could be suspensive or resolutory.

2. Meaning of Condition

Condition is a future and uncertain event, upon the

happening of which, the effectivity or extinguishment of an obligation (or
rights) subject to it depends.

3. Characteristics of Condition

(1) Future and uncertain. — In order to constitute an event as a

condition, it is not enough that it be the future; it must also be
uncertain.

(2) Past but unknown. — A condition may refer to a past event

unknown to the parties.

4. Two Principal Kinds of Condition

a. Define Suspensive Condition – Give Example

A Suspensive Condition is a future or uncertain event, the happening of which

gives birth to the obligation.

Example: I promise to give Bryan Php 5,000.00 if he passes the school entrance
exam; the obligation cannot be demandable at once but becomes demandable
only upon Bryan’s passing the school entrance exam.

b. Define Resolutory Condition – Give Example

Resolutory Condition is an event the happening of which extinguishes the
obligation.

Example: I promise to support Bryan Php 3,000.00 per month until such time
that he has already got a job, the obligation to give a monthly pension starts
immediately but the moment Bryan got a job the obligation stops.

5. Give three (3) distinctions between suspensive and resolutory conditions.

(1) If the suspensive condition is fulfilled, the obligation arises, while if it is

the resolutory condition that is fulfilled, the obligation is extinguished;

(2) If the first does not take place, the tie of law (juridical or legal tie) does
not appear, while if it is the other, the tie of law is consolidated; and

(3) Until the first takes place, the existence of the obligation is a mere
hope, while in the second, its effects flow, but over it, hovers the
possibility of
termination.
.
6. Meaning of Period – When?

A period is a certain time within which the obligation must be fulfilled or an

event must occur.
The word "when" is used when we want to know more about the specific time or
timing during that period.

7. What are the Effects of happening of condition

(1) Acquisition of rights - When there are obligations that are dependent on a
condition that needs to be fulfilled, the creditor can only acquire their rights
once the event that fulfills the condition takes place.

(2) Loss of rights already acquired - When there are obligations that are
dependent on a condition that needs to be fulfilled, the creditor can only
acquire their rights once the event that fulfills the condition takes place.

8. What are the Classifications of Conditions

(1) As to effect.

(a) Suspensive — the happening of which gives rise to the obligation; and
(b) Resolutory — the happening of which extinguishes the obligation.

(2) As to form.

(a) Express. — the condition is clearly stated; and

(b) Implied. — the condition is merely inferred.

(3) As to possibility.

(a) Possible. — the condition is capable of fulfillment, legally and

physically; and
(b) Impossible. — the condition is not capable of fulfillment, legally or
physically.

(4) As to cause or origin.

(a) Potestative. — the condition depends upon the will of one of the
contracting parties;
(b) Casual. — the condition depends upon chance or upon the will of a third
person; and
(c) Mixed. — the condition depends partly upon chance and partly upon the
will of a third person.

(5) As to mode.

(a) Positive. — the condition consists in the performance of an act; and

(b) Negative. — the condition consists in the omission of an act.

(6) As to numbers.

(a) Conjunctive. — there are several conditions and all must be fulfilled;
and
(b) Disjunctive. — there are several conditions and only one or some of
them must be fulfilled.

(7) As to divisibility.

(a) Divisible. — the condition is susceptible of partial performance; and

(b) Indivisible. — the condition is not susceptible to partial performance.

9. What are the RULES IN CASE OF LOSS, DETERIORATION, OR

IMPROVEMENT OF THE THING TO BE DELIVERED DURING THE
PENDENCY OF A SUSPENSIVE CONDITION

(1) Loss of thing without debtor’s fault.

(2) Loss of thing through debtor’s fault.

(3) Deterioration of thing without debtor’s fault. — A thing deteriorates when

its value is reduced or impaired with or without the fault of the debtor.

(4) Deterioration of thing through debtor’s fault.

(5) Improvement of thing by nature or by time. — A thing is improved when
its value is increased or enhanced by nature or by time or at the expense of
the debtor or creditor.
(6) Improvement of thing at expense of debtor.

10. WHEN will the DEBTOR LOSES HIS RIGHT TO MAKE USE OF THE
PERIOD?

(1) When debtor becomes insolvent.

(2) When debtor does not furnish guaranties or securities promised.

(3) When guaranties or securities given have been impaired or have disappeared.

(4) When debtor violates an undertaking.

(5) When the debtor attempts to abscond.

11. Define JOINT OBLIGATION. Give one Example.

A Joint Obligation is when all the people responsible for the obligation have to
pay or fulfill it in a fair and equal way. This means that each debtor has to
contribute their share, and each creditor can demand their fair portion.

Example: A and B are joint debtors of C to the amount of P1,000,000. C can

demand only P500,000 from A, and only P500,000 from B.

12. Define SOLIDARY OBLIGATION

A Solidary Obligation is when all the debtors are obligated to fulfill their part,
and all the creditors have the right to expect complete fulfillment of the
obligation.

13. When would an obligation become SOLIDARY. Give the rules.

(1) the obligation expressly so states; or

(2) the law requires solidarity; or

(3) the nature of the obligation requires solidarity.

14. Define DIVISIBLE AND INDIVISIBLE OBLIGATIONS. Give examples.

(1) A Divisible Obligation is when you have to do something, but you can do it
partially.
Example: D has agreed to pay C a total of P2,000.00, which will be divided into
four equal monthly installments. This means that D can fulfill their obligation by
making partial payments over time. However, if the agreement states that D must
pay the full amount of P2,000.00 on a specific date, the obligation becomes
indivisible. Even though money can be physically divided, the intention of the
parties is for the obligation to be fulfilled in one go, not partially. It's important to
note that the divisibility of an obligation should not be confused with the
divisibility of the object being exchanged.

(2) An Indivisible Obligation is when you have to do something, but you cannot
do it partially.

Example: S obliged himself to deliver to B a specific car on November 15. This

obligation is indivisible because it is not capable of partial performance. The car
must be delivered at one time and as a whole.

15. What are the RULES IN CASE OBLIGATION HAS A PENAL CLAUSE.

(1) Penalty substitutes for damages and interests.

a. When creditor may recover damages.
b. When penalty may be enforced.

(2) Penalty not substitute for performance.

(3) Penal clause presumed subsidiary.

a. When penal clause joint.

(4) Penalty demandable without proof of actual damages.

(5) Damages recoverable in addition to penalty must be proved.

a. When penalty may be reduced by the courts.

Prepared by;

Atty. McDobet P. Quinagon, CPA - Instructor