ARTICLE 1179-1192 - Highlighted. Reviewer PDF

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

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

Pure obligation - not subject to any condition and no specific date. Conditional obligation - future and uncertain, past but unknown and must not be impossible. Art. 1181 the acquisition of rights (suspensive), as well as the extinguishment or loss of those already acquired (resolutory), shall depend upon the happening of the event which constitutes the obligation. 1. Suspensive - give rise to an obligation 2. Resolutory - extinguish an obligation

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. (Will be discussed thoroughly in the next module). Classifications of conditions As to EFFECT ❖ SUSPENSIVE – the happening of which gives rise to an obligation. ❖ RESOLUTORY – the happening of which extinguishes the obligation. As to FORM ❖ EXPRESS – condition is clearly stated. ❖ IMPLIED – condition is merely implied. As to POSSIBILITY ❖ POSSIBLE – condition is capable of fulfilment, legally and physically ❖ IMPOSSIBLE – condition is not capable of fulfilment, legally and physically. As to CAUSE OR ORIGIN ❖ POTESTATIVE – condition depends upon the will of one of the contracting parties (debtor or creditor) ❖ CASUAL – condition depends upon chance or the will of a third person

❖ MIXED – condition depends partly upon chance and partly upon the will of a third person. As to MODE ❖ POSITIVE – condition consists in the performance of an act. ❖ NEGATIVE – condition consists in the omission of an act. As to NUMBERS (to be discussed in succeeding module) ❖ CONJUNCTIVE – there are several conditions and all must be fulfilled. ❖ DISJUNCTIVE – there are several conditions and only one or some of them must be fulfilled. As to DIVISIBILITY ❖ DIVISIBLE – condition is susceptible of partial performance. ❖ INDIVISIBLE – condition is not susceptible of partial performance. Art 1182. When the fulfilment 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. Potestative condition - suspensive in nature and depends upon the sole will of one of the contracting parties. Debtor: suspensive = VOID Resolutory = VaLID Creditor: suspensive = valid Resolutory = valid

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. 2 types of impossible conditions 1. Physically impossible obligation - things cannot see or be done. 2. Legally impossible obligation - contrary to law, moral, good custom, public

order and public practice Impossible conditions - Effects ● Both the obligation and the condition are VOID because the debtor’s obligation cannot be fulfilled. ● If the condition is negative, that is NOT TO DO an impossible thing, the obligation and the condition are VALID as if such condition is disregarded. ● If the obligation is divisible, the part that is not affected by the impossible condition SHALL be VALID. ● If the obligation is a pre-existing one, only the obligation is VALID notwithstanding the NULLITY (VOID) of the 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.

Positive condition - happening of an event at a determinate time. 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. Negative condition - will not happen at a determinate time.

Art 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfilment. This applies when the condition is suspensive, the debtor actually prevents the fulfillment of the condition, and acts voluntarily. The law does not require proof that the obligor/debtor acts with fraud as long as his purpose is to prevent the fulfillment of the obligation. He should not be allowed to profit from his own fault or bad faith.

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. 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 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. ●

In obligation to give - Example: On January 30, S agreed to sell his land to B for P100,000 if B would lose his case. On April 10, S sold his land to C. Subsequently, B lost his case on December 10. Before December 10, B has no right to demand S to sell the land to him (B). When the condition was fulfilled on December 10, it is as if B was entitled to the land beginning January 30. Hence as between B and C, B should have the better right over the land.

● In reciprocal obligations - Example: In the first example, when B lost to the case on December 10, S must deliver the land to B and B must pay P100,000. ➔ S does not have the obligation to give the fruits received from the land before December 10 to B and B is not obliged to pay legal interest on the P100,000 since the fruits and interests received are deemed to have been mutually compensated. ● In unilateral obligations – Example: Supposed S’s obligation is to donate the land to B, if the condition is fulfilled, S has to deliver the land but has to keep to himself all of the fruits and interests he may have received during the pendency of the condition, that is, from January 30 to December 10.

Article 1189 applies only if it is a real obligation, the object is determinate, the obligation is subject to suspensive condition and such condition if fulfilled, and there

is loss, deterioration, or improvement of the thing.

Kinds of loss under law: 1. Physical loss - when things perishes 2. Legal loss - things go our of commerce or becomes illegal 3. Civil loss - things disappear in such a way that existence is unknown or cannot be recovered. 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 fulfilment, 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. Art 1190. When the conditions have for their purpose the extinguishment of an obligation to give, the parties, upon the fulfilment of said conditions, shall return to each other what they have received. In case of loss, deterioration, or improvement of the thing, the provisions which, with respect to the debtor, are laid down in the preceding article and 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. ● In obligation to give - Example 1: Pedro allows Juan to use the former’s (Pedro) car until Pedro return from the province. ➔ Upon the return of Pedro from the province, Juan must give back the car. The effect of the happening of the condition is to cancel the obligation as if it had been never constituted at all. Juan is bound to return the car to Pedro. ➔ If upon return of the car by Juan to Pedro, the car sustained loss, or deteriorated, or it improved during the time Juan uses the car, the provisions of Article 1189 with respect to the debtor in each cases shall apply. ● In obligation to do or not to do - courts shall determine the retroactive effect of the fulfillment of the resolutory condition

Applicability of Article 1189 to the party with obligation to return. In the example above, Pedro is the debtor and Juan is the creditor pending the fulfillment of a resolutory condition which is the return of Pedro from the province. Upon the happening of the condition, Pedro becomes creditor with a right to demand and Juan as debtor with the obligation to return the car. In this case, as for Juan, as debtor now, will be bound by the provisions of Art. 1189 in case of loss, deterioration, or improvement upon the car. Art 1191. The power to rescind obligation 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 fulfilment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfilment, 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. 1) Unilateral - Example: Donation, whereby the donor is bound to give something to the donee without any consideration in return. 2) Bilateral reciprocal - Example: In a contract of sale, the delivery of the thing sold by the seller is conditioned upon the simultaneous payment of the purchase price by the buyer and vice versa. The seller is the creditor as to the price and debtor as to the thing sold, while the buyer is the creditor as to the thing and debtor as to the price. 3) Bilateral non-reciprocal - Example: X borrowed from Y P5,000. Y, on the other hand, borrowed X’s car. The performance by X of his obligation to Y is not conditioned upon the performance by Y of his obligation and vice versa. Although X and Y are debtors and creditors of each other, their obligations are not reciprocal. 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.

Example: S sold his TV set to B. The agreement is that the TV shall be delivered on October 1 at the house of b and payment shall be made by B upon delivery. S did not deliver the TV on October 1 in spite of a demand made by B. Five (5) days later, S delivered the TV but B incurred in delay in paying the purchase price. In a suit between S and B, the liability of S for damages should be equitably tempered by the court, taking into consideration the breach also of the obligation on the part of B....