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Chapter 3 Different Kinds of Obligations Primary Classification of Obligations under the Civil Code: 1. Pure and Conditional Obligations 2. Obligations with a period 3. Alternative and Facultative Obligations 4. Joint and Solidary Obligations 5. Divisible and Indivisible Obligations 6. Obligations ...

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Chapter 3 Different Kinds of Obligations Primary Classification of Obligations under the Civil Code: 1. Pure and Conditional Obligations 2. Obligations with a period 3. Alternative and Facultative Obligations 4. Joint and Solidary Obligations 5. Divisible and Indivisible Obligations 6. Obligations with a Penal Clause  Secondary Classification: 1. Unilateral and Bilateral Obligations 2. Real and Personal Obligations 3. Determinate and Generic Obligations 4. Civil and Natural Obligations 5. Legal, Conventional, and Penal Obligations Article 1179 Pure Obligations Is one which is not subject to any condition and no specific date is mentioned for its fulfillment and is, therefore, immediately demandable 

Conditional Obligations Is one whose consequences are subject in one way or another to the fulfillment of a condition Condition Is a future and uncertain event, upon the happening of which, the effectivity or extinguishment of an obligation (or right) subject to it depends Characteristics of a Condition: 1. Future and Uncertain 2. Past but Unknown 2 Principal Kinds of Condition: 1. Suspensive Condition (Condition Precedent or Condition Antecedent) One the fulfillment of which will give rise to an obligation (or right) The demandability of the obligation is suspended until the happening of the uncertain event which constitutes the condition 2. Resolutory Condition (Condition Subsequent) One the fulfillment of which will extinguish an obligation (or right) already existing Distinctions between suspensive and resolutory conditions Suspensive Resolutory The obligation is The obligation When fulfilled arises extinguished The tie of the The toe of the law When does not law (juridical or (juridical or legal take place legal tie) does tie) is consolidated not appear It affects flow, but The existence When takes over it hovers the of the obligation place possibility of is a mere hope termination When obligation is demandable at once: 1. When it is pure 2. When it is subject to a resolutory condition 3. When it is subject to a resolutory period Article 1180

1.

The debtor promises to pay when his means permit him to do so 2. As when the debtor binds himself to pay a. Little by little b. As soon as possible c. From time to time d. At any time I have the money e. In partial payments f. When I am in a position to pay Article 1181 Effect of Happening of condition 1. Acquisition of Rights (suspensive) 2. Loss of Rights already acquired (resolutory) Article 1182 Classifications of Conditions:  As to effect: 1. Suspensive The happening of which gives rise to the obligation 2. Resolutory The happening of which extinguishes the obligation  As to form: 1. Express The condition is clearly stated 2. Implied The condition is merely inferred  As to Cause or Origin: 1. Potestative The condition depends upon the will of one of the contracting parties 2. Casual The condition depends upon chance or upon the will of a third person 3. Mixed The condition depends partly upon chance and partly upon the will of a third person  As to Mode: 1. Positive The condition consists in the performance of an act 2. Negative The condition consists in the omission of an act  As to Numbers: 1. Conjunctive There are several conditions and all must be fulfilled 2. Disjunctive There are several conditions and only one or some of them must be fulfilled  As to Divisibility: 1. Divisible The condition is susceptible of partial performance 2. Indivisible The condition is not susceptible of partial performance Potestative Condition A condition suspensive in nature and which depends upon the sole will of one of the contracting parties Where suspensive condition depends upon will of debtor: 1. Conditional obligation void 2. Only the condition void Where suspensive condition depends upon will of creditor: 1. Obligation is valid

Where duration of period depends upon the will of debtor: Casual Condition

If the suspensive condition depends upon chance or upon the will of a third person, the obligation subject to it is valid.

1.

Mixed condition The obligation is valid if the suspensive condition depends partly upon chance and partly upon the will of a third person.

2.

Where suspensive condition depends partly upon the will of debtor According to Manresa, the use of the word ‘exclusive’ (now ‘sole’) makes it clear 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. Article 1183 Refers to suspensive conditions 2 kinds of impossible conditions: 1. Physically impossible conditions When they, in nature of things, cannot exist or cannot be done 2. Legally impossible conditions When they are contrary to law, morals, good customs, public order, or public policy Effect of Impossible Conditions: 1. Conditional obligation void 2. Conditional obligation valid 3. Only the affected obligation void 4. Only the condition void

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Article 1184 Refers to positive (suspensive) condition The happening of an event at a determinate time

The obligation is extinguished: 1. As soon as the time expires without the event taking place 2. As soon as it has become indubitable that the event will not take place although the time specified has not expired

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Article 1185 Refers to negative condition An event that will not happen at a determinate time

The obligation shall become effective and binding: 1. From the moment the time indicated has elapsed without the event taking place 2. From the moment it has become evident that the event cannot occur, although the time indicated has not yet elapsed

In unilateral obligations Article 1188 Rights pending fulfillment of suspensive condition: 1. Rights of creditor a. Take or bring appropriate actions for the preservation of his right b. Go to court 2. Rights of debtor a. Entitled to recover what he has paid by mistake Article 1189 Requisites for application of this article: 1. The obligation is a real obligation 2. The object is a specific or determinate thing 3. The obligation is subject to a suspensive conditions 4. The condition is fulfilled 5. There is loss, deterioration, or improvement of the thing during the pendency of the condition Kinds of loss (civil law): 1. Physical loss When a thing perishes as when a house is burned and reduced to ashes 2. Legal loss When a thing goes out of commerce or when a thing heretofore legal becomes illegal 3. Civil loss When a thing disappears in such a way that its existence is unknown or even if known, it cannot be recovered, whether as a matter of fact or of law Rules in case of loss, deterioration, or improvement of thing during pendency of 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 4. Deterioration of thing through debtor’s fault 5. Improvement of thing by nature or by time 6. Improvement of thing at expense of debtor Usufruct Is the right to enjoy the use and fruits of a thing belonging to another Article 1190 Effects of fulfillment of resolutory condition: 1. In obligation to give

2. Article 1186 Requisites for the application of this article: 1. The condition is suspensive 2. The obligor actually prevents the fulfillment of the condition 3. He acts voluntarily Article 1187 Retroactive effects of fulfillment of suspensive condition: 1. In obligation to give 2.

In obligation to do or not to do

Retroactive effects as to fruits and interests in obligations to give:

In reciprocal obligations

In obligations to do or not to do

Article 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. 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 -

b.

Remedies in reciprocal obligations: 1. Choice of remedies a. Action for specific performance (fulfillment) of the obligation with damages b. Action for rescission of the obligation also with damages 2. Remedy of rescission of non-compliance a. Principal action b. Subsidiary action Limitations on right to demand rescission: 1. Resort to the courts 2. Power of court to fix period 3. Right of third person 4. Substantial violation 5. Waiver of right

Rescission without previous judicial decree 1. Where automatic rescission expressly stipulated 2. Where contract still executory Article 1192 2 situations where both parties are guilty of breach: 1. First infractor known 2. First infractor cannot be determined...