1179
- Every obligation whose performance does not depend
upon a future or uncertain event, or upon a past even
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
 Pure Obligation
 not subject to any condition and no specific date
is mentioned for its fulfillment thus immediately
demandable
 i.e: D obliges himself to pay C 1,000 pesos. It is
immediately demandable because there is no
date and condition mentioned in the fulfillment
 If it has just been contracted, a period must have
been intended but the performance depend
upon the nature of the obligation and the
circumstances
 D binds himself to pay C 1,000 pesos “upon
demand of C” -> Obligation is immediately due
and demandable
 Conditional Obligation
 Consequences are subject in one way or another
to the fulfillment of a condition
 Condition -> future and uncertain event, the
happening of which, its effectivity or
extinguishment of an obligation subject to it
depends.
Characteristics:
1. Future and uncertain
2. Past but unknown
*condition must not be impossible
Principal kinds:
1. Suspensive condition (precedent/antecedent)
 Fulfillment which will give rise to an
obligation
 Demandability of the obligation is suspended
until the happening of the uncertain event’
 Obligation arises
 i.e: I will sell you the land if it is
adjudicated to me in the division of my
deceased father’s estate. My obligation
will only arise after the condition is
fulfilled
2. Resolutory Condition (subsequent)
 Fulfillment of which will extinguish an
obligation already existing
 Obligation is extinguished
 I will give B a monthly allowance of 3,00
until he graduates from college. It will
extinguished once B has graduated from
college.
*it is demandable if its:
- pure
-resolutory
 Condition
 Uncertain and future event
 Knowledge to be acquired in the future of a
past event which at the moment is unknown –
contemplated by law
 X is the owner of a land that is being
claimed by Y. SC has gave a final decision
upholding the right of X but he hasn’t
received the notice yet. He obliged
himself to sell his land to Z should he win
the case. So, X would be bound to sell the
land to B upon the arrival of the notice
that he had won the case.
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
 Period
 A future and certain event upon the arrival of
which the obligation subject to it either arises
or is extinguished
o Debtor promises pay when his means permit
 What depends upon the debtor’s will is not
whether he should pay or not for indeed
he binds himself to pay
 If they cannot agree on the specific time of
payment, the court shall fix the same on
the application of either party
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
1. Acquisition of rights
 If suspensive: depends upon the happening of
the event which constitutes the condition
 If it does not take place and it is certain that it
will not happen: parties would stand as if the
conditional obligation had never existed
 i.e: X put in his will that H will receive
some of his property provided that X
 would die within two years. H would only
acquire right to his property once X died
within two years. (if no time = period). If X
died after two years, situation will still be
the same.
2. Loss of rights already acquired
 If resolutory: the happening of the event which
constitutes the condition produces the
extinguishment or loss of rights acquired.
 My support for Y until he graduates from
college will be extinguished once the
condition is fulfilled
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 the will of a third person,
obligation shall take effect in conformity with provisions
of 1115
1. Conditional obligation void
 When the potestative condition depends solely
upon the will of the debtor, the conditional
obligation shall be void because its validity and
compliance is left to the will of the debtor (thus
it cannot be easily demanded)
 No juridistical tie is created
 I will pay you if I want
2. Only the condition void
 If the obligation is a preexisting – 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
 The condition is imposed on the fulfillment of
the obligation
 B borrowed P10,000 from A payable
within two months. B promised to pay C
“after B sells his car” to which C agreed.
Only the condition is void and not the
pre-existing obligation.

Depends upon will of creditor:

-obligation is valid
 I will pay you my indebtedness upon your
demand”

Resolutory depends upon will of debtor

 Obligation is valid tho its fulfillment depends
upon the sole will of the debtor. Fulfillment of
the condition results to the loss of rights already

 Causal condition
 If the suspensive condition depends upon
chance or upon the will of a third person,
obligation is a valid
 X, a contractor, obliges himself to fix Y,
owner, to repair at X’s expense any
damage that may be caused to the
building by any earthquake within 10 yrs
from the construction.
 Mixed Condition
 Obligation is valid if the suspensive condition
depends partly upon chance and the will of a
third person
 X, a contractor, obliges himself to fix Y,
owner, to repair at X’s expense any
 Potestative condition damage taking place after an earthquake
 Depends upon the sole will of one of the if proven that it is due to construction
contracting parties defects.

Suspensive depends upon will of debtor:

*conditional obligation whose fulfillment depends
partly upon the will of the debtor and partly upon the
will of third person or upon chance is perfectly valid
1183
-impossible conditions (unlawful, 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 unlawful condition shall be visible
-refers to suspensive conditions
Kinds of impossible conditions:
1. Physically impossible conditions:
 Cannot exist or cannot be done in nature
 I will pay you P10,000 if it wont rain in the
Philippines for a year
2. Legally impossible conditions
 When contrary to law, morals, good customs,
 public order/policy
 X will give P1,000 if Y kills Z
Effect:
1. Conditional obligation void
 Impossible conditions annul the obligation
which depends upon them
 Both condition and obligation are void
2. Conditional obligation valid
 If the condition is negative, obligation is pure
 Negative condition may not to give an
impossible thing
 I will sell you my land if you do not carry
20 cavans of palay on your shoulder
3. Only the affected obligation void
 If obligation is divisible, the part thereof not
affected by the impossible condition shall be
valid
 I will give you 10,000 if you sell my land,
and a car if you kill Pedro
4. Only the condition void
 If the obligation is pre-existing, it does not
depend upon the fulfillment of the impossible
condition. Only the condition is void.
 D borrowed 10,000 from C. C later agreed
to kill X before D pays him. The condition
to kill X is void but not the pre-existing
obligation
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 unquestionable
that the event will not take place
 Refers to positive (suspensive) condition
 The happening of an event at a determinate
time. Obligation is extinguished as soon as (1)
time expires without the event taking place (2)
it has become indubitable that the event will
not take place although time has not yet expired
 X will give Y P10,000 if Y will marry Z
before Y reaches 25. X is liable if Y marries
C at the age of 25 or after. Obligation is
extinguished as soon as B becomes 25 yrs
old. If Y dies before 25, the obligation is
extinguished.
1185
-condition that some event will not happen at a
determinate time shall render the obligation effective
from the moment the time indicated has elapsed.
-if no time: condition shall be deemed fulfilled at such
time as may have probably been contemplated
 Negative condition
 Event will not happen at a determinate time
 Obligation shall become effective and binding
from the moment (1) the time indicated has
elapsed without the event taking place (2) it has
become evident that the event cannot occur
 X binds himself to B 10,000 if B is not yet
married to C on December 20
 Basta opposite ng positive!! If C dies, the
obligation becomes effective
1186
-condition shall be deemed fulfilled when the obligor
voluntarily prevents its fulfillment
Constructive fulfillment of suspensive:
1. Condition is suspensive
2. Obligor prevents the fulfillment of the condition
3. He acts voluntarily
 S promised to sell Y his land if Y would
be able to secure a loan from a certain
bank. S changed his mind then induced
the bank not to give Y a loan.
Constructive fulfillment of resolutory:
 With respect to the debtor who is bound to
return what he has received upon the fulfillment
of the condition
 X allows Y to occupy his house in MNL
as long as X is assigned by their
company in the province. When Y
learned that X would be transferred to
 mnl, he was able to induce the
president to assign another person
instead of X. Obligation of X is
extinguished because the fulfillment of
the resolutory condition was
voluntarily prevented by Y
1187
-In obligation to do and not to do, the court shall
determine, in each case, the retroactive effect of the
condition that has been complied with. (1120)
*retroactive – taking effect from a date in the past
 Retroactivity of Obligation
 Effect of the happening of suspensive conditions
 Creditor cannot enforce his right between the
creation of conditional and fulfillment of
suspensive condition
 Retroactive effects of fulfillment of suspensive
condition:
1. In obligations to give
 Becomes demandable only upon the
fulfillment of the condition
 Once the condition is fulfilled, its effect shall
retroact to the day when the obligation was
constituted
 Condition is only an accidental element of a
contract
 Obligation CAN exist without being subject
to a condition
 On Jan 20, S agreed to sell his land to B
for 50k should B lose a case involving
the recovery of another land. On April
10, S sold his land to C. B lost the case
on Dec 4.
 Before Dec 4, B had no right to
demand the sale of land by S. When
the condition was fulfilled on Dec 4, B
was entitled to the land starting Jan
20. B has more right than C.
2. In obligations to do or not to do
 No fixed rule is provided
 Court will decide whether there is a
retroactive effect
 M
 To fruits and interests in obligations to give
1. In reciprocal obligations
 No retroactivity because the fruits and interests
received during the pendency of the condition
are deemed to have been mutually
compensated
 When B lost the case in court on Dec
4, S must deliver the land and B must
pay 50k. S does not have to give the
fruits received from the land before
Dec 4 and B is not obliged to pay legal
interests on the price since the fruits
and interests received are deemed to
have been mutually compensated
2. In unilateral obligations
 No retroactive effect because they are
gratuitous. Debtor receives nothing from the
creditor.
 Fruits and interests belong to debtor as long as
it was produced within the period of the
condition unless it should be inferred by the
debtor.
1188
-creditor may, before the fulfillment of the condition,
bring the appropriate actions for the preservation of his
right
-debtor may recover what during the same time he has
paid by mistake in case of a suspensive condition
1. Rights of creditor
 May take or bring appropriate actions for
the preservation of his right, as the debtor
may render nugatory obligation upon the
happening of the condition
 May go to court to prevent the alienation or
concealment of the property the debtor has
2. Rights of debtor
 Entitled to recover what he has paid by
mistake prior to the happening
 It is granted to the debtor because the
creditor may or may not be able to fulfill
the condition imposed
 Solutio indebiti
1189
Requisites:
1. The obligation is a real obligation
2. Object is a specific or determinate thing
3. Suspensive condition
4. Condition is fulfilled and there is loss or improvement
of the thing during the pendency of the condition
Kinds of LOSS
1. Physical loss – when a thing perishes (house is
burned)
2. Legal loss – when a thing goes out of commerce
or becomes illegal (American dollars had become
illegal)
3. Civil loss – when a thing disappears in such a way
its existence is unknown and cannot be recovered
(dog went missing)
Rules in case of loss (pendency of suspensive condition)
1. Loss of thing without debtor’s fault
 X obliged himself to give Y his car worth 100k if
Y sells X’s property. Car got lost w/o the fault of
X. Obligation is extinguished and X is not liable
because it is due to fortuitous event
2. Loss of thing through debtor’s fault
 Loss occurred because of the negligence of X. Y
is entitled to demand damages.
3. Deterioration of thing without debtor’s fault
 Thing deteriorates when it is value is reduced or
impaired without the debtor’s fault
 If the car got in an accident and there were
damages (without the fault of x), Y will
have to suffer the damages and pay for it.
4. Deterioration of thing through debtor’s fault
 Rescission (cancellation) of the obligation with
damages. X is liable to pay Y 100k (value of car
before damages)
 Fulfillment of the obligation also with damages.
X is bound to Y to give the car and pay 10k
5. Improvement of thing by nature or by time
 Thing is improved when its value is increased
by time or at the expense of the debtor/creditor
 If the car’s market value increased, the
improvement shall inure to the benefit of
Y. he should be compensated in case of
improvement of the car.
6. Improvement of thing at the expense of debtor
 During the pendency, X had the car painted at
his expense. X will have the right granted to a
usufructuary w/ respect to improvements
made.
 Usufruct – right to enjoy the use and fruits of
thing belonging to another
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.
 If the condition does not happen, the rights of the
creditor will become absolute. But if the condition
happens, such rights will be extinguished, and the
obligation will be treated as if it did not exist.
 Each party is bound to return to the other whatever
has received. Every vestige of obligation is wiped
out through the process of mutual restitution.
 Return to the status quo (effect of the
fulfillment of the condition is retroactive)
 If the thing to be returned is in possession of a
third person who did not act in bad faith, remedy
of the party entitled to the restitution is against
the other. Third person cant be sued
 Obligation of mutual restitution is absolute
 Obligations to give subject to suspensive
condition, the retroactivity admits exceptions
according as the obligation is bilateral or
unilateral
 X allows Y to use X’s car until X’s return
from the province. Upon the return of X, Y
must give back the car.
1191
-power to rescind obligation is implied in reciprocal
ones
Kinds of obligation
1. Unilateral – only one party is obliged to comply with
a prestation
 Donation
2. Bilateral – when both parties are mutually bound to
each other. Both parties are creditors and debtors
of each other. May be reciprocal or non-reciprocal
a. Reciprocal obligations – arise from the same
cause and in which each party is a debtor
and creditor of the other
b. Non-reciprocal – do not impose
simultaneous and correlative performance
on both parties. Performance of one party
is not dependent upon the simultaneous
performance by the other
i. Obligations are not dependent
upon each other
 Remedies in reciprocal obli:
1. Choice of remedies (in case one of the obligors
does not comply with what is incumbent upont
him)
a. Action for specific performance of the
obligation w damages
b. Action for rescission of the obligation also
with damages
2. Remedy of rescission for non-compliance
a. Must be distinguished from the subsidiary
action for rescission by reason of lesion or
damage
b. Remedy is granted for breach by the
other contracting party that violates the
reciprocity between them
 Remedies are alternative
 Can choose only one of the remedies
Limitations on right to demand rescission
1. Resort to the courts
a. To assert rights juridically
2. Power of the court to fix period
a. Power to allow a period within which a
person in default may be permitted to
perform his obligation
3. Right of the third person
a. If the thing is w a third person even if it
acted in good faith
4. Substantial violation
a. Rescission will not be granted for slight
breaches of contract
5. Waiver of right
a. Right to rescind
Without previous judicial decree
1. Where automatic rescission expressly stipulated
a. There must be written notice
2. Where contract still executory
a. When there is no performance yet
1192
-when both parties committed a breach of obligation,
the liability of the first infractor shall be equitably
tempered by the courts
-if no one ones to admit who violated the contract first,
it will be extinguished and each shall bear damages
 Where both parties are guilty of breach
1. First infractor known – one party
violated his obligation, and the other
also. Liability of the first infractor is
reduced
2. First infractor cannot be determined –
see def.
Obligations with a period
 One whose effects or consequences are
subjected in one way or another to the
expiration or arrival of said period or term
 Period
 Future AND certain event upon the arrival of
which the obligation subject to it either arises
or is terminated
 Day certain which must necessarily come, or
may it be unknown.
1193
-obligations for whose fulfillment a day certain has been
fixed, shall be demandable only when that day comes
-resolutory period terminates upon arrival of the day
certain
-a day certain -> must necessarily come, but unknown
when
Period and condition distinguished
As to:
1. Fulfillment
a. Period – certain event which must
happen sooner or late at a date known
beforehand
b. Condition - uncertain
2. Time
a. P – future
b. C – also past event unknown
3. Influence on the obligation
a. P – fixes the time for efficaciousness
b. C – causes an obligation to rise or cease
4. Effect,when left to debtor’s will
 a. P – depends upon the will of the debtor expiration of the period, the debtor may not fulfill the
depends upon the court to fix the obligation and the creditor may not demand its
duration fulfillment w/o the consent of the other
b. C – depends upon the sole will of the
debtor to invalidate the obligation
5. Retroactivity of effects
a. P – arrival of period does not have
retroactive effect
b. C – has

Kinds of period or term

1. According to EFFECT
a. Suspensive period
i. Obligation arrives upon the
arrival of the period
b. Resolutory period
i. Obligation is valid up to a day
certain and terminated upon
arrival of the period
2. According to SOURCE
a. Legal Period
i. When it is provided for by laws
b. Conventional or Voluntary Period
i. Agreed to by the parties
c. Juridical
i. Fixed by the court
3. According to DEFINITENESS
a. Definite period
i. Fixed or known when it will
come
b. Indefinite period
i. Not fixed but period is intended
courts are empowered by law
to fix it

1194
-see 1189.

1195
-anything paid or delivered before the arrival of the
period, the obligor being unaware of it and that it is
due, may be recovered with the fruits and the interest

 Payment before arrival of period

 recovery of what has been paid my mistake
before the fulfillment of suspensive condition
 Debtor presumed aware of period – he has to prove
that he was unaware
 No recovery in personal obligations

1196
-period is presumed to have been established for the
benefit of both the creditor and debtor. Before the