CHAPTER 3.

- DIFFERENT KINDS OFOBLIGATIONS

PURE AND CONDITIONAL OBLIGATIONS (See Arts. 1179 – 1190)

PURE obligation – one whose effectivity or extinguishment does not

depend upon the fulfillment or non-fulfillment of a condition or upon the
expiration of a period and is demandable at once.

 an obligation which is not subject to any condition or burden

 one without a condition or a term hence demandable at once.

Example: “A” promised to give “B” the sum of Php1 million.

 In the example, the obligation to pay is demandable at once because

there is no specific date mentioned for its performance. Neither it is
subject to any condition imposed for its fulfillment;

When is obligation demandable at once?

1. When it is pure
2. When it has a resolutory condition
(Ex. I’ll give you my car but you should not marry Maria this year) –
this is demandable now.

CONDITIONAL obligation – one whose effectivity is subordinated to the

fulfillment or non-fulfillment of a future AND uncertain event or upon a past
event unknown to the parties
 An obligation whose performance is subject to any condition
 When there is a condition

CONDITION – it is an uncertain event which wields an influence on a legal

relationship.

TERM OR PERIOD – that which necessarily come whether the parties know
when it will happen or not.
 Future and uncertain event or a past event unknown to the
parties

PAST EVENT UNKNOWN TO THE PARTIES

This is not exactly a condition since, as a matter of reality, the thing has
already happened or not. What is really meant here is future knowledge of a
past event will determine whether or not an obligation will arise. Hence, a
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condition is really “a future AND certain event, “not “a future OR uncertain
event”.

CLASSIFICATION OF CONDITIONS

1. As to EFFECT

 Suspensive condition – happening of condition gives rise to

the obligation
 There is no obligation yet (suspense)

Example: A binds himself to give B a car as soon as A’s mother

arrives from Africa.

o In the example, the obligation is demandable only upon the

fulfillment of the condition – that is- the arrival of the mother of
A;

Effects:
a. Effectivity retroacts to the day of the constitution of the obligation
b. No retroactivity with reference to fruits or interest and prescription
c. Creditor may preserve rights
d. Debtor – recovery of payment by mistake or even w/o mistake

 Resolutory condition– happening of condition extinguishes the

obligation
 There is already an obligation yet (resolve)

Example: I will allow you to use my car until you pass the Integrated
Business Law 1.

 In the example, The obligation is immediately demandable

but it will extinguished upon the happening of the
condition, that is, the passing of the Integrated Business
Law 1;

EFFECTS
a. No retroactive effect
b. Obligation extinguished
c. Restore to each other what was received plus interest/fruits

2. As to CAUSE/ORIGIN

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  Potestative – dependent on sole will of the debtor (also called
facultative condition)
- Ex., I’ll sell you my car if I like

a. Potestative on the part of the DEBTOR

- If also suspensive – both the condition and the
obligation are VOID, for the obligation is really
illusory
- If also resolutory – it is VALID. A condition both
potestative and resolutory may be valid even if the
condition is made to depend upon the will of the
obligor.
b. Potestative on the part of the CREDITOR
- It is VALID.

 Casual – depends on chance or the will of a third party (ex. I’ll

pay you if I win in the lotto.
 Mixed – depends partly on the will of one of the parties and
partly on chance or the will of a third person

3. As to DIVISIBILITY

 divisible – capable of partial performance

 indivisible – not capable of partial performance because of
the nature of the thing or because of the intention of the
parties.

4. As to MODE

 positive – an act to be performed

 negative – something will be omitted.

5. As to FORM

 express – the condition is stated

 implied – the condition merely inferred

6. As to POSSIBILITY
 possible – capable of fulfillment in nature and in law

 impossible – not capable of fulfillment due to nature or due

to the operation of the law or morals or public policy; or due to a
contradiction in its terms.

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 a. Impossible (physically) Example – to make a dead man
alive
(logically) Example – to make a circle that is at the
same time a square (illogical condition)

b. legally – prohibited by law, good customs, public policy,

moral

Effects:
I. If the condition is to do an impossible or illegal thing,
BOTH the condition and the obligation are VOID
(because the debtor knows that the no fulfillment
can be done and therefore there is not serious about
being liable. (example: I’ll sell you my car if you can
make a dead man alive)

II. If the condition is NEGATIVE, that is, not to do the

impossible, just disregard the condition BUT the
obligation remains (example: I’ll sell you my car if
you cannot make circle that is at the same time a
square)

III. If the condition is NEGATIVE, that is, not to do an

illegal thing, both the condition and the obligation
VALID (example: I’ll sell you my land if you do not kill
A)

7. As to NUMBERS
 conjunctive – if all the conditions must be performed.
 alternative- if only few of the conditions have to be
performed

Debtor to pay “when his means permit”

Although this may seem to refer to a condition dependent exclusively

on the will of the debtor, the fact remains that payment does not depend on
the debtor’s will, for indeed he had promised payment. What depends really
on him is not payment but the TIME when payment is to be made. Hence,
this obligation considers as one with a TERM or PERIOD.

SIMILAR PHRASES:

a. “when my means permit me to do so”

b. “when I can afford it”

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 c. “when I am able to”
d. “when I have money”

How long is the TERM?

It is obvious that to leave same to the discretion of either creditor or

debtor would be unjust, therefore, the court is obliged to fix the duration of
the period.

The General Rule is, therefore, for the creditor to ask the court first for
the fixing of the term, and it is only when that term arrives that he can
demand fulfillment. Any action to recover before this is done is considered
premature.

RULES ON LOSS, DETERIORATION, AND IMPROVEMENTS DURING

PENDENCY OF A SUSPENSIVE CONDITION (Art. 1189)

REQUISITES FOR THE APPLICATION OFARTICLE 1189

a. The obligation must be a real obligation

b. The object is a specific or determinate thing
c. The obligation is subject to a suspensive condition
d. The condition is fulfilled
e. There is loss, deterioration or improvement of the thing during the
pendency of the happening of the condition

What are the three things that may happen to the object of an
obligation pending fulfillment of a SUSPENSIVE CONDITION?

1. THE OBJECT:
o May be lost
o May deteriorate (value is reduced or impaired)
o May be improved

The OBJECT may be LOST:

a. Without the fault of debtor

b. With fault of the debtor
c. Partly with and partly without the fault of the debtor

The OBJECT may DETERIORATE:

a. Without the fault of debtor

b. With fault of the debtor
c. Partly with and partly without the fault of the debtor

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 The OBJECT may be IMPROVED:

a. By nature or by time
b. Through the expense of the debtor
c. Partly through the nature or time and partly by the
debtor

When a thing is considered LOSS?

It is understood that the thing is lost:

1. When it perishes (as when the house is burnt into ashes) –

PHYSICAL LOSS
2. When it goes out of commerce ( as when the object heretofore
unprohibited becomes prohibited)- LEGAL LOSS
3. When it disappears in such a way that its existence is unknown (as
when a particular car has been missing for some time) CIVIL LOSS
4. When it disappears in such a way that it cannot be recovered (as
when a diamond ring is dropped in the middle of West Philippine
Sea)

OBLIGATIONS WITH A PERIOD

Obligation for whose fulfillment a day certain has been fixed, shall be
demandable only when that day comes.

- An obligation whose performance is subject to the expiration of

said period or term.

Examples:
1. I will give you money and gift on your birthday
2. I will give you a 500 allowance until you finish your course
3. Payment of taxes

Period – is a certain length of time which determines the effectivity or the

extinguishment of obligations

A day certain is understood to be that which must necessarily come,

although it may not be known when.

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Nota bene:

1. When we know that something will happen but we are uncertain as

to the time it will happen – this is a TERM;
2. When we are not even sure if something will happen as a fact or not
– this is a CONDITION.

REQUISITES:
1. It must refer to the future
2. It must be certain (sure to come) but can be extended
3. It must be physical and legally possible, otherwise the obligation is
VOID.

For whose BENEFIT Term has been established

The law says” Whenever in an obligation a period is designated, it is

presumed to have been established for the benefit of BOTH the debtor and
the creditor unless from the tenor of the same or other circumstances it
should appear that the period has been established in favor of one or the
other. (Article 1196)

General Rule: Term is for the benefit of debtor or creditor (meaning

the debtor cannot pay prematurely AND the creditor cannot demand
prematurely)

Exceptions: if there be such intent

1. Term is for the benefit of the debtor alone (meaning, the

debtor is required to pay only at the end, but he may pay
even before)

2. Term is for the benefit of the creditor alone (meaning the

creditor can demand at any time even before the term
expires and he cannot be compelled to accept payment from
the debtor prior to the stipulated period)

Example: X promised to pay Y on December 25, 2014, with Y

given the right to demand performance even before the date.

PERIOD versus CONDITION

1. As to fulfillment- a PERIOD is a certain event which must happen

sooner or later at a date known beforehand, while CONDITION is an
uncertain event.
2. As to time – a PERIOD refers only to the future while CONDITION may
refer to a past event unknown to the parties
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 3. As to influence on the obligation-a PERIOD merely fixes the time
for the efficaciousness of the obligation. If suspensive, it cannot
prevent the birth of the obligation; if resolutory, it does not validate the
fact that the obligation existed. A CONDITION causes an obligation
either to arise or to cease.
4. As to effect, when left to the debtor’s will – a PERIOD which depends
upon the will of the debtor empowers the court to fix the duration
thereof, while a CONDITION which depends upon the sole will of the
debtor invalidates the obligation.
5. As to retroactivity of effects – the arrival of the PERIOD does not
have any retroactive effect while the happening of the condition has
retroactive effect.

ALTERNATIVE OBLIGATIONS

An alternative obligation is one wherein various prestation are due but

the performance of one of them is sufficient as determined by the choice
which, as a general rule, belongs to the debtor.

Gen. Rule- the right of choice belongs to the DEBTOR

Exception: it may be exercised by the creditor but only when expressly
granted to him, or by third person.

Example: A borrowed from B 1 Million. It was agreed that A could comply

with his obligation by giving B 1 Million, or sportivo car, or complete dining
and entertainment show cases.

FACULTATIVE OBLIGATIONS

A Facultative Obligation is one where only one prestation has been

agreed upon but the obligor may render another in substitution.

Example: I will give you my BMW car but I may give you my Mercedes
benz as a substitute.

EFFECT OF LOSS: 1. Before substitution 2. After substitution

ALTERNATIVE versus FACULTATIVE

1. As to Number
2. As to right of choice
3. Loss thru a fortuitous event
4. Loss through fault of the debtor

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 JOINT and SOLIDARY OBLIGATIONS

KINDS OF OBLIGATIONS according to the number of PARTIES

1. Individual obligation- one where there is only one obligor or one

obligee.
2. Collective obligation – one where there are two or more debtors
and/or two or more creditors. It may be joint or solidary.

JOINT OBLIGATION - one where the whole obligation is to be paid or

fulfilled proportionately by the different debtors and/or is to be demanded
proportionately by the different creditors.

Characteristics: Discuss each and give examples.

Words used to indicate JOINT liability:

 Mancomunada, mancomunadamente, pro-rata; proportionately and
“we promised to pay” signed by two or more persons.

SOLIDARY OBLIGATION - one where each one of the debtors is bound to

render, and/or each of the creditors has a right to demand from any of the
debtors, entire compliance with the prestation.

When is obligation solidary?

1. When the obligation expressly so states

2. The law requires solidarity
3. The nature of the obligation requires solidarity

Words used to indicate SOLIDARY liability:

 Jointly and/or severally, solidaria, in solidum, together and/or
separately, individually and/or collectively; juntos or separadamente ;
“I promised to pay” signed by two or more persons.

Passive solidary – solidary on the part of the debtors, where any one of
them can be made liable for the fulfillment of the entire obligation;

Active Solidary - solidary on the part of the creditors, where any one of
them can demand the fulfillment of the entire obligation;

Mixed Solidary - solidary on the part of the debtors and creditors, where
each of the debtors is liable to render, and each of the creditors has a right
to demand, entire compliance of the obligation;

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OBLIGATION WITH A PENAL CLAUSE – is one which contains an accessory
undertaking to pay a previously stipulated indemnity in case of breach of the
principal prestation intended primarily to induce fulfillment;

Penal clause; Purposes.

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