ARTICLE 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 receive.
Effects of fulfillment of resolutory conditions

 In obligation to give – When the resolutory condition in an obligation to give is fulfilled,

the obligation is extinguished (Art. 1181) and the parties are obliged to return to each
other what they have received under the obligation. (par. 2)
(a.)There is a return to the estatus qou. In other words, the effect of the
fulfillment of the condition is retroactive.
(b.)In case the thing to be returned is legally in the possession of a third person who
did not act in bad faith (see Art. 1387, par. 2), the remedy of the party entitled to
restitution is against the other.
(c.)The obligation of mutual restitution is absolute. It applies not only to the thing
received but also to the fruits and interest.
(d.)In obligations to give subject to suspensive condition, the retroactivity admits
exemptions according as the obligation is bilateral or unilateral. (see Art. 1187)
Example 1/2

A gave B a parcel of land on condition that B will pass the CPA Exam on May,
this year. B did not pass the CPA Exam.
Question

Is B liable to remand the said fruits, just because he didn’t fulfill the the said
condition?
Answer

The obligation is extinguished and therefore, it is as if there was never an

obligation at all. B will therefore have to return both the land and the fruits he had
received there from the moment A has given him the land.
Example 2/2

Ernesto and Michael are friends. Since Ernesto is concerned with Michael’s
frequent visits to the casino, he gave the latter a brand new car with the condition that
Michael will never go to any casino anymore. After two week, Michael went to the
nearest casino, itching to spend some coins on the fruit machine.
Question

Did the act of Michael in going to the casino extinguish Ernesto’s obligation to
keep the car in Michael’s possession?
Answer

Yes, Ernesto’s obligation has been extinguished.

Under the Civil code, if as agreed the happening of the future and unknown even
extinguishes the obligation to give, the parties shall return to each other what they have
received.
ARTICLE 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 bedeemed extinguished, and each
shall bear his own damages. (n)
Where both parties are guilty of breach.

(1)First infractor known- one party violated his obligation therefore the other
party also violated part of hisobligation. Liability of first infractor must then be reduced
(2)First infractor cannot be determined- One party committed violation towards his
obligation followed byanother, indeterminate first infractor. Contract shall then be
diminished and both parties will have ot beartheir own damages.
“The rules are deemed just. The first one is fair to both parties because the second
infract or, though they would derive some advantage by his own act or neglect. The
second rule is likewise just, because it is presumed that both parties at about the same
time tried to reap some benefits.” (Report of the Code Commission)
Example

S sold his television set to B. The agreement is that the set 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 set on October 1 in spite of a demand made by B. Five days later, S delivered
the set but B incurred in delay in paying the purchase price.
Question

Who is the liable on this case base on the said article.?

Answer

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.
 If both alleged that the other was the first infractor and the court cannot determine
who of the two is telling the truth, the contract shall be deemed extinguished and each
shall bear his own damages. This means that the contract shall not be enforced.(as Art.
1192 is)
감사합니다, 읍바, 얻디..
Prepared by: Christian Laurence M. Lim