Section 1 Pure and Conditional Obligations

Article 1179: Obligation demandable at once

Every obligation whose performance does not
depend upon a future or uncertain event, or does not
depend upon a past even unknown to the parties, is
demandable at once.

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

Obligation subject to a resolutory

condition
Pure obligation:

an obligation without a condition or a term, and

therefore demandable at once
Conditional obligation:

an obligation with a condition imposed in its

performance
Obligation with a term or period:

an obligation subject to an event which is certain

to happen
Obligation is demandable at once when:
1. pure obligation
2. obligation subject to a resolutory condition
Condition:

uncertain event which wields an influence on a

legal relation

every future or uncertain event upon which an

obligation or provision is made to depend
Characteristics of Condition:
1. Future and uncertain
2. Past but unknown to the parties
3. Must be possible of performance
Kinds of Condition:
1. Suspensive condition
2. Resolutory condition
Suspensive condition:

it is a condition which suspends the effectivity

of the obligation until the condition is fulfilled

it is the fulfillment of the condition that gives

rise to the obligation
Resolutory condition:

it is a condition which extinguishes the

obligation if fulfilled or happened

it is the fulfillment of the condition that

extinguishes the obligation
Article 1180:
If the debtor binds himself to pay when his means permit
him to do so:

it is not a conditional obligation

it is considered as an obligation with a term or

period, subject to the provisions of Article 1197
When his means permit him to do so:

when I can afford

when I am able to

when I have money

Debtor binds himself to pay when his means permit him to
do so:

payment per se does not depend on the will of the

debtor

only the time of payment depends on the will of

the debtor
Since the time of payment (not payment per se) depends
upon the will of the debtor, immediate performance cannot
be enforced.

Right of the creditor in this case:

Go to the court and let the court fix the date of
payment

Once fixed by the court, the obligation

becomes demandable on the date fixed
by the court.
Period:

it is a future and certain event, upon the arrival of

which the obligation subject to it either arises or is
extinguished
space of time which has an influence on obligation
as a result of a juridical act and either suspends
their
demandableness,
or
produces
their
extinguishment

Obligation with a term or period:

payable as soon as possible

little by little

in partial payment

when I am in a position to pay

when I have money

Article 1181:
In conditional obligations: [perspective of the creditor]
The acquisition of rights, as well as the
extinguishment of those already acquired:

depends upon the happening of the event, which

constitutes the condition
Suspensive condition

also known as condition precedent

happening of this condition shall give rise to the

acquisition of a right by the creditor

if the condition does not happen or is not met,

it is as if the condition obligation never

existed
Resolutory condition

also known as condition subsequent

rights acquired by the creditor are lost once the

condition is fulfilled
Article 1182:
If the fulfillment of the suspensive condition
depends upon the sole will of the debtor:

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
Kinds of condition under this article:
1. Potestative or facultative condition:
o
fulfillment of the condition depends upon the will
of one of the contracting parties
2. Casual condition:
o
fulfillment of the condition depends exclusively
upon chance and/or upon the will of a third
person
3. Mixed condition:
o
fulfillment of the condition depends upon the will
of one of the contracting parties and partly upon
chance or the will of a third person
Potestative on the part of the debtor:

If suspensive:
o
Both condition and obligation

If resolutory:
o
Both condition and obligation
Potestative on the part of the creditor:

If suspensive:
o
Both condition and obligation

If resolutory:
o
Both condition and obligation
Casual:

If suspensive:
o
Both condition

If resolutory:
o
Both condition
Mixed:

If suspensive:
o
Both condition

If resolutory:
o
Both condition

are void
are valid
are valid
are valid

and obligation are valid

and obligation are valid
and obligation are valid
and obligation are valid

Rule:
If suspensive condition and fulfillment of the condition
depends upon the sole will of the debtor [potestative on
the part of the debtor]:

Both condition and obligation are void

More examples:
1. I will pay you after I receive a loan from a bank
2. I will pay you after I have harvested fish
3. I will sell you my house if I deem proper
Note:
The rule on suspensive potestative condition depending
upon the will of the debtor:

is applicable only when the obligation shall

depend for its perfection upon the fulfillment of
the condition

is not applicable when the obligation is a preexisting one

Example:
1. To Maria, I oblige myself to give you 500 pesos if I
like it.

The rule is applicable

Condition and obligation are void

2. To Maria, I oblige myself to pay you 500 pesos
that I owe you if I like it.

The rule is not applicable

Obligation is valid and enforceable

Illustrative case:
I will give you 10,000 pesos if I can sell my land this year

Mixed condition

Both condition and obligation are valid

Article 1183:
Impossible conditions, those contrary to good customs or
public policy, and those prohibited by law shall annul the
obligation which depends upon them.
The condition not to do an impossible thing shall be
considered as not having been agreed upon.
Effects:
If the condition is to do an impossible or illegal thing:

Both condition and obligation are void

If the condition is not to do an illegal thing:

Both condition and obligation are valid

If the condition is not to do an impossible thing:

Disregard the condition

Obligation is valid
If the obligation is divisible:

part of the obligation which is not affected by the

impossible or unlawful condition, shall be valid
Article 1184 and Article 1185:
The condition that some events happen at a determinable
time (positive condition) shall extinguish the obligation
when:
1. the time expires without the event taking place,
or
2. it becomes indubitable, clear, and evident that
the event will not take place
The condition that some events will not happen at a
determinable time (negative condition) shall render the
obligation effective when:
1. the time expires without the prohibited event
taking place, or
2. it becomes indubitable, clear, and evident that
the event will not take place
If no time has been fixed:

condition shall be deemed fulfilled at such time

as may have probably been contemplated,
bearing in mind the nature of the obligation
Illustrative case:
I will give you P10,000 if by December 20, 2011,
you have not yet married X. [negative condition]

If on December 20 you are not yet married, my

obligation to deliver is effective.

If X had died, the obligation becomes effective

because it is clear that the event cannot occur
anymore.
Question:
Suppose before that date, you entered the convent to
become a priest. Is the obligation effective on the date
you entered the priesthood?
Answer:
Not certain, because you may choose to get out
of the convent and contract a valid marriage with X.
Article 1186:
Constructive or presumed fulfillment:

Obligor or debtor voluntarily prevents the

fulfillment of the condition, in which case the
condition is considered fulfilled.

Obligation is effective
Requisites of constructive or presumed fulfillment:

Fulfillment of the condition is prevented by the

debtor

Prevention is voluntary on the part of the debtor

Logic of the law:

one must not profit from his own fault

Illustrative case:
D obliges himself to sell his parcel of land to C if C
could pass the 2011 CPA examination. By means of threat

or intimidation, D prevented C from taking the

examination.

Even if C did not pass the examination, D is

obliged to sell his land because he voluntarily
prevented the fulfillment of the condition.
Article 1187:
Once the condition has been fulfilled:

Effects of conditional obligation to give shall

retroact to the day of the constitution of the
obligation
If the obligation imposes reciprocal prestations upon the
parties:

the fruits and interests during the pendency of

the condition shall be deemed to have been
mutually compensated
If the obligation is unilateral:

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 conditional obligations to do and not to do:

courts shall determine the retroactive effect of

the condition that has been complied with in each
case
Before the fulfillment of the condition:

the said creditor may bring the appropriate

actions for the preservation of his right
In the case of a suspensive condition:

debtor may recover what has been paid by

mistake during the same time

principle of solutio indebiti

Notes:
After the creation of the condition obligation but before the
fulfillment of the suspensive condition:

creditor cannot demand the compliance of the

debtors obligation because the creditors right
during the period is only an expectancy
Creditors right becomes effective and enforceable only
when:

suspensive condition happens or is fulfilled

If the suspensive condition is fulfilled:

the effects shall retroact from the date the

obligation is constituted
Reason?

Condition is only accidental and not an

essential element of the obligation
Rule:
From the moment the essential elements concur, there is
already an obligation.
What is being awaited is the fulfillment of the
suspensive condition to make the obligation
effective and enforceable
That is why the effects is commenced
not from the time the accidental element
or condition was fulfilled but from the
time
the
obligation
itself
was
constituted.
Illutrative case:
On May 25, 2011, S promised to sell his parcel of land to B
for P10,000, if B will pass the CPA examination on May 25,
2014.

During May 25, 2011 to May 25, 2014, S remains

to be the owner because the condition was not
yet fulfilled