Art 1174 – No person shall be responsible –which can’t be foreseen-though foreseen- inevitable.

Fortuitous event – any event-can’t foresee – inevitable

Act of God distinguished from act of man (force Majeure)
-Floods / typhoons; - riots, strikes, or wars –fortuitous
Ordinary Fortuitous event – usually happens/ reasonably foreseen
Extraordinary Fortuitous event – doesn’t usually happen – war, fire, unusual flood, locusts, earthquake
Elements of Fortuitous event
1. Independent of human will
2. Impossible to foresee/avoid
3. Impossible for the debtors to fulfill their obligation in a normal manner
4. Free from any participation in the aggravation of the resulting injury to the creditor
Exceptions to the rule:
1) Cases expressly specified by law
2) Cases declared by stipulation
3) When the nature of obligation requires the assumption of risk
Art. 1175 – Usurious taransactions-governed by special law
Art. 1176 – receipt of the principal by creditor w/out reservation w/ respect to interest – the said
interest has been paid.
Receipt of the principal by creditor w/out reservation as to installments– the said installments has been
paid.
Ex. X borrowed from Y – 100 w/ interest. X paid 100 and y issued receipt. Interest paid.
Ex. X borrowed from Y – 100 w/ ten monthly installments per month. X paid 10 and Y issued receipt for 7
installment. Presumed 6 installment were paid.
Presumption – legal inference or assumption
Kinds of presumption
1. Disputable Presumption – rebuttable if overcome by other evidences
2. Conclusive Presumption – irrebuttable upon the presentation of the evidence and rebut the
presumption is not admissible.
Art. 1177 – the creditors, after pursuance of property to the possession of debtor, he may exercise all the
rights, save those which are inherent in person, impugn acts which the debtor done to defraud them.
Remedies of the creditor of delay
1. Attachment & execution
2. Accion Subrogatoria
3. Accion pauliana
Art. 1178 – all rights acquired in virtue – transmissible, if no stipulation to the contrary
Except:
1. Prohibited by law
2. Prohibited by stipulation of parties

Chapter 3
Sec. 1 – Pure and conditional obligations
Art. 1179 – does not depend on future event, resolutory is demandable
-Pure obligation- does not depend upon future/uncertain event
Ex. X obliges himself to deliver to Y his only carabao. *no period/condition*immediate demand
-Conditional Obligation – depend upon happening of the event *future event is made to depend
Ex. There’s a future event *There’s period

Classification Of Condition
1. As to effect of obligation
a. Suspensive condition – acquisition of rights
Ex. X bound himself to deliver his only car to his son Y if the latter will pass all his enrolled
subjects this semester. Thus, If Y will pass all his subjects, X obligated to deliver his only car
to him.
b. Resolutory Condition – extinguishment of rights
Ex. X bound himself to deliver his only car to his son Y if the latter will return said car if he
fails the CPA board exams. Thus, the obligation is immediately demandable. However, if Y
fails the exam, he must return the car ‘cause the happening of the condition extinguished
the obligation of X.

2. As to origin of condition
a. Potestative condition – will of one of the parties
Ex. I will give u my watch if I will go to the shopping mall.
b. Casual Conditon – chance and will of the third person
Ex. I will give you my bicycle if it will rain today.
c. Mixed Condition – will of a party and chance and the third person.
Ex. I will give you my only car if I will go to the shopping mall today and if it will rain today.
3. As to possibility
a. Possible condition – capable of realization according to nature, law, policy, or customs.
b. Impossible Condition – not capable of realization according to nature, law, policy, or
customs.
It may either be:
- Physical, contrary to law of nature
- Legal, contrary to law, morals, customs, policy
4. As to mode
a. Positive condition – performance of an act
b. Negative condition – non- performance of an act
5. As to divisibility
a. Divisible condition – susceptible of realization
b. Indivisible condition – not susceptible of realization
6. As to numbers
a. Conjunctive Condition – Several conditions, all must realized
b. Alternative Condition - Several conditions, one must realized
7. As to form
a. Express Condition – stated expressly
b. Implied Condition – Tacit
Art, 1180 – With period
Phrases similar to “when his means permit him to do so”
- When I have money
- As soon as I have money
- When I can afford to pay
Art. 1181 – Acquisition of rights and extinguishment/loss –shall depend on the happening of event
Suspensive condition (condition precedent) – happening will give rise on obligation
- X promises to give 100 to Y if the latter will get highest final grade in english.
Resolutory condition (condition subsequent) – happening will extinguish the obligation
- X bound himself to deliver his only motorcycle to Y until the latter will find a job.
Art. 1182 – depends on debtor, conditional obligation shall be void
Postestative condition – depends on sole will of one parties. If depend on creditor, conditional obligation
shall be valid
Ex. I will give 500 if I will travel baguio tomorrow. – void ‘cause it depends on debtor’s will
Art. 1183 – Impossible conditions, If divisible- not affected by impossible condition shall be valid
Not to do impossible thing shall considered as not greed upon.
Impossible (unlawful) conditions- not capable of realization
Kinds of impossible Conditions
1. Physical Impossible Conditions – contrary to law of nature
Ex. X obliged himself to give Y his only house & lot if Y can make a flying study table
2. Legal impossible Conditions – contrary to policy, customs, moral, law
Ex. X promises to pay Y 100 if the latter will inflict serious physical injuries to Z
General Rule: Impossible Conditions annul obligation which depends upon them. Both kinds of condition
are void.
Exceptions:
1. Divisible obligations are not affected by impossible condition
Divisible obligation – susceptible of performance w/out obligation changed.
Ex. X promises to pay 100 if Y will achieve the highest score in their basketball today and
additional 50 if Y can inflict serious injuries to Z.
2. Condition is negative = not having agreed upon, obligation is valid
Ex. X promises to pay Y 100 if Y will not assemble a flying chair.
3. Obligation is pre-existing and not depend on impossible condition for its existence, only
the condition is void.
Art. 1184 – Condition that some event happen at a determinate time- extinguish –when time
expires/not take place
-Positive Condition – Performance of an act| obligation is extinguished as soon as the time expires
Art. 1185 - Condition that some event will not happen at a determinate time – obligation effective
from elapsed/ event cannot occur. If time not fixed, condition shall deemed fulfilled- contemplated
-Negative Condition – non-performance of act|Obligation is effective from elapsed/even not elapsed
Ex. X promises to give his only car to Y if the latter will not marry Z this year 2016.
Art. 1186 – Condition-deemed-obligor prevents its fulfillment
Requisites of Doctrine of constructive fulfillment of suspensive condition
1. Condition is suspensive
2. Debtor prevents fulfillment of condition
3. Debtor acts voluntarily
Art. 1187 – Principle of retroactivity in suspensive condition
- Limited only to the effects of obligation
1. Obligation to give (real obligation) – when fulfilled – retroact to the day of constitution of
obligation
 Ex. On Jan. 2, 2016, X obliges himself to give his only car to Y if the latter will pass the May 2016
CPA board. Y passed the said board exam. By law, as if Y owns the car beginning Jan. 2, 2016.
Accidental elements of a contract
- Accidental elements are those which Exist only when parties provide them purpose of
limiting normal effects of contracts.
Ex. Terms & modes
2. In obligation to do or not to do ( Personal Obligation) –Determine retroactive effect of
suspensive condition
Retroactive effect as to the fruits and interests in obligation to give
1. In reciprocal obligation – No retroactive effect. Fruits and interest shall be deemed to be
compensated.
2. In unilateral obligation (are gratuitous) - No retroactive effect. Debtor shall appropriate the
fruits and interests received, unless the person constituting the same was different.
Art. 1188 – Rights of creditor before the fulfillment of the condition
- Bring actions for his rights
-Rights of debtor before the fulfillment of the condition
- Debtor may recover he has paid by mistake in case of suspensive condition. Debtor paid
with the knowledge and not by mistake, he waives the condition- he cannot recover. Debtor paid
with knowledge that it didn’t happen, debtor can recover otherwise creditor will unjustly
enriched at the expense of the debtor.
Art. 1189 - When the conditions have been imposed with the intention of suspending the efficacy of an
obligation to give, the following rules shall be observed in case of the improvement, loss or deterioration
of the thing during the pendency of the condition:

Notes: It doesn’t apply to generic or indeterminate things because they never perish. It applies on
determinate things.
Loss, explained. (lost when)
1. Perishes
2. Goes out of commerce
3. Disappears/ existence is unknown
Art. 1189 – loss in cases – condition imposed w/ suspending the efficacy to give
Rules in case of loss in obligation to give
1. If the thing is lost w/out the fault of the debtor = extinguished
Ex. X obliges himself to deliver his only car to Y if the latter passes his board exam. However,
before the release of result, said car was lost through an earthquake. Note that the car was lost
through fortuitous event; thus, obligation is extinguished.
2. If the thing is lost through the fault of the debtor =debtor pay damages
Ex. X obliges himself to deliver his only car to Y if Y graduates. However, before the graduation,
said car was destroyed when it fell while X driving it. X was drunk. X is liable for damages ‘cause
drunk-driving is an act of fault/ negligence.
3. When the thing deteriorates w/out the fault of debtor = impairment(weakened/damages) is
borne(bear) by the creditor
Ex. X obliges himself to deliver his only car to Y if the latter passes his subject Law this 2 nd
semester. After 4 months, Y unbelievably passed the subject. Car deteriorates through wear and
tear. Y will bear the decrease of value ‘cause the depreciation is w/out fault of X.
4. If it deteriorates through the fault of the debtor = creditor may choose between rescission and
its fulfillment w/ indemnity for damages.
Ex. On feb. 14, 2016, X bound himself to sell his only car to Y if the latter passes the April 2016
exam. Y passed. However, From feb 14, 2016 up to April 2016, X used the car negligently through
 rough roads instead of cemented roads, Y can choose specific alternative rescission w/
indemnity for damages.
5. If the thing is improved by its nature and time = improvement shall inure to the benefit of
creditor
Ex. On may 1, 2015, X bound himself to give his only parcel of land to Y if the latter passes the
April 2016 exam. Y passed. A land normally increases value through time. Thus, improvement
shall inure to the benefit of Y.
6. If it is improved at the expense of the debtor = no other right than granted to usufruactuary
Ex. On feb 14, 2016, X bound himself to give his only car to Y if the latter passes April 2016 exam.
However, from feb 14, 2016 up to april 2016, X improve the car, repainting, etc. X exercise the
right of usufructuary. He has the right to be indemnified on his expenses. If X caused damage to
car like scratches, he may set off any of this damge against the improvements.
Usufruct- right to enjoy the property of another unless the title constituting it.
Usufructuary – one having a right to usufruct, a person has right to benefit of another’s property.
Rights of usufructuary
1. Usufructuary may make useful improvements/ expenses for mere pleasure provided he does not
alter its form or substance
2. Usufructuary may set off improvements he may have made on the property against damage to
the same.
Note: Art. 579- Debtor can’t ask reimbursement for expenses for mere pleasure. Debtor can ask for
necessary expenses.
Art. 1190 – Extinguishment of an obligation to give, parties shall return to each other what they
received. In case of loss, art. 1187 shall be applied.
Effect of fulfillment of resolutory condition in obligation to give (real obligation)
- Return to each other what they received
Effect of fulfillment of resolutory condition in obligation to do or not to do ( personal obligation)
- Retroactive effect of the condition that has been complied with
Applicability of the rules in art 1189 – debtor obliged to return object, while creditor whom the thing
must be returned.
Art. 1191 – Power to rescind obligations
Rescission – unmaking a contract/ undoing from the beginning/ not merely termination
- Creates obligation to return objects
- To rescind: Declare contract void------like---- restoring the parties to their relative
position as if no contract has been made.
Reciprocal obligations – arise from the same cause, simultaneous fulfillment of the other|one party
fulfills his obligation, others delay.
Mutual restitution (cases involves rescission under art. 1191) – bringing parties back to their original
status
Extrajudicial Rescission – is not possible w/out an express stipulation to that effect.
Alternative Remedies of injured party
1. Fulfillment of the obligation w/ damages – refers to specific performance
Ex. X obliges himself to sell his only car to Y on feb. 14, 2016 and the latter will pay 300. On said
date, if X failed to deliver said car, Y may file case for specific performance to compel X to deliver
his only car. He may claim for damages, but y should have ground for asking damages accdg to
art. 1170.
2. Rescission of the obligation with damages – even injured party have chosen fulfillment and
became impossible, he can still seek rescission
 Ex. X obliges himself to deliver his only car to Y on Feb. 14, 2016 and the latter will pay 500. On
the said date, if Y failed to deliver said car ‘cause car was lost through the fault of X, then there is
impossibility of fulfillment. Y may seek rescission as alternative remedy.
Art. 1192 – both parties have committed a breach
Effects of breach by both parties
1. The liability of first indicator shall be tempered by courts.
2. Cannot be determined which of the parties first violated, same shall be deemed extinguished,
and each shall bear his own damages.
Sec. 2 – obligations w/ period
Art. 1193 – Obligation with period - Fulfillment a day certain has been fixed, shall be demandable only
when the day comes.
Ex. X promises to give his particular laptop to Y on dec. 30, 2016
A day certain – necessarily come, although it may not be known when
Day will come or not, obligation is conditional.
Term/period – interval of time
Requisites:
1. Future
2. Certain
Condition –event | term- interval | Condition- futurity and uncertainty | Term- futurity and certainty
Kinds of period or term
1. As to effect
a. Suspensive period (Ex die) – a day certain has been fixed, demandable only when the day
comes.
Ex. X promises to give 100 to Y on feb. 14, 2016. X will be liable upon demand by Y on feb.
14, 2016
b. Resolutory period (In diem) – take effect at ones, terminate upon arrival of the day ceratin
2. As to expression
a. Express – period is specifically stated
b. Implied – period is not specifically stated but it can be deduced…like…debtor permits him to
do so
3. As to definiteness
a. Definite period – fixed date
b. Indefinite period –not fixed date
4. As to source
a. Conventional – period agreed upon both parties
b. Legal – period is fixed by law
c. Judicial – period is fixed by court
Art. 1194 Loss before arrival = Art. 1189
Art. 1195 – Paid/ delivered before arrival of period, obligor unaware/believe its due, recovered, with
fruit and interest.
Effect of payment in advance –debtor recover what he has paid. He can’t recover if he delivers
voluntarily with the knowledge of the period.
Art. 1196 – Period is designated – presumed for benefit of creditor and debtor, unless the period
established for the favor of the other.
General rule: Period presumed to established for benefit of creditor and debtor
Ex. On jan. 1, 2016, X promised to pay Y 100 on July 1, 2016 with an interest. Said period is for the
benefit of both debtor and creditor ‘cause X invest the money to obtain profit while Y earn more interest
income during the 6 month period.
Exception: the period established for the favor of the other.
Ex. X promises to pay Y the amount of 100 on or before July 1, 2016. X has the option. Y must wait July 1,
2016 ‘cause the period is for the benefit of X, the debtor.
Art. 1197 –Obligation does not fix a period, court may fix the duration when it depends upon the will of
debtor. Once fixed by court, can’t be changed.
General Rule: Court is not authorized to fix period.
Exceptions: Obligation does not fix a a period, but from its nature, a period was intended|
The period depends upon the will of debtor | The parties contemplated a period | Debtor binds
to pay when his means permit him to do so.
Art. 1198. The debtor shall lose every right to make use of the period:
(1) When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or
security for the debt;
(2) When he does not furnish to the creditor the guaranties or securities which he has promised;
(3) When by his own acts he has impaired said guaranties or securities after their establishment, and
when through a fortuitous event they disappear, unless he immediately gives new ones equally
satisfactory;
(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to the
period;
(5) When the debtor attempts to abscond. (1129a)
SECTION 3. - Alternative Obligations
Kinds of obligation according to object
1. Simple obligation – only one object
Ex. X bounds himself to deliver his only dog to Y. D owes C 500.
2. Compound obligation – 2 or more objects
Kinds of Compound obligation
1. Conjuctive Obligation – 2 or more objects and all of them are due. All objects must
performed.
Ex. X obliges himself to give his only cell phone, only laptop, and only tv to Y on Aug. 1, 2016.
On the said date, X must deliver all three objects for his obligation to be extinguished.
Otherwise if X delivers only the cell phone then the obligation is not extinguished.
Gr: Complete payment, Complete performance
2. Distributive Obligation - 2 or more objects are due. One of the objects must performed.
Kinds of Distributive obligation
1. Alternative Obligation – 2 or more objects are due but the performance of one is
sufficient.
Ex. X obliges himself to give his only cell phone, or his only laptop, or his only tv to Y on
December 31, 2016. The delivery of either of these objects will extinguish the obligation
of X.
2. Facultative obligation – only one object is due but debtor may substitute another object.
Ex. X promise sto give his only parcel of land to Y. However, as a substitute, he will
deliver his only car.
Art. 1199. GR: A person alternatively bound by different prestations shall completely perform one of
them.
Limitation: creditor cannot be compelled to receive part of one and part of the other undertaking.
Ex: X obliges himself to give his only cell phone, only laptop, and only tv to Y on Dec. 31, 2016. The
delivery of either of these objects will extinguish his obligation. If X chooses to deliver his only cp, he
should include its charger… w/ the principle of complete payment, complete performance.
Art. 1200. Rule: The right of choice belongs to the debtor, unless it has been expressly granted to the
creditor.
The debtor shall have no right to choose those prestations which are impossible, unlawful or which could
not have been the object of the obligation. (1132)
Ex. X obliges himself to give his only cell phone, only laptop, and only tv to Y. A problem will arise if X
wants to deliver a cp while Y wants to receive the laptop. Did not stipulate who will choose, X, Debtor,
has right to choose.

Art. 1201. The choice shall produce no effect except from the time it has been communicated. (1133)
Art. 1202. The debtor shall lose the right of choice when among the prestations whereby he is
alternatively bound, only one is practicable. (1134)
Ex. X is bound to give his only cell phone, only laptop, and only tv to Y on Dec. 31, 2016. If both the cell
phone and the tv were lost, then it becomes a simple obligation. X will just deliver the laptop.
Art. 1203. If through the creditor's acts the debtor cannot make a choice according to the terms of the
obligation, the latter may rescind the contract with damages.
Ex. X is bound to give his only cell phone, only laptop, and only tv to Y on Dec. 31, 2016. Cellphone and
laptop were lost through negligence of Y. X can choose to deliver the tv. However, X may cancel or
rescind the contract, as an option, and the effect will be mutual restitution (return to each other what
they received). X may also claim damages.
Art. 1204. The creditor shall have a right to indemnity for damages when, through the fault of the
debtor, all the things which are alternatively the object of the obligation have been lost, or the
compliance of the obligation has become impossible.
The indemnity shall be fixed taking as a basis the value of the last thing which disappeared, or that of the
service which last became impossible.
Damages other than the value of the last thing or service may also be awarded. (1135a)
Creditor entitled to indemnity for damages
a. All the things which are alternatively the object of obligation have been lost
b. The compliance of the obligation has become impossible

Effects of loss of objects of alternative obligation when choice belongs to debtor

1. Loss due to fortuitous event
a. All the objects are lost – debtor’s obligation is extinguished
Ex. X is bound to give his only cell phone, only laptop, and only tv to Y. If all these were lost
through a typhoon then the obligation of X is extinguished.
b. Only one of the objects remains – debtor must deliver the remaining to creditor.
*Alternative|simple obligation
Ex. X is bound to give his only cell phone, only laptop, and only tv to Y. If the cellphone and
the laptop were both lost through typhoon then X is liable to deliver the Tv. It becomes a
simple obligation ‘cause there is only one remaining object.
c. Two or more objects remain – debtor choose among remain object.
Ex. X is bound to give his only cell phone, only laptop, and only tv to Y. if only cp lost in
typhoon then X is liable to deliver either laptop or tv at his option. Obligation is alternative
“cause there are 2 objects remaining.
Art. 1205 – choice is given to creditor, obligation-alternative from the day when the selection has been
communicated to debtor.
Responsibility of the debtor:
1. Lost through fortuitous event, he perform delivery that creditor choose from among the
remainder or which remains one.
2. Loss of one through the fault of debtor, creditor claim any of those subsisting/ price of which w/
right damages.
3. All lost through fault of debtor, choice by creditor fall upon price of any of them with indemnity
for damages.
Same rules applied to do or not to do obligations
Right of choice expressly given to the creditor
Effects of loss of objects of alternative obligation when choice belongs to creditor
1. Loss due to fortuitous event
a. All the objects are lost – debtor is extinguished
Ex. X give cp, tv, or laptop. If all lost through a typhoon. Obligation of X is extinguished
b. Only one of the objects remains – debtor deliver the remaining to creditor, obligation is
alternative and become simple.
Ex. X give cp, tv, or laptop. If cp and tv lost through typhoon then X liable to deliver tv. Simple
obligation ( only one subject).
c. 2 or more objects remain – alternative ( 2 objects)
2. Loss due debtor’s fault
a. All the objects are lost – creditor choose the price of any objects with indemnity for
damages.
b. Only one objects – creditor choose object which remains and debtor can’t be liable for
damages. However, creditor may choose value of any and charged for damages. obligation is
alternative and become simple.
c. 2 or more objects remain – debtor must deliver. However, creditor may choose value of
object that is lost and debtor will be liable for value plus damages. Alternative.