Chapter 3Different Kinds of Obligations

Primary Classification of Obligations under the Civil Code:

1. Pure and Conditional Obligations2. Obligations with a period3. Alternative and Facultative

Obligations4. Joint and Solidary Obligations5. Divisible and Indivisible Obligations6. Obligations with a Penal Clause

Secondary Classification:1. Unilateral and Bilateral Obligations2. Real and Personal Obligations3. Determinate and Generic Obligations4. Civil and Natural Obligations5. Legal, Conventional, and Penal

Obligations

Article 1179Pure Obligations

- Is one which is not subject to any condition and no specific date is mentioned for its fulfillment and is, therefore, immediately demandable

Conditional Obligations- Is one whose consequences are subject

in one way or another to the fulfillment of a condition

Condition- Is a future and uncertain event, upon

the happening of which, the effectivity or extinguishment of an obligation (or right) subject to it depends

Characteristics of a Condition:1. Future and Uncertain2. Past but Unknown

2 Principal Kinds of Condition:1. Suspensive Condition (Condition

Precedent or Condition Antecedent)- One the fulfillment of which will

give rise to an obligation (or right)- The demandability of the

obligation is suspended until the happening of the uncertain event which constitutes the condition

2. Resolutory Condition (Condition Subsequent)

- One the fulfillment of which will extinguish an obligation (or right) already existing

Distinctions between

suspensive and resolutory conditionsSuspensive Resolutory

When fulfilled The obligation arises

The obligation is extinguished

When does not take place

The tie of the law (juridical or legal tie)

does not appear

The toe of the law (juridical or

legal tie) is consolidated

When takes place

The existence of the

obligation is a mere hope

It affects flow, but over it hovers the

possibility of termination

When obligation is demandable at once:1. When it is pure2. When it is subject to a resolutory

condition3. When it is subject to a resolutory

period

Article 1180Where duration of period depends upon the will of debtor:

1. The debtor promises to pay when his means permit him to do so

2. As when the debtor binds himself to pay

a. Little by littleb. As soon as possiblec. From time to timed. At any time I have the moneye. In partial paymentsf. When I am in a position to pay

Article 1181Effect of Happening of condition

1. Acquisition of Rights (suspensive)2. Loss of Rights already acquired

(resolutory)

Article 1182Classifications of Conditions:

As to effect:1. Suspensive

- The happening of which gives rise to the obligation

2. Resolutory- The happening of which

extinguishes the obligation As to form:

1. Express- The condition is clearly stated

2. Implied- The condition is merely

inferred As to Cause or Origin:

1. Potestative- The condition depends upon

the will of one of the contracting parties

2. Casual

- The condition depends upon chance or upon the will of a third person

3. Mixed- The condition depends partly

upon chance and partly upon the will of a third person

As to Mode:1. Positive

- The condition consists in the performance of an act

2. Negative- The condition consists in the

omission of an act As to Numbers:

1. Conjunctive- There are several conditions and all

must be fulfilled2. Disjunctive

- There are several conditions and only one or some of them must be fulfilled

As to Divisibility:1. Divisible

- The condition is susceptible of partial performance2. Indivisible

- The condition is not susceptible of partial performance

Potestative Condition- A condition suspensive in nature and

which depends upon the sole will of one of the contracting parties

Where suspensive condition depends upon will of debtor:

1. Conditional obligation void2. Only the condition void

Where suspensive condition depends upon will of creditor:

1. Obligation is valid

Casual ConditionIf the suspensive condition depends upon chance or upon the will of a third person, the obligation subject to it is valid.

Mixed conditionThe obligation is valid if the suspensive condition depends partly upon chance and partly upon the will of a third person.

Where suspensive condition depends partly upon the will of debtorAccording to Manresa, the use of the word ‘exclusive’ (now ‘sole’) makes it clear that conditional obligations whose fulfillment depends partly upon the will of the debtor and partly upon the will of a third person, or upon chance are perfectly valid.

Article 1183Refers to suspensive conditions

2 kinds of impossible conditions:1. Physically impossible conditions

- When they, in nature of things, cannot exist or cannot be done

2. Legally impossible conditions- When they are contrary to law,

morals, good customs, public order, or public policy

Effect of Impossible Conditions:1. Conditional obligation void2. Conditional obligation valid3. Only the affected obligation void4. Only the condition void

Article 1184Refers to positive (suspensive) condition

- The happening of an event at a determinate time

The obligation is extinguished:1. As soon as the time expires without the

event taking place2. As soon as it has become indubitable

that the event will not take place although the time specified has not expired

Article 1185Refers to negative condition

- An event that will not happen at a determinate time

The obligation shall become effective and binding:

1. From the moment the time indicated has elapsed without the event taking place

2. From the moment it has become evident that the event cannot occur, although the time indicated has not yet elapsed

Article 1186Requisites for the application of this article:

1. The condition is suspensive2. The obligor actually prevents the

fulfillment of the condition3. He acts voluntarily

Article 1187Retroactive effects of fulfillment of suspensive condition:

1. In obligation to give

2. In obligation to do or not to do

Retroactive effects as to fruits and interests in obligations to give:

1. In reciprocal obligations

2. In unilateral obligations

Article 1188Rights pending fulfillment of suspensive condition:

1. Rights of creditora. Take or bring appropriate

actions for the preservation of his right

b. Go to court2. Rights of debtor

a. Entitled to recover what he has paid by mistake

Article 1189Requisites for application of this article:

1. The obligation is a real obligation2. The object is a specific or determinate

thing3. The obligation is subject to a suspensive

conditions4. The condition is fulfilled5. There is loss, deterioration, or

improvement of the thing during the pendency of the condition

Kinds of loss (civil law):1. Physical loss

- When a thing perishes as when a house is burned and reduced to ashes

2. Legal loss- When a thing goes out of

commerce or when a thing heretofore legal becomes illegal

3. Civil loss

- When a thing disappears in such a way that its existence is unknown or even if known, it cannot be recovered, whether as a matter of fact or of law

Rules in case of loss, deterioration, or improvement of thing during pendency of suspensive condition:

1. Loss of thing without debtor’s fault2. Loss of thing through debtor’s fault3. Deterioration of thing without debtor’s

fault4. Deterioration of thing through debtor’s

fault5. Improvement of thing by nature or by

time6. Improvement of thing at expense of

debtor

Usufruct- Is the right to enjoy the use and fruits of

a thing belonging to another

Article 1190Effects of fulfillment of resolutory condition:

1. In obligation to give

2. In obligations to do or not to do

Article 1191Kinds of obligation according to the person obliged:

1. Unilateral- When only one party is obliged to

comply with a prestation2. Bilateral

- When both parties are mutually bound to each other

- Both parties are debtors and creditors of each other

a. Reciprocal obligations- Are those which arise from the

same cause and in which each party is a debtor and creditor of the other, such that the performance of one is designed to be the equivalent and the condition for the performance of the other.

b. Non-reciprocal obligations- Are those conditions which do

not impose simultaneous and correlative performance on both parties

- The performance of one party is not dependent upon the simultaneous performance by the other

Remedies in reciprocal obligations:1. Choice of remedies

a. Action for specific performance (fulfillment) of the obligation with damages

b. Action for rescission of the obligation also with damages

2. Remedy of rescission of non-compliance

a. Principal actionb. Subsidiary action

Limitations on right to demand rescission:1. Resort to the courts2. Power of court to fix period3. Right of third person4. Substantial violation5. Waiver of right

Rescission without previous judicial decree1. Where automatic rescission expressly

stipulated2. Where contract still executory

Article 11922 situations where both parties are guilty of breach:

1. First infractor known2. First infractor cannot be determined

Article 1193 Obligation with a period

- Is one whose consequences are subjected in one or another to the expiration of said period or term

Period or term- Is a future and certain event upon the

arrival of which the obligation (or right) subject to it either arises or is terminated

- It is a day certain which must necessarily come, although it may not be known when, like the death of a person

Period and Condition DistinguishedPeriod Condition

As to fulfillment

Certain event Uncertain event

As to time Refers only to future

May refer also to past event unknown to the parties

As to influence on

the obligation

Merely fixed the time for

the efficaciousness

of the obligation

Causes an obligation

either to arise or to cease

As to effect, when left to debtor’s will

Depends upon the will of the

debtor empowers the court to fix the

duration thereof

Depends upon the sole will of

the debtor invalidates the

obligation

As to retroactivity

of effects

The arrival of period does not have any retroactive

effect (unless there is an

agreement to the contrary)

The happening of a condition

has retroactive effect

Kinds of period or term:According to effect:

1. Suspensive period (ex die)- The obligation begins only from a

day certain upon the arrival of period

2. Resolutory period (in diem)- The obligation is valid up to a day

certain and terminates upon arrival of the period

According to source:1. Legal period

- When it is provided for by laws2. Conventional or voluntary period

- When it is agreed to by the parties

3. Judicial period- When it is fixed by the court

According to definiteness:1. Definite period

- When it is fixed or it is known when it will come

2. Indefinite period- When it is not fixed or it is not

known when it will come- Where the period is not fixed but

a period is intended, the courts are usually empowered by law to fix the same

Article 1194In case of loss, deterioration or improvement of the thing before the arrival of the day certain,

the rules in Article 1189 shall be observed.

Article 1195Debtor presumed aware of periodNo recovery in personal obligations

Article 1196Exceptions to the general rule:

1. Term is for the benefit of the debtor alone

2. Term is for the benefit of the creditor

Computation of term or periodYear = 365 daysMonth = 30 daysDay = 24 hoursNight = from sunset to sunrise

Months designated by their names- Computed by the number of days which

they respectively have

In computing a period (Art. 13)- 1st day excluded- Last day included

Article 1197Refers to judicial period

Court generally without power to fix a periodIf the obligation does not state a period and no period is intended, the court in NOT authorized to fix a period. The courts have no right to make contracts for the parties. (Tolentino vs. Gonzales)

Exceptions to the general rule:1. No period is fixed but a period was

intended2. Duration of the period depends upon

the will of the debtor

Legal effect where suspensive period/condition depends upon will of debtor.

Period fixed cannot be changed by the courts

Article 1198General Rule: the obligation is not demandable before the lapse of the period.

When obligation can be demandable before lapse of period:

1. When debtor becomes insolvent2. When debtor does no furnish

guaranties or securities promised3. When guaranties or securities given

have been impaired or have disappeared

4. When debtor violates an undertaking5. When debtor attempts to abscond