CHAPTER 3, SEC.

1 Pure and Conditional Obligations (Articles 1179-1192)

CHAPTER 3
DIFFERENT KINDS OF OBLIGATIONS
SECTION 1 PURE AND CONDITIONAL OBLIGATIONS
(Arts. 1179-1192)

STUDY GUIDE : (20 July - Monday)

1. Kinds of obligation according to demandability :

(a) Pure obligation no term & no condition; demandable at once

(Art. 1179, par. 1)

(b) Conditional obligation subject to the fulfillment of a condition

2. Condition (a) future and uncertain; OR (b) past but unknown
3. Kinds of condition as to effect : (Art. 1181)

(a) Suspensive its fulfillment gives rise to an obligation

(b) Resolutory its fulfillment extinguishes an obligation
4. Kinds of condition as to cause or origin : (Art. 1182)

(a) Potestative depends upon the will of one of the parties

NOTE : If the potestative condition (a) depends upon the sole will of the debtor
AND (b) is suspensive in nature, the conditional obligation shall be
VOID. (Art. 1182, 1st sentence)

READ THIS CASE IN ITS ORIGINAL TEXT:

Lao Lim vs. Court of Appeals,
G.R. No. L-87047, October 31, 1990.

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CHAPTER 3, SEC. 1 Pure and Conditional Obligations (Articles 1179-1192)

(b) Casual depends upon chance, OR upon the will of a third person

READ THIS CASE IN ITS ORIGINAL TEXT:

Ducusin vs. Court of Appeals,
G.R. No. L-58286 May 16, 1983.

(c) Mixed depends partly upon chance, and partly upon the will of a third
person
5. Kinds of conditions as to form :

(a) Possible capable of fulfilment

(b) Impossible - not capable of fulfillment (Art. 1183)
[par. 1]

[par. 2]

(b.1.) Physically cannot exist or cannot be done

(b.2.) Legally contrary to LaMoG-PuPu
(b.1.) Positive TO DO an impossible thing
the conditional obligation is VOID
(b.2.) Negative NOT TO DO an impossible thing
the conditional obligation is VALID

READ THIS CASE IN ITS ORIGINAL TEXT:

Roman Catholic Archbishop of Manila vs. Court
of Appeals, G.R. No. 77425, June 19, 1991.

6. 2 kinds of suspensive conditions as to mode :

(a) Positive that an event WILL happen at a determinate time

(b) Negative that an event WILL NOT happen at a determinate time
EFFECT ON
OBLIGATION

The designated time expires or

elapses WITHOUT the event taking

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The designated time has not expired

but it becomes definite that the event

CHAPTER 3, SEC. 1 Pure and Conditional Obligations (Articles 1179-1192)

place.

will not take place.

POSITIVE

Extinguished (Art. 1184)

Extinguished (Art. 1184)

NEGATIVE

Effective (Art. 1185)

Effective (Art. 1185)

7. Art. 1186 When the debtor voluntarily performs any act to prevent the
happening of a suspensive condition, the same results in the constructive
fulfillment of the suspensive condition.

READ THIS CASE IN ITS ORIGINAL TEXT:

PAL vs. CA, G.R. No. 119706, March 14, 1996.

8. Art. 1187 Retroactive effect of fulfillment of the suspensive condition

(a) In real obligations (par. 1)

(a.1.) re the thing once the condition is fulfilled, its effects retroact to
the day when the obligation was constituted.
(a.2.) re fruits and interests :
(a.2.1.) in reciprocal obligations no retroactive effect; fruits and
interests received are deemed mutually compensated
(a.2.2.) in unilateral obligations no retroactivity as they are
gratuitous
(b) In personal obligations (par. 2) subject to courts determination

9. Art. 1188 Rights pending fulfillment of the suspensive condition

(a) Creditor to bring appropriate actions to preserve his rights (par. 1)

Reason : to prevent the debtor from deliberately destroying,

hiding or alienating the object of the obligation pending fulfillment of the
condition.
REMEMBER : By the same token, this right may be
exercised by the debtor in obligations subject to a resolutory condition.
EXAMPLES :

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CHAPTER 3, SEC. 1 Pure and Conditional Obligations (Articles 1179-1192)

(a.1.)
(a.2.)
(a.3.)
(a.4.)
(b)

sue in court
initiate the recording of his expected right
ask for security if the debtor is about to be insolvent
ask the court to prevent alienation or concealment pendente
conditionae

Debtor Can the debtor recover from the creditor what he has paid
by mistake? (par. 2)

Debtors right to recover what has been paid

(including fruits/interest)
BEFORE fulfillment of suspensive condition

Payment by mistake
When creditor is in :
good faith
bad faith
YES
YES + F/I

Deliberate
payment
NO

UPON fulfillment of suspensive condition

NO

NO + F/I

NO

NON-fulfillment of suspensive condition

YES

YES + F/I

YES

10. Art. 1189 Loss, deterioration and improvement of the object of an

obligation pending fulfillment of a suspensive condition in a
specific real obligation.
(a) Loss physical, legal & civil loss (Art. 1189, No. 2)
(b) Deteriorate value is reduced or impaired
Effect of :
(Art. 1189)
LOSS
DETERIORATION

IMPROVEMENT

DEBTORS INTENT
Without Fault

With Fault

Obligation is extinguished (No. 1)

Creditor bears impairment (No. 3)

Damages incurred (No. 2)

Creditors remedies : (No. 4)
(a) rescission + damages OR
(b) fulfillment + damages

(a) By nature or by time Creditor benefits from improvement (No. 5)

(b) At debtors expense Debtor will have the rights of a usufructuary
(No. 6); no right to indemnity but he may remove improvements without
damage to the property and/or set-off improvements against damage to
the property. (Arts. 579 & 580, NCC)

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CHAPTER 3, SEC. 1 Pure and Conditional Obligations (Articles 1179-1192)

11. Art. 1190 Effects of fulfillment of the resolutory condition

(a) In real obligations (par. 1)

(a.1.) The obligation is extinguished.

(a.2.) There should be restitution, not only of the thing received, but
also of the fruits or interests thereon.
(b) In personal obligations (par. 3) subject to courts determination
(c) In case of loss, deterioration or improvement of the thing after

fulfillment of the resolutory condition, but before restitution is effected

(par. 2) the party who is bound to return in a resolutory conditional
obligation shall have the same rights and duties as that of the debtor
under Art. 1189.
12. Art. 1191 The right to rescind in reciprocal obligations in case of breach or
non-fulfillment
(a) Kinds of obligations according to the person obliged :

(a.1.) Unilateral when only one party is obliged to comply with a

prestation
(a.2.) Bilateral when both parties are debtors and creditors of each
other
(a.2.1.) Reciprocal the parties obligations arise from the same
cause; the obligation or promise of each party is the
cause or consideration for the obligation or promise of
the other.
(a.2.2.) Non-reciprocal the performance of one party is not
dependent upon the simultaneous performance by the
other.
(b) Remedies of the aggrieved party in a reciprocal obligation in case the

other party does not comply with his undertaking : (par. 2)

(b.1.) specific performance + damages; OR

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CHAPTER 3, SEC. 1 Pure and Conditional Obligations (Articles 1179-1192)

(b.2.) rescission/cancellation of contract + damages

REMEMBER : The remedies provided in Art. 1191, par. 2 are
alternative, and not cumulative.
HOWEVER : An action for rescission may still be availed of even after an
action for specific performance has been preferred, IF
fulfillment should have become impossible.
BUT : Once an action for rescission is chosen, specific performance can no
longer be demanded.
(c) Limitations on the right to rescind :

(c.1.)

Only substantial (not trivial or slight) breaches can cause

rescission.

(c.2.) If there is just cause for fixing the period within which the debtor
can comply, the court will not decree the rescission claimed.
(par. 3)
(c.3.) If the property, subject of the contract, is in the hands of an
innocent third party who has lawful possession of the same,
rescission will not be successful. (par. 4)

READ THIS CASE IN ITS ORIGINAL TEXT:

Romero vs. Court of Appeals,
G.R. No. 107207, November 23, 1995.

13. Art. 1192 Rule if both parties have committed a breach:

(a) If the first infractor is known the liability of the first infractor shall be

proportionately reduced. (1st sentence)

(b) If the first infractor is not known the contract shall not be enforced.

Each party shall bear his own loss/damages. (2nd sentence)

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CHAPTER 3, SEC. 1 Pure and Conditional Obligations (Articles 1179-1192)

APPLICATION/PROBLEMS :
1. On May 5, 2015, Jim entered into an agreement with Jet. Under the
agreement, Jim obliged himself to deliver to Jet an antigue ruby ring worth
P50,000.00 anytime that Jet wants it and demands delivery. On June 5, 2015, Jet
makes up her mind and insists on the delivery of the ruby ring from Jim. Jim,
however, denies liability and claims that the condition, that is anytime Jet wants it,
was potestative in nature. Hence, the same condition upon which Jims obligation
was made to depend upon, as well as the obligation itself, is void. Does Jims
argument have legal basis? Is he under obligation to deliver to Jet the rubi ring as
promised? Clue: Art. 1182.
2. On March 15, 2015, Donna and Celia entered into an agreement. In their
agreement, Donna obliged herself to purchase from Celia a house and lot located in
Makati for P3.5M. Donnas husband had been detailed by their office from Baguio
City to Makati effective May 1, 2015. Hence, the family was relocating permanently
to Makati. For this reason, it was agreed by the parties that by April 15, 2015, Celia
should have vacated and readied the house for occupancy to allow Donna and her
family to move in. On April 13, 2015, when Donna contacted Celia, she was
informed that Celia had not even taken initial steps to vacate the subject property.
Hence, Donna was left with no other recourse but to accept the proposal of an agent
for the acquisition of a two-bedroom condominium unit at the Avida Towers in Makati
which was available for occupancy as of April 15, 2015. Celia, however, demanded
that Donna make good her commitment to purchase Celias Makati house and lot as
per their March 15, 2015 agreement. Under the factual circumstances obtaining, is
Donna bound to comply with her obligation? Clue: Art. 1184.
3. Angelo hired Engr. Luis to construct a 50-kilometer road within his private
subdivision. It was agreed that Engr. Luis was to finish the construction in 3 months.
The contract price agreed upon was P2M. After six weeks, however, and without
justification, Angelo ordered the construction stopped with the work barely halffinished. Engr. Luis was left with no choice but to follow the owners instruction for
work stoppage. Engr. Luis, however, charged Angelo for the complete contract price
of P2M. Angelo refused to pay the entire amount on the ground that the project was

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CHAPTER 3, SEC. 1 Pure and Conditional Obligations (Articles 1179-1192)

only then half-finished. Can Engr. Luis demand from Angelo payment of the entire
contract price of P2M? Clue: Art. 1186.

4. On February 11, 2013, Francis and Josh entered into a transaction with
regard to a 1-hectare farm lot in Laguna owned by Francis. The parties agreed that
should Josh pass the Nursing Board Examination on September 30, 2014, Francis
will sell the said farm lot to Josh for P1.5M. On March 15, 2013, Josh promised to
sell the farm lot to Reuben for P2M. On October 23, 2013, Francis promised to sell
the farm lot to Peter. On September 30, 2014, Josh passed the Nursing Board
Examination. As between Reuben and Peter, who has a better right over the farm
lot? Clue: Correlate Arts. 1187 & 1188.
5. On April 4, 2014, I gave you Shaun, my favourite sheep, on the condition
that you will never go to the casino. On September 20, 2014, Shaun gave birth to 5
healthy lambs. On January 2, 2015, however, I saw you going to the casino again.
So, on January 3, 2015, I demanded for the return of Shaun and her 5 lambs. You
gave me Shaun but you refused to give me her babies, and in fact sold the 5 lambs
last Christmas. Do you think your refusal is legally justified under the factual
circumstances? Clue: Correlate Arts. 1189 & 1190.
6. On December 20, 2010, Rudy and Dan entered into a lease contract. It
was agreed that Dan would lease an office space from Rudy for 5 years starting
January 1, 2011 to December 31, 2015. In consideration therefor, Rudy was to
collect a monthly rental of P10,000.00 from Dan. Starting January 1, 2013, however,
or after 2 years of the contract, Dan failed to pay his monthly rental payments
despite repeated demands from Rudy. Hence, on March 1, 2013, Rudy asked Dan to
vacate the premises if he could not afford to pay. On March 15, 2013, Dan turned
over the office space to Rudy. Now, Rudy demands from Dan payment of rents for
the remaining three years of the contract, i.e., from January 1, 2013 to December 31,
2015. Is Rudy well within his rights to claim said rental payments for the remaining
term of their lease contract? Clue: Art. 1191, par. 2

*** END ***

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CHAPTER 3, SEC. 1 Pure and Conditional Obligations (Articles 1179-1192)

FOOD FOR THOUGHT

Self-discipline is an act of cultivation.
It requires you to connect todays actions to tomorrows results.
Theres a season for sowing, a season for reaping.
Self-discipline helps you know which is which.

Gary Ryan Blair

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