chapter 3, oblicon reviewer

Chapter 3 Different Kinds of Obligations 

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Primary Classification of Obligations under the Civil Code: 1. Pure and Conditional Obligations 2. Obligations with a period 3. Alternative and Facultative Obligations 4. Joint and Solidary Obligations 5. Divisible and Indivisible Obligations 6. Obligations with a Penal Clause Secondary Classification: 1. Unilateral and Bilateral Obligations 2. Real and Personal Obligations 3. Determinate and Generic Obligations 4. Civil and Natural Obligations 5. Legal, Conventional, and Penal Obligations

Article 1179 Pure 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 Uncertain 2. 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 conditions Suspensive Resolutory The obligation The obligation is When fulfilled arises extinguished The tie of the The toe of the law (juridical When does law (juridical or or legal tie) not take place legal tie) is does not consolidated appear It affects flow, The existence but over it When takes of the hovers the place obligation is a possibility of mere hope termination When obligation is demandable at once: 1. When it is pure 2. When it is subject to a resolutory condition 3. When it is subject to a resolutory period

Article 1180 Where 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 little b. As soon as possible c. From time to time d. At any time I have the money e. In partial payments f. When I am in a position to pay Article 1181 Effect of Happening of condition 1. Acquisition of Rights (suspensive) 2. Loss of Rights already acquired (resolutory)

Article 1182 Classifications 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 fulfilled 2. 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 performance 2. 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 void 2. Only the condition void

Where suspensive condition depends upon will of creditor: 1. Obligation is valid Casual Condition If the suspensive condition depends upon chance or upon the will of a third person, the obligation subject to it is valid. Mixed condition The 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 debtor According 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 1183 Refers 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 void 2. Conditional obligation valid 3. Only the affected obligation void 4. Only the condition void

Article 1184 Refers 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 place 2. As soon as it has become indubitable that the event will not take place although the time specified has not expired

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Article 1185 Refers 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 1186 Requisites for the application of this article: 1. The condition is suspensive 2. The obligor actually prevents the fulfillment of the condition 3. He acts voluntarily Article 1187 Retroactive 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 1188 Rights pending fulfillment of suspensive condition: 1. Rights of creditor a. Take or bring appropriate actions for the preservation of his right b. Go to court 2. Rights of debtor a. Entitled to recover what he has paid by mistake Article 1189 Requisites for application of this article: 1. The obligation is a real obligation 2. The object is a specific or determinate thing 3. The obligation is subject to a suspensive conditions 4. The condition is fulfilled 5. 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 fault 2. Loss of thing through debtor’s fault 3. Deterioration of thing without debtor’s fault 4. Deterioration of thing through debtor’s fault 5. Improvement of thing by nature or by time 6. Improvement of thing at expense of debtor Usufruct - Is the right to enjoy the use and fruits of a thing belonging to another Article 1190 Effects of fulfillment of resolutory condition: 1. In obligation to give

2. In obligations to do or not to do

Article 1191 Kinds of obligation according to the person obliged: 1. Unilateral - When only one party is obliged to comply with a prestation 2. Bilateral - When both parties are mutually bound to each other

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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 noncompliance a. Principal action b. Subsidiary action Limitations on right to demand rescission: 1. Resort to the courts 2. Power of court to fix period 3. Right of third person 4. Substantial violation 5. Waiver of right

Rescission without previous judicial decree 1. Where automatic rescission expressly stipulated 2. Where contract still executory Article 1192 2 situations where both parties are guilty of breach: 1. First infractor known 2. 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 Distinguished Period Condition As to Uncertain Certain event fulfillment event May refer also Refers only to to past event As to time future unknown to the parties Merely fixed As to the time for Causes an influence on the obligation the efficaciousness either to arise obligation of the or to cease obligation Depends upon the will of the Depends upon As to effect, debtor the sole will of when left to empowers the the debtor debtor’s will court to fix the invalidates the duration obligation thereof The arrival of period does not have any The happening As to retroactive of a condition retroactivity effect (unless has retroactive of effects there is an effect agreement to the contrary)

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 laws 2. 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 1194 In 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 1195 Debtor presumed aware of period No recovery in personal obligations

Article 1196 Exceptions 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 period Year = 365 days Month = 30 days Day = 24 hours Night = 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 1197 Refers to judicial period Court generally without power to fix a period If 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 intended 2. 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 1198 General 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 insolvent 2. When debtor does no furnish guaranties or securities promised 3. When guaranties or securities given have been impaired or have disappeared 4. When debtor violates an undertaking 5. When debtor attempts to abscond