Different kinds of obligations (Section 1 Pure and Conditional Obligation) (Article 1179 - 1192)

Classifications of obligation (Primary)

• Pure and conditional obligation

• Obligations with a period

• Alternative and facultative obligations

• Joint and Solidary obligation

• Divisible and indivisible obligations

• Obligations with a penal clause

Classification of obligation (Secondary)

• Unilateral and bilateral obligations

• Real and personal obligations

• Determinate and generic obligations

• Civil and natural obligation

• Legal, conventional, and penal obligation.

Article 1179

Obligations whose performance does not depend upon a future, uncertain event, or upon a past event unkown to parties is demandable at once. (No condition, nor date = demandable at once).

Every resolutory condition is demandable at once but as soon as the future event happens, the obligation is completely wiped out or extinguished.

Pure obligation

Is not subjected to any condition nor a specific date mentioned for its fulfillment, thus immediately demandable.

Conditional Oblgiation

In one whose consequence is subject to fulfillment of a condition.

Two kinds of conditions:

• Suspensive condition (condition precedent/antecedent) - will give rise to an obligation. The demandability of the obligation is suspended until the happening of the uncertain event which constitutes the condition.
  -Example : I will give you my car when you pass the qualifying exams.

• Resolutory condition(condition susbsequent) - the fulfillment of which will extinguish an obligation already existing.
  -Example : You can have the car but as soon as you fail the qualifying exams I will take it back.

When oblgiation 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

When the debtor binds himself with an oblgiation to pay when his means permit him to do so, then the obligation shall be deemed with a period.

Period

Is a future and certain event, upon the arrival of which the obligation will either be extinguished or arises.

Examples of an obligation with a period:

• little by little

• as soon as possible

• at any time i have the money

• in partial payments

• when I am in a position to pay

Article 1181

Talks about when a right is born (precedent condition) and dies (susbsequent condition).

Article 1182

Talks about potestative condition where the power or choice depends on one of the parties. ONLY APPLICABLE TO suspensive condition because of its nature.

(1)When the potestative condition is:
a.) The sole will of the debtor it is void. Unless it is a resolutory condition then it is valid.
b.) The sole will of the creditor is valid.
(2) Casual condition - the condition depends on chance or the will of a third person. Valid
(3) Mixed - partly on chance and partly on the will of the third party. Valid

Classification of conditions

(1) As to effect:

a.) suspensive

b.) resolutory

(2) As to form:

a.) Express

b.) Implied

(3) As to possibility

a.) Possible

b.) Impossible

(4) As to cause or origin:

a.) Potestative

b.) Casual

c.) Mixed

(5) As to mode:

a.) Positive

b.) Negative

(6) As to numbers:

a.) Conjunctive - all must be fulfilled

b.) Disjunctive - only one must be fulfilled

(7) As to divisibility

a.) Divisible - susceptable to partial performance

b.) Indivisible - not susceptable to partial performance

Article 1183

Talks about what happens when you tie an obligation to a condition that is physically impossible or legally forbidden.

When a conditional obligation is void - when it is impossible conditions annul which depends upon them , the obligor knows his obligation cannot be fulfilled, he has no intention to comply with his obligation ( if the sun will not rise tomorrow).

When a conditional obligation is valid - when it is negative (not to do) it is disregarded and becomes pure and valid.

Only the affected obligation is void, if the obligation is divisible, and the part thereof not affected by the impossible condition is valid.

Only the condition is void if there is already a pre-existing obligation and it does not depend upon the fulfillment of the condition which is impossible.

Two kinds of Impossible conditions:

Physically Impossible - things that cannot be done or cannot exist

Legally Impossible - when contrary to law, morals, good customs, public order, or public policy.

Article 1184

Are positive conditions that have a clear deadline and explains when the oblgiation is extinguished if the event doesn’t happen.

The condition that some event happen at a determinate time shall extinguish the obligation as soon as the time expires or if it has become indubitable that the event will not take place.

Example: D will give his dog if C passes the Bar before the age of 26. If C passes the Bar at the age of 25, D is liable.

If C reaches 26 without passing the Bar or if he passes the Bar at the age of 26, the obligation of D is extinguished. If C dies before passing or before reaching 26 it is extinguished.

Article 1185

Talks about negative conditions or not doing something with a deadline.

The condition that some event will not happen at a determinate time shall render the obligation effective from the moment the time indicated has elapsed, or if it has become evident that the event cannot occur. If no time has been fixed, the condition shall be deemed fulfilled at such time as may have probably been contemplated, bearing in mind the nature of the obligation.

Example: D will give his dog if C is not yet a lawyer before the age of 26.

If C becomes a lawyer at the age of 25, D is NOT liable.

If C is not yet a lawyer at the age of 25, D is liable.

If C becomes a lawyer at the age of 26, D is NOT liable.

Article 1186

Doctrine of Consturctive Fulfillment in simple terms bad faith or sabotage, where the debtor promises to pay only if a certain condition happens, but that debtor intenitonally steps in and stops the condition from happening so they can avoid paying. But the law steps in says “ We will pretend the condition happened anyway, and must pay now”.

The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment.

C found a buyer, X. However, D directly transacted to the X without the knowledge of C. Here, the prevention of D constructively fulfilled the condition, making D liable to give his puppy to C.

The requisites for the application article 1186:

• The condition is suspensive

• The obligor actually prevents the fulfillment of the condition

• He acts voluntary

Article 1187

When the contract requires someone to deliver a specific item once a condition is met, the ownership right retroacts (dates back) to the very day the contract was created.

Example: On January 1, A father promises his daughter, “I will give you my plot of lad if you pass the CPA board exams in October”. The daughter passes on Ocotber 15, legally she is the rightful owner of the land starting from January 1.

If reciprocal obligation: if both parties have to give something, they cancel each other out.

Example: I sell you land if you pass the exam. While waiting, I keep the land’s crop harvest, and you keep the intrest on your money. No one owes each other back-rent.

if unilateral: if its one-way ( like the father land gift above), the father gets to keep all the fruits earned while waiting, unless he explicitly stated otherwise. The daughter gets the land but not the rent money.

Obligations to do or not to do: The court will determine, whether the effects should tavel back to day 1 or start of the fulfillment, depending what is fair.

Article 1188

The creditor may, before the fulfillment of the condition, bring the appropriate actions for the preservation of his right. The debtor may recover what during the same time he has paid by mistake in case of a suspensive condition.

It is a safegaurd for both parties involved in a conditional obligation while awaiting the fulfillment of the condition. It allows the prospective receiver to protect their future intrest against loss or damage, while permitting the obligor to recover any premature payments made by mistake.

Article 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

LOSS:
(1) debtor without fault – obligation is extinguished
(2) debtor with fault – obligation to pay damages

DETERIORATION:
1. debtor without fault – impairment is to be borne by the creditor
2. debtor with fault – creditor can choose:
(1) rescission/cancellation of obligation with damages, or (2) fulfillment of obligation with damages

IMPROVEMENT:
1. by nature or time – improvement: inure to the benefit of the creditor
2.at the expense of the debtor – granted to the usufructuary

Requisites

• Obligation is real (to give/ to deliver)

• Object/Prestation is to deliver a specific or determinate thing

• Condition is suspensive • Condition is fulfilled

• There is loss, deterioration or improvement.

Article 1190

What happens when a resolutory condition is finally fulfilled

Obligation to give - reutrun to each other what they have received.

In case of loss, deterioration, or improvement of the thing:
(1) if loss/destroyed: a.) without your fault: no need to pay b.) if fault > pay the value plus damage

(2)Damage/deteriorarted: a.) WIthout your fault = no need to pay b.) If fault > creditor may choose to take the car back and make you pay, or cancel the return and pay for the whole thing plus damages.
(3) if the item got better/improved: a.) by nature = goes to creditor for free b.) at your expense = you can take it back for as long it doesnt destroy the thing.

Article 1191

It is the power to cancel or rescind an agreement is implied in all reciprocal obligation. The two choices given to the injured party:
(1) Specific performance plus damages
(2) Recission wipe out the contract completely get your money back plus damages.

You can only choose one, if physically impossible then opt for recission.
Courts can grand grace period if minor or accidental.
The breach must be subtantial which breaks the main purpose of the agreement.

Article 1192

If both parties are at fault, who gets punished?

In case both parties have committed a breach of the obligation, the liability of the first infractor shall be equitably tempered by the courts. If it cannot be determined which of the parties first violated the contract, the same shall be deemed extinguished, and each shall bear his own damages.

Find out who broke the promise first(the person who bears the heavier legal burden, and the courts will reduce damages.

Impossible to determine who started it it will be extinguished.