Law Obligations and Contract S2

Pure and Conditional Obligations

• Module Focus: Understanding the distinctions between pure obligations, conditional obligations, and obligations with a period.

Opening Prayer

• A prayer for guidance, wisdom, and protection in studies, particularly regarding COVID-19, honoring those affected by the virus.

Core Legal Articles on Obligations

Article 1179

• Defines demandable obligations: an obligation whose performance is not dependent on future or uncertain events or unknown past events.

• Includes obligations with a resolutory condition which are also demandable at once.

Article 1181

• Relates to conditional obligations: acquisition or loss of rights depends on the fulfillment of a specified condition.

Types of Obligations

Pure Obligation

• Example: Bea must pay Abe 1 million pesos.

Conditional Obligation

• Example: Bea must pay Abe on demand.

• Characteristics:

  • Must involve a future and uncertain event.

  • Can also involve a past but unknown event.

Kinds of Conditions

1. Suspensive Condition (Condition Precedent)

   • Example: Bf promises an iPhone 12 to GF if she passes her CPA exam.

2. Resolutory Condition (Condition Subsequent)

   • Example: SD offers a monthly allowance until graduation with specific conditions.

Distinction between Suspensive and Resolutory Conditions

• Effect of Condition:

  • Suspensive: Obligation arises upon fulfillment.

  • Resolutory: Obligation extinguished upon fulfillment.

• Existence of Obligation:

  • Suspensive condition: Existence is uncertain until the condition is met.

  • Resolutory condition: Obligation exists but can end if the condition is met.

Additional Legal Articles

Article 1182

• Conditional obligations dependent on the debtor’s sole will are void.

  • Types of conditions:

    • Potestative: Based solely on a party’s will.

    • Casual: Based on chance or a third party’s will.

    • Mixed: Partly based on chance and partly on a third party’s will.

Article 1183 and 1184

• Impossible Conditions: Annul obligations that depend upon them.

• Physically Impossible: Cannot exist by nature.

• Legally Impossible: Contradict laws/morals.

Article 1189

• Only applicable for real obligations and specific items under certain conditions; distinguishes loss and improvement.

Loss and Deterioration

• Types of Loss:

  1. Physical

  2. Legal

  3. Civil

• Deterioration impacts creditor; debtor may incur damages depending on fault.

Improvement of the Thing

• Improvements beneficial to the creditor, with limitations on debtor’s rights unless specified.

Reciprocal vs. Non-reciprocal Obligations

• Example: Transactions involving the sale of a car linked to borrowing obligations.

Choice of Remedies for Injured Party

1. Specific Performance with damages.

2. Rescission with damages.

• Remedies are alternative options.

Limitations on Right to Demand Rescission

• Factors affecting the right including compliance, court powers, and third-party rights.

Obligations with a Period

Article 1193

• Obligations are only demandable when the set date arrives; distinguishes between types of periods.

Period vs. Condition

• Differentiates fulfillment aspects, time, and influences on obligation.

Kinds of Period or Term

1. Suspensive Period: Obligation begins on agreed date.

2. Resolutory Period: Obligation exists until a specified date ends it.

3. Types of Sources:

   • Legal, Conventional (agreed by parties), and Judicial (fixed by courts).

Article 1197

• If no period is fixed in an obligation, courts may infer and determine duration.

Computation of Term or Period

• Defined timeframes for years, months, days, with specific calculation rules (from the Civil Code).

Conclusion

• Thank You: Acknowledgment of learning.