LLaaw

w oonn O
Obblliiggaattiioonnss aanndd CCoonnttrraaccttss

CHAPTER 3
DIFFERENT KINDS OF OBLIGATIONS

Section 1
PURE AND CONDITIONAL OBLIGATIONS

1. PURE OBLIGATION. It is an obligation without a term or condition and is demandable at once.

TERM or PERIOD. That which necessarily must come (like 2023) whether the parties know when it will
happen or not (like death, since this is sure)
2. CONDITIONAL OBLIGATION. It is an obligation subject to a condition.
3. CONDITION. It is an uncertain event which wields an influence on a legal relationship.
4. CLASSIFICATION OF CONDTIONS
A. As to effect:
a. Suspensive condition. The happening of the condition gives rise to the obligation.
b. Resolutory condition. The happening of the condition extinguishes the obligation.
B. As to form
a. Express – the condition is clearly stated
b. Implied – the condition merely inferred
C. As to possibility
a. Possible - capable of fulfillment
b. Impossible
 Physically impossible - Nature of the thing
 Legally impossible - contrary to law, moral, good customs, public order or public policy
NOTE: If the condition is to do an impossible thing, it shall be considered as not having been
agreed upon and the obligation is rendered pure.
D. As to cause or origin
a. Potestative (facultative) - depend upon will of one of the contracting parties
1. Potestative on the part of the DEBTOR:
 If also suspensive – both the condition and the obligation are VOID.
 If also resolutory – VALID
2. Potestative on the part of the CREDITOR - VALID
b. Casual - depend upon chance or will of a third person
c. Mixed - partly upon chance and partly upon will of third person
E. As to mode
a. Positive – an act is to be fulfilled or 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.
b. Negative – something will be omitted or an event will not happen
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.
F. As to numbers
a. Conjunctive - several conditions, all conditions must be performed
b. Disjunctive (alternative) - several conditions, one or some must be performed
G. As to divisibility
a. Divisible - susceptible of partial performance
b. Indivisible - not susceptible of partial performance
5. When obligation is demandable at once
a. When it is pure

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LLaaw
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Obblliiggaattiioonnss aanndd CCoonnttrraaccttss

b. When it is subject to a resolutory condition

c. When it is subject to a resolutory period
6. Rights of the parties before the fulfillment of the condition.
a. CREDITOR – He may bring appropriate actions for the preservation of his right, such as registering his
claims with the Register of Deeds, if appropriate, to notify all third person
b. DEBTOR – He may recover what he has paid by mistake prior to the happening of the suspensive
condition.
7. Rules in case of loss, deterioration and improvement of the determinate thing during the pendency of
the condition
Without fault (Debtor) With fault (Debtor)
Loss Extinguish Damages
Deterioration Impairment borne by the Rescission or fulfillment + damages
creditor

Nature or Time Expense of the debtor

Improvement Benefit of the creditor Right only of a usufruct
8. Kinds of obligation according to the person obliged
a. UNILATERAL – when only one party is obliged to comply with a prestation.
b. BILATERAL – when both parties are mutually bound to each other.
i. RECIPROCAL OBLIGATIONS – are those which arise from the same cause and in which each party is
a debtor and creditor of the other (e.g. contract of sale)
ii. NON-RECIPROCAL OBLIGATIONS – are those which do not impose simultaneous performance on
both parties.
9. Remedies of the injured party in reciprocal obligation
a. Fulfillment + damages
b. Rescission + damages
NOTE: The right is alternative
10. Limitations on the right to demand rescission
a. If there is a just cause for fixing the period within which the debtor can comply, the court will not grant
rescission.
b. It is not available as a remedy if the property is in the hands of a third person who has lawful
possession of the same.
c. It is not granted for slight or casual breach of contract
11. Where both parties are guilty of breach:
a. The liability of the first infractor shall be equitably tempered.
b. If cannot determined the first infractor - Obligation extinguish and each shall bear own damages.
12. EXERCISES:
a. Identify whether the following obligation is pure or conditional.
i. I promise to pay you P1 million.
ii. I’ll buy your land for P10 million if you pass your Law1 subject.
iii. I’ll give you my land now, but should you fail in your Accounting subject, your ownership will cease
and it will be mine again.
iv. I’ll pay you P1 million on demand.
b. A, in his will, gave some property to B, provided that A would die within a certain period. A did not die
during said period. Is B entitled to inherit?
c. The Batangas Transportation Company bound itself to furnish a certain number of trucks provided
they were available on the day needed. On said day, no truck was available. Was the Company bound
still to supply the trucks?
d. A sold merchandise to B, said merchandise to be delivered in 3 months, but the period of delivery was
not guaranteed. Although A tried his best to fulfill his commitments on time, still transportation and
government red rate made delivery possible only after three months. Whereupon B refused to accept
the goods and to pay for them on the ground that the term had not been complied with. Is B’s refusal
to accept the goods valid?

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e. A owned a house rented by B. A sold the house to C, and C agreed to pay the balance of the price as
soon as B leaves the premises. C was to take care of seeing to it that B vacated the house. is the
contract valid?
f. Seller owned a piece of land mortgaged to X. Land was sold to buyer on the condition that the
mortgage would first be cancelled. Seller, however, could not have contact with X. Is he still bound to
sell?
g. A bought B’s land on condition that within a certain period, B would obtain a Torrens Title. B did not
do so within the stipulated term. Is A bound to purchase the land?
h. A sold B a parcel of land on condition that the price would be paid as soon as B had paid off the
mortgage and other debts of the estate. A waited for some time, but since B had not yet succeeded in
paying off the debts. Is the sale cancelled?
i. I’ll give you P1,000,000 if by October 1, 2021 you have not yet married Maria X. Supposed before that
date, you become a Roman Catholic priest, is the obligation effective on the date you entered the
priesthood?
j. A promised to sell B a car if C could pass the Civil Service Examination. On the day of the examination,
A caused C to be poisoned and be hospitalized. Is A still bound to sell the car?
k. A promised to give B his car if B passes the Civil Service Examination. Pending the results of the exam,
the car is destroyed by a fortuitous event, without any fault at all on the part of the debtor. When B
passes the Civil Service Examination, does A have to give B anything?
l. A promised to give B P1,000,000 if B passes the Civil Service Examination. Pending the results of the
exam, A’s money is destroyed by fire, not imputable to A. When B passes the exam, does A still have to
give him P1,000,000?
m. Suppose the loss occurred through the fault of the debtor, is the debtor liable?
n. Suppose pending the fulfillment of the suspensive condition, the object, say a particular car,
deteriorates without the fault of the debtor, is the debtor bound to make up for the depreciation, or
should the creditor bear the deterioration suffered?
o. Suppose the thing deteriorates through the fault of the debtor?
p. Suppose the thing is improved by nature or by time, who gets the benefit of the improvement?
q. Suppose the thing has improved, not through time or by its nature, but through the expense of the
debtor, what will be the rights of the said debtor?
r. A gave B a parcel of land on the condition that B will never go to the casino. A month later, B went to
the casino. What happens to A’s obligation?
s. Suppose in the meantime, the land had been improved through its nature or by time, who benefits
from such improvements?

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