Suspensive Condition or from what date such retroactive effect shall

be reckoned.
Suspensive condition (condition precedent or
condition antecedent) or one the fulfillment of In reciprocal obligations.—There is no
which will give rise to an obligation (or right). retroactivity because the fruits and interests
received during the pendency of the condition
In other words, the demandability of the are deemed to have been mutually
obligation is suspended until the happening of a compensated. This rule is necessary for
future and uncertain event which constitutes the purposes of convenience since the parties would
condition not have to render mutual accounting of what
they have received. Fruits here may be natural,
Actually, the birth, perfection or effectivity of industrial, or civil fruits.
the contract subject to a condition can take
place only if and when the condition happens or Suspensive Condition where obligation is
is fulfilled. extinguished:
- as soon as the time expires without the
There can be no rescission (see Art. 1191.) of an
event taking place
obligation that is still non-existent, the
- as soon as it has become indubitable that
suspensive condition not having been fulfilled.
the event will not take place although the
time specified has not yet expired.
Retroactive Effect of Suspensive Condition
Rules in case of loss, etc. of thing during
In obligations to give. — An obligation to give pendency of suspensive condition
subject to a suspensive condition becomes
demandable only upon the fulfillment of the Loss of thing without debtor’s fault. —
condition. However, once the condition is extinguish
fulfilled, its effects shall retroact to the day Loss of thing through debtor’s fault. — damages
when the obligation was constituted.
Deterioration of thing without debtor’s fault –
The reason is because the condition is only an Creditor has to suffer
accidental element of a contract.(seeArt.1318.)
Deterioration of thing through debtor’s fault.
An obligation can exist without being subject to
a condition. Had the parties known beforehand -Rescission (or cancellation)of the obligation
that the condition would be fulfilled, they would with damages
have bound themselves under a pure obligation. -Fulfillment of the obligation also with
Hence, the obligation should be considered from damages
the time itis constituted and not from the time
the condition is fulfilled. Improvement of thing at expense of debtor. —
usufract
In obligations to do and not to do With Resolutory Condition
respect to the retroactive effect of the
fulfillment of a suspensive condition in One the fulfillment of which will extinguish an
obligations to do or not to do, no fixed rule is obligation (or right) already existing.
provided. This does not mean, however, that in
these obligations the principle of retroactivity is Suspensive Condition vs Resolutory
not applicable. The courts are empowered by Condition
the use of sound discretion and bearing in mind
the intent of the parties, to determine, in each A distinction must be made between a condition
case, the retroactive effect of the suspensive imposed on the perfection of a contract and that
condition that has been complied with.(par. 2.)It imposed on the performance of an obligation.
includes the power to decide that the fulfillment
of the condition shall have no retroactive effect Failure to comply with the first condition results
in the failure of a contract, while failure to
OBLIGATIONS AND CONTRACTS | MARK VINCENT V. CARILLO, CPA | 1st Semester SY 2024-2025.
comply with the second (e.g., condition that the sbi nmn ni B s knya matibay kc nsa knya
seller shall eject the squatters on the property titulo..alin dw mg bisang rason
sold within a certain period),only gives the other
party the option either to refuse to proceed with
the sale or to waive the condition. Donation to school

A potestative condition is a condition Without the slightest doubt, the condition for
suspensive in nature and which depends upon the donation was not in any way violated when
the sole will of one of the contracting parties. the lot donated was exchanged with another
one. The purpose for the donation remains the
same, which is for the establishment of a school.
Horse Case The exclusivity of the purpose was not altered
or affected. In fact, the exchange of the lot for a
S sold his horse to B for P15,000.00. No date or much bigger one was in furtherance and
condition was stipulated for the delivery of the enhancement of the purpose of the donation.
horse. While still in the possession of S, the The acquisition of the bigger lot paved the way
horse gave birth to a colt. Who has the right to for the release of funds for the construction of
the colt? Ina contract of sale “all the fruits shall Bagong Lipunan school building which could not
pertain to the vendee from the day on which the be accommodated by the limited area of the
contract was donated lot.
perfected.”(Art.1537,2ndpar.)Hence, Bis entitled
to the colt. This holds true even if the delivery is
subject to a suspensive condition (see Art. Mag-ama my lupa dlawang lot..1 and
1179;e.g., upon the demand of B) or a 2..nanghiram ang mag-ama s kay X ang kpalit
suspensive period (see Art. 1193;e.g.,next mapunta s knya ang title at mga fruits nung
month) if B has paid the purchase price. But S lupa..pero nlaman ni X na bininta ng ama sa
has a right to the colt if it was born before the anak ang lupa at bininta ng anak s ky B.
obligation to deliver the horse has Dinimanda ni X ang mag-ama ksama si B pra
arisen(Art.1164.) and B has not yet paid the marevoke ang lupa..tama ba dw yun
purchase price. In this case, upon the fulfillment
of the condition or the arrival of the period, S
does not have to give the colt and B is not
C x beninta niya ang lupa niya n nkasangla
obliged to pay legal interests on the price since
s banko ky z..s condition na e-assume niya
the colt and the interests are deemed to have
s banko ang magbabayad ng sangla..kso
been mutually compensated. (see Art. 1187.)
hindi naaprove si z ng banko n mag-
assume ng balance ng sangla.kya binenta
niya s iba..denimanda ni z si x kc bininta
Ordinary delay is merely the failure to perform niya s iba khit nkacontract sila..sbi nmn ni
an obligation on time. x bininta ko kc walang bisa n contract kc
nga hindi naaprove ng banko si z. Sino dw
Legal delay or default or mora is the failure to tama s knila
perform an obligation on time which failure,
constitutes a breach of the obligation. The contract agreement between X and Z is
subject to suspensive condition. X retains the
Condition to 3rd Party ownership of the property until such time Z will
be able to fulfill his obligation to secure a loan
from the bank. In this case, Z does not acquire
Meron dun nagbenta dw si S ky C ng lupa tpos any ownership over the property for failing to
nagdown lng..matpos makuha title as mana secure a loan. In a suspensive condition, the
beninta s iba ang lupa s kya B. Ang sabi ni C fulfillment of the condition will give rise to
mas matibay s knya ksi cya my unang contract obligation. However, these rule shall not apply

OBLIGATIONS AND CONTRACTS | MARK VINCENT V. CARILLO, CPA | 1st Semester SY 2024-2025.
in the presented case. Therefore, X is right over conditions are conditions subsequent.
Z. X has the right to sell it to other parties. Even a condition subsequent, the non-
compliance with the condition is sufficient
cause for revocation of the donation.
However, the period for bringing an
Si B my contrata ky S n magdeliver ng item action for the revocation has prescribed.
kso naipit s gira s russia at
ucraine..natagalan halos isang buwan ang
deliver.laspas s nsa contrata..pagdating s
Which of these obligations that A incurs is valid?
pinas hindi tinaggap ni B ang item..nagfile
ng case si S kya B..tenable b
A promises to pay B 10,000 pesos if B kills C ,
dw....fortuitous event ito sir
A promises to deliver to D a refrigerator if he
paints the house of E green.
Art. 1734. Common carriers are responsible for
A promises to sell his car to F if F delivers 10kgs
the loss, destruction, or deterioration of the
of shabu to G. ( Bale sinagot ko dito 1183
goods, unless the same is due to any of the
impossible conditions may part ung article na
following causes only:
yung sa divisible obligation)
1. Flood, storm, earthquake, lightning, or other
natural disaster or calamity;
2. Act of the public enemy in war, whether
international or civil;
3. Act or omission of the shipper or owner of the 2. Explain if it is valid and give an
goods; 4. The character of the goods or defects example.
in the packing or in the containers;
5. Order or act of competent public authority. A. suspensive condition depends upon the
will of the debtor
Where the potestative condition depends solely
upon the will of the debtor, the conditional
obligation shall be void because its validity and
1. X donated to Y a lot with the compliance is left to the will of the debtor (Art.
condition that B erects a school 1308.) and it cannot, therefore, be legally
within the lot, Y accepts the demanded.3 In order not to be liable, the debtor
donation. 10 years pass and Y still will not just fulfill the condition.
has not built a school with the
Example: I will give you 10,000 if I like.
donated lot X then sells the lot to Z.
Z then demands from Y the title to
the lot claiming that he is now the
owner of the lot. Y claims that the B. suspensive condition depends upon the
sale is invalid since X already will of the creditor
donated the lot to him. ( Bale tanong
If the condition depends exclusively upon the
dito is kung valid ba yung sale at
will of the creditor, the obligation is valid.
sino talaga may ari ng lote)
The obligation does not become illusory.
No, the sale is not valid because the
Normally, the creditor is interested in the
donation to Y is effective. In the case of
fulfillment of the obligation because it is for his
Parks vs Province of Tarlac, the conditions
benefit. It is up to him whether to enforce his
that B will erect a school could not be
right or not.
complied with except after giving effect
the donation. The done could not do any Example: I will give you 10,000 if you like.
work on the lot if the donation had not
C. resolutory condition depends upon the
really been effected, because it would be
will of the debtor.
an invasion of another’s title. The
OBLIGATIONS AND CONTRACTS | MARK VINCENT V. CARILLO, CPA | 1st Semester SY 2024-2025.
The obligation is valid although its fulfillment
depends upon the sole will of the debtor. The
fulfillment of the condition merely causes the
extinguishment or loss of rights already
acquired (Art.1181.)The debtor is naturally
interested in its fulfillment. The position of the
debtor when the condition is resolutory is
exactly the same as that of the creditor when
the condition is suspensive.
Example: I’ll give you a car until I return from
Baguio.
D. conditions that depends upon chance or
the will of third persons. (potestative
conditions to pre 1182)
When the fulfillment of the condition does not
depend on the will of the obligor, but that on a
third person who can in no way be compelled to
carry it out, and it is found by the court that the
obligor has done all in his power to comply with
his obligation, his part of the contract is deemed
complied with and he has a right to demand
performance of the contract by the other party.
Example: Where S binds himself to sell his land
to S if he wins a case which is pending before
the Supreme Court.
Multiple Choice Questions.
1. Galing lang sa book (About sa Lote Dinonate)
2. In suspensive conditions the non-
happening of the condition prevents the
birth of the contract except:
Art 1186 - The condition shall be deemed
fulfilled when the obligor voluntarily prevents its
fulfillment.
3. A was driving a pedicab with B as a
passenger then A hit C who is driving a
motorcycle partly negligently C then hits D
who suffers injury. Who’s claim is most
tenable?
4. Triple Negative Terms
5. Non-happening, prevents except 80percent
ng mcq daw suspensive at resolutory conditions

OBLIGATIONS AND CONTRACTS | MARK VINCENT V. CARILLO, CPA | 1st Semester SY 2024-2025.