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Kinds of Obligations
Pure
Without a condition
the effectivity and extinguishment does not depened on the fulfillment or non-fulfillment of a condition or on the expiration of a term or period and is
immediately demandable
Demandable at once
Example: I promise to pay you 1 million, Ill pay you 1 million on demend.
Conditional
a condition is attached to it
effectivity is subordinated to the fulfillment or non-fulfillment of a future and uncertain fact or event
Ill buy your land for 10 million if you pass the last bar examinations (suspensive)
Ill give you my land now, but should you fail in the last bar examinations, your ownership will cease and it will be mine again (resolutory)
Characteristics of a Condition
Future and uncertain
Past event but unknown to the parties
Not impossible
Classification of Obligations
Type of Condition
Suspensive Fulfillment of condition
results in acquisition of
rights arising out of the
obligation
I promise to do what you ask
provided that X condition is
first complied with
Demandability arising
from the obligation is
suspended.
Obligation arises or
becomes effective;
obligor can be compelled
to comply with what is
incumbent upon him
Resolutory Fulfillment of the condition
results in extinguishmentof
rights arising out of the
obligation.
Rights recognized in Art.
1188, par. 1 is applicable
to resolutory conditions.
Whatever is paid or
delivered by one or both
of the parties upon the
constitution of the
obligation shall have to
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Demandable immediately
after its constitution and
rights are immediately
vested in the obligee.
Ill give you my car now but
should you pass the bar, the
donation will not beeffective. If you pass the bar,
you must return the car to
me
be returned upon the
fulfillment of the
condition. There is a
return to the status quo.
Potestative Fulfillment of the condition
depends on the will of a
party to the obligation.
When it depends exclusively
upon the will of the
creditor- condition and
obligation is valid.
Exclusively upon the debtor
in case of a suspensive
conditioncondition and
obligation are void.
Debtor in case of resolutory
condition- condition and
obligation are valid. The
same position as thecreditor
Casual Fulfillment of the condition
on chance and or the will of
a third person
Mixed Fulfillment of condition
depends partlyon the will of
a party to the obligation and
partly on chance and/or willof a third person.
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Possible Condition is capable of
realization according to
nature, law, public, policy or
good customs.
Impossible Condition is not capable of
realization according to
nature, law, public policy or
good customs; or when itrestricts certain essential
rights which are necessary
for the free development of
human activity
Conditional obligations-
both obligation and
condition are void.
Conditional obligation is
valid- if condition is
negative, it is
disregarded and
obligation rendered pure
and valid.
Only the affected
obligation is void if the
obligation is divisible,
the part not affected by
the impossible condition
shall be valid.
Only the condition is
void- if pre-existing and
does not depend on the
fulfillment of the
condition which is
impossible for its
existence, only thecondition is void.
Condition considered
not imposed if
impossible/unlawful
condition is attached to
a simple or
remuneratory donation
as well as in a
testamentarydisposition, condition is
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considered not imposed
while the obligation is
valid.
Positive Condition Obligation is extinguished as soon as the time expires or if
it becomes indubitable that the event will not take place.
Negative Condition The obligation is effective from the moment the timeindicated has lapsed, or if it has become evident that the
vent cannot occur, although the time indicated has not yet
lapsed.
(Intention of the parties, taking into consideration the
nature of the obligation, shall govern if no time has been
fixed for the fulfillment of the condition.)
Obligation with a term/period
TERM CONDITION
Interval of time which is future and certain Fact or event which is future and uncertain
Must necessarily come, although it may not be known
when
May or may not happen
Exerts an influence upon the time of demandability or
extinguishment of an obligation
Exerts an influence upon the very existence of the
obligation itself
No retroactive effect unless there is an agreement to the
contrary
Has retroactive effect
Left exclusively to the will of the debtor, the existence of
the obligation is not affected, empowers the court to fixthe duration of the obligation
Left exclusively to the will of the debtor, the very existence
of the obligation is affected
Must be possible otherwise obligation is void. Must be possible otherwise obligation is void.
TERM/PERIOD
Suspensive Obligation becomes demandable only
upon arrival of a day certain
Upon the arrival or expiration of
the term or period the
demandability of the obligation is
extinguished, not the acquisition
of the right or the effectivity of theobligation
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Resolutory Arrival of day certain terminates the
obligation
The fulfillment of the obligation is
demandable at once but it is
extinguished or terminated upon
the arrival of the day certain or the
expiration of the term
Legal Granted by law
Conventional Stipulated by the parties
Judicial Fixed by courtsDefinite Date/time is known beforehand
Indefinite Date/time of day certain is unknown
(e.g. death)
Express When specifically stated
Tacit As when a person undertakes to do
some work which can be done only
during a particular season
Original period Period of grace/grace period
CONJUNCTIVE DISTRUBUTIVE
When all the objects or prestations are demandable at the
same time
When only one is demandable it may either be alternative
or facultative
ALTERNATIVE OBLIGATIONS FACULTATIVE OBLIGATIONS
Several objects are due Only one object is due
May be complied with by delivery of one of the objects or
by performance of one of the prestations which are
alternatively due
May be complied with by the delivery of another object or
by the performance of another prestation in substitution
of that which is due
Choice may pertain to debtor, creditor, or third person Choice pertains only to the debtor
Loss/impossibility of all objects/ prestations due tofortuitous event shall extinguish the obligation Loss/impossibility of the object/prestations due tofortuitous event is sufficient to extinguish the obligation
Culpable loss of any of the objects alternatively due before
the choice is made may give rise to liability on the part of
the debtor
Culpable loss of the object which the debtor may deliver in
substitution before the substitution is effected does not
give rise to any liability on the part of the debtor.
SOLIDARY OBLIGATION JOINT OBLIGATION
Each one of the debtors is bound to render and/or each
one of the creditors has a right to demand entire
compliance with prestation
The whole obligation is to be paid or fulfilled
proportionately by different debtors or demanded
proportionately by different creditors
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JOINT DIVISIBLE OBLIGATION JOINT INDIVISIBLE
Each creditor can demand only for the payment of his
proportionate share of the credit; each debtor can be held
liable only for the payment of his proportionate share of
the debt
Midway between joint and solidary obligations, preserving
the two characteristics of the joint obligation, in that no
creditor can do an act prejudicial to others, and no debtor
can be made to answer for others.
INDIVISIBILITY SOLIDARITYRefers to the prestation that is not capable of partial
performance
Refers to the legal t ie or vinculum juris and consequently
to the subjects pr parties of the obligation
Exists even if there is only one creditor and one debtor Exists only if there is more than one creditor or more than
one debtor (plurality of subjects)
Each creditor cannot demand more than his share and
each debtor is not bound to pay more than his share
Each creditor may demand the entire prestation and each
debtor is bound to pay the entire prestation.
Effect of breach: obligation is converted into indemnity for
damages; indivisibility is terminated
Effect of breach: solidarity remains
Only the debtors guilty of breach of obligation is liable for
damages
All the debtors are liable for the breach of the obligations
committed by a debtorOther debtors are not liable if one debtor is insolvent All debtors are proportionately liable for the insolvency of
one debtor
Passive Solidary Debtor Surety (Solidary Guarantor)
Both are solidarily liable to the creditor for the payment of the entire obligation
Liable not only for the payment of the debt of another, but
also for the payment of a deby which is properly hhis own
Liable only for the debt of another
Has a right to demand reimbursement from his co-debtors
of their shares, if he pays the entire amount of the
obligation
Acquires a right of reimbursement from the principal
debtor of the entire amount he has paid
An extension of time granted by the creditor to one of the
solidary debtors without the knowledge of the other
solidary debtors would not have the effect of releasing the
latter from obligation
An extension of time granted by the creditor to the
principal debtor would release the surety from the
obligation
Penal Clause Condition
Constitutes an obligation Does not constitute an obligation
May become demandable upon default of the
unperformed obligation and sometimes jointly with it
Never demandable
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Obligation with a Penal Clause Conditional Obligation
There is already an existing obligation from the very
beginning
No obligation before the suspensive condition happens
Penalty is dependent upon the non-performance of the
principal obligation
Principal obligation itself is dependent upon the uncertain
event
Obligation with a Penal Clause Alternative Obligation
There is only one prestation Two or more obligations are due
Impossibility of the principal extinguishes also the penalty The impossibility of one without the fault of the debtor,
leaves the other subsisting
The obligor cannot choose to pay the penalty to relieve
himself of the principal unless this right is expressly
granted to him
Debtor can choose which prestation to fulfill
Obligation with a penal clause Facultative Obligation
Payment of the penalty in lieu of the principal obligation
can be made only by express stipulation
Power of the debtor to make the substitution is absolute
The creditor can demand both prestations The creditor can never demand both prestations
Obligation with a penal clause Guaranty
Obligation to pay the penalty is different from the principal
obligation
Object of the obligations of the principal debtor and the
guarantor is the same
Principal obligation and the penalty can be assumed by the
same person
Principal debtor cannot be the guarantor of the same
obligation
As a rule, penalty is extinguished by the nullity of the
obligation
Guaranty subsists even when the principal obligation is
voidable unenforceable or a natural one
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