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Pure and Conditional Obligation

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kien lara santolorin

on 7 July 2014

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Transcript of Pure and Conditional Obligation

Art. 1179. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once.
Art. 1180. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period, subject to the provisions of Article 1197.
Conditional Obligation
Pure and Conditional Obligation
Art.1181. In conditional obligations, the acquisition of rights, as well as extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition.
Every obligation which contain a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event. (1113)
Pure Obligation
Example:
• A obliges himself to pay B ₱1,000.00
• C binds himself to pay D ₱500 upon demand of D.

Example:
X binds herself to give Y a gold wrist watch if Y will get married on December 31, 2014.
Condition
TWO PRINCIPAL KINDS OF CONDITION:
1.) SUSPENSIVE CONDITION
2.) RESOLUTORY CONDITION
Example:
Example:
Gabriel binds himself to deliver a determinate car to Ben if the latter will marry Coleen.
Gabriel binds himself to lend his only car to Ben until the latter passes the CPA examinations.
• Obligations are immediately demandable in the following instances:
1.) When it is pure

2.) When the obligation is subject to a resolutory condition and period.
• When duration of period depends upon the will of debtor:
Period
Example:
“little by little”, “as soon as possible” , “at anytime I have the money” , “in partial payments”
• If the debtor and creditor cannot agree as to specific time for payment, the Court shall fix the same on the application of either party.
Illustrative Problem:
Toni secured a loan from Alex in the amount of ₱5000. Alex promised that she would pay the loan “as soon as possible.” Three years had lapsed and yet Toni was not able to collect from Alex. What is the remedy available for Toni?
1. Acquisition of rights:
 In suspensive condition, the acquisition of rights by creditor depends upon the happening of the condition.
 If suspensive condition does not take place (certain that it will not be fulfilled), the parties would stand as if the conditional obligation had never existed.
2. Loss of rights already acquired:
Example:
Mr. Santos, in his last will and testament gave some property to his daughter provided that he will die within 2 years. If Mr. Santos died after 2 years, the situation would be the same as if no provision was made by Mr. Santos in his will.
 In resolutory condition, the happening of condition extinguishes the rights already acquired.
Example:
X binds himself to support Y until Y graduates from college. The right already acquired by Y (right to receive support) shall be extinguished once he graduated from college.
Art.1182. When the fulfillment of the condition depends upon the sole will of the debtor, the conditional obligation shall be void. If it depends upon chance or upon will of a third person, the obligation shall take effect in conformity with the provisions of this Code. (1115)
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/origin:
a. Potestative
b. Casual
c. Mixed

6. As to numbers:
a. Conjunctive
b. Disjunctive

5. As to mode:
a. Positive
b. Negative
7. As to divisibility:
a. Divisible
b. Indivisible

POTESTATIVE CONDITION
1. Where suspensive condition depends upon will of debtor:
CASUAL CONDITION: If the condition depends upon chance or will of a third person, the obligation is valid.
MIXED CONDITION: If the condition depends partly upon chance and will of a third person, the obligation is valid.
4. When suspensive condition depends partly upon will of debtor
Example:
“I will pay if I want.” “I will pay you after I recover what X owes.”
Example:
D borrowed 5000 from C payable within 2 months. Subsequently, D promised to pay C “after D sells his laptop” to which C agreed. In this case, only the condition is void but not the pre-existing obligation of D to pay C.
2. Where suspensive condition depends upon will of creditor, the obligation is valid.
3. Where resolutory condition depends upon will of debtor, the obligation is valid.
Example:
"I will pay my indebtedness upon your demand.”
Example:
X obliges himself to repair Y’s house at X’s expense any damage that may be caused to the building by earthquake occurring within 8 years from the date of completion of its construction.
Article 1183. Impossible conditions, those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the impossible or unlawful condition shall be valid.
The condition not to do an impossible thing shall be considered as not having been agreed.
Kinds of Impossible Condition
Physically Impossible Condition
Legally Impossible Condition
Effect of Impossible Conditions
1. Conditional obligation void
2. Conditional obligation valid
3. Only the affected obligation void
4. Only the condition void
Article 1184. 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.
Positive Condition
Article 1185. 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 not 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
Negative Condition
Article 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment
Constructive Fulfillment of Suspensive Condition
1. The condition is suspensive

2. The obligor actually prevents the fulfillment of the condition

3. He acts voluntarily
Constructive Fulfillment of Resolutory Condition
Article 1187. The effects of a conditional to give, once the condition has been fulfilled, shall retroact to the day of the constitution of the obligation. Nevertheless, when the obligation imposes reciprocal prestations upon the parties, the fruits and interests during the pendency of the condition shall be deemed to have been mutually compensated. if the obligation is unilateral, the debtor shall appropriate the fruits and interests received, unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting the same was different.
In obligations to do and not to do, the courts shall determine, in each case, the retroactive effect of the condition that has been complied with.
Retroactive Effects of fulfillment of suspensive condition
Retroactive Effects as to Fruits and Interests in Obligations to give
In obligation to give
In obligation to do or not to do
In reciprocal obligation
In unilateral obligations
Art. 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.
Art. 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:
Requisites for application of Article 1189.
Article 1189 applies only if:
1.) The obligation is a real obligation;
2.) The object is a specific or determinate thing;
3.) The obligation is subject to a suspensive condtions;
4.) The condition is fulfilled; and
5.) There is loss, deterioration, or improvement of the thing during the pendency of the condition.
Kinds of Loss
Rules in case of loss, deterioration, or improvement of thing during pendency of suspensive condition.
1.) Loss of thing without debtor’s fault
2.) Loss of thing through debtor’s fault
3.) Deterioration of thing without debtor’s fault
4.) Deterioration of thing through debtor’s fault
5.) Improvement of thing by nature or by time
6.) Improvement of thing at expense of debtor

Physical Loss
Legal Loss
Civil Loss
Art. 1190. When the conditions have for their purpose the extinguishment of an obligation to give, the parties, upon the fulfillment of said conditions, shall return to each other what they have received.
In case of loss, deterioration or improvement of the thing, the provisions which, with respect to the debtor, are laid down in the preceding article shall be applied to the party who is bound to return.
As for obligations to do or not to do, the provisions of the second paragraph of Article 1187 shall be observed as regards the effect of the extinguishment of the obligation.

Effects of fulfillment of resolutory condition.

1.) In obligations to give.
2.) In obligations to do or not to do.

Art. 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him.
The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible.
The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.
This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with Articles 1385 and 1388 and the mortgage Law. (1124)

Kinds of obligation according to the person obliged
Remedies in reciprocal obligations
Limitations on right to demand rescission
Rescission without previous judicial decree
Unilateral
Bilateral
-Reciprocal Obligations
-Non-Reciprocal Obligations
1.) Choice of remedies
2.) Remedy of rescission for non-compliance
1.) Resort to the courts
2.) Power of court to fix period
3.) Right of third person
4.) Substantial violation
1.) Where automatic rescission expressly stipulated.
2.) Where contract still executor.
Art. 1192. 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 contact, the same shall be deemed extinguished, and each shall bear his own damages.
Where both parties are guilty of breach

1.) First infractor known.
2.) First infractor cannot be determined.

Reporters:
Gaton, Karen Joy
Santolorin, Kien Lara
Edem, Kevin Lloyd
X will give his land to Y,
1. If Y will stab A.
2. If the sea will be colorful as the rainbow
3. If Y will not appear as a witness to the case.
4. If Y will push A into the mud.
5. If the sun will never give light for a month.
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