Section 1 Pure and conditional obligations

Article 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.
-yung mga obligasyon na hindi naka depende sa future or hindi sure na mga pangyayare o mga past na
hindi alam ng bawat parties ay demandable or kailangan nilang gawin agad
-Pure obligations
Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the
effects of the happening of the event
-Yung mga obligasyon na may resolutory condition ay demandable din anytime na hindi isina alang alang
kung anong mangyayare sa hinaharap

2 classifications of obligation:
Primary obligation
Secondary obligation

Primary
1. Pure and conditional obligations
2. Obligations with a period
3. Alternative and facultative obligations
4. Joint and solidary obligations
5. Divisible and indivisible obligations
6. Obligations with a penal cause

Secondary obligation
1. Unilateral and bilateral obligations
2. Real and personal obligations 3. Determine and generic obligations
Pure obligations
- Walang kondisyon/Not subject to any condition
- No specific date is mentioned for its fulfilment
- immediately demandable
-Duration is depend on nature of obligation and circumstances
-Upon demand of the creditor
Ex. I promise to give you 5,000 (no specific term or condition, therefore it is demandable )

Conditional obligations
- consequences are subject in one way or another (magagawa or hindi)
- Subject to condition Future or uncertain event Past and unknown
- Must not be impossible
Ex. Passing the subject oblicon (hindi mo sure kung makakapasa ka, pero hndi rin naman sya imposibleng
mangyare, sa future pa mangyayare)

Two principal kinds of condition

Suspensive condition
Condition Precedent- earlier event/action
Condition Antecedent- thing/event that happened before
-Hindi ka makakpag demand hanggat hindi pa nangyayare yung obligation
ex. I will give maria a 10k pesos if she passed the major exam, the obligation is demandable only the time
maria take the exam and passed it.

Resolutory condition
- Immediately demandable (anytime pwede mag demand)
- Kapag nafulfill na yung dapat gawin, nawawala na yung obligation
Ex. Cedric and yesha enters into a valid employment contract. The contract says that if the employee
commits a crime, it will be the end of the contract. Mr. Cedric can demand the immediate leave of Yesha
after the committed crime.
When obligation is demandable at once
1. When it is pure (any condition or any period)
2. when it is subject to a resolutory condition
3. When it is subject to a resolutory period

Past events unknowns to the parties

-Kapag hndi alam ng parties yung past events, hindi pa dapat gawin yung obligation sa present
ex. Binenta ni clyde and lupa na pamana sknya ng nanay nya kay alexa. Ngunit hndi nya alam na may
dapat pang bayaran na mga papeles sa lupa na naiwang utang ang nanay nya. Hindi nya maibebenta ang
lupa hanggat hndi pa nya binabayaran ang nasabing utang na hndi nya rin alam. Kailangan nya muna
mabayaran ang utang upang tuluyang mabenta ang lupa
Article 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
- Kapag kaya na bayaran ng obligor yung utang nya, ibig sabihin may period na nakalaan para bayaran
nya ito
-Immediate demandable
-10 yrs. prescriptive period

When duration of period depends Upon the will of the debtor

Period
-Future and certain event
-Obligation either arises or extinguished (magagawa or hindi magagawa)
Ex. On march 10, sa katapusan

1. The debtor promises to pay when his means permit him to do so

-Duration of the period only (hndi naiiwan sknya yung obligation na magbayad ba or hndi kasi bind
naman tlga sya magbayad ang naiiwan lang is yung gaano katagal sya magbabayad)
-If hndi sla mag agree sa isa't isa court na ang bahala

2. Other cases
-when the debtor binds himself to pay "
"little by little"
"as soon as possible"
"from time to time"
"at any time I have money"
"in partial payments"
"when I am in position to pay"
Article 1181
In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already
acquired, shall depend upon the happening of the event which constitute the condition
-ano ang effect kapag nangyare ang condition
- kapag nagawa or hindi yung condition, nakadepende sa kalalabasan ng mangyayare sa nakalagay sa
kondisyon
Suspensive

- karapatan to demand once na mangyare yung obligation

Resolutory
- once tapos na yung condition tapos na rin yung obligation hndi na makakapag demand
1. Acquisition of rights - future and certain events (suspensive condition, cannot demand)
Ex. DJ bind himself to give 10,000 pesos to hazel if hazel can make icerry fall inlove.
2. Loss of rights already acquired (resolutory condition, can demand anytime the period as long as hndi pa
terminated)
Ex. Loraine binds himself to buy a laptop to coleen in an installment basis. Once the installment payment
is complete the obligation shall be extuingished.
Article 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 the will of a third person, the
obligation shall take effect in conformity with the provision of this code
-Pinauusapan na dito is yung fulfillment ng obligation, kapag will ng debtor ang pinaguusapan or
sya lang yung magdedesisyon kung kailan nya mafufulfill yung obligation, VOID yun. Kasi
dapat sya yung mag gagawa ng obligation once na sya yung nagdesisyon parang illusionary lang
yung obligation. Kasi hindi sya easily demandable. Walang juridical tie na nangyare.
- If may involve naman na 3rd party in order to fulfill the obligation, mag take effect yung
obligation depende sa naging desisyon nung 3rd party
Potestative condition
- Suspensive in nature
- Sole will of one of the contracting parties
- Condition is dependent on either debtor/creditor
- Depende kung sno yung may will na ifulfill yung condition si debtor ba or creditor
Where suspensive condition depends upon will of the debtor (void)
- Yung debtor kasi pabor sakanya lagi na hndi gawin yung obligation
- Naturally inclined

Conditional obligation is void

Ex. I will pay the debt I have from you if I won in the lottery
Only the condition is void
- May chance kasi na void yung condition pero valid yung obligation
Ex. Leah borrowed to manuel a 5,000 pesos within 2 weeks. She also promise that she will pay
manuel after she win in a gamble which manuel agreed. Only the condition is void but the
obligation si valid.

Where suspensive condition depends upon the will of the creditor (valid)

- Kung naka depende naman kay creditor yung will VALID yung obligation.
- Kasi nga creditor is always interested
Ex. I will pay my indebtedness to you if you demand for it

Where resolutory condition depends upon will of debtor (valid)

Casual Condition (valid)

- Depende sa chance or will ng 3rd person nagiging valid yung obligation

Ex. A will give Php 30,000 to B, IF they won the case
Mixed Condition (valid)

- Depende sa chance partly and partly sa will ng 3rd person

Ex. I will give you my house if you marry Carolina
1. If napatunayan na papaksalan nya talaga si Carolina or may singsing na binigay
2. If pumayag na bibigay talaga yung bahay if napakasalan

Where suspensive condition depends partly upon will of debtor (valid)

- Depend upon the will of the debtor and partly upon the will of a third person
- If condition is depend upon the debtor the obligation is VOID.
- Condition is same upon the will of the debtor (sa kanya kasi naka laan kung matutuloy or hindi
yung obligation sa suspensive)
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, the part
thereof which is not affected by the impossible or unlawful condition shall be valid.
- Eto yung mga kondisyon na hindi dapat gawin kasi imposibleng gawin or bawal sa mata
ng batas, or hindi nakakabuti para sa iba. Kung divisible yung obligation, meaning partly
ay hndi affected ng impossible obligation yung hndi affected ay valid.
The condition not to do an impossible thing shall be considered as not having been agreed upon
- Yung mga kondisyon na wag gawin yung imposibleng bagay ay valid or hindi
napagkasunduan

- Suspensive condition
- Obligation already constituted (naipatupad na)
- Nag exist na yung impossibility nung time na naisapatupad yung obligation

Two kinds of impossible conditions

1. Physically impossible conditions
- Impossible in nature
Ex. I will pay you 20,000 if you carry your whole family

2. Legally impossible conditions

- Contrary to law
Ex. I will give you 100,000 if you walk in green lights in pedestrian lane.

Effect of impossible conditions

1. Conditional obligations void
- Impossible conditions annul the obligation
- Both condition and obligation are void
- If alam na ni obligor na hndi nya mafufulfill obligation nyaa, di na nya gagawin yun.
Ex. I will give you 15,000 if you spit your saliva in our teacher’s face

2. Conditional obligation valid

- Condition is negative
- Not to do an impossible thing
- It is pure and valid
Ex. I will give you 2,000 if you do not kill Ariana

3. Only the affected obligation void

- If divisible
- Yung part na hndi affected ng impossible condition ay valid
Ex. I will give you 6,000 if you get my laptop in my locker, and a cellphone if you stab
nikka

Valid- Obligation to give 6,000

Void- Obligation to give a cellphone because it is dependent upon an impossible
obligation which is stabbing nikka

4. Only the condition is void

- Obligation is pre-existing
- Magkahiwalay yung obligation saka condition, pasabit nalang yung condition
Ex. Pau borrowed 7k to Karl. If karl agreed to stole a phone to reigne before pau will pay
him.

Void- condition to stole a phone from reigne

Valid- To pay karl 7,000
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.
-ito yung usapan o kondisyon na kailangan matuloy para matupad yung usapan o yung kontrata.
At yung mga sitwasyon na hindi na ma prepredict o maawat kung kelan mapapasawalang bisa
yung mga na pagkasunduan.
It refers to positive (suspensive) condition- it is the condition consists in the performance of an
act or the happening of an event at a determinate time also it is the obligation to do. ( ito yung
mga kondisyon or masususpend muna na saka mo makukuha ang nakalagay sa kontrata kapag
natupad mo yung napagkasunduan) the obligation extinguished or stop or ma end when:
1. As soon as the time expires without the event taking place- maaring mapasawalang bisa
na yung condition kapag na reach na yung nasa kontrata na time tapos di pa nagagawa ng
obligor yung obligation or yung kundisyon.
2. As soon as it has become indubitable that the event will not take place although the time
specified has not expired. (indubitable is mga hindi na maawat na pangyayare. So
maaring ma extinguished or ma stop na yung obligation kapag may hindi inaasahang
pangyayare ang mangyayare sa may obligor kahit di pa expired yung napagusapan sa
may kontrata in short hindi na magagawa ng obligor yung dapat na obligation nya)
Example:
Lea (obligor) obliged herself to give jm (oblige) a brand new car if he got 1.00 in his all subject
until his graduation.
So lea (obligor) is liable if jm (oblige) got the grade 1.00 in his all subject until his graduation.
Lea (obligor) is not liable if jm got 1.25 grade when he is already graduated. In this case, the
time specified which is until his graduation so the condition is expired without being fulfilled.
The obligation is extinguished as soon as jm already graduated.
So if jm (oblige) decided to stop in studying the obligation is extinguished because it has become
indubitable that the condition will not take place.
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 no 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
- So dito mapapasakatuparan yung kondisyon kapag hindi nangyare base sa kung ano yung
napagusapan na may specific na date or natupad so dun na magiging effective yung
kondisyon na napagusapan. O maaring naging maliwanag na hindi talaga mangyayare
yung kondisyon na napagusapan.

And if wala namang napag usapan o naitakda na specific na date iaassume na natupad na
yung obligasyon sa kung kelan nila napagisipan base na lang sa nature ng obligation.
Article 1185 refers to the negative condition- it is an event will not happen at a determinate time
also it is not to do. The obligation shall become effective and binding:
1. From the moment the time indicated has elapsed without the event taking place
Dito kapag ka na expired o lumagpas na yung date sa kondisyon nila dun na
magiging effective yung napagusapan.
Example:
Lito (obligor) obliged himself to give her daughter Ana (oblige) a ticket trip to japan in the
condition that Ana (oblige) will not be pregnant until she graduated college at 2022.
So Ana already finished her studies in college of not getting pregnant in that case the obligation
of Lito (obligor) to her daughter Ana (oblige) to give a ticket trip to japan becomes effective.
2. From the moment it has become evident that the event cannot occur although the time
indicated has not yet elapsed.
Dito naman kahit di pa lumalagpas or na eexpired yung napagusapan nyo na date
basta may di inaasahan na nangyare clear na di na mangyayare yung kung ano
dapat yung kondisyon nyo.
Example: Lito (obligor) obliged himself to give her daughter Ana (oblige) a ticket trip to japan in
the condition that Ana (oblige) will not be pregnant until she graduated college at 2022.
Before Ana (oblige) graduated had elapsed, she go in the doctor for her check-up because of her irregular
menstruation and the doctor said that the result of her irregular menstruation will lead to her for having a
no child. In this case, even before the lapse of 9 years it is clear that the obligation has become effective
because of the result of her check-up.  It is evident that Ana can never be pregnant anymore so that the
obligation of his father will be effective.
Article 1186
The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment
- Dito walang actual fulfillment by the debtor sa kanyang obligasyon pero the law
considered that it will be fulfilled because yung obligor voluntarily prevents its
fulfillment.
Article 1186 refers to constructive fulfillment of suspensive condition- refers to an obligation
prevented by the obligor from happening.
There are 3 requisites for the application of this article.
1. The suspension must be suspensive
If di siya suspensive so hindi mo sya pwede e apply dito.

2. The obligor actually prevents the fulfillment of the condition

Ito yung debtor is prinevent nya na agad para di mangyare yung condition and
also para di sya maging liable.

3. He acts voluntarily
Ito yung pinaka important na requisites kasi dapat voluntary yung kanyang
pagprevent nung obligation.
Intent to Prevent Compliance – The law does not require that the obligor acts with malice or
fraud as long as his purpose is to prevent the fulfillment of the condition. He should not be
allowed to profit from his own fault or bad faith. (so ito nga yung the laws considered nga kahit
walang actual fulfillment by the debtor dahil sa kanyang pagkukusa na ma prevent yung
fulfillment it is as is na nafulfill. Also sa article 1186 wala naman na mention na may malice or
fraud as long as the obligor purposes is to prevent the fulfillment of the condition and it is
voluntary)
Example:
Erica (obligor) agreed to give trisha a 10% commission if trisha find a supplier to buy his ukay
bundle at a certain price. So trisha (oblige) already found a supplier who definitely decided to
buy the ukay bundle. So to evade the payment of the commission agreed upon, Erica (obligor)
herself sold directly to the supplier at a lower price without the aid of trisha (oblige) para
mabawasan nya yung commission ng ahente na si trisha sya na lang dumirekta sa may supplier
which is yung buyer.
So in this case the condition imposed by Erica (obligor) kay agent which is Trisha na maghanap
ng buyer para mabigyan ng 10% commission is deemed fulfilled. It means liable na si Erica
(obligor) to give a commission to the agent which is Trisha (oblige) even though si agent or
trisha is hindi talaga sya yung nagbenta this is the constructive fulfillment.
Constructive fulfillment of resolutory condition
 - When the obligation is subject to resolutory condition and the obligee unjustifiably
provokes the agreement. It will not be considered fulfilled and there will be no
extinguishment of rights. The obligee cannot be excused from non-compliance of the
obligation. (HELP PARA SA MAY PINAKA MEANING NAGAWAN KO
EXAMPLE PERO NAHIHIRAPAN AKO EXPLAIN SA PINAKA MEANING NG
MADALIAN)
Resolutory- the happening of the condition extinguishes the obligation already existing.
Example:
The CEO (oblige) of the company bind himself to lend his car to his new driver (obligor) until he
worked for the company. The obligation to lend is immediately demandable. So the new driver
right over the car is extinguised or mag end when he is no longer the driver of the company so
that the driver is obliged to return the car to the CEO.

Article 1187
The effect of a conditional obligation 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 fruit interest 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 interest 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 obligation to do and not to do, the court shall determine, in each case, the retroactive effect of
the condition that has been complied with. (PAHELP ULIT PAANO MAPAPADALI YUNG
SA MEANING NG ARTICLE HIHI basta it pre supposes na nafulfill na yung suspensive
condition and this article talks about the effects and the effects is retroactive)
It refers to retroactive effects of the fulfillment of suspensive condition- means nagbabalik tanaw
ka, ni rerecon mo yung past or from the past.
 Retroactive effects in obligations to give.
Once the condition is fulfilled, the effects of the conditional obligations shall
retroact to the day of the constitution of the obligation and not on the date when
the condition was fulfilled. ( the obligation to give will not be demandable until or
unless nangyare na yung suspensive condition so the effects is mag reretro act so
it means hindi sa happening ng kondisyon kundi kung kelan ba na constitute yung
obligation)

Remember!! The condition is just an accidental element of a contract because

hindi sya kasama sa contract itself. Also the provision itself will exist even
without the condition.
Example:
On November 9, 2021 cheese (obligor) agreed to give heart (oblige) a brand new car if she win
miss earth pageant on December 2021, if heart won the pageant in December 2021, he is entitled
to the car effective November 9, 2021 because heart right over the car retroacts to the date when
the obligation was constituted.
IN SHORT THE OBLIGATION BECOMES EFFECTIVE FROM THE DAY IT WAS
CONSTITUTED.
 In obligation to do or not to do, there is no fixed rule as regards the retroactive effect.
With respect to the retroactive effect of fulfillment of suspensive condition there
is no fixed rules is provided (However pwede din iapply yung principles of
retroactivity so here habang sinasagawa palang ung case sa court wala pang
pasahan ng title.
 Retroactive effects as to fruits and interests in obligations to give-
The effect of conditional obligation to give as a rule do not retroact to the date of
the constitution of the obligation.
The following rules shall govern:
1) In reciprocal obligation (like a contract of sale) - the fruits and interest during the
pendency of the condition shall be deemed to have been mutually compensated.
There is no retroactivity because the fruits and interests received during the pendency
of the condition are deemed to have been mutually compensated. (dito is walang
retroactivity effect or pagbabalik tanaw kasi yung fruits at interes na sinasabi dito ay
nakasalalay sa condition nila at kapwa nila binayaran. )

Example: cheese agrees to sell and heart agrees to buy cheese parcel of land if heart
won the miss earth pageant on December 2021. If heart won the December 2021, the
obligation becomes demandable. Heart is entitled to all the interests that her money
(with which to pay cheese) may earn while cheese is entitled to the fruits which the
parcel of land may have produced during the pendency of the condition.

2) In unilateral obligation - the debtor shall appropriate the fruits and interests received
during the pendency of the condition unless a contrary intention appears.

Example - cheese agreed to give heart a parcel of land if heart won the pageant on
December 2021. Pending the happening of the condition, cheese is entitled to the
fruits which the land may produce heart will deliver only the parcel of land if the
condition is fulfilled, unless a contrary intention appears.
Article 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 has paid by mistake in case of suspensive
condition.

- Sinasabi dito is the pending the fulfillment of the suspensive condition, the parties have
the rights to preserve their rights. Dito yung creditor or nagpautang is maaring gumawa
ng hakbang bago matupad yung condition upang mapanatili yung kanyang karapatan. At
ang debtor o nangutang ay pwede nyang mabawi yung mga nabayad nya kung ito ang
isang pagkakamali sa pagpigil ng kondisyon.

Rights of creditor
-authorizes the creditor to take any appropriate actions for the preservation of creditor's right
during the pendency of the condition. (dito anuman naangkop na aksyon ng cridetor is pwede as
long as na proprotect nya yung right nya as a oblige)
Example:
On November 9, 2021 cheese (obligor) agreed to give heart (oblige) a brand new car if she win
miss earth pageant on December 2021, so habang si heart is hindi pa nananalo sa pageant so
cheese protect his right as a creditor, so cheese annotate the obligation in the certificate of title in
registry of property.
Rights of debtor
-He is entitled to recover what he has paid by mistake prior to the happening of the suspensive
condition. ( so na aallow ung right na to ng debtor if ung creditor is hindi na fulfill yung
condition nila o napagkasunduan so it is the case of solution indebti)
Example:
On November 9, 2021 cheese (obligor) agreed to give heart (oblige) a brand new car if she win
miss earth pageant on December 2021, so as sa obligor or debtor so si cheese akala niya nanalo
kana yun pala elimination palang tapos napadala nya na sayo yung susi ng brand new car so that
cheese the debtor may recover what he give because the condition is not yet fulfill.
Article 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:
  Kung ang kondisyon o kasunduan ay naipatupad na at ang layunin nito ay ipagpaliban ang
mga pananagutan ng pagbibigay ng mga ito , ang mga sumusunod ay dapat ipatupad kung may
mga pagbabago, pagkawala, o pagkasira sa mga panahong suspensido ang kondisyon.
 Requisites of 1189
- The obligation is to give or real obligation
- The object is a specific or determinate
- The obligation is subject to a suspensive-conditions
- The condition is fulfilled
- There loss, deterioration or improvement of the thing

What is Suspensive Conditions? Suspend the rights and obligation of both parties kase hndi
pa nafufulfill yung prestation.

1. Loss of thing without debtors fault – may fortuitous events. The obligor or debtor is not liable.
Example: D will sell his car to C, but fortuitous event happened, Nawala yung sasakyan without
the fault of debtor.
2. Loss of the thing with debtors fault – liable na si obligor na damages. Lagging may damages
kapag may negligence.
3. The thing deteriorates without the fault of the debtor – (deteroriates means nagreduce yung
fair value ng isang bagay) the creditor will suffer the loss
Example: Yung sasakyan na ibebenta mo is nabangga or nagasgasan without debtor fault, yung
value ng sasakyan na napag usapan nyong amount ni creditor is marreduce because of the
damages but debtors is not liable to that.
4. The thing deteriorates with debtors fault – liable si debtor sa damages.
- Creditor may choose 1) Recission or cancellation of obligation with damages. 2)Fulfillment
of obligation with damages.
5. The thing is improved by its nature
Example: Yung value ng car na binenta is tumaas yung fair value. Yung magbebenefit dto is si
creditor.
6. The improvement of the thing is expense by the debtor.
Example: Yung sasakyan na binebenta ni debtor is pinaganda nya at inayos,
What is Usufructuary? A usufruct is a legal right granted to a person or party which
grants a temporary right to use/derive income/benefit from the property of another
individual.

Article 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.
Kung sakalit ang mga kondisyon ay hindi naisakatuparan na siyang naging sanhi sa
pagbabalewala ng kasunduan, ang anumang naibayad o naibigay ng bawat partido ay
kinakailangang magsaulian.
kapag nafulfill na yung obligation, it is bound to give back the thing. Yung effects of fulfillment of
resolutary condition, kung ano man yung natanggap ng both parties, kaylangan magsolian.
Example: D allowed S na gamitin yung sasakyan nya habang nasa probinsya sya, pero pag balik nya
galling probinsya kaylangan na ibalik ni S kay D yung sasakyan without damage.
In case of the 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 the obligations to do and 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. (1123) – 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.

Article 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)
May kapangyarihang bawiin o ipawalang bisa ang isang kasunduan na ipinapahayag sa palitan
ng obligasyon, kung ang isa sa may pananagutan ay hindi tumupad sa mga nrarapat niyang
gawin.

Ang nasugatang  partido ay maaring pumili sa pagsasakatuparan o ang pag-bawi ng obligasyon

na may parehas na katapat na kabayaran para sa danyos. Maaring  piliin ang ikalawa kung an
ang pagsasakatuparan ng obligasyon ay imposible.

Ang hukuman ang mag uutos ng pagpapawalang bisa na hinihingi maliban kung may
makatarungang dahilan para payagan ang pagtatakda ng tiyak ng panahon.

Ito ay nauunawaan ng walang pinsala sa karapatan ng taong walang kinalaman na siyang

nakakuha ng pag mamay-ari ng bagay na naaayon sa Article 1385 at 1388 at ng Mortgage
Law.

Dto sa 1191 may karapatan na mamili yung creditor kapag si obligor hndi nya nagawa yung
obligations nya or nagkaroon ng fortuitous event. Kapag kasalanan ni obligor kaya nagakrron
ng damage or hndi ngawa yung obligation, debtor is liable. Pero kapag walang ksalanan si
debtor at nagkaroon ng damages sa obligation, hndi liable si debtor

Tapos dto sin papasok yung recission. Pwdeng icancel ni creditor kapag nagkaroon ng damages
and may fault si debtor.

Unilateral – only one party is obliged in the prestation.

Example: Donor. Isang party lang yung bound to fulfill the obligation.
Bilateral – both parties are bound to each other. Parehas silang creditors and debtors.
Example: Contract of sale. Buyer and Seller. Pag nabigay na yung thing/object, magpapalit na sila ng
position as creditor and debtor.
Reciprocal Obligation -
Non-reciprocal Obligation –
If the obligor was not able to fulfill the obligation, the creditor may choose;
1. Action with specific performance with damages
2. Action for Recission of the obligation with damages
Example: yung sasakyan na binebenta ni D kay S is bound to deliver in December 1. Pero hndi nadeliver
ni D, si S may right to demand and with the damages.

Article 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 contract, the same shall be deemed extinguished, and each shall
bear his own damages.
Kapag ang parehong partido ay nagkasala sa hindi pagtupad sa anumang obligasyon, ang
pananagutan ng unang lumabag ang mabibigyan ng karampatang kahatulan ng hukuman .
Ngunit kung hindi matiyak kung sinu sa mga partido ang hindi sumusunod o tumupad sa
kontrata ay parehong hindi makakatanggap ng anu mang kapakinabangan at parehong managit
sa kanilang pagkakamali.
Under this article, parehas may pagkakamali yung dalwang party. Kapag alam kung sinong
unang nagkamali, sya yung liable sa damages, pero marereduce yung amount non kasi nagkamali
din yung isang party.
Pero kapag parehas na hndi alam kung sinong unang nagkamali sa obligation, parehas silang
mananagutan od parehas silang magsusuffer sa damages ng obligation.
Both parties have breach of obligation.
Guilty of breach or violate.
1. Frst infractor known – alam kung sinong unang nagkamali. Sya yung bound to fulfill sa damages
Both parties ay nagviolate pero alam kung sinong unang nagkamali, so sya yung liable sa
damages. Pero marereduce yung damages kasi may violate din yung isang party
2. First infractor cannot be determined – hndi alam kung sinong may mali. Kanya kanya. Suffer
itself.

Article 1193 –
Obligations for whose fulfillment a day certain has been fixed, shall be demandable only
when that day comes.

Obligations with a resolutory period take effect at once, but terminate upon arrival of the
day certain.

A day certain is understood to be that which must necessarily come, although it may not be
known when.

If the uncertainty consists in whether the day will come or not, the obligation is conditional,
and it shall be regulated by the rules of the preceding Section. (1125a)
Artikulo 1193. Ang mga obligasyon na kung saan ang katuparan ay naitakda na sa tiyak na araw ay
mahihingi lamang sa pagdating ng araw na naitakda.
Ang mga obligasyon na may resolutory period ay magkakabisa agad, ngunit ito ay matatapos sa
pagdating ng tiyak na araw.
Ang tiyak na araw ay malinaw na kailangang dumating, bagaman maaaring hindi alam kung kailan.
Kung may pag-aalinlangan sa pagdating ng araw na ito o hindi, ang obligasyon ay kondisyonal, at ito
ay pinapatakbo ng patakaran ng nakalipas na seksyon.

Article 1193, may mga terms or period na nakapaloob sa contracts. Depende sa period yung
kalian masasabing tapos na yung obligation, or dun palang magsisimula yung obligation.
Example: I will support yung monthly allowance until you finish college. Dto nagsisimula na
yung obligation pero once na makagraduate ka na ng college, tapos na yung obligation ko sayo.
Tapos yung isa, kapag nakapasa ka ng board exam this year bibigyan kita ng 10,000. Hanggat
hndi kapa nakkapasa, wala kang rights na magdemand ng fulfillment of 10,000. Pero once na
makapasa ka this year dun na mag aarise yung obligation ng nangako syo.
Obligation with a period – demandable only in a period or term.
Conditions determine if the obligation will arise or it will cease.
If the period is impossible, it will be void.

Suspensive period – mag aarise lang yung obligations and rights kapag dumating na yung period or term.
Resolutary period – the obligation will be valid hanggang sa dumating yung period, then after the peiod
and nagawa na yung obligation. Tapos na yung kontrata or mateterminate na.

Legal period – imposed by law. Example; payment of taxes.

Conventional peiod - voluntarily agreed by the parties. Example: kung anong nasa kontrata
Judicial period – fixed by the court. Example; si court yung magsasabi kung kelan babayaran ng debtor
kapag void yung contract ng both parties.

Definite period – fixed, possible, alam mo na darating yung araw nay un.Example: January 1,2022
Indefinte period – not fixed, impossible to come, hndi mo alam kung kailang. Yung court na
magdedecide.
 ART. 1194.
In case of loss, deterioration or improvement of the thing before the
arrival of the day certain, the rules in article 1189 shall be observed. (same to
1189)
(Sa oras ng pagkawala, pagkasira o pagpapabuti ng gamit bago dumating an tinakdang araw,
ang mga patakaran na nasa Artikulo 1189 ang dapat sundin.)
-suspensive period lang to meaning yung araw ng pagfulfill mo ng obligation ay alam mo na
kailan.
Condition of the Thing Effect

Lost*
 Without fault of the debtor Obligation is extinguished

 Fault of the debtor Obligation to pay damages

Deteriorates
 Without fault of the debtor The impairment is borne by the creditor

 Fault of the debtor The creditor may choose to rescind with indemnity for
damages, or have it fulfilled, but still with indemnity for
damages
Improvement
 By its nature Inures to the benefit of the creditor

 At the expense of the debtor The debtor shall have no other right than that granted to
the usufructuary.

- It is understood that the thing is lost when it perishes, or goes out of commerce, or
disappears in such a way that its existence is unknown or it cannot be recovered.
 Example:
- Jay (debtor) is obliged himself to sell his yacht to Zola (creditor) at half its
purchasing price on Zola’s graduation, provided Zola graduates on time. On April 25,
2016, Zola graduated, on time and with honors. However, the day before his
graduation, Typhoon Hayan destroyed the yacht. Since the loss happened before the
day certain, and the loss was due to a fortuitous event, the obligation of Jay to sell his
yacht to Zola is extinguished.
 ART. 1195.
Anything paid or delivered before the arrival of the period, the obligor
being unaware of the period or believing that the obligation has become due
and demandable, may be recovered, with the fruits, and interests. (similar to
art 1188 paragraph 2)
(kung ano yung nabigay or nabayad bago ang due at kung di aware ang debtor sa due date
pwede itong magdemand na kunin ulit yung nabayad nito)

 Debtor presumed aware of period

- Kapagaware sa time si debtor kung kailan nya dapat ifullfil yung obligation at
hindi pa due date, by its mistake pwede niya pang pansamantalang kunin/ irecover
kung ano man yung binigay nya.

 Example:
- On December 10, 2015 Nini (debtor) owed 150,000.00 to Nana (creditor) then
the debtor agreed to pay the sum of 150,000.00 with 1% monthly interest or 12%
per annum and the payment of the debt is in June 30 2016. Then on January 5,
2016 Nitzel thought that her obligation is already due and demandable therefore
she paid her debt to Digna with the sum of 150,000.00 plus the 12% interest. On
this case, since Nitzel is unaware of the period, she can recover the interest that
she paid to Digna because it states on this article that “the obligor being unaware
of the period or believing that the obligation has become due and demandable,
may be recovered, with the fruits and interests.”

 No Recovery (Real Obligations)

o No right to recover if the debtor had knowledge of the period and he insisted on
paying. (the principles of solutio indebiti will not apply)
(kapag aware si debtor na ito yung tamang period ng pagbayad pero pinipilit nya pa
ding magbayad)
o The debt is already matured. (naglapse na)

 No Recovery (Personal Obligations)

 o has no application to obligations to do or not to do because as to the former, it is
physically impossible to recover the service rendered, and as to the latter, as the obligor
performs by not doing, he cannot, of course, recover what he has not done.
(kapag service yung binigay para magawa yung isang obigations hindi nya na pwede
pang marecover)

ART. 1196
Whenever in an obligation a period is designated, it is presumed to have
been established for the benefit of both the creditor and the debtor, unless
from the tenor of the same or other circumstances it should appear that the
period has been established in favor of one or of the other. 
(kapag ang period ay nakaset na, sinasabi lang na ginawa yun para sa benefit ng
creditor at debtor, pero may ibang situations na mas nagbebenefit ang isa)

 Presumption as to benefit of Period

- When a period is designated in the performance of an obligation, it is presumed
that the period is intended for the benefit of both the creditor and debtor such as a
loan with interest.
- (Kapag ang period of obligation ay itinalaga na, fixed or based on agreement on
both parties, masasabi natin na kapag nagawa na nila mafulfill yung obligation
may benefit silang parehas. )

 Reasons why creditor cannot be compelled to accept before the arrival of

the period

1. Payment of interest. The interest expected to be realized will be lessen if premature

payment is done; - (kapag maaga nagbayad si debtor mawawala yung effectivity ng
interest or mababawasan yung sanang kikitain nya sa pagpautang)
2. Desire of the creditor to have his money invested safely instead of having it in his hands.
- (para maging safe lang muna sa debtor yung pinautang nya imbis na nasa kanya na
pwede nyang magastos anytime)
3. Under the usury law, there is a special prohibition of payment of interest in advance for
more than a year. - (kailangan na maaga binayad ang interest kaysa sa mismong inutang)

 Example:
- Jac (debtor) borrowed 100k from Cedric (creditor) which is payable on October
19 2025 with 12% interest. Jac decided to pay on September 1 2022, without the
consent of cedric, jac cannot pay before the said date of payment.

 Exemptions to the General Rule

 Term is for the benefit of the debtor alone
- He cannot be compelled (pilitin) by the creditor to pay ahead of the designated
period of fulfilling the obligation, (hindi pwedeng pilitin ng creditor si debtor na
magbayad bago yung period) but he can pay ahead if he desires (gusto) to do so.
(pero pwedeng magbayad si debtor ng maaga kung gugustuhin nya)

 Example:
o Without interest
 Jessica (debtor) borrowed 35k to Juls (creditor) for the repair of her car.
They agreed since they are best friends to pay it without interest and to be
 paid within 3years. In this case Jessica (debtor) benefits more than the Juls
(creditor), but Juls cannot compelled Jessica to pay before the said period
of payment.

o Promises to pay
 Jessica (debtor) promises to pay her debt on or before the said period that
the Juls (creditor) given to Jessica.

 Term is for the benefit of the creditor alone

- He can demand the fulfillment even before the arrival of term, but he cannot be
demanded by the debtor to receive the payment before the expiration of stipulated
period.
(pwedeng magdeman ang creditor na magbayad ng maaga si debtor pero di
pwedeng magdemand si debtor na kunin ni creditor ng maaga yung bayad nya)
 Example:
- (Same examples) but here Juls (creditor) can demand the payment ahead of the
said period, but Jessica (debtor) cannot demand Juls to receive her payment.

 Computation of term of period

 Legal Periods
- “year” consist of 12 months, months consists of 30 days besides the Month of
February, days consist of 24 hrs.
 Example:
- From January 1, 2022 to January 31, 2022. -months
- From January 1, 2022 to December 31, 2022 – year (one year)
 ART. 1197
If the obligation does not fix a period, but from, its nature and the
circumstances it can be inferred that a period was intended, the courts may
fix the duration thereof.
The courts shall also fix the duration of the period when it depends
upon the will of the debtor.
In every case, the courts shall determine such period as may under the
circumstances have been probably contemplated by the par ties. Once fixed
by the courts, the period cannot be changed by them.

 Court generally without power to fix a period

 Judicial Period
- Period which if fixed by the court and can never be change by the both parties
(creditor, debtor) (period na inayos ng korte na hindi pwedeng galawin pa ng
creditor at debtor)
  Contractual Period
- Period which fixed by the both parties based on their agreement or contract.
(period na napagusapan ng creditor at debtor)

 Example:
- Joem (debtor) is obliged to pay the remaining 20k to Eloiza (creditor) and in
their contract it does not stipulate a fix period. Court cannot interfere the contract
between them because the contract is the law on both parties.

Note: (kapag ang obligation ay walang nakastate na period at napagusapan talaga na

walang specific period para ifulfill ang obligation, court is not authorized to fix a period
dahil walang karapatan mismo ang court sa contract nila )
 Exceptions to the general rule
 No period is fixed but a period was intended
- Contracts may not have the fixed period but it has an intended to have but fails to
comply. The court is authorized to fix the period.
(hindi nasabi sa contract yung period pero may intension or common sense na
need matapos ng ganitong period. Pwede itong maayos ng court)

 Example:
- Engineer Rowee (debtor) agreed to construct the building of David (creditor)
for his business Coffee Shop. Both parties failes to fix a period when should be
the construction is needed to be done. The court may interfere and they can use as
a guide the practices of engineers oh how long wil it takes to build a particular
building.

 Duration of the period depends upon the will of the debtor

- (article 1180)

 Period fixed cannot be changed by the courts

 If the agreed period is being lapsed, both parties cannot go to court to fix
another period. (kapag nagexpired na yung period hindi na pwede pa ito ipaayos sa
korte.)
  If the parties accept the period fixed by the court, it becomes the law governing
the contract but it can be modified by the parties by providing new agreement.
(kapag ang both parties nagagree na sa terms at pag fix ng period ng court pwedeng
yung napagusapan ay maging guide dun sa contract nila at pwede nilang mamodified
yun if gusto nila)

ART. 1198
The debtor shall lose every right to make use of the period:
(1) When after the obligation has been contracted, he becomes
insolvent, unless he gives a guaranty or security for the debt; - (naging
insolvent si debtor o wala ng kakayahang magbayad pero magbibigay ng isang
bagay pang collateral)
(2) When he does not furnish to the creditor the guaranties or
securities which he has promised; - (hindi nya nabigay yung ipinangako
nyang pangcollateral)
(3) When by his own acts he has impaired said guaranties or
securities after their establishment, and when through a fortuitous event
they disappear, unless he immediately gives new ones equally satisfactory; -
(nasira or Nawala yung pang collateral)
(4) When the debtor violates any under taking, in consideration of
which the creditor agreed to the period; (hindi ginawa yung pinagagreehan
sa contracts)
(5) When the debtor attempts to ab scond. – (bad faith – may balak na
tumakas sa obligation)

 When obligation can be demandable before lapse of period

- The general rule “ the obligation is not demandable before the lapse of the
period” but in this art the debtor may lose the right or the period (hindi nya na
magagamit yung right on the period) (the power of the period is disregarded)
 because the creditor has the right to demand even before the lapsed of the period.
(powerful provision to creditor).
(hindi magagamit ang general rule dito na hindi demandable hanggat hindi due.
Dito sa art na toh pwede magdemand si creditor kahit bago ang due or mas maaga
sa due)

 Exceptions based on the debtor capability to comply

 When the debtor becomes insolvent
- A debtor that can be considered as insolvent is when he/she cannot provide
payment when he obligation is demandable or in due.
(kapag hindi na kayang magbayad ni debtor)
- Also if the debtor is in financial distress where his liabilities is higher than his
assets. (kapag mas mataas na yung utang nya kaysa sa asssets nya)
- Gives sufficient guaranty or security (ito yung mechanism where in sinusure natin
yung payment sa isang debt bukod sa napagusapan)
 Example:
- Ian (debtor) owes Jayze (creditor) 70k due and payable on October 2022, if Ian
becomes insolvent, we assume that he became insolvent on August 2022, jayze
can demand the payment even before the maturity date of the obligations.

 When debtor does not furnish guaranties or securities promised

- Debtor fails to give the guaranties and securities to the creditor will results of
losing his right on the period stipulated and can be demandable by the creditor.
(kapag hindi nya nagawa yung naipangako nyang ipapalit kung sakaling hindi nya
mabayaran kung ano mismo yung napagusapan)
 Example:
- Sabby (debtor) owes 2m to Paula (creditor) and Sabby promised to furnish the
painting that she paints for the debt she has to Paula, but she fails to give the
painting because she sell it to other for her benefit. In this case Paula can demand
the payment and Sabby will lose her right to the period stipulated in the contract.

 When guaranties or securities given have been impaired or have

disappeared.
- The object to be secured in the obligation have been lost or being damaged before
the obligations is demandable.
(kapag nasira or Nawala yung ipapalit nya )
 Example:
- Meme (debtor) has a loan to Hehe (creditor) and Meme decided to furnish his
car as a collateral for the loan, but because of a fortuitous event like carnapped.
So the obligations become demandable, unless magbibigay ulit si meme ng new
security na masasatisfied si hehe.
 When debtor violates an undertaking
- (Kapag hindi nagawa yung napagusapan.)
 Example:
- Rogelyn (debtor) wants to borrow money from Ian (creditor), and Rogelyn
promised Ian that if he let her borrow money she will fix the guitar, and they both
agreed with it since they are friends. But if Rogelyn did not do what she promised
to Ian, Ian can immediately demand the payment.

 When debtor attempt to abscond (escape or nagtatago)

- Sign of bad faith which results to loss his right on the perio stipulated.
(sadyang ginawa yung bagay nay un para makatakas sa responsibiidad)
 Example:
- Lumipat ng bahay ng walang pasabi sa creditor.