Law on Impossible Conditions

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Questions and Answers

What happens to an obligation that depends on an impossible condition?

It is considered legally valid.

Only the impossible condition is void. (correct)

The obligation remains unaffected.

It is annulled completely. (correct)

Which of the following is NOT a type of impossible condition?

Physically impossible conditions

Legally impossible conditions

Contingently impossible conditions (correct)

None of the above

If a condition is negative, what is the effect of it being impossible?

The condition is disregarded and the obligation is valid. (correct)

The obligation is rendered invalid.

The entire situation remains ambiguous.

The obligation becomes operational.

When does an obligation extinguish if it depends on the occurrence of a condition at a determinate time?

Once the time expires or if the event is deemed impossible. Signup and view all the answers

In a divisible obligation, what happens to the part that is not affected by an impossible condition?

It remains valid. Signup and view all the answers

What is the significance of an obligation that is pre-existing in relation to an impossible condition?

Only the condition is void. Signup and view all the answers

In the scenario where A promises to pay B Php 10,000 if he kills C, what is the status of the obligation concerning an impossible condition?

Only the promise to kill is void. Signup and view all the answers

Under Article 1184, when does a conditional obligation cease to exist?

Once the time expires without the event's occurrence. Signup and view all the answers

What happens to the obligation if the thing is lost without the fault of the debtor?

The obligation is extinguished. Signup and view all the answers

In the case where the debtor is at fault and the thing is lost, what is the debtor obliged to do?

Pay damages to the creditor. Signup and view all the answers

Who bears the impairment if deterioration occurs without the fault of the debtor?

The creditor bears the impairment. Signup and view all the answers

If a thing deteriorates through the fault of the debtor, what option does the creditor have?

Choose between rescission or fulfilling the obligation with indemnity. Signup and view all the answers

What is considered physical loss in the context of obligations?

The thing perishes. Signup and view all the answers

If an item is improved without the debtor's effort, who benefits from the improvement?

The creditor benefits from the improvement. Signup and view all the answers

Which of the following is NOT a requisite for the application of Article 1189?

The object is a generic item. Signup and view all the answers

What does legal loss entail?

The thing goes out of commerce. Signup and view all the answers

What does Article 1200 state about the right of choice?

The debtor has the right of choice unless expressly granted to the creditor. Signup and view all the answers

Which of the following prestations can a debtor not choose according to Article 1200?

Impossible prestations. Signup and view all the answers

What happens when the debtor loses the right of choice?

Only one prestation is practicable among those alternatives. Signup and view all the answers

What condition permits the debtor to rescind the contract?

The debtor cannot make a choice due to the creditor's actions. Signup and view all the answers

When does the choice made by the debtor become effective?

At the time it has been communicated. Signup and view all the answers

What is a consequence if a prestation is destroyed through the fault of the creditor?

The debtor may rescind the contract. Signup and view all the answers

Under what circumstances can a party demand the performance of the other party's obligations in a contract?

When the demanding party is able to comply with their own obligations. Signup and view all the answers

What must happen concerning the return of items in a rescission?

The debtor returns items and must repay their total value plus interest. Signup and view all the answers

What must occur for rescission to create the obligation of mutual restitution?

The offending party must return any benefits received. Signup and view all the answers

What is required for the debtor’s choice to be valid according to Article 1202?

The debtor must communicate their choice. Signup and view all the answers

How does the presence of a good faith third party affect the remedy of rescission?

Rescission is not available as a remedy. Signup and view all the answers

What is typically required for a breach of contract to be considered substantial?

It should affect the intended purpose of the contract. Signup and view all the answers

What happens if the seller accepts delayed payments after the grace period in a contract?

The seller waives their right to rescind. Signup and view all the answers

In a contract to sell, what is the effect of failing to pay the purchase price?

The title remains with the vendor until full payment is made. Signup and view all the answers

What is implied if a party waives their right to rescind a contract?

They must continue to perform their obligations. Signup and view all the answers

What determines whether a breach of contract is considered slight or substantial?

The circumstances surrounding the breach. Signup and view all the answers

What happens to the obligation to give once the suspensive condition is fulfilled?

It retroacts to the date it was constituted. Signup and view all the answers

In the case of reciprocal obligations, what occurs regarding fruits and interests during the pendency of a condition?

They are mutually compensated. Signup and view all the answers

What right does B have on the parcel of land once the condition is fulfilled?

A right that retroactively starts from the date of the contract. Signup and view all the answers

If S sold his restaurant business to C before the condition was fulfilled, what does this imply about B's entitlement?

C holds priority over B's right. Signup and view all the answers

When can the debtor appropriate fruits and interests received in a unilateral obligation?

Unless indicated otherwise. Signup and view all the answers

What determines the retroactive effect of an obligation to do or not to do?

The discretion of the courts based on intent. Signup and view all the answers

What is required for B to have a binding claim against third persons like C regarding the parcel of land?

An annotation on the back of the certificate of title. Signup and view all the answers

If B sells the land to D after the condition was fulfilled but before the retroactive effect was acknowledged, who has a better right?

D, because they purchased in good faith. Signup and view all the answers

Study Notes

Impossible Conditions

Conditions contrary to good customs, public policy, or law will nullify the obligation depending on them.
If the obligation is divisible, the unaffected part remains valid.
A condition to not do an impossible thing is considered as not agreed upon.

Types of Impossible Conditions

Physically Impossible Conditions: Impossible to perform due to physical constraints.
Legally Impossible Conditions: Prohibited or against the law to perform.

Effect of Impossible Conditions

Conditional Obligations Void: Both the obligation and the condition are void if the condition is impossible.
Conditional Obligation Valid: The obligation is valid if the condition is negative (not to do an impossible thing).
Only the Affected Obligation Void: If the obligation is divisible, the part unaffected by the impossible condition remains valid.
Only the Condition Void: If the obligation pre-exists and doesn't depend on the impossible condition, only the condition is void.

Article 1184: Obligations with Determinate Time

A condition that an event happens at a specific time extinguishes the obligation when:
- The time expires without the event occurring.
- It becomes certain the event won't occur, even before the specified time.

Effects of Fulfilled Conditions on Obligations to Give

Effects retroact to the day the obligation was formed.
Fruits and interests are mutually compensated in reciprocal obligations.
In unilateral obligations, the debtor keeps fruits and interests unless otherwise specified.

Effects of Fulfilled Conditions on Obligations to Do and Not to Do

No fixed rule, but courts determine the retroactive effect based on the parties' intent.

Article 1189: Loss, Deterioration, or Improvement of the Thing

Applies to specific real obligations with a suspensive condition.

Rules for Loss, Deterioration, or Improvement

Loss Without Debtor's Fault: Obligation extinguished.
Loss Through Debtor's Fault: Debtor pays damages.
Deterioration Without Debtor's Fault: Creditor bears the impairment.
Deterioration Through Debtor's Fault: Creditor chooses between rescission or fulfillment with damages.
Improvement by Nature or Time: Improvement benefits the creditor.
Improvement at Debtor's Expense: Debtor has usufructuary rights.

Requisites for Applying Article 1189

Real obligation with a specific thing.
Suspensive condition.
Condition fulfilled.
Loss, deterioration, or improvement during condition pendency.

Kinds of Loss

Physical Loss: Thing perishes.
Legal Loss: Thing goes out of commerce.
Civil Loss: Thing disappears, making its existence unknown.

Article 1191: Right to Rescind Reciprocal Obligations

A party can demand performance only if they can fulfill their own obligation.
Rescission creates mutual restitution.
Rescission not available if the thing is held by a third party in good faith.
Rescission is not granted for minor breaches, only substantial ones.
Right to rescind can be waived expressly or impliedly.

Article 1200: Right of Choice in Alternative Obligations

Choice belongs to the debtor unless granted to the creditor.
Debtor cannot choose impossible, unlawful, or ineligible prestations.
Debtor cannot combine parts of different prestations.

Article 1201: Communication of Choice

Choice takes effect when communicated.

Article 1202: Loss of Right of Choice

Debtor loses the right if only one prestation is practicable.

Article 1203: Creditor Prevents Choice

Debtor can rescind the contract with damages if the creditor prevents a choice.

Rescission

Mutual restitution of things and price with interest.

Rescission in Alternative Obligations

Debtor may rescind if one prestation is destroyed through the creditor's fault.

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Description

This quiz explores the legal implications of impossible conditions in obligations. It covers the distinction between physically and legally impossible conditions and their effects on contractual obligations. Understand how impossibility can lead to void obligations and the validity of residual unaffected parts.