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OBLICON Prof. Arriesgado|BSA 1 - 1st Semester | CONCEPTUAL FRAMEWORK AND STANDARD Distinctions between suspensive and resolutory condition...

OBLICON Prof. Arriesgado|BSA 1 - 1st Semester | CONCEPTUAL FRAMEWORK AND STANDARD Distinctions between suspensive and resolutory condition Art 1179. PURE AND RESOLUTORY CONDITION (1) Suspensive condition gives rise to an obligation while resolutory extinguishes an obligation Every obligation whose performance does (2) When a suspensive condition is not fulfilled, there is no judicial tie. In the case of resolutory conditions, not depend upon a future or uncertain the tie of law is consolidated or firmly established. event, or upon a past event unknown to the (3) Until the suspensive condition is fulfilled, the existence of the obligation is only “mere hope” parties, is demandable at once while in the case of resolutory condition, the obligation is fully in effect but the possibility of Every obligation which contain a resolutory “termination” hovers. condition shall also be demandable, without prejudice to the effects of the An obligation is demandable at once happening of the event (1) When it is pure (2) When it is subject to resolutory condition Meaning (3) When it is subject to resolutory period A pure obligation is one that is immediately enforceable Past events unknown to parties because it does not rely on any future uncertain event or unknown past event. The creditor can demand the fulfillment of the obligation right away, and the debtor is legally required A past event cannot be said to be a condition because an to perform it. obligation subject to a condition must be uncertain whether or not the event will happen. When an obligation contains a resolutory condition, which its Instead, the law focuses on the knowledge to be acquired in fulfillment leads to the extinguishment of an existing the future of the past event, that the two parties do not know obligation, the obligation is still demandable until the about. This is the only way it could be uncertain and condition occurs. The phrase “without prejudice to the effects determines whether the obligation will arise or not. of the happening of the event” means that if the event happens, the obligation is extinguished, and the fact that the obligation was being enforced before the event does not change this outcome. Art 1180. DURATION OF PERIOD A pure obligation - is not subject to any condition and there is no specific date mentioned for its fulfillment and therefore is Art 1180. immediately demandable Conditional obligation - whose consequence are subject in When the debtor binds himself to pay when one way or another to the fulfillment of a condition his means permit him to do so, the Condition - a future and uncertain event, upon the happening obligation shall be deemed to be one with a of which, can result in the extinguishment or acquisition of an obligation. period, subject to the provisions of Article 1197. Characteristics of condition Meaning (1) Future and uncertain (a) it uses “or” in the article to distinguish When a debtor binds himself to an obligation where he pays pure obligation from conditional when his means permits him so, then the obligation is obligation and one with period (future but contingent on a future and certain event. The obligation is not certain event) enforceable until the debtor has the means to pay. (2) Past but unknown (a) A past event cannot be said to be a Period - a future and certain event where the arrival of so condition since the demandability of an would determine whether the obligation tied to it would be obligation subject to a condition depends extinguished or acquired. upon whether the event will happen or not. (b) what is really contemplated by the law is The duration of period depends upon the the knowledge of the parties in the future will of debtor about the past event, which has to be unknown to be uncertain. (1) What depends upon the debtor’s will is not A condition must not be impossible - it must be feasible of whether or not he should pay because he will pay, being fulfilled. but rather, the duration (or the length of time of the arrival) of the period. (a) if the two parties cannot agree to a Principle kinds of condition specific time of payment, the court shall set the date (2) Other cases (1) Suspensive condition - the fulfillment of this condition gives rise to an obligation or right. (2) Resolutory condition - the fulfillment of this condition leads to the extinguishment of an obligation or right that was pre-existing. TRANSCRIBED BY: JULES 1 LECTURE 1 | CFAS Art 1181. CONDITIONAL OBLIGATIONS (a) Positive - the condition consists in the performance of an act (b) Negative - the condition consists of an Art 1181. In conditional obligations, the omission of an act (6) As to numbers acquisition of rights, as well as the (a) Conjunctive - there are several conditions extinguishment or loss of those already and all must be fulfilled acquired, shall depend upon the happening (b) Disjunctive - there are several conditions and only one or some of them must be of the event which constitutes the condition fulfilled (7) As to divisibility (a) Divisible - the condition is susceptible of Meaning partial performance (b) Indivisible - the condition is not In conditional obligations, the consequences, that being the susceptible of partial performance acquisition of rights or the extinguishment of those already acquired, are subject in one way or another to the fulfillment of a condition. Potestative condition Potestative condition - a condition suspensive in nature and Effects of happening of condition which depends upon the sole will of one of the contracting parties (1) Acquisition of rights - In a suspensive condition, the obligatory force of the obligation is entirely dependent on a future, uncertain event. If the Suspensive condition depends upon will of condition does not happen and it becomes clear the debtor that it will not be fulfilled, then the obligatory force is void and the parties would stand as if the Conditional obligation void - because its validity and conditional obligation had never existed. During the compliance is left to the will of the debtor. The obligation pendency, the creditor has only mere hope. cannot be easily demanded. In order not to be liable, he may (2) Loss of rights already acquired choose not to fulfill the condition. Furthermore, there is no burden on his part and consequently there is no juridical tie created. Only the condition void - If an obligation is pre-existing and a Art 1182. POTESTATIVE CONDITION potestative condition is later imposed, the condition itself is void because it is solely dependent on the will of one party. However, the pre-existing obligation remains valid as it was Art 1182. When the fulfillment of the established independently of the condition. The condition’s condition depends upon the sole will of the invalidity does not affect the validity of the obligation itself. debtor, the conditional obligation shall be void Suspensive condition depends upon will of the creditor Meaning If the condition depends solely upon the will of the creditor, the obligation is valid. The obligation does not become If a condition in an obligation depends solely on the debtor’s illusory and is for his/her benefit. will, that conditional obligation, whose consequences are subject one way or another to the fulfillment of the obligation, is considered void. This is because it allows the (1) Resolutory condition depends upon will of validity and compliance to be left to the will of the debtor, the debtor and thus, (2) the obligation cannot be easily demanded. (3) In order not to be liable, he may choose not to fulfill the condition. Furthermore, (4) there is no burden on his part and If obligation is tied to a resolutory condition depending upon consequently there is no juridical tie created. the will of the debtor, then it is valid. This is because fulfilling the resolutory condition would lead to the extinguishment of the obligation, which the debtor is interested in. Classification of conditions The position of the debtor in a resolutory condition is the EFPODMN same as the creditor in a suspensive condition. (1) As to effect Casual condition (a) Suspensive - the happening of which gives rise to an obligation Casual condition - If the obligation depends upon chance or (b) Resolutory - the happening of which upon the will of a third person, the obligation subject to it is extinguishes an obligation valid. (2) As to form (a) Express - the condition is clearly stated (b) Implied - the condition is merely inferred Mixed condition (3) As to possibility (a) Possible - the condition is capable of fulfillment, legally and physically Mixed condition - If the obligation depends partly upon (b) Impossible - the condition is not capable chance and partly upon the will of a third person, the of fulfillment, legally and physically obligation subject to it is valid. (4) As to cause or origin (a) Potestative - the condition depends upon Where suspensive condition depends partly the will of one of the contracting parties (b) Casual - the condition depends upon upon will of debtor chance or will of a third person (c) Mixed - the condition depends partly When the fulfillment in a conditional obligation depends upon chance and partly upon the will of a partly upon the will of the debtor and partly on the will of a third person third person or chance, it is valid because it prevents the (5) As to mode obligation from being solely dependent on the debtor’s will. TRANSCRIBED BY: JULES 2 LECTURE 1 | CFAS However, if the compliance of the obligation depends on the will of the debtor is crucial, the obligation is void as it is in his Art 1184. CONDITION WITH power to comply or not to comply. DETERMINATE TIME The situation is the same as if the condition depends entirely upon the will of the debtor. Art 1184. The condition that some event happen at a determinant time shall extinguish the obligation as soon as the Art 1183. IMPOSSIBLE CONDITION time expires or if it has become indubitable that the event will not take place Art 1183. Impossible conditions, those contrary to good customs or public policy Meaning and those prohibited by law shall annul the obligation which depends upon them. If the Article 1184 when a condition that states that some event obligation is divisible that part thereof happens at a determinate time, then the expiry of the time or if the event has become indibutable that the event won’t take which is not affected by the impossible or place will extinguish the obligation. unlawful condition shall be valid. Refers to positive suspensive conditions The condition not to do an impossible thing shall be considered as not having been The obligation is extinguished: agreed upon. (1) as soon as the time expires without the event taking place Meaning (2) as soon as the event has become indibutable that it won’t take place although the time has not yet expired Article 1183 states that if an obligation is based on a condition that is impossible, contrary to good customs, public policy, or prohibited by law, the obligation is annulled. However, if the obligation is divisible, or can be fulfilled in partial performance, the parts not impacted by the impossible Art 1185. CONDITION WITH condition remain valid. DETERMINATE TIME If an agreement includes a condition that states not to do an impossible thing, the obligation is regarded as pure and valid because a condition is always fulfilled when asked not to do Art 1185. The condition that some event will an impossible thing, as if there were no condition in the first not happen within a determinate time shall place. An example is I will sell Dumpit my ballpen if she does render the obligation effective from the not carry a talking cat. moment the time indicated has elapsed, or Refers to suspensive conditions if it has become evident that the event cannot occur. 2 kinds of impossible conditions If no time has been fixed, the condition shall (1) Physically impossible conditions - in nature of be deemed fulfilled at such time as may things, cannot exist or cannot be done (2) Legally impossible conditions - they are contrary to have probably been contemplated, bearing law, morals, good customs, public order, or public in mind the nature of the obligation. policy. Meaning Effects of impossible conditions Article 1185 states that when the obligation is tied to a (1) Conditional obligation void - Impossible conditions condition where an event will not occur within a determinate annul the obligations that are tied to them. The time, then the arrival of the time or if it becomes indibutable obligor knows that the obligation cannot be that that the event will not happen will render the obligation fulfilled, so he has no intention to comply. effective. (2) Conditional obligation valid - If the condition is negative or not to do an impossible thing, then it is In the absence of a set deadline, the condition should be valid because the condition is always fulfilled when considered fulfilled at the time that is reasonable and based we are tasked not to do an impossible thing. It on the nature of the obligation. For example, I will give Babor becomes a pure obligation 100k if Dumpit does not return to Cebu after her trip. In this (3) Only the affected obligation void - when obligation context, the both of us do not know when Dumpit’s return is is divisible, the part not affected by the impossible going to be, but if it seems that her absence has extended obligation is valid. long enough for it to be unlikely that she will return, then the (4) Only the condition void - occurs when the obligation will render effective. obligation is pre-existing and does not depend upon the fulfillment of a condition. Negative condition The negative condition may not be to give an impossible thing. The obligation shall be effective and binding: (1) from the moment the time indicated has elapsed without the event taking place TRANSCRIBED BY: JULES 3 LECTURE 1 | CFAS (2) from the moment it has become evident that the Article 1187 ensures that once a condition in an obligation is event cannot occur, although the time indicated has fulfilled, the effects are retroactive to the original date of the not yet elapsed obligation (it is treated as if it was in effect from the beginning). During reciprocal obligations, the fruits and interests during the pending period are shared equally between the parties, while unilateral obligations allow the debtor to retain the fruits and interests unless otherwise Art 1186. OBLIGOR VOLUNTARILY implied by the agreement. PREVENTS In obligations to do or not to do, the courts have the authority to decide how the fulfillment of a condition should affect the Art 1186. The condition shall be deemed parties retroactively. fulfilled when the obligor voluntarily prevents its fulfillment Retroactive effects of fulfillment of suspensive condition Meaning (1) In obligations to give - An obligation to give becomes demandable when the condition is Article 1186 states that if the party responsible for meeting fulfilled. However, upon fulfillment, the effects of the condition (the obligor) actively and deliberately prevents the obligation will retroact to the day the obligation the condition from being met, the condition is considered was made. fulfilled regardless of the actual outcome (a) The reason the obligation is because a condition is merely an incidental element Constructive fulfillment of suspensive of the contract. If the parties had known that the condition would be met, they condition would likely have agreed to pure obligation. This is to acknowledge that the (1) the condition is suspensive condition was just an additonal factor and (2) the obligor actually prevents the fulfillment of the that the obligation can exist without condition subject to condition. (3) he acts voluntarily (2) In obligations to do or not to do - no fixed rule is provided. The law does not require that the obligor acts with malice or (a) Courts have the authority to decide how fraud. A party cannot gain an advantage from his fault or bad the fulfillment of a suspensive condition faith at the expense of another party. However, this does not impacts the retroactive effect of an apply if the act of the obligor is in the exercise of a right obligation. They must use sound discretion, considering the intent of the parties, to determine whether the Constructive fulfillment of resolutory obligation should be treated as effective condition from the time of the original agreement, from the fulfillment date, or from another specified date. The debtor who is bound to return what he has received upon the fulfillment of the condition. Retroactive effects as to fruits and interests in obligation to give Art 1187. RETROACTIVE EFFECT (1) In reciprocal obligations - In reciprocal obligations, there is no retroactive effect on fruits and interests because the benefits received during the period the Art 1187. The effects of a conditional condition was pending are deemed mutually obligation to give, once the condition has compensated. This rule simplifies the accounting been fulfilled, shall retroact to the day of the process by assuming that the benefits accrued during this period are equitably shared between the constitution of the obligation. Nevertheless, parties. when the obligation imposed reciprocal (2) In unilateral obligations - there is no retroactive prestations upon the parties, the fruits and effect because they are gratuitous. The debtor receives nothing from the creditor, thus, the fruits interests during the pendency of the and interests belong to the debtor unless otherwise condition shall be deemed to have been stated. 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. (1120) Meaning TRANSCRIBED BY: JULES 4 LECTURE 1 | CFAS commerce, or disappears in such a way that its existence is unknown or Art 1188. RIGHTS OF CONDITION it cannot be recovered. 3. When the thing deteriorates without the fault of the debtor, the Art 1188. The creditor may, before the impairment is to be borne by the fulfillment of the condition, bring the creditor; appropriate actions for the preservation of 4. If it deteriorates through the fault of his right. the debtor, the creditor may choose between the rescission of the The debtor may recover what during the obligation and its fulfillment, with same time he has paid by mistake in case indemnity for damages in either of a suspensive condition. case; 5. If the thing is improved by its nature, Meaning or by time, the improvement shall This rule refers to the right of the creditor to take actions inure to the benefit of the creditor; aimed at protecting their interests before the condition tied to 6. If it is improved at the expense of the an obligation is fulfilled. Specifically, in conditional debtor, the debtor shall have no obligations—those dependent on an uncertain future event—the creditor is not left powerless while awaiting the other right than that granted to a occurrence or non-occurrence of the condition. usufructuary. In the context of a suspensive condition, where the obligation depends on the occurrence of an uncertain future event, the Meaning debtor may, at times, mistakenly pay the obligation before the condition is fulfilled. The law allows the debtor to recover This rule refers to the cases of loss, deterioration, or what they have mistakenly paid during this period. improvement of determinate thing before the fulfillment of the suspensive condition. Rights pending fulfillment of suspensive condition Requisites for application (1) Rights of Creditor - The creditor may go to court to (1) The obligation is a real obligation prevent the alienation of the property the debtor (2) The object is a specific or determinate thing has bound himself to deliver, or to have his rights (3) The obligation is subject to a suspensive condition annotated on the title to the property in the (4) The condition is fulfilled registry of deeds, as the debtor may render (5) There is loss, deterioration, or improvement of the nugatory the obligation upon the happening of the thing during the pendency of the condition condition. (2) Rights of debtor - He is entitled to recover what he has paid prior to the happening of the suspensive Kinds of loss condition. (a) He is granted because the creditor may or (1) Physical Loss - when a thing perishes may not be able to fulfill the condition (2) Legal Loss - when a thing goes out of commerce (ex. imposed. expropriated) when a thing becomes illegal (b) Solutio indebiti (3) Civil Loss - when a thing disappears in such a way (c) It must be by mistake or else the debtor that its existence is unknown, or if known, cannot may have implied to waive the condition. be recovered (a matter of fact or of law) Rules in case of loss, deterioration, or Art 1189. CASES OF LOSS, improvement of thing during pendency of DETORIORATION, OR IMPROVEMENT suspensive condition (1) Loss of thing without debtor’s fault Art 1189. When the conditions have been (2) Loss of thing through debtor’s fault imposed with the intention of suspending (3) Deterioration of thing without debtor’s fault - the efficacy of an obligation to give, the (a) A thing deteriorates when its value is reduced or impaired with or without the following rules shall be observed in case of fault of the debtor the improvement, loss, or deterioration of (4) Deterioration of thing with debtor’s fault - Creditor the thing during the pendency of the may choose between: recission, and debtor pays damages or fulfillment of obligation plus condition: deterioration. (5) Improvement of thing by nature or by time - (a) A thing is improved when its value is 1. If the thing is lost without the fault of increased or enhanced by nature or by the debtor, the obligation shall be time at the expense of the debtor or extinguished; creditor. (6) Improvement of thing at expense of debtor - 2. If the thing is lost through the fault of (a) creditor has right granted to a the debtor, the debtor shall be usufructuary with respect to the obliged to pay damages; it is improvements made on the thing held in usufruct understood that the thing is lost Usufruct - the right to enjoy the use and fruits of a thing when it perishes, or goes out of belonging to another TRANSCRIBED BY: JULES 5 LECTURE 1 | CFAS Art 1191. RESCISSION Art 1190. FULFILLMENT OF RESOLUTORY Art 1191. The power to rescind obligations Is CONDITIONS implied in reciprocal ones, in case one of the obligors should not comply with what is Art 1190. When the conditions have for their incumbent upon him. purpose the extinguishment of an obligation to give, the parties, upon the The injured party may choose between the fulfillment of said conditions, shall return to fulfillment and the rescission of the each other what they have received. obligation, with the payment of damages in either case. He may also seek rescission, In case of loss, deterioration or even after he has chosen fulfillment, if the improvement of thee thing, the provisions latter should become impossible. which, with respect to the debtor, are laid down in the preceding article shall be The court shall decree the rescission applied to the party who is bound to return. claimed unless there be just cause authorizing the fixing of a period. As for obligations to do and not to do, the provisions of the second paragraph of This is understood to be without prejudice Article 1187 shall be observed as regards the to the rights of third persons who have effect of the extinguishment of the acquired the thing, in accordance with obligation Articles 1385 and 1358 and the Mortgage Law. Meaning These are rules in case of fulfillment of resolutory conditions, Meaning where 1. upon the fulfillment of the resolutory condition, the (1) In reciprocal obligations, if one party fails to obligation is extinguished perform, the other party has an implied right to 2. the parties shall return to each other what they either enforce the contract or rescind it. They can have received seek damages regardless of their choice. 3. in case of loss, retoriation, or improvement of the (2) If the contract becomes impossible to fulfill after an thing, the provisions in aricle 1189 which pertain to initial decision to enforce it, rescission can still be the debtor shall be applied to the party ewho is pursued. bound to return. (3) The court will generally grant rescission unless there 4. For obligations to do or not to do, no fixed rule is is a valid reason to extend the compliance period. provided but courts have the authority to decide (4) The rights of third parties who acquired the how the fulfillment of a suspensive condition property in good faith are protected despite the impacts the retroactive effect of an obligation. rescission. Effects of fulfillment of resolutory condition Kinds of obligation according to the person obliged (1) In obligations to give (a) The obligation is considered extinguished (1) Unilateral - when only one party is obliged to as if it never existed. comply with a prestation (b) Parties must return to their prior status, (2) Bilateral - when both parties are mutually bound to including the return of the principal item each other. Both parties are debtors and creditors and any accrued benefits. of each other. May be reciprocal or not. (c) If the item is held by a third party in good (a) Reciprocal obligations - are those whicih faith, restitution claims are against the arise from the same cause, and in which original parties involved. each party is a debtor and creditor of the (d) Retroactive effects vary between bilateral other, such that the performance of one is and unilateral obligations, and exceptions desigende to be the equivalent, and the may be made based on the parties’ condition ofe the performance is their intentions. own obligation. (2) In obligations to do or not to do (b) Non-reciprocal obligation - are those (a) the courts shall determine the retroactive which do not depend on the correlative or effect of the fulfillment of the condition, simultaneous performance of the other and may even disallow it, taking account party. the circumstance of the event Applicability of article 1189 to part with Remedies in reciprocal obligations obligation to return (1) Choice of remedies (a) action for specific performance with The happening of a resolutory condition has the same effect damages on the creditor as the happening of a suspensive condition (b) action for rescission of obligation has on the debtor - an obligation arises. Rescission - remedy available to an obligee when the obligor The fulfillment of the resolutory condition converts the fails to comply with his obligation, to abrogate their contract creditor into debtor, and the debtor into creditor as if it was never entered to. (2) Remedy of rescission for non-compliance - the principal action for rescission for non-performance TRANSCRIBED BY: JULES 6 LECTURE 1 | CFAS should be distinguished from the subsidiary action that: If both parties breach the contract, the court will adjust for rescission by reason of lesion. the liability of the party who first breached the contract fairly. The obligee may treat non-fulfillment by the other party in a If it cannot be determined which party breached first, the reciprocal obligation as a resolutory condition. contract is deemed extinguished, and each party is responsible for their own damages. Court may grant guilty party term for performance Where both parties are guilty of breach This exception applies only where the guilty party is willing to First infractor known - The liability of the first comply but does not have the time to do so, not when he infractor should be equitably reduced. refuses to perform ○ the second infractor also derived, or thought he would derive, some advantage of his own neglect Remedies are alternative First infractor cannot be determined - contract will be extinguished and each shall bear his own damages The remedies of the aggrieved party are alternative,e not ○ both tried to reap some benefit cumulative, except when he has chosen fulfillment but it is impossible, so he asks for rescission. Limitations on right to demand rescission Art 1193. OBLIGATION WITH PERIOD (1) Resort to the courts - no person can take justice in Art 1193. Obligations for whose fulfillment a his own hands, the other party must be given an opportunity to be heard day certain has been fixed, shall be (2) Power of court to fix period. - The court may allow demandable only when that day comes. a period within which a person in default may perform his obligation if there is just cause such as the default not being willful or depending on thee Obligations with a resolutory period take circumstances effect at once, but terminate upon arrival of (3) Right of third person. - if the prestation is in the the day certain. hands of a third person who acted in good faith, rescission is not available (4) Substantial violation - General rule is that A day certain is understood to be that which rescission will not be granted for slight breaches of contract; the violation should be substantial as to must necessarily come, although it may not defeat the purpose of the agreement. be known when (5) Waiver of right - The right to rescind may be waived, expressly or impliedly If the uncertainty consists in whether the day will come or not, the obligation is Rescission without previous judicial decree conditional, and it shall be regulated by the rules of the preceding section. (1) Where automatic rescission expressly stipulated - the paerties may validly enter into an agreement that violation of terms of contract would cause Meaning cancellation. However, there must be atleast a written notice sent to the other paty informing him of the rescission. (1) Obligations set for fulfillment on a specific date can (a) Has legal effect when no opoosition only be demanded once that date arrives. (b) Court necessary when objected (2) Resolutory obligations become effective (2) Where contract is still executory - When one is immediately but will end when the specified date ready and willing to comply while the other is not, arrives. the willing party may rescind the contract without a (3) A "day certain" is a date that will inevitably come, previous judicial decree of rescission. even if its exact timing is not known. (a) When contested, the party is free to (4) If there is uncertainty about whether the day will resort to judicial action. ever come, the obligation is conditional and is governed by the rules for conditional obligations. An obligation with a period is one whose effects are subjected in one way or another to the expiration or arrival of said Art 1192. BREACH OF CONTRACF period or term Period - a future and certain event upon the arrival of which the obligation (or right) subject to it either earises or is Art 1192. In case both parties have extinguished. It is a day certain to come, although it may not committed a breach of the obligation, the be known. liability of the first infractor shall be equitably tempered by the courts. If it Period and condition distinguished cannot be determined which of the parties first violated the contract, the same shall be (1) As to fulfillment (a) Period is future and certain deemed extinguished, and each shall bear (b) Condition is future and uncertain, or past his own damages. but unknown (2) As to time (a) Period refers to future Meaning (b) Condition may refer to unknown past events Article 1192 deals with breaches in reciprocal contracts where (3) As to influence on the obligation both parties have failed to perform their obligations. It states TRANSCRIBED BY: JULES 7 LECTURE 1 | CFAS (a) A period only affects the timing of the obligation’s effectiveness or termination but does not influence its existence. (b) A condition determines whether an obligation will come into effect or cease, directly impacting its existence based on whether the condition is met or not. (4) As to effect, when left to the debtor's will. (a) a period which depends upon the will of the debtor empowers the court to fix tehe duration thereof (b) A condition which depends upon the sole will of the debtor invalidates the obligation (5) As to retroactivity of effects.. (a) Thee arrival of a period does not have any retroactive effect, unless stipulated others (b) The condition has a retroactive effect Like a condition, a period must be possible. if the period is impossible, the obligation is void. Kinds of period or term (1) According to effect (a) Suspensive period (ex die) (b) Resolutory period (in diem) (2) According to source (a) Legal period - When it is provided for by laws (b) Conventional or voluntary period - When it is agreed to by ethe parties (c) Judicial period - When it is fixed bythe court (3) According to definiteness (a) Definite period - when it is fixed or it is known when it will come (b) Indefinite period - when it is not fixed or it is not known when it will come. Art 1194. LOSS, DETERIORATION, OR IMPROVEMENT OF THE THING OF PERIOD Art 1194. In case of loss, deterioration, or improvement of the thing before the arrival of the day certain, the rules or article 1189 shall be observed. Meaning (1) Loss of thing without debtor’s fault (2) Loss of thing through debtor’s fault (3) Deterioration of thing without debtor’s fault - (a) A thing deteriorates when its value is reduced or impaired with or without the fault of the debtor (b) Deterioration of thing with debtor’s fault - Creditor may choose between: recission, and debtor pays damages or fulfillment of obligation plus deterioration. (4) Improvement of thing by nature or by time - (a) A thing is improved when its value is increased or enhanced by nature or by time at the expense of the debtor or creditor. (5) Improvement of thing at expense of debtor - (a) creditor has right granted to a usufructuary with respect to the improvements made on the thing held in usufruct Usufruct - the right to enjoy the use and fruits of a thing belonging to another TRANSCRIBED BY: JULES 8