Chapter 3: Different Kinds of Obligations PDF

Chapter 3 2 Principal Kinds of Condition: Different Kinds of Obligations 1. Suspensive Condition (Condition Precedent or Condition Antecedent)  Primary Classification of Obligatio...

Chapter 3 2 Principal Kinds of Condition: Different Kinds of Obligations 1. Suspensive Condition (Condition Precedent or Condition Antecedent)  Primary Classification of Obligations under - One the fulfillment of which will the Civil Code: give rise to an obligation (or right) 1. Pure and Conditional Obligations - The demandability of the 2. Obligations with a period obligation is suspended until the 3. Alternative and Facultative happening of the uncertain event Obligations which constitutes the condition 4. Joint and Solidary Obligations 2. Resolutory Condition (Condition 5. Divisible and Indivisible Obligations Subsequent) 6. Obligations with a Penal Clause - One the fulfillment of which will  Secondary Classification: extinguish an obligation (or right) 1. Unilateral and Bilateral Obligations already existing 2. Real and Personal Obligations 3. Determinate and Generic Obligations Distinctions between 4. Civil and Natural Obligations suspensive and resolutory conditions 5. Legal, Conventional, and Penal Suspensive Resolutory Obligations The obligation The obligation is When fulfilled arises extinguished The tie of the The toe of the law (juridical Article 1179 When does law (juridical or or legal tie) Pure Obligations not take place legal tie) is does not - Is one which is not subject to any consolidated appear condition and no specific date is It affects flow, The existence mentioned for its fulfillment and is, but over it When takes of the therefore, immediately demandable hovers the place obligation is a possibility of mere hope termination Conditional Obligations - Is one whose consequences are subject When obligation is demandable at once: in one way or another to the fulfillment 1. When it is pure of a condition 2. When it is subject to a resolutory condition Condition 3. When it is subject to a resolutory - Is a future and uncertain event, upon period the happening of which, the effectivity or extinguishment of an obligation (or right) subject to it depends Characteristics of a Condition: 1. Future and Uncertain 2. Past but Unknown  Article 1180 2. Casual Where duration of period depends upon the - The condition depends upon will of debtor: chance or upon the will of a 1. The debtor promises to pay when his third person means permit him to do so 3. Mixed 2. As when the debtor binds himself to - The condition depends partly pay upon chance and partly upon a. Little by little the will of a third person b. As soon as possible  As to Mode: c. From time to time 1. Positive d. At any time I have the money - The condition consists in the e. In partial payments performance of an act f. When I am in a position to pay 2. Negative - The condition consists in the Article 1181 omission of an act Effect of Happening of condition  As to Numbers: 1. Acquisition of Rights (suspensive) 1. Conjunctive 2. Loss of Rights already acquired - There are several conditions and all (resolutory) must be fulfilled 2. Disjunctive - There are several conditions Article 1182 and only one or some of them Classifications of Conditions: must be fulfilled  As to effect:  As to Divisibility: 1. Suspensive 1. Divisible - The happening of which gives - The condition is susceptible of partial rise to the obligation performance 2. Resolutory 2. Indivisible - The happening of which - The condition is not extinguishes the obligation susceptible of partial  As to form: performance 1. Express - The condition is clearly stated Potestative Condition 2. Implied - A condition suspensive in nature and - The condition is merely which depends upon the sole will of inferred one of the contracting parties  As to Cause or Origin: 1. Potestative Where suspensive condition depends upon will - The condition depends upon of debtor: the will of one of the 1. Conditional obligation void contracting parties 2. Only the condition void Where suspensive condition depends upon will Article 1184 of creditor: Refers to positive (suspensive) condition 1. Obligation is valid - The happening of an event at a determinate time Casual Condition If the suspensive condition depends upon The obligation is extinguished: chance or upon the will of a third person, the 1. As soon as the time expires without the obligation subject to it is valid. event taking place 2. As soon as it has become indubitable Mixed condition that the event will not take place The obligation is valid if the suspensive although the time specified has not condition depends partly upon chance and expired partly upon the will of a third person. Article 1185 Where suspensive condition depends partly Refers to negative condition upon the will of debtor - An event that will not happen at a According to Manresa, the use of the word determinate time ‘exclusive’ (now ‘sole’) makes it clear that conditional obligations whose fulfillment The obligation shall become effective and depends partly upon the will of the debtor and binding: partly upon the will of a third person, or upon 1. From the moment the time indicated chance are perfectly valid. has elapsed without the event taking place Article 1183 2. From the moment it has become Refers to suspensive conditions evident that the event cannot occur, although the time indicated has not yet 2 kinds of impossible conditions: elapsed 1. Physically impossible conditions - When they, in nature of things, Article 1186 cannot exist or cannot be done Requisites for the application of this article: 2. Legally impossible conditions 1. The condition is suspensive - When they are contrary to law, 2. The obligor actually prevents the morals, good customs, public fulfillment of the condition order, or public policy 3. He acts voluntarily Effect of Impossible Conditions: Article 1187 1. Conditional obligation void Retroactive effects of fulfillment of suspensive 2. Conditional obligation valid condition: 3. Only the affected obligation void 1. In obligation to give 4. Only the condition void 2. In obligation to do or not to do Retroactive effects as to fruits and interests in 3. Civil loss obligations to give: - When a thing disappears in such a 1. In reciprocal obligations way that its existence is unknown or even if known, it cannot be recovered, whether as a matter 2. In unilateral obligations of fact or of law Rules in case of loss, deterioration, or improvement of thing during pendency of suspensive condition: Article 1188 1. Loss of thing without debtor’s fault Rights pending fulfillment of suspensive 2. Loss of thing through debtor’s fault condition: 3. Deterioration of thing without debtor’s 1. Rights of creditor fault a. Take or bring appropriate 4. Deterioration of thing through debtor’s actions for the preservation of fault his right 5. Improvement of thing by nature or by b. Go to court time 2. Rights of debtor 6. Improvement of thing at expense of a. Entitled to recover what he has debtor paid by mistake Usufruct Article 1189 - Is the right to enjoy the use and fruits of Requisites for application of this article: a thing belonging to another 1. The obligation is a real obligation 2. The object is a specific or determinate Article 1190 thing Effects of fulfillment of resolutory condition: 3. The obligation is subject to a suspensive 1. In obligation to give conditions 4. The condition is fulfilled 5. There is loss, deterioration, or 2. In obligations to do or not to do improvement of the thing during the pendency of the condition Kinds of loss (civil law): Article 1191 1. Physical loss Kinds of obligation according to the person - When a thing perishes as when a obliged: house is burned and reduced to 1. Unilateral ashes - When only one party is obliged to 2. Legal loss comply with a prestation - When a thing goes out of 2. Bilateral commerce or when a thing - When both parties are mutually heretofore legal becomes illegal bound to each other  - Both parties are debtors and Rescission without previous judicial decree creditors of each other 1. Where automatic rescission expressly a. Reciprocal obligations stipulated - Are those which arise from the 2. Where contract still executory same cause and in which each party is a debtor and creditor of Article 1192 the other, such that the 2 situations where both parties are guilty of performance of one is designed breach: to be the equivalent and the 1. First infractor known condition for the performance 2. First infractor cannot be determined of the other. b. Non-reciprocal obligations - Are those conditions which do not impose simultaneous and correlative performance on both parties - The performance of one party is not dependent upon the simultaneous performance by the other Remedies in reciprocal obligations: 1. Choice of remedies a. Action for specific performance (fulfillment) of the obligation with damages b. Action for rescission of the obligation also with damages 2. Remedy of rescission of non- compliance a. Principal action b. Subsidiary action Limitations on right to demand rescission: 1. Resort to the courts 2. Power of court to fix period 3. Right of third person 4. Substantial violation 5. Waiver of right  Article 1193 Kinds of period or term: Obligation with a period According to effect: - Is one whose consequences are 1. Suspensive period (ex die) subjected in one or another to the - The obligation begins only from a expiration of said period or term day certain upon the arrival of period Period or term 2. Resolutory period (in diem) - Is a future and certain event upon the - The obligation is valid up to a day arrival of which the obligation (or right) certain and terminates upon subject to it either arises or is arrival of the period terminated - It is a day certain which must According to source: necessarily come, although it may not 1. Legal period be known when, like the death of a - When it is provided for by laws person 2. Conventional or voluntary period - When it is agreed to by the Period and Condition Distinguished parties Period Condition 3. Judicial period As to Uncertain - When it is fixed by the court Certain event fulfillment event May refer also According to definiteness: Refers only to to past event As to time 1. Definite period future unknown to the parties - When it is fixed or it is known Merely fixed when it will come As to the time for Causes an 2. Indefinite period influence on the obligation - When it is not fixed or it is not the efficaciousness either to arise known when it will come obligation of the or to cease - Where the period is not fixed but obligation a period is intended, the courts Depends upon the will of the Depends upon are usually empowered by law to As to effect, debtor the sole will of fix the same when left to empowers the the debtor debtor’s will court to fix the invalidates the Article 1194 duration obligation In case of loss, deterioration or improvement of thereof the thing before the arrival of the day certain, The arrival of the rules in Article 1189 shall be observed. period does not have any The happening As to Article 1195 retroactive of a condition retroactivity effect (unless has retroactive Debtor presumed aware of period of effects there is an effect No recovery in personal obligations agreement to the contrary)  Article 1196 Article 1198 Exceptions to the general rule: General Rule: the obligation is not demandable 1. Term is for the benefit of the debtor before the lapse of the period. alone 2. Term is for the benefit of the creditor When obligation can be demandable before lapse of period: Computation of term or period 1. When debtor becomes insolvent Year = 365 days 2. When debtor does no furnish Month = 30 days guaranties or securities promised Day = 24 hours 3. When guaranties or securities given Night = from sunset to sunrise have been impaired or have disappeared Months designated by their names 4. When debtor violates an undertaking - Computed by the number of days which 5. When debtor attempts to abscond they respectively have In computing a period (Art. 13) - 1st day excluded - Last day included Article 1197 Refers to judicial period Court generally without power to fix a period If the obligation does not state a period and no period is intended, the court in NOT authorized to fix a period. The courts have no right to make contracts for the parties. (Tolentino vs. Gonzales) Exceptions to the general rule: 1. No period is fixed but a period was intended 2. Duration of the period depends upon the will of the debtor Legal effect where suspensive period/condition depends upon will of debtor. Period fixed cannot be changed by the courts