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.

Every obligation which contains a resolutory condition shall also be demandable, without prejudice to
the effects of the happening of the event.

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.

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 that constitutes the condition.

Article 1182. When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void. If it is dependent upon chance or upon the will of a third person, the
condition shall take effect in conformity with the provisions of this Code.

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.

The condition not to do an impossible thing shall be considered as not having been agreed upon.

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.

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 will not 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.

Article 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its
fulfillment.
Article 1187. The effects 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 fruits and interests during the pendency of the condition
shall be deemed to have been mutually compensated. If the obligation is unilateral, the debtor shall
appropriate the fruits and interests received, unless from the nature and circumstances of the obligation
it should be inferred that the intention of the person constituting the same was different.

In obligations to do and not to do, the courts shall determine, in each case, the retroactive effect of the
condition that has been complied with.

Article 1188. The creditor may, even before the fulfillment of the condition, bring the appropriate
actions for the preservation of his right. The debtor may recover what during the same time he has paid
by mistake in case of a suspensive condition.

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:

(1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished;
(2) If the things is lost through the fault of the debtor, he shall be obliged to pay damages; it is
understood that the things 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;
(3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by
the creditor;
(4) If it deteriorates through the fault of the debtor, the creditor may choose between the
rescission of the obligation and its fulfillment, with indemnity for damages in either case;
(5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of
the creditor;
(6) If it is improved at the expense of the debtor, he shall have no other right than that granted to
the usufructuary.

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.

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 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.
Article 1191. The power to rescind 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. Hey 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 the
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.

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.

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 the
arrival of the day certain.

A day certain is understood to be that which must be 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.

Article 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.

Article 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.

Article 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 of the other.

Article 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 circumstance have been probably
contemplated by the parties. Once fixed by the courts, the period cannot be changed by them.
Article 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;
(2) When he does not furnish to the creditor the guaranties or securities which he has
promised;
(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;
(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to
the period;
(5) When the debtor attempts to abscond.

Article 1199. A person alternatively bound by different prestations shall completely perform one of
them. The creditor cannot be compelled to receive part of one and part of another undertaking.

Article 1200. The right of choice belongs to the debtor, unless it has been expressly granted to the
creditor. The debtor shall have no right to choose those prestations which are impossible, unlawful or
which could not have been the object of the obligation.

Article 1201. The choice shall produce no effect except from the time it has been communicated.

Article 1202. The debtor shall lose the right of choice when among the prestations whereby he is
alternatively bound, only one is practicable.

Article 1203. If through the creditor’s acts the debtor cannot make a choice according to the terms of
the obligation, the latter may rescind the contract with damages.

Article 1204. The creditor shall have a right or indemnity for damages when, through the fault of the
debtor, all the things which are alternatively the object of the obligation have been lost, or the
compliance of the obligation has become impossible.

The indemnity shall be fixed taking as a basis the value of the last thing which disappeared, or that of
the service which last became impossible. Damages other than the value of the last things or service
may also be rewarded.
Article 1205. When the choice has been expressly given to the creditor, the obligation shall cease to be
alternative from the day when the selection has been communicated to the debtor. Until then, the
responsibility of the debtor shall be covered by the following rules:

(1) If one of the things is lost through a fortuitous event, he shall perform the obligation by
delivering that which the creditor should choose from among the remainder, or that which
remains if only one subsists;
(2) If the loss of one of the things occurs through the fault of the debtor, the creditor may claim
any of those subsisting, or the price of that which, through the fault of the former, has
disappeared, with a right to damages;
(3) If all things are lost through the fault of the debtor, the choice by the creditor shall fall upon
the price of any one of them, also with indemnity for damages.

The same rules shall be applied to obligations to do or not to do in case one, some or all of the
prestations should become impossible.

Artciel 1206. When only one prestation has been agreed upon, but the obligor may render another in
substitution, the obligation is called facultative. The loss or deterioration of the thing intended as a
substitute, through the negligence of the obligor, does not render him liable. But once the substitution
has been made, the obligor is liable for the loss of the substitute on account of his delay, negligence or
fraud.