Chapter 3 (Section 1)

STUDY GUIDE

I. Definition
Define or give the meaning of the following:
1. Condition
- A condition is a future and uncertain event upon the happening of which
certain rights or obligations will be either enlarged, created, or destroyed.
2. Civil loss
- When something disappears in such a way that its existence is unknown. It
can also be defined as: when a thing disappears in such a way that it cannot be
recovered.
3. Reciprocal Obligations
- A reciprocal obligation, also known as a reciprocal agreement, is a duty owed
by one individual to another and vice versa. It is a type of agreement that
bears upon or binds two parties in an equal manner.
4. Pure Obligations
- A pure obligation is one that is demandable at once because it does not depend
upon a future or uncertain event, not on a past event unknown to the parties
and is not an obligation with a resolutory condition.
5. Potestative Condition
- A potestative condition depends upon the exclusive will of one of the parties.
For this reason, it is considered void. When the fulfillment of the condition
depends upon the sole will the debtor, the conditional obligation shall be void.
II. Discussions
1. Illustrate an obligation subject to:
a. Suspensive condition
 If your rent is due on the 30th, you have an obligation to pay the rent.
The performance to pay occurs on the 30th. The performance is
suspended until the 30th.
 b. Resolutory condition
 A has a car note over the next 6 years. Once A pay the last payment at
the end of 6 years, the obligation ends.
What is the effect of the fulfillment of the condition in a conditional
obligation?
 The suspensive condition is when the parties agree that the duty to
perform is postponed until a determined or determinable date due to
the pending event, and that this event is certain to happen. However,
the exact date is unknown. The obligation will arise when the said
condition is already fulfilled. While in the resolutory condition, when
the parties agree that the obligations in the contract will be terminated
upon a certain future time. This exact time is certain to happen, but the
exact date is unknown.
2. Give two (2) cases when the conditional obligation is valid although the condition
depends entirely upon the will of the debtor. Explain.
- D binds himself to pay E of his debt that costs ₱69,000 little by little. This
obligation is valid, and it shall be deemed to be one with a period of time/
- F borrowed ₱420,000 to G payable on June 18. Due to the review of financial
reverses, F now is not capable on paying the debt to G, but F is willing to pay
the said debt. The remedies of G will arise.
3. May an obligor be liable under an obligation subject to a suspensive condition
although the condition has not yet been fulfilled? Explain.
- Under this type of condition, the obligor or the debtor is not yet liable. The
debtor would be liable if the condition is already fulfilled.
4. In an obligation to give a parcel of land subject to a suspensive condition, who is
entitled to the fruits that accrued during the pendency of the condition once said
condition is fulfilled?
- Upon the fulfillment of the obligation, the seller has the right to keep to
himself all the fruits and interests he may have received during the
dependency of the condition, unless a contrary intention by the seller that he
shall render an accounting of fruits received during its pendency.
 5. State the rules in case the thing to be delivered:
a. is lost with the debtor’s fault; without his fault;
 If the delivery lost is due to the debtor’s fault, the debtor has an
obligation to pay the damages that incurred and the price of the thing
that is lost also can be demand.
 If the delivery lost without the fault of the debtor, the debtor is not
liable for any obligation or the obligation shall be extinguished. We
are not liable for the fortuitous event or any event that beyond our
powers.
b. deteriorates with the debtor’s fault; without his fault.
 If it deteriorates through the fault of the debtor, the creditor may
choose between the 2 remedies as a creditor, which is the rescission or
the fulfillment of the obligation, with damages that incurred in either
case. As a creditor, you only have to choose one of the remedies that
are given.
 If it deteriorates without the fault of the debtor, the value of thing that
delivered will be depreciated and the value will be reduced due to the
deterioration of the thing.
III. Problems
Explain or state briefly the rule or reason for your answer.
1. D (debtor) borrowed P20,000 from C (creditor) payable on or before August 30.
Before the arrival of the due date, C agreed to the promise of B to pay C if B
wants. Can C insist that B pay not later than August 30?
- On this situation, the conditional obligation whose fulfillment depends
partly on the will of the debtor and partly upon the will of the third person is
perfectly valid. In this case, it shows that the creditor demands thet hird
person to pay him not later than August 30 but on the said case, they agreed
on the promise of the third person to pay the creditor if the third person wants.
Therefore, the creditor cannot demand to the debtor if the due date is not yet
passed.
2. Suppose in the same problem, D obliges himself to pay C P10,000 after C has
paid his obligation to T. Is the obligation valid?
- The said condition is considered as the suspensive condition wherein the
obligation will only arise if the condition is already fulfilled. The debtor
obliges himself to pay the creditor if the creditor already paid the third party.
If the creditor has not yet fulfilled his obligation to the third party, he cannot
demand the debtor to pay him immediately. Therefore, the obligation of the
debtor is invalid. The debtor is not liable to pay the creditor if the creditor is
not yet paid to the third party.
3. S (seller) agreed to sell to B (buyer) a specific car for P200,000, delivery of the
car and the payment of the price to be made on June 15. Suppose 5 delivered the
car on June 15 but B failed to pay the price, what are the remedies of S?
- If the buyer does not comply with his obligation to pay, the seller may choose
between the two remedies: (a action for specific performance(fulfillment) of
the obligation with the damages; or (b action for the rescission of the
obligation also with damages. The seller has the privilege to choose only one
of the remedies, and not both. If the creditor chosen rescission, he cannot
demand the fulfillment of obligation to the buyer. Same as, if he chosen the
buyer to fulfill the obligation, he cannot practice the rescission later on.
4. S sold a parcel of land to B for P240,000 payable in installment of P20,000 a year.
The land was delivered to B who obtained ownership thereof. After B had paid
P200,000, he could no longer continuing paying the balance of P40,000 if given
more time. Thereupon, S sued for rescission under Article 1191. If you were the
judge, would you grant rescission?
- I would grant the rescission of Seller in default a term or period for the
performance of the Buyer. The buyer is willing to comply with his obligation
to pay the maintaining balance that cost 40,000but needs time to do so due to
the view of his financial reverses, not because she does not want to pay the
maintaining balance that he had left.
5. D (debtor) binds himself to pay C (creditor) a sum of money. Give the three cases
when the obligation of D is demandable at once by C? 
- When the obligation is pure, an obligation is demandable at once if it is pure
obligation which one is not suspended by any condition, whether it has been
contracted without any condition, or when thus contracted, the condition has
been performed. It is immediately demandable. Their agreement does not have
specific date, and conditions so the creditor can demand to pay the said
amount to the debtor.
- When the obligation is subject to a resolutory condition, on the above
description of resolutory obligation, once the condition is already fulfilled, the
obligation will be extinguished. The creditor can demand to the debtor during
the fulfilling of the condition.
- When the obligation is subject to a resolutory period, same as the case above,
the creditor can demand to the buyer while in the process of fulfilling the
condition. If the creditor and the debtor agree on the period wherein the
obligation is extinguished, he can demand to the buyer to pay the amount he
borrowed.