Section 1 Pure and conditional obligations

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.
-yung mga obligasyon na hindi naka depende sa future or hindi sure na mga
pangyayare o mga past na hindi alam ng bawat parties ay demandable or kailangan
nilang gawin agad
 -walang certain days kaya demandable sya anytime.
-Pure obligations
Every obligation which contains a resolutory condition shall also be demandable,
without prejudice to the effects of the happening of the event
 -Yung mga obligasyon na may resolutory condition ay demandable din anytime na hindi isina
alang alang kung anong mangyayare sa hinaharap
 -Hanggat hndi pa nangyayare yung obligation, within the time may Karapatan mag demand
anytime si creditor
 2 classifications of obligation:
Primary obligation
Secondary obligation
Primary
 1. Pure and conditional obligations
 2. Obligations with a period
 3. Alternative and facultative obligations
 4. Joint and solidary obligations
 5. Divisible and indivisible obligations
 6. Obligations with a penal cause
Secondary obligation
 1. Unilateral and bilateral obligations
 2. Real and personal obligations 3. Determine and generic obligations
Pure obligations
 -Walang kondisyon/Not subject to any condition
 -No specific date is mentioned for its fulfilment
 -immediately demandable
 -Duration is depend on nature of obligation and circumstances
 -Upon demand of the creditor
Ex. I promise to give you 5,000 (no specific term or condition, therefore it is demandable
)
Conditional obligations
 -consequences are subject in one way or another (magagawa or hindi)
 -Subject to condition Future or uncertain event Past and unknown
 -Must not be impossible
Ex. Passing the subject oblicon (hindi mo sure kung makakapasa ka, pero hndi rin
naman sya imposibleng mangyare, sa future pa mangyayare)
Two principal kinds of condition
Suspensive condition
-conditon fulfilled, obligation arises
 - If hindi mangyare, parang walang juridical tie
 - may hope na mangyayare/magagawa yung obligation
Condition Precedent-earlier event/action
Condition Antecedent-thing/event that happened before
 -Hindi ka makakpag demand hanggat hindi pa nangyayare yung obligation
 ex. I (debtor) will give maria (creditor) a 10k pesos if she passed the major exam, the
obligation is demandable only the time maria take the exam and passed it.
Resolutory condition
 -Condition is fulfilled, obligation extuingished
 -consider yung juridical tie
 -pwedeng magawa, pwedeng hindi gawin (terminate)
 -Immediately demandable (anytime pwede mag demand)
 -Kapag nafulfill na yung dapat gawin, nawawala na yung obligation
Ex. Cedric and yesha enters into a valid employment contract. The contract says that if
the employee commits a crime, it will be the end of the contract. Mr. Cedric can demand
the immediate leave of Yesha after the committed crime.
When obligation is demandable at once
 1. When it is pure (any condition or any period)
 2. when it is subject to a resolutory condition
 3. When it is subject to a resolutory period
Past events unknowns to the parties
 -Kapag hndi alam ng parties yung past events, hindi pa dapat gawin yung obligation sa
present
 ex. Binenta ni clyde and lupa na pamana sknya ng nanay nya kay alexa. Ngunit hndi nya alam
na may dapat pang bayaran na mga papeles sa lupa na naiwang utang ang nanay nya. Hindi nya
maibebenta ang lupa hanggat hndi pa nya binabayaran ang nasabing utang na hndi nya rin alam.
Kailangan nya muna mabayaran ang utang upang tuluyang mabenta ang lupa
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
 -Kapag kaya na bayaran ng obligor yung utang nya, ibig sabihin may period na nakalaan para
bayaran nya ito ( basta may kakayahan na yung debtor magbayad)
 -Immediate demandable
 -10 yrs. prescriptive period
When duration of period depends Upon the will of the debtor
Period
 -Future and certain event
 -Obligation either arises or extinguished (magagawa or hindi magagawa)
Ex. On march 10, sa katapusan
1. The debtor promises to pay when his means permit him to do so
 -Duration of the period only (hndi naiiwan sknya yung obligation na magbayad ba or hndi
kasi bind naman tlga sya magbayad ang naiiwan lang is yung gaano katagal sya magbabayad)
 -If hndi sla mag agree sa isa't isa court na ang bahala
2. Other cases
-when the debtor binds himself to pay "
"little by little"
"as soon as possible"
"from time to time"
"at any time I have money"
 "in partial payments"
 "when I am in position to pay"
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 which
constitute the condition
 -ano ang effect kapag nangyare ang condition
 -kapag nagawa or hindi yung condition, nakadepende sa kalalabasan ng mangyayare sa
nakalagay sa kondisyon
 -future
Suspensive
 -karapatan to demand once na mangyare yung obligation ex. Makatapos ng pag aaral
Resolutory
 -once tapos na yung condition tapos na rin yung obligation hndi na makakapag demand
Ex. Installment basis
 1. Acquisition of rights -future and certain events (suspensive condition, cannot demand)
Ex. DJ bind himself to give 10,000 pesos to hazel if hazel can make icerry fall inlove.
 2. Loss of rights already acquired (resolutory condition, can demand anytime the period as
long as hndi pa terminated)
Ex. Loraine binds himself to buy a laptop to coleen in an installment basis. Once the
installment payment is complete the obligation shall be extuingished.

Article 1182
When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void. If it depends upon chance or upon the will of a third
person, the obligation shall take effect in conformity with the provision of this code
 -Pinauusapan na dito is yung fulfillment ng obligation, kapag will ng debtor ang
pinaguusapan or sya lang yung magdedesisyon kung kailan nya mafufulfill yung obligation,
VOID yun. Kasi dapat sya yung mag gagawa ng obligation once na sya yung nagdesisyon parang
illusionary lang yung obligation. Kasi hindi sya easily demandable. Walang juridical tie na
nangyare.
 - If may involve naman na 3rd party in order to fulfill the obligation, mag take effect yung
obligation depende sa naging desisyon nung 3rd party (Court)
Potestative condition
 -Suspensive in nature
 -Sole will of one of the contracting parties
 -Condition is dependent on either debtor/creditor
 -Depende kung sno yung may will na ifulfill yung condition si debtor ba or creditor
Where suspensive condition depends upon will of the debtor (void)
 -Yung debtor kasi pabor sakanya lagi na hndi gawin yung obligation
 -Naturally inclined
Conditional obligation is void
Ex. I will pay the debt I have from you if I won in the lottery
Only the condition is void
 -May chance kasi na void yung condition pero valid yung obligation
Ex. Leah borrowed to manuel a 5,000 pesos within 2 weeks. She also promise that she
will pay manuel after she win in a gamble which manuel agreed. Only the condition is
void but the obligation si valid.
Where suspensive condition depends upon the will of the creditor (valid)
 -Kung naka depende naman kay creditor yung will VALID yung obligation.
 -Kasi nga creditor is always interested
Ex. I will pay my indebtedness to you if you demand for it
Where resolutory condition depends upon will of debtor (valid)
 -Valid kasi nagiging baligtad yung character nila si debtor nagiging si creditor
Casual Condition (valid)
 -Depende sa chance or will ng 3rd person nagiging valid yung obligation
 Ex. A will give Php 30,000 to B, IF you win in the gamble
Mixed Condition (valid)
 -Depende sa chance partly and partly sa will ng 3rd person
Ex. I will give leah if my house if you marry Carolina
 1. If napatunayan na papaksalan nya talaga si Carolina or may singsing na binigay
 2. If pumayag na ung simbahan sya yung 3rd party.
Where suspensive condition depends partly upon will of debtor (valid)
 -Depend upon the will of the debtor and partly upon the will of a third person
 -If condition is depend upon the debtor the obligation is VOID.
 -Condition is same upon the will of the debtor (sa kanya kasi naka laan kung matutuloy or
hindi yung obligation sa suspensive)
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.
 -Eto yung mga kondisyon na hindi dapat gawin kasi imposibleng gawin or bawal sa mata ng
batas, or hindi nakakabuti para sa iba. Kung divisible yung obligation, meaning partly ay hndi
affected ng impossible obligation yung hndi affected ay valid.
The condition not to do an impossible thing shall be considered as not having been
agreed upon
 -Yung mga kondisyon na wag gawin yung imposibleng bagay ay valid or hindi
napagkasunduan
 -Suspensive condition
 -Obligation already constituted (naipatupad na)
 -Nag exist na yung impossibility nung time na naisapatupad yung obligation
Two kinds of impossible conditions
1. Physically impossible conditions
 -Impossible in nature
Ex. I will pay you 20,000 if you carry your whole family
2. Legally impossible conditions
 -Contrary to law
Ex. I will give you 100,000 if you walk in green lights in pedestrian lane.
Effect of impossible conditions
1. Conditional obligations void
 -Impossible conditions annul the obligation
 -Both condition and obligation are void
 -If alam na ni obligor na hndi nya mafufulfill obligation nyaa, di na nya gagawin yun.
Ex. I will give you 15,000 if you spit your saliva in our teacher’s face
2. Conditional obligation valid
 - Condition is negative
 -Not to do an impossible thing
 -It is pure and valid
Ex. I will give you 2,000 if you do not kill Ariana
3. Only the affected obligation void
 -If divisible
 -Yung part na hndi affected ng impossible condition ay valid
Ex. I will give you 6,000 if you get my laptop in my locker, and a cellphone if you stab
nikka
Valid- Obligation to give 6,000
Void- Obligation to give a cellphone because it is dependent upon an impossible
obligation which is stabbing nikka
4. Only the condition is void
 -Obligation is pre-existing
 -Magkahiwalay yung obligation saka condition, pasabit nalang yung condition Ex. Pau
borrowed 7k to Karl. If karl agreed to stole a phone to reigne before pau will pay him.
Void- condition to stole a phone from reigne Valid-To pay karl 7,000

Article 1184
-To do
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.
-mawawala na yung obligation kapag nafulfill yung condition sa itinakdang oras kasi nga
determinate time may specific time lang, or if ever na hndi na sya magagawa sa time na
itinakda kasi imposible nang magawa
It refers to positive (suspensive) condition- it is the condition consists in the performance
of an act or the happening of an event at a determinate time also it is the obligation to
do. ( ito yung mga kondisyon or masususpend muna na saka mo makukuha ang
nakalagay sa kontrata kapag natupad mo yung napagkasunduan) the obligation
extinguished or stop or ma end when:
 1. As soon as the time expires without the event taking place-maaring mapasawalang bisa na
yung obligation kapag na reach na yung nasa kontrata na time tapos di pa nagagawa ng obligor
yung kundisyon.
 2. As soon as it has become indubitable that the event will not take place although the time
specified has not expired. (indubitable is mga hindi na maawat na pangyayare. So maaring ma
extinguished or ma stop na yung obligation kapag may hindi inaasahang pangyayare ang
mangyayare sa may obligor kahit di pa expired yung napagusapan sa may kontrata in short hindi
na magagawa ng obligor yung dapat na obligation nya )
Example:
Lea (obligor) obliged herself to give jm (oblige) a brand new car if he got 1.00 in his all
subject until his graduation.
So lea (obligor) is liable if jm (oblige) got the grade 1.00 in his all subject until his
graduation.
Lea (obligor) is not liable if jm got 1.25 grade when he is already graduated. In this
case, the time specified which is until his graduation so the condition is expired without
being fulfilled. The obligation is extinguished as soon as jm already graduated.
So if jm (oblige) decided to stop in studying the obligation is extinguished because it has
become indubitable that the condition will not take place.

Article 1185
-not to do
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 cannot 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
 -Magiging effective lang obligation kapag nasunod yung condition na sumunod sa dapat na
wag gawin *negative condition* kapag nagawa mo yun sa itinakdang panahon or pwede rin na
hndi mangyare yung kondisyon dahil sa ibang bagay *fortuitous event* basta within the time na
binigay.
 -Kapag naman po walang time na binigay, iaassume na natupad na yung obligasyon sa kung
kelan nila napagisipan base na lang sa nature ng obligation. May mga unexpected things po kasi
na hndi maiiwasan bago ma fulfill yung obligation
Article 1185 refers to the negative condition- it is an event will not happen at a
determinate time also it is not to do. The obligation shall become effective and binding:
 1. From the moment the time indicated has elapsed without the event taking place
 Dito kapag ka na expired o lumagpas na yung date sa kondisyon nila dun na magiging
effective yung napagusapan na obligation.
Example:
Lito (obligor) obliged himself to give her daughter Ana (oblige) a ticket trip to japan in
the condition that Ana (oblige) will not be pregnant until she graduated college at 2022.
So Ana already finished her studies in college of not getting pregnant in that case the
obligation of Lito (obligor) to her daughter Ana (oblige) to give a ticket trip to japan
becomes effective.
 2. From the moment it has become evident that the event cannot occur although the time
indicated has not yet elapsed.
 Dito naman kahit di pa lumalagpas or na eexpired yung napagusapan nyo na date basta may
di inaasahan na nangyare clear na di na mangyayare yung kung ano dapat yung kondisyon nyo.
Example: Lito (obligor) obliged himself to give her daughter Ana (oblige) a ticket trip to
japan in the condition that Ana (oblige) will not be pregnant until she graduated college
at 2022.
Before Ana (oblige) graduated had elapsed, she go in the doctor for her check-up
because of her irregular menstruation and the doctor said that the result of her irregular
menstruation will lead to her for having a no child. In this case, even before the lapse of
9 years it is clear that the obligation has become effective because of the result of her
check-up. It is evident that Ana can never be pregnant anymore so that the obligation of
his father will be effective.

Article 1186
The condition shall be deemed fulfilled when the obligor voluntarily prevents its
fulfillment
 -Dito walang actual fulfillment by the debtor sa kanyang obligasyon pero the law considered
that it will be fulfilled because yung obligor voluntarily prevents its fulfillment.
 -Hindi makakatakas si obligor sa gampanin nya
Article 1186 refers to constructive fulfillment of suspensive condition- refers to an
obligation prevented by the obligor from happening.
There are 3 requisites for the application of this article.
 1. The suspension must be suspensive
 If di siya suspensive so hindi mo sya pwede e apply dito.
 2. The obligor actually prevents the fulfillment of the condition
 Ito yung debtor is prinevent nya na agad para di mangyare yung condition and also para di
sya maging liable.
 3. He acts voluntarily
 Ito yung pinaka important na requisites kasi dapat voluntary yung kanyang pagprevent nung
obligation.
Intent to Prevent Compliance – The law does not require that the obligor acts with
malice or fraud as long as his purpose is to prevent the fulfillment of the condition. He
should not be allowed to profit from his own fault or bad faith. (so ito nga yung the laws
considered nga kahit walang actual fulfillment by the debtor dahil sa kanyang
pagkukusa na ma prevent yung fulfillment it is as is na nafulfill. Also sa article 1186 wala
naman na mention na may malice or fraud as long as the obligor purposes is to prevent
the fulfillment of the condition and it is voluntary)
Example:
Erica (obligor) agreed to give trisha (OBLIGEE) a 10% commission if trisha find a
supplier to buy his ukay bundle at a certain price. KUNYARE trisha (oblige) already
found a supplier who definitely decided to buy the ukay bundle. So to evade the
payment of the commission agreed upon, Erica (obligor) herself sold directly to the
supplier at a lower price without the aid of trisha (oblige) para mabawasan nya yung
commission ng ahente na si trisha sya na lang dumirekta sa may supplier which is yung
buyer.
So in this case the condition imposed by Erica (obligor) kay agent which is Trisha na
maghanap ng buyer para mabigyan ng 10% commission is deemed fulfilled. It means
liable na si Erica (obligor) to give a commission to the agent which is Trisha (oblige)
even though si agent or trisha is hindi talaga sya yung nagbenta this is the constructive
fulfillment.
Constructive fulfillment of resolutory condition
 -When the obligation is subject to resolutory condition and the obligee unjustifiably provokes
the agreement. It will not be considered fulfilled and there will be no extinguishment of rights.
The obligee cannot be excused from non-compliance of the obligation.
 -Kapag nafulfill na yung obligation, dapat isoli na ni debtor once na mafulfill na yung
condition
Resolutory- the happening of the condition extinguishes the obligation already existing.
Example:
The CEO (oblige) of the company bind himself to lend his car to his new driver (obligor)
until he worked for the company. The obligation to lend is immediately demandable. So
the new driver right over the car is extinguised or mag end when he is no longer the
driver of the company so that the driver is obliged to return the car to the CEO.

Article 1187
The effect 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 fruit interest 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 interest 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 obligation to do and not to do, the court shall determine, in each case, the retroactive
effect of the condition that has been complied with.
 -Yung conditional to give ay nag tetake effect daw po once na may condition and na declare
na daw po yung obligation. Pero, kapag reciprocal prestations naman po meaning parehas silang
may obligation yung original na utang and tubo ay dapat iassume na parehas na nilang
nabayaran. Kapag naman unilateral meaning isa lang, dapat na ilaan muna ng debtor yung
original na utang at interest na natanggap hanggat hndi pa nagagawa yung obligation, unless iba
yung gustong mangyare ng debtor.
It refers to retroactive effects of the fulfillment of suspensive condition-means
nagbabalik tanaw ka, ni rerecon mo yung past or from the past.
  Retroactive effects in obligations to give. ( RETRO ACT)
 Once the condition is fulfilled, the effects of the conditional obligations shall retroact to the
day of the constitution of the obligation and not on the date when the condition was fulfilled.
( the obligation to give will not be demandable until or unless nangyare na yung suspensive
condition so the effects is mag reretro act so it means hindi sa happening ng kondisyon kundi
kung kelan ba na constitute yung obligation)
Remember!! The condition is just an accidental element of a contract because hindi sya
kasama sa contract itself. Also the provision itself will exist even without the condition.
Example:
On November 9, 2021 cheese (obligor) agreed to give heart (oblige) a brand new car if
she win miss earth pageant on December 2021, if heart won the pageant in December
2021, he is entitled to the car effective November 9, 2021 because heart right over the
car retroacts to the date when the obligation was constituted.
IN SHORT THE OBLIGATION BECOMES EFFECTIVE FROM THE DAY IT
WAS CONSTITUTED.
  In obligation to do or not to do, there is no fixed rule as regards the retroactive effect.
( WALA KANG RETRO ACT)
 With respect to the retroactive effect of fulfillment of suspensive condition there is no fixed
rules is provided (However pwede din iapply yung principles of retroactivity so here habang
sinasagawa palang ung case sa court wala pang pasahan ng title)
(WALANG EFFECT YUNG RETRO ACT KASI HABANG NASA COURT NAG UUSAP
WALANG PASAHAN TITLE)
  Retroactive effects as to fruits and interests in obligations to give- ( WALA KA DING
RETROACT)
 The effect of conditional obligation to give as a rule do not retroact to the date of the
constitution of the obligation. ( WALANG EFFECT YUNG RETRO ACT KASI
COMPENSATED HABNG PENDENCY YUNG CONDITION.)
The following rules shall govern:
 1) In reciprocal obligation (like a contract of sale) - the fruits and interest during the pendency
of the condition shall be deemed to have been mutually compensated. There is no retroactivity
because the fruits and interests received during the pendency of the condition are deemed to have
been mutually compensated. (dito is walang retroactivity effect or pagbabalik tanaw kasi yung
fruits at interes na sinasabi dito ay nakasalalay sa condition nila at kapwa nila binayaran. )
( DITO DIN DALAWA YUNG NAKIKINABANG, PENDING PALANG SYA HABANG DI
PA NA FUFULFILL NI CREDITOR YUNG CONDITION HALF HALF PALANG SILA NI
DEBTOR)
Example: cheese agrees to sell and heart agrees to buy cheese parcel of land if heart won the
miss earth pageant on December 2021. If heart won the December 2021, the obligation becomes
demandable. Heart is entitled to all the interests that her money (with which to pay cheese) may
earn while cheese is entitled to the fruits which the parcel of land may have produced during the
pendency of the condition.
 2) In unilateral obligation - the debtor shall appropriate the fruits and interests received during
the pendency of the condition unless a contrary intention appears. ( PENDING PA DIN PERO
KAPAG NA FULLFIL NA YUNG CONBDITION LAHAT PAPUPUNTA NA SA MAY
CREDITOR ISA NA LANG AY MAY ARI.)
Example - cheese agreed to give heart a parcel of land if heart won the pageant on
December 2021. Pending the happening of the condition, cheese is entitled to the fruits
which the land may produce heart will deliver only the parcel of land if the condition is
fulfilled, unless a contrary intention appears.

Article 1188
The creditor may, before the fulfillment of the condition bring the appropriate actions for
the preservation of his right.
 -Yung creditor bago ma fulfill yung condition dapat gumagawa na sya ng actions na
makakapag preserve ng rights nya. Para makakapag demand sya dun sa obligation.
The debtor may recover what during the same time has paid by mistake in case of
suspensive condition.
 -Yung debtor naman marerecover nya yung nabayad nya sa creditor once na nabayad nya ito
by mistake meaning hndi sya aware sa itinakdang oras sa suspensive condition
Rights of creditor
-authorizes the creditor to take any appropriate actions for the preservation of creditor's
right during the pendency of the condition. (dito anuman naangkop na aksyon ng
creditor is pwede as long as na proprotect nya yung right nya as a obligee)
Example:
On November 9, 2021 cheese (obligor) agreed to give heart (oblige) a brand new car if
she win miss earth pageant on December 2021, so habang si heart is hindi pa nananalo
sa pageant so cheese protect his right as a creditor, so cheese annotate the obligation
in the certificate of title in registry of property.
Rights of debtor
-He is entitled to recover what he has paid by mistake prior to the happening of the
suspensive condition. ( so na aallow ung right na to ng debtor if ung creditor is hindi na
fulfill yung condition nila o napagkasunduan so it is the case of solution indebti)
Example:
On November 9, 2021 cheese (obligor) agreed to give heart (oblige) a brand new car if
she win miss earth pageant on December 2021, so as sa obligor or debtor so si cheese
akala niya nanalo kana yun pala elimination palang tapos napadala nya na sayo yung
susi ng brand new car so that cheese the debtor may recover what he give because the
condition is not yet fulfill.

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:
 -Kapag may conditions na and in process palang yun so nasususpend yung obligasyon natin
na magbigay/isoli kasi nga suspensive condition, so sa process na yun, hndi maiiwasan yung
improvement, loss or deterioration ng during pendency.
Ex. Pinahiram ko si jac ng libro, kapag nasira yung libro habang nasa kalagayan nya
sno may rights para ipaayos yun?
  Requisites of 1189
 -The obligation is to give or real obligation
 -The object is a specific or determinate
 -The obligation is subject to a suspensive-conditions
 -The condition is fulfilled
 -There loss, deterioration or improvement of the thing
What is Suspensive Conditions? Suspend the rights and obligation of both parties kase
hndi pa nafufulfill yung prestation.
 1. Loss of thing without debtors fault – may fortuitous events. The obligor or debtor is not
liable.
Example: D will sell his car to C, but fortuitous event happened, Nawala yung sasakyan without
the fault of debtor.
 2. Loss of the thing with debtors fault – liable na si obligor na damages. Lagging may
damages kapag may negligence.
 3. The thing deteriorates without the fault of the debtor – (deteroriates means nagreduce yung
fair value ng isang bagay) the creditor will suffer the loss
Example: Yung sasakyan na ibebenta mo is nabangga or nagasgasan without debtor fault, yung
value ng sasakyan na napag usapan nyong amount ni creditor is marreduce because of the
damages but debtors is not liable to that.
 4. The thing deteriorates with debtors fault – liable si debtor sa damages.
 -Creditor may choose
 -1) Recission or cancellation of obligation with damages.
 -2)Fulfillment of obligation with damages.
 5. The thing is improved by its nature
Example: Yung value ng car na binenta is tumaas yung fair value. Yung magbebenefit dto is si
creditor.
 6. The improvement of the thing is expense by the debtor.
Example: Yung sasakyan na binebenta ni debtor is pinaganda nya at inayos,
What is Usufructuary? A usufruct is a legal right granted to a person or party which
grants a temporary right to use/derive income/benefit from the property of another
individual.

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.
 -Once na magsolian na, dun na rin nawawala yung obligation so kapag nafulfill na yung
obligation, it is bound to give back the thing. Yung effects of fulfillment of resolutary condition,
kung ano man yung natanggap ng both parties, kaylangan magsolian.
Example: D allowed S na gamitin yung sasakyan nya habang nasa probinsya sya, pero
pag balik nya galling probinsya kaylangan na ibalik ni S kay D yung sasakyan without
damage.
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. ( kapag nasira dun mag apply ung 1189)
As for the 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. (1123) – 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 1191
The power to rescind obligations is implied in reciprocal ones, in case one of
the obligors should not comply with what is incumbent upon him.
 -Pwedeng bawiin ng party na agrabyado yung kasunduan nila kung yung isang party ay hndi
sumunod sa dapat nyang gawin( or kapag hindi na fulfilled ng may obligation pwedeng pumili sa
isa lang yung maaring ipagawa)
The injured party may choose between the fulfillment and the rescission of the
obligation, with the payment of damages in either case. He may also seek
rescission, even after he has chosen fulfillment, if the latter should become
impossible.
 -Yung naagrabyadong party, pwede syang pumili;
 1. Fulfillment and recission of obligation
 2. Payment of damages
 3. Recission + fulfillment
The court shall decree the rescission claimed, unless there be just cause authorizing
the fixing of a period.
 -May kapangyarihan ang court na magutos para alisin yung claim ng creditor over damages,
maliban kung acceptable yung reason ng debtor sa pag sasaayos ng period.
(If Wala ng kakayahan ung debtor papasok na yung court tapos pwedeng humingi ng
palugit yung debtor if napatunayan na or acceptable yung reason bakit si sya naka
fulfill)
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. (1124)
Dto sa 1191 may karapatan na mamili yung creditor kapag si obligor hndi nya nagawa
yung obligations nya or nagkaroon ng fortuitous event. Kapag kasalanan ni obligor kaya
nagakrron ng damage or hndi ngawa yung obligation, debtor is liable. Pero kapag
walang ksalanan si debtor at nagkaroon ng damages sa obligation, hndi liable si debtor
Unilateral – only one party is obliged in the prestation.
Example: Donor. Isang party lang yung bound to fulfill the obligation.
Bilateral – both parties are bound to each other. Parehas silang creditors and debtors.
Example: Contract of sale. Buyer and Seller. Pag nabigay na yung thing/object,
magpapalit na sila ng position as creditor and debtor.
Reciprocal Obligation – 1 contract
Non-reciprocal Obligation – 2 contract
If the obligor was not able to fulfill the obligation, the creditor may choose; (alternative)
 1. Action with specific performance with damages
 2. Action for Recission of the obligation with damages
Example: yung sasakyan na binebenta ni D kay S is bound to deliver in December 1.
Pero hndi nadeliver ni D, si S may right to demand and with the damages.

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.
 -Under this article, parehas may pagkakamali yung dalwang party. Kapag alam kung sinong
unang nagkamali, sya yung liable sa damages, pero marereduce yung amount non kasi nagkamali
din yung isang party.
 -Pero kapag parehas na hndi alam kung sinong unang nagkamali sa obligation, parehas silang
mananagutan or parehas silang magsusuffer sa damages ng obligation.
Both parties have breach of obligation. (Parehas may kasalanan)
Guilty of breach or violate.
 1. First infractor known – alam kung sinong unang nagkamali. Sya yung bound to fulfill sa
damages
 -Both parties ay nagviolate pero alam kung sinong unang nagkamali, so sya yung liable sa
damages. Pero marereduce yung damages kasi may violate din yung isang party
 2. First infractor cannot be determined – hndi alam kung sinong may mali. Kanya kanya.
Suffer itself sa kanilang damages. VOID NA YUNG CONTRACT.
Article 1193 –
Obligations for whose fulfillment a day certain has been fixed, shall be
demandable only when that day comes.
 -Kapag may certain day na fixed or napagusapan, makakapag demand lang once na dumating
na yung araw na yun. Suspensive period.
Obligations with a resolutory period take effect at once, but terminate upon
arrival of the day certain.
Sa resolutory period naman, once lang sya mag take effect pero once na nag take
effect na sya or dumating na yung araw na nagawa na yung obligation, nateterminate
na rin yung obligation or hndi na pwede makapag demand after nun.
A day certain is understood to be that which must necessarily come, although it may not
be known when.
 -Yung napagusapan na araw kailangan possible na mangyare kahit hindi tukoy kung kalian
yun mangyayare. Alam na mamatay pero hindi alam kung kelan mangyayare.
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.
(1125a)
 -Kung hindi sure kung dadating yung araw na yung bali yung obligation is conditional tawag
dun (naka base sa kundisyon ng debtor). Walang period hindi inaasahan dun na mag aarise yung
condition
Article 1193, may mga terms or period na nakapaloob sa contracts. Depende sa period
yung kalian masasabing tapos na yung obligation, or dun palang magsisimula yung
obligation.
Example: I will support yung monthly allowance until you finish college. Dto nagsisimula
na yung obligation pero once na makagraduate ka na ng college, tapos na yung
obligation ko sayo.
Tapos yung isa, kapag nakapasa ka ng board exam this year bibigyan kita ng 10,000.
Hanggat hndi kapa nakkapasa, wala kang rights na magdemand ng fulfillment of
10,000. Pero once na makapasa ka this year dun na mag aarise yung obligation ng
nangako syo.
Obligation with a period – demandable only in a period or term.
Conditions determine if the obligation will arise or it will cease.
If the period is impossible, it will be void.
Suspensive period – mag aarise lang yung obligations and rights kapag dumating na
yung period or term.
Resolutary period – the obligation will be valid hanggang sa dumating yung period, then
after the peiod and nagawa na yung obligation. Tapos na yung kontrata or
mateterminate na.
Legal period – imposed by law.
Example; payment of taxes.
Conventional period -voluntarily agreed by the parties.
Example: kung anong nasa kontrata
Judicial period – fixed by the court.
Example; si court yung magsasabi kung kelan babayaran ng debtor kapag void yung
contract ng both parties.
Definite period – fixed, possible, alam mo na darating yung araw nay un.
Example: January 1,2022
Indefinte period – not fixed, impossible to come, hndi mo alam kung kailang. Yung court
na magdedecide.

ART. 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. (same to 1189)
 -Kapag Nawala, na deteriorate or nagkaron ng improvement yung bagay bago dumating yung
napagusapang date magbe base sa 1189. (Art. 1189 -yung reasons kasi don yun yung mga
dahilan bakit naging delay yung obligation, 1194 -eto yung mga nangyare before the arriv of
time DI SYA MAG CACAUSED NG DELAY KASI MALAYO PA SA PERIOD)
 -suspensive period lang to meaning yung araw ng pagfulfill mo ng obligation ay alam mo na
kalian at dun lang mag take effect yung demand
Condition of the
Effect
Thing

Lost*

 Without fault of
Obligation is extinguished
the debtor

 Fault of the
Obligation to pay damages
debtor

Deteriorates

 Without fault of
The impairment is borne by the creditor
the debtor

 Fault of the The creditor may choose to rescind with indemnity for damages, or have it
debtor fulfilled, but still with indemnity for damages

Improvement

 By its nature Inures to the benefit of the creditor

 At the expense of The debtor shall have no other right than that granted to the usufructuary.
the debtor

 -It is understood that the thing 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.
 Example:
 -Jay (debtor) is obliged himself to sell his yacht to Zola (creditor) at half its purchasing price
on Zola’s graduation, provided Zola graduates on time. On April 25, 2016, Zola graduated, on
time and with honors. However, the day before his graduation, Typhoon Hayan destroyed the
yacht. Since the loss happened before the day certain, and the loss was due to a fortuitous event,
the obligation of Jay to sell his yacht to Zola is extinguished.
ART. 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. (similar to art
1188 paragraph 2)
 -Kapag di aware si debtor sa period and nabayad nya ito earlier sa period sa creditor pwede
nyang ma recover lahat ng binayad nya. (Art. 1195 -Kapag aware or inisist nang mas maaga sa
time period, hanggang sa umabot sa period, hndi na nya makukuha automatic na nafulfill yung
obligation)
 Debtor presumed aware of period
 o Kapag aware sa time si debtor kung kailan nya dapat ifullfil yung obligation at hindi pa due
date, by its mistake hindi nya na pwedeng marecover yung binayad nya, interest lang yung
pwedeng marecover.
 Example:
 -On December 10, 2015 Nini (debtor) owed 150,000.00 to Nana (creditor) then the debtor
agreed to pay the sum of 150,000.00 with 1% monthly interest or 12% per annum and the
payment of the debt is in June 30 2016. Then on January 5, 2016 Nitzel thought that her
obligation is already due and demandable therefore she paid her debt to Digna with the sum of
150,000.00 plus the 12% interest. On this case, since Nitzel is unaware of the period, she can
recover the interest that she paid to Digna because it states on this article that “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.” 
 o No right to recover if the debtor had knowledge of the period and he insisted on paying. (the
principles of solutio indebiti will not apply) (kapag aware si debtor na ito yung tamang period ng
pagbayad pero pinipilit nya pa ding magbayad, hindi na marerecover)
 o The debt is already matured. (naglapse na) 
 o has no application to obligations to do or not to do because as to the former, it is physically
impossible to recover the service rendered, and as to the latter, as the obligor performs by not
doing, he cannot, of course, recover what he has not done. (kapag service yung binigay para
magawa yung isang obigations hindi nya na pwede pang marecover)
ART. 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 or of the other.
 -kapag ang period ay nakaset na, sinasabi lang na ginawa yun para sa benefit ng creditor at
debtor, pero may ibang situations na mas nagbebenefit ay isa lang
 Presumption as to benefit of Period
 -When a period is designated in the performance of an obligation, it is presumed that the
period is intended for the benefit of both the creditor and debtor such as a loan with interest.
 -(Kapag ang period of obligation ay itinalaga na, fixed or based on agreement on both parties,
masasabi natin na kapag nagawa na nila mafulfill yung obligation may benefit silang parehas.)
 Reasons why creditor cannot be compelled to accept before the arrival of the
period
 1. Payment of interest. The interest expected to be realized will be lessen if premature
payment is done; -(kapag maaga nagbayad si debtor mawawala yung effectivity ng interest or
mababawasan yung sanang kikitain nya sa pagpautang)
 2. Desire of the creditor to have his money invested safely instead of having it in his hands. -
(para maging safe lang muna sa debtor yung pinautang nya imbis na nasa kanya na pwede nyang
magastos anytime)
 3. Under the usury law, there is a special prohibition of payment of interest in advance for
more than a year. - (kailangan na maaga bayadan ang interest kaysa sa mismong inutang)
 Example:
 -Jac (debtor) borrowed 100k from Cedric (creditor) which is payable on October 19 2025
with 12% interest. Jac decided to pay on September 1 2022, without the consent of cedric, jac
cannot pay before the said date of payment.
 Exemptions to the General Rule
 Term is for the benefit of the debtor alone
 -He cannot be compelled (pilitin) by the creditor to pay ahead of the designated period of
fulfilling the obligation, (hindi pwedeng pilitin ng creditor si debtor na magbayad bago yung
period) but he can pay ahead if he desires (gusto) to do so. (pero pwedeng magbayad si debtor ng
maaga kung gugustuhin nya)
 Example:
 o Without interest
  Jessica (debtor) borrowed 35k to Juls (creditor) for the repair of her car. They agreed since
they are best friends to pay it without interest and to be paid within 3years. In this case Jessica
(debtor) benefits more than the Juls (creditor), but Juls cannot compelled Jessica to pay before
the said period of payment.
o Promises to pay
  Jessica (debtor) promises to pay her debt on or before the said period that the Juls (creditor)
given to Jessica.
 Term is for the benefit of the creditor alone
 -He can demand the fulfillment even before the arrival of term, but he cannot be demanded by
the debtor to receive the payment before the expiration of stipulated period.
(pwedeng magdemand ang creditor na magbayad ng maaga si debtor pero, di pwedeng
magdemand si debtor na kunin ni creditor ng maaga yung bayad nya)
 Example:
 -(Same examples) but here Juls (creditor) can demand the payment ahead of the said period,
but Jessica (debtor) cannot demand Juls to receive her payment.
 Computation of term of period
 Legal Periods
 -“year” consist of 12 months, months consists of 30 days besides the Month of February, days
consist of 24 hrs. Sunset to sunrise
 Example:
 -From January 1, 2022 to January 31, 2022. -months
 -From January 1, 2022 to December 31, 2022 – year (one year)
ART. 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.
 -Kapag walang period, pero sa nature and circumstances nya pwede madetermine, pwede
pumasok ang court. Bawal tagalan kapag walang napagusapan na time kung hanggang kelan lang
gawin.
The courts shall also fix the duration of the period when it depends upon the
will of the debtor.
 -Papasok den court kung may intention debtor na gawin yung obligation nya, kapag sya lang
mag isa bawal yun.
In every case, the courts shall determine such period as may under the
circumstances have been probably contemplated by the par ties. Once fixed
by the courts, the period cannot be changed by them.
 -If nadetermine na ng court, hindi na mapapalitan ng parties yung fixed period
Court generally without power to fix a period 
 Judicial Period
 -Period which if fixed by the court and can never be change by the both parties (creditor,
debtor) (period na inayos ng korte na hindi pwedeng galawin pa ng creditor at debtor)
 Contractual Period
 -Period which fixed by the both parties based on their agreement or contract. (period na
napagusapan ng creditor at debtor)
 Example:
 -Joem (debtor) is obliged to pay the remaining 20k to Eloiza (creditor) and in their contract it
does not stipulate a fix period. Court cannot interfere the contract between them because the
contract is the law on both parties.
Note: (kapag ang obligation ay walang nakastate na period at napagusapan talaga na
walang specific period para ifulfill ang obligation, court is not authorized to fix a period
dahil walang karapatan mismo ang court sa contract nila )
 Exceptions to the general rule
  No period is fixed but a period was intended
 -Contracts may not have the fixed period but it has an intended to have but fails to comply.
The court is authorized to fix the period. (hindi nasabi sa contract yung period pero may
intension or common sense na need matapos ng ganitong period. Pwede itong maayos ng court)
 Example:
 -Engineer Rowee (debtor) agreed to construct the building of David (creditor) for his business
Coffee Shop. Both parties failes to fix a period when should be the construction is needed to be
done. The court may interfere and they can use as a guide the practices of engineers oh how long
wil it takes to build a particular building.
  Duration of the period depends upon the will of the debtor
 -(article 1180)
 -‘’Little by little’’ 
  If the agreed period is being lapsed, both parties cannot go to court to fix another period.
(kapag nagexpired na yung period hindi na pwede pa ito ipaayos sa korte.)
  If the parties accept the period fixed by the court, it becomes the law governing the contract
but it can be modified by the parties by providing new agreement.
(kapag ang both parties nagagree na sa terms at pag fix ng period ng court pwedeng
yung napagusapan ay maging guide dun sa contract nila at pwede nilang
mamodified/masunod yun if gusto nila)

ART. 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; -
(naging insolvent si debtor o wala ng kakayahang magbayad pero magbibigay at may guaranty or
security)
 (2) When he does not furnish to the creditor the guaranties or securities which he has
promised;
(hindi nya nabigay yung ipinangako nyang pangcollateral)
 (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; -
(kapag may nangyare na fortuitous event na nagresulta na nasira or Nawala yung pang collateral)
 (4) When the debtor violates any under taking, in consideration of which the creditor agreed
to the period;
(hindi ginawa yung pinagagreehan sa contracts)
 (5) When the debtor attempts to abscond. –
(bad faith – may balak na tumakas sa obligation)
 When obligation can be demandable before lapse of period
 -The general rule “ the obligation is not demandable before the lapse of the period” but in this
art the debtor may lose the right or the period (hindi nya na magagamit yung right on the period)
(the power of the period is disregarded) because the creditor has the right to demand even before
the lapsed of the period. (powerful provision to creditor).
 -Pwede mag demand si creditor nang mas maaga pa sa period if feeling nya tatakbuhan sya ni
debtor
 -(hindi magagamit ang general rule dito na hindi demandable hanggat hindi due. Dito sa art
na toh pwede magdemand si creditor kahit bago ang due or mas maaga sa due)
 When the debtor becomes insolvent
 A -debtor that can be considered as insolvent is when he/she cannot provide payment when
the obligation is demandable or in due. (kapag hindi na kayang magbayad ni debtor)
 -Also if the debtor is in financial distress where his liabilities is higher than his assets. (kapag
mas mataas na yung utang nya kaysa sa asssets nya)
 -Gives sufficient guaranty or security (ito yung mechanism where in sinusure natin yung
payment sa isang debt bukod sa napagusapan, collateral)
 -
 Example:
 -Ian (debtor) owes Jayze (creditor) 70k due and payable on October 2022, if Ian becomes
insolvent, we assume that he became insolvent on August 2022, jayze can demand the payment
even before the maturity date of the obligations.
 When debtor does not furnish guaranties or securities promised
 -Debtor fails to give the guaranties and securities to the creditor will results of losing his right
on the period stipulated and can be demandable by the creditor. (kapag hindi nya nagawa yung
naipangako nyang ipapalit kung sakaling hindi nya mabayaran kung ano mismo yung
napagusapan, dito pwede na mag demand si creditor)
 Example:
 -Sabby (debtor) owes 2m to Paula (creditor) and Sabby promised to furnish the painting that
she paints for the debt she has to Paula, but she fails to give the painting because she sell it to
other for her benefit. In this case Paula can demand the payment and Sabby will lose her right to
the period stipulated in the contract.
  When guaranties or securities given have been impaired or have disappeared.
 -The object to be secured in the obligation have been lost or being damaged before the
obligations is demandable.
 (kapag nasira or Nawala yung ipapalit nya )
 Example:
 -Meme (debtor) has a loan to Hehe (creditor) and Meme decided to furnish his car as a
collateral for the loan, but because of a fortuitous event like carnapped. So the obligations
become demandable, unless magbibigay ulit si meme ng new security na masasatisfied si hehe.
 When debtor violates an undertaking
 -(Kapag hindi nagawa yung napagusapan.)
 Example:
 -Rogelyn (debtor) wants to borrow money from Ian (creditor), and Rogelyn promised Ian that
if he let her borrow money she will fix the guitar, and they both agreed with it since they are
friends. But if Rogelyn did not do what she promised to Ian, Ian can immediately demand the
payment.
 When debtor attempt to abscond (escape or nagtatago)
 -Sign of bad faith which results to loss his right on the perio stipulated. (sadyang ginawa yung
bagay na yun para makatakas sa responsibiidad)
 Example:
 -Lumipat ng bahay ng walang pasabi sa creditor.