CHAPTER-3-SEC.-1-Arts.-1179-1192

CHAPTER 3, SEC. 1 – Pure and Conditional Obligations (Articles 117!1 117!11"# 1"#

CHA HAPTER 3 DI FFERENTKI KI NDSOFOBLI GATI ONS SECTI ON 1–PUREAND CON ONDI TI ONALOBLI GATI ONS ( Ar t s.11791192)

20Jul y-Monday) STUDY GUI DE :( 1. $inds o% obligation according to de&andabilit' 

(a) Pure obligation – no ter& ) no condition* de&andable at once (Art. 1179, par. 1)

(b) Conditional obligation – sub+ect to te %ul%ill&ent o% a condition (b) -ast but unno/n 2. Condition – (a) %uture and uncertain* OR (b) -ast

3. $inds o% condition as to e%%ect  (Art. 1181)

(a) Sus-ensi0e – its %ul%ill&ent gi0es rise to an obligation (b) Resolutor' – its %ul%ill&ent etinguises an obligation 4. $inds o% condition as to cause or origin  (Art. 1182)

(a) Potestati0e –de-ends u-on te /ill o% one o% te -arties NOTE : 2% te -otestati0e -otestati0e condition (a) de-ends (a) de-ends u-on te sole /ill o% te debtor AND (b) is sus-ensi0e in nature, te conditional obligation sall be O24. (Art. 1182, 1st sentence) READ THIS CASE IN ITS ORIINA! TE"T:

LaoLi mv s .Co ur to fAppe al s , G. R.No.L87047,Oct ober31,1990.

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(b) Casual – de-ends u-on cance, OR u-on te /ill o% a tird -erson READ THIS CASE IN ITS ORIINA! TE"T:

Duc us i nv s .Co ur to fAppe al s , G. R.No.L58286Ma May16,1983.

(c) 5ied – de-ends -artl' u-on cance, and -artl' u-on te /ill o% a tird -erson

5. $inds o% conditions as to %or& 

(a) Possible – ca-able o% %ul%il&ent (b) 2&-ossible ! not ca-able o% %ul%ill&ent (Art. 118#) $par. 1%

(b.1.) P'sicall' – cannot eist or cannot be done (b.2.) 6egall' – contrar' to 6a5o8!PuPu9 (b.1.) Positi0e – TO 4O an i&-ossible ting  te conditional obligation is O24

$par. 2%

(b.2.) :egati0e – :OT TO 4O an i&-ossible ting  te conditional obligation is A624 READ THIS CASE IN ITS ORIINA! TE"T:

Roma manCat hol i cAr c hbi shopofMani l avs.Cour t . R.No.77425,June19,1991 o fAppe al s ,G. 6. " inds o% sus-ensi0e conditions as to &ode 

(a) Positi0e – tat an e0ent ;266 a--en at a deter&inate ti&e (b) :egati0e – tat an e0ent ;266 :OT a--en at a deter&inate ti&e E&&ECT ON O'!IATION

Te desi design gnat ateed ti&e ti&e e-i e-ire ress or ela-s ela-ses es ;2T ;2THO< HO
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Te designated ti&e as not e-ired but it beco&es de%inite tat te e0ent


-lace.

/ill not tae -lace.

OSITIE

Etinguised (Art. 118*)

Etinguised (Art. 118*)

NEATIE

E%%ecti0e (Art. 118+)

E%%ecti0e (Art. 118+)

118 – ;en te debtor 0oluntaril' -er%or&s an' act to -re0ent te 7. Art. 118 – a--ening o% a sus-ensi0e condition, te sa&e results in te constructi0e %ul%ill&ent o% te sus-ensi0e condition. READ THIS CASE IN ITS ORIINA! TE"T:

R.No.119706,Mar c h14,1996. PALvs.CA,G. - Retroacti0e e%%ect o% %ul%ill&ent o% te sus-ensi0e condition 8. Art. 1187 - Retroacti0e (a) 2n real obligations (par. 1)

(a.1.) re te ting – once te condition is %ul%illed, its e%%ects retroact to te da' /en te obligation /as constituted. (a.2.) re %ruits and interests  (a.2.1.) in reci-rocal obligations – no retroacti0e e%%ect* %ruits and interests recei0ed are dee&ed &utuall' co&-ensated (a.2.2.) in unilateral obligations – no retroacti0it' as te' are gratuitous (b) 2n -ersonal obligations (par. 2) - sub+ect to court=s deter&ination

9. Art. 1188 - Rigts -ending %ul%ill&ent o% te sus-ensi0e condition (a) Creditor – to bring a--ro-riate actions to -reser0e is rigts (par. 1)

Reason  to -re0ent te debtor %ro& deliberatel' destro'ing, iding or alienating te ob+ect o% te obligation -ending %ul%ill&ent o% te condition. RE5E RE5E5> 5>ER ER  >' te sa&e sa&e toe toen, n, tis tis rig rigtt &a' &a' be eercised b' te debtor in obligations sub+ect to a resolutor' condition. E?A5P6ES 

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(a.1.# sue in court (a.".# initiate te recording o% is e-ected rigt (a.3.# as %or securit' i% te debtor is about to be insol0ent insol0ent (a.@.# as te court to -re0ent alienation or conceal&ent pendente conceal&ent pendente conditionae reco0er %ro& %ro& te creditor creditor /at e as -aid (b) 4ebtor – Can te debtor reco0er b' &istae (par. 2) 4ebtor=s rigt to reco0er /at as been -aid (including %ruitsBinterest# %ruitsBinterest# >EORE %ul%ill&ent o% sus-ensi0e condition

Pa'&ent b' &istae ;en creditor is in  good %ait bad %ait DES DES  BI

4eliberate -a'&ent :O

:O

:O  BI

:O

:O:!%ul%ill&ent o% sus-ensi0e condition

DES

DES  BI

DES

Art. 1189 189 - 6oss 6oss,, deter deterior iorat ation ion and i&-r i&-ro0 o0e& e&en entt o% te te ob+ec ob+ectt o% an 10. Art. obligation -ending %ul%ill&ent o% a sus-ensi0e condition in a s-eci%ic real obligation. (a) 6oss – -'sical, legal ) ci0il loss (Art. 1189, N/. 2) (b) 4eteriorate – 0alue is reduced or i&-aired E%%ect o%  (Art. 1189) 6OSS

4E>TOR=S 2:TE:T ;itout ault

;it ault

Obligation is etinguised (N/. 1)

4a&ages incurred (N/. 2) Creditor=s re&edies  (N/. *)

4ETER2ORAT2O:

Creditor bears i&-air&ent (N/. #)

(a) rescission  da&ages OR (b) %ul%ill&ent  da&ages

(a) >' nature or b' ti&e – Creditor bene%its %ro& i&-ro0e&ent (N/. +) 25PROE5E:T

(b) (b) At debtor=s e-ense – 4ebtor /ill a0e te rigts o% a usu%ructuar' (N/. )0 no )0 no rigt to inde&nit' but e &a' re&o0e i&-ro0e&ents /itout da&age to te -ro-ert' andBor set!o%% i&-ro0e&ents against da&age to te -ro-ert'. -ro-ert'. (Arts. 7 ) FG, :CC#

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11. 11. Art. 119 - E%%ects o% %ul%ill&ent o% te resolutor' condition (a) 2n real obligations (par. 1)

(a.1.) Te obligation is etinguised. (a.2.) Tere sould be restitution, not onl' o% te ting recei0ed, but also o% te %ruits or interests tereon. (b) 2n -ersonal obligations (par. #) - sub+ect to court=s deter&ination

case o% loss loss,, dete deteri rior orat atio ionn or i&-r i&-ro0 o0e& e&en entt o% te te tin tingg a%te a%terr (c) 2n case %ul%ill&ent o% te resolutor' condition, but be%ore restitution is e%%ected (par. 2) - te -art' /o is bound to return in a resolutor' conditional obligation sall a0e te sa&e rigts and duties as tat o% te debtor under Art. 11F.

12. Art. 1191 - Te rigt to rescind in reci-rocal obligations in case o% breac or non!%ul%ill&ent (a) $inds o% obligations according to te -erson obliged 

(a.1.) ilateral - /en bot -arties are debtors and creditors o% eac oter

(a.2.1.) Reci-rocal – te -arties= obligations arise %ro& te sa&e cause* te obligation or -ro&ise o% eac -art' is te cause or consideration %or te obligation or -ro&ise o% te oter.

(a.2.2.) :on!reci-rocal – te -er%or&ance o% one -art' is not de-endent u-on te si&ultaneous -er%or&ance b' te oter.

(b) Re&edies o% te aggrie0ed -art' in a reci-rocal obligation in case te

oter -art' does not co&-l' /it is undertaing  (par. 2) (b.1.) s-eci%ic -er%or&ance  da&ages* OR

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(b.2.) rescissionBcancellation o% contract  da&ages REE'ER REE'ER : T Tee re&e re&edi dies es -ro0 -ro0ide idedd in Art. 111, 11, -ar -ar. " are are alternative, and not cu&ulati0e. HO3EER  HO3EER  An action %or rescission &a' still be a0ailed o% e0en a%ter an acti action on %or %or s-eci -eci%i%icc -er% -er%or or& &anc ance as as been been -re% -re%er erre red, d, I& %ul%ill&ent sould a0e beco&e i&-ossible. '4T : Once an action %or rescission rescission is cosen, s-eci%ic -er%or&ance can no longer be de&anded. (c) 6i&itations on te rigt to rescind 

(c.1 (c.1.) .)

Onl' Onl' subs substan tantitial al (not (not tri0 tri0ial ial or slig sligt# t# brea breac ces es can can caus causee rescission.

(c.2.) 2% tere is just is just cause %or cause %or %iing te -eriod /itin /ic te debtor can co&-l', te court /ill not decree te rescission clai&ed. (par. #) (c.#.) 2% te -ro-ert', sub+ect o% te contract, is in te ands o% an innocent tird -art' /o as la/%ul -ossession o% te sa&e, rescission /ill not be success%ul. (par. *) READ THIS CASE IN ITS ORIINA! TE"T:

Ro me me r ov s .Co ur to fAppe al s , G. R.No.107207,Nov emb mber23,1995. 13. Art. 1192 - Rule i% bot -arties a0e co&&itted a breac (a) 2% te %irst in%ractor is no/n – te liabilit' o% te %irst in%ractor sall be

-ro-ortionatel' reduced. (1st sentence) (b) 2% te %irst in%ractor is not no/n – te contract sall not be en%orced.

Eac -art' sall bear is o/n lossBda&ages. (2n5 sentence)

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APPLI CATI ON/PROBLEMS: 1. On 5a' , "G1, i& entered into an agree&ent /it et.
2. On 5arc 1, "G1, "G1, 4onna and Celia entered entered into an agree&ent. agree&ent. 2n teir agree&ent, 4onna obliged ersel% to -urcase %ro& Celia a ouse and lot located in 5aati 5aati %or P3.5. 4onna=s 4onna=s usband ad been detailed b' teir o%%ice o%%ice %ro& >aguio Cit' to 5aati e%%ecti0e 5a' 1, "G1. Hence, te %a&il' /as relocating -er&anentl' -er&anentl' to 5aati. or tis reason, it /as agreed b' te -arties tat b' A-ril A-ril 1, "G1, Celia sould a0e 0acated and readied te ouse %or occu-anc' to allo/ 4onna and er %a&il %a&il'' to &o0e &o0e in. On A-ri A-rill 13, "G1, /en 4onna 4onna contacte contactedd Celia, Celia, se /as in%or&ed tat Celia ad not e0en taen initial ste-s to 0acate te sub+ect -ro-ert'. Hence, 4onna /as le%t /it no oter recourse but to acce-t te -ro-osal o% an agent %or te acIuisition o% a t/o!bedroo& condo&iniu& unit at te A0ida To/ers in 5aati /ic /as a0ailable %or occu-anc' as o% A-ril 1, "G1. Celia, o/e0er, de&anded tat 4onna &ae good er co&&it&ent to -urcase Celia=s 5aati ouse and lot as -er teir 5arc 5arc 1, "G1 agree&ent. agree&ent.
3. Angelo ired Engr. 6uis to construct a G!ilo&eter road /itin is -ri0ate subdi0ision. 2t /as agreed tat Engr. Engr. 6uis /as to %inis %inis te construction in 3 &onts. &onts. Te contract contract -rice agreed u-on /as P"5. A%ter si /ees, /ees, o/e0er, o/e0er, and /itout /itout +usti%ication, Angelo ordered te construction sto--ed /it te /or barel' al%! %inised. Engr. Engr. 6uis /as le%t /it /it no coice but to %ollo/ %ollo/ te o/ner=s instruction %or %or /or sto--age. Engr. Engr. 6uis, o/e0er, carged Angelo %or te co&-lete contract -rice o% P"5. Angelo re%used to -a' te entire entire a&ount on te ground tat te -ro+ect -ro+ect /as

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onl' ten al%!%inised. Can Engr. Engr. 6uis de&and %ro& Angelo -a'&ent o% te entire entire contract -rice o% P"5  Clue Art. 11FJ.

4. On ebruar' 11, "G13, rancis and os entered into a transaction /it regard to a 1!ectare 1!ectare %ar& lot in 6aguna o/ned b' rancis. Te -arties -arties agreed tat sould os -ass te :ursing >oard Ea&ination on Se-te&ber 3G, "G1@, rancis /ill sell te said %ar& lot to os %or P1.5. On 5arc 1, "G13, os -ro&ised to sell te %ar& lot to Reuben %or P"5. On October "3, "G13, rancis -ro&ised to sell te %ar& lot to Peter Peter.. On Se-te&b Se-te&ber er 3G, "G1@, os -assed -assed te :ursin :ursingg >oard >oard Ea&inati Ea&ination. on. As bet/een Reuben Reuben and Peter, Peter, /o as a better rigt rigt o0er te %ar& lot  Clue Correlate Correla te Arts. 11F7 11F7 ) 11FF.

5. On A-ril @, "G1@, 2 ga0e 'ou Saun, &' %a0ourite see-, on te condition tat 'ou /ill ne0er go to te casino. On Se-te&ber "G, "G1@, Saun Saun ga0e birt to  ealt' la&bs. On anuar' ", "G1, o/e0er, o/e0er, 2 sa/ 'ou going to te casino again. So, on anuar' 3, "G1, 2 de&anded de&anded %or te return o% Saun and er  la&bs. Dou ga0e &e Saun but 'ou re%used to gi0e &e er babies, and in %act sold te  la&bs last last Crist Crist&as &as.. 4o 'ou tin tin 'our re%usal re%usal is legall legall'' +usti%ie +usti%iedd under under te %actual %actual circu&stances  Clue Correlate Correlat e Arts. 11F ) 11G.

6. On 4ece&ber "G, "G1G, "G1G, Rud' and 4an entered entered into a lease contrac contract.t. 2t /as agreed tat 4an /ould lease an o%%ice s-ace %ro& Rud' %or  'ears starting anuar' anuar' 1, "G11 "G11 to 4ece&ber 31, "G1. 2n considerati consideration on tere%or tere%or, Rud' /as to collect a &ontl' rental o% P1G,GGG.GG %ro& 4an. Starting anuar' 1, "G13, o/e0er, o/e0er, or a%ter " 'ears o% te contract, 4an %ailed to -a' is &ontl' rental -a'&ents des-ite re-eated de&ands %ro& Rud'. Hence, on 5arc 1, "G13, Rud' ased 4an to 0acate te -re&ises -re&ises i% e could not a%%ord a%%ord to -a'. -a'. On 5arc 1, "G13, 4an turned turned o0er te o%%ice s-ace to Rud'. Rud'. :o/, Rud' de&ands de&ands %ro& 4an -a'&ent o% rents %or te re&aining tree 'ears o% te contract, i.e., %ro& i.e., %ro& anuar' 1, "G13 to 4ece&ber 31, "G1. 2s Rud' /ell /itin is is rigts to clai& said rental -a'&ents %or te re&aining re&aining ter& o% teir lease contract  Clue Art. 111, 111, -ar. "

* * *END * * *

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&OOD &OR THO4HT Sel%!disci-line is an act o% culti0ation. 2t reIuires 'ou to connect toda'=s actions to to&orro/=s to&orro/=s results. Tere=s a season %or so/ing, a season %or rea-ing. Sel%!disci-line el-s 'ou no/ /ic is /ic.

Gary Ryan Blair

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CHAPTER-3-SEC.-1-Arts.-1179-1192

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