I.
Definitions
1. Condition – is a future and uncertain event, upon the happening of which, the effectivity or extinguishment of an obligation subject to it depends. 2. Civil loss – when a thing disappears I such a way that its existence is unknown or even if known, it cannot be recovered, whether as a matter of fact or of law. 3. Reciprocal Obligations – There is no retroact ivity because the fruits and interest received during the pendency of the condition are deemed to have been mutually compensated. This rule is necessary for purposes of convenience since t he parties would not have to render mutual accounting of what they have received. Fruits here may be natural, industrial, or civil fruits. 4. Pure obligation – Is one which is not subject to any condition and no specific date is mentioned for its fulfillment and is, therefore, immediately demandable. 5. Potestative conditions – A condition suspensive in nature and which depends upon the sole will of one of the contracting parties.
II.
Discussions
1. Illustrate an obligation subject to:
Suspensive condition – the happening of which gives rise to the obligation A will give B P1,000 if Duterte will beat Roxas in the 2016 election.
Resolutory Condition – the happening of which extinguishes the obligation. A will give B P1,000 until Duterte beats Roxas in the 2016 election.
What is the effect o f fulfillment of the condition in a conditional obligation?
(Suspensive) A's obligation to B will arise
(Resolutory) A's obligation to B will be extinguished
2. Give two (2) cases when the conditional obligation is valid although the condition depends entirely upon the will of the debtor. Explain. (1) If the obligation is a pre-existing one and does not depend for its existence upon the fulfillment of the obligation. If the debtor already has an
obligation, only the condition will be void becau se the obligation's existence does not depend upon the condition's fulfillment. (2) If the condition is resolutory, and depends upon the debtor, it is valid. It is the same as a suspensive condition that depends upon the creditor's will. 3. May an obligor be liable under an obligation subject to a suspensive condition, who is entitled to the fruits that accrued during the pendency of the condition once said condition is fulfilled? Yes. If the condition is suspensive, and the obligor actually prevents the fulfillment of the condition, and he does this voluntarily, he can be held liable. The obligor is liable because he prevented t he condition from happening to avoid his obligations. 4. In an obligation to give a parcel o f 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? The debtor is entitled to the fruits of the land unless their stipulations clearly states otherwise. 5. State the rules in case the thing to be delivered:
Is lost with the debtor’s fault; without his fault;
Without his fault If w/ debtor's fault, creditor is entitled to demand damages plus incidental damages, if any. If w/o debtor's fault, obligation is extinguished and debtor has no liability to the creditor.
Deteriorates with the debtor’s fault; without his fault.
Without his fault If w/ debtor's fault, creditor may choose between rescission of obligation with damages OR fulfillment of obligation with damages. If w/o debtor's fault, creditor will suffer the deterioration.
III.
Problems
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. No. C c annot insist that B pay earlier because the condition is "if B wants". The obligation is void. 2. Supposed 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 obligation is valid because the suspensive condition does depend upon the sole will of D. 3. S (seller) agreed to sell B (buyer) a specific car for P200, 000, delivery of the car and the payment of the price to be made on June 15. Supposed S delivered the car on June 15 but B failed to pay the price, what are the remedies of S? S can either demand action for specific performance (fulfillment) of the obligation with damages, OR demand action for rescission of the obligation with damages. 4. S sold a parcel of land to B for P240,000 payable in installments 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 in view of financial reverses but he was willing to pay the balance of P40,000 if given more time. Thereupon, S sued for rescission under Article 1191. If you were judge, would you grant rescission? No. I will not grant rescission because B is willing to pay the balance and only needs more time. I will grant B a term for performance instead. 5. D (debtor) binds himself to C (creditor) a sum of m oney. Give the three cases when t he obligation of D is demandable at once by C? (1) If D's obligation does not depend upon a future or uncertain event. (2) If D's obligation does not depend upon a past event unknown to the parties (3) If the obligation depends upon a resolutory condition.
