Principle of Art. 1176 2.

Resolutory Condition- a condition where the rights

- Before the presumption that a prior instalment ad already acquired are lost upon the fulfilment of
been paid may arise, the receipt must specify the condition.
installment for which payment is made.
- GEN.RULE: He may accept the payment but he ust Distinguish of Suspensive & Resolutory Conditions:
make reservation for the month that has not yet
paid. Suspensive Resolutory
Effect of Fulfillment
REMEDIES THAT MAY BE AVAILED OF THE CREDITORS Obligations arises or Obligation is
FOR THE SATISFACTION OF THEIR CLAIMS: (Art. 1177) becomes effective extinguished
1. Exact fulfilment of the obligation by specific Effect of Non-Fulfillment
performance or substitute performance w/ a right to No juridical relation is Juridical relation is
damages in either case; created consolidated
2. Rescission (or resolution in reciprocal obligation) When Rights are Acquired
3. Damages, in any case Rights are not yet Rights are already
4. Subsidiary remedies of creditors: acquired, but there is acquired but subject to
a. Accion subrogatoria or subrogatory action- hope or expectancy that the threat or danger of
exercise all rights and bring all actions of the they will soon be extinction
debtors except those personal to him. acquired
b. Accion Pauliana- Impugn the acts which the debtor
may have done to defraud his creditors. In Case of Obligations with a suspensive condition, what
c. Accion Directa are the effects of loss, deterioration, and improvements
in real obligation (Art. 1189 & Art 1194)
Note: the debtor is liable with all his property, present
and future for the fulfilment of his obligations, subject to With DR’s Fault W/OUT DR’s Fault
the excemptions provided by law. Loss
DR pay damages Obligation is
CHAPTER III. DIFFERENT KINDS OF OBLIGATIONS extinguished
Deterioration
I. PURE & CONDITIONAL OBLIGATIONS CR- Choose b/w Impairment borne by CR
II. RECIPROCAL OBLIGATIONS rescission of obligation
III. OBLIGATIONS WITH PERIOD or fulfilment (w/
IV. ALTERNATIVE AND FACULTATIVE OBLIGATIONS indemnity for damages
V. JOINT & SOLIDARY OBLIGATIONS in either case)
VI. DIVISIBLE & INDIVISIBLE OBLIGATIONS Improvement
VII. OBLIGATION W/ PENAL CLAUSE 1. By nature or by time- improvement shall ensure
to the benefit of the creditor.
2. At the DR’s expense- DR shall have no right other
I. PURE & CONDITIONAL OBLIGATIONS than that granted to a usufractory

Pure Obligations (Art. 1179): Effectivity or REQUISITE OF ART. 1189

extinguishment does not depend upon the fulfilment 1. Must be a real obligation
or non-fulfillment of a condition or upon the expiration 2. Object is specific/ determinate thing
of a period and is demandable at once. 3. Obligation is subject to suspensive condition
4. The condition is fulfilled
Conditional Obligations (Art. 1181): It is an obligation 5. There is loss, deterioration or improvement of the
subject to a condition and the effectivity of which is thing during the pendency of the happening of the
subordinated to the fulfilment of a future and condition
uncertain event or upon a past event unknown to the
parties. Note: the same condition apply in case of an obligor in
obligations w/ a resolutory condition. In sush cases the
Effects of Conditions: third requisite must read, “ subject to a resolutory
1. Suspensive Condition- Obligation shall only be condition”.
effective upon the fulfilment of the condition (Art.
1181). What is acquired by the oblige upon the Principle of Retroactivity in Suspensive Conditions
constitution of the obligation is mere hope or Art. 1187 par. 1: once the condition is fulfilled its effects
expectancy, but is protected by law. must logically retroact to the moment when the essential
elements, which gave birth to the obligations have taken
Before Fulfilment After Fulfilment place. The condition which is iposed is only accidental
The demandability and The obligation arises or not an essential element of obligation.
acquisition or effectivity becomes ffective.
of the rights arising from The obligor can be To Give To Do/ Not To Do
the obligation is compelled to comply w/ If reciprocal, the fruits In obligations to do or
suspended. Anything what is incumbent upon and interest shall be not to do, the court shall
paid by mistake during him deemed to have been determine the
such time maybe mutually compensated retroactive effect of the
recovered as a matter of justice and condition that has been
 convenience (Art. 1187 complied w/ (Art. 1187 1. It must refer to the Future
par. 1 par. 2) 2. It must be Certain
If unilateral, the DR shall The power of court 3. Possible, legally and physically
appropriate the fruits includes the
and interest received, determination WON WHEN STIPULATION SAYS “PAYABLE WHEN ABLE”- IT IS
unless from the nature there wil be any W/ PERIOD, REMEDY:
and circumstances it retroactive effects. This 1. Agreement among parties
should be inferred that rule shall likewise apply 2. Court shall fix period of payment when parties
the intention of the in obligations w/ unable to agree.
persons constituting the resolutory conditions
same was different. ( Art. 1190 par. 3). KINDS OF TERM:
1. Resolutory (IN DIEM)- demandable at once but
Types of Condition (Art. 1182) terminates upon arrival of the day certain.
2. Suspensive (EX DIE)- obligations become demandable
1. Suspensive- w/c give rise to the obligation on the day stipulated.
2. Resolutory- w/c extinguish the obligation
3. Express- condition is clearly stated WHEN COURTS FIX PERIOD (Art. 1197):
4. Implied- condition is merely inferred 1. If the obligation does not fix a period, but from its
5. Possible- capable of fulfilment physically and legally nature and circumstances it can be inferred that
6. Impossible- not capable physically and legally period was intended by the parties;
7. Potestative- depends upon the will of one of 2. If the duration of the period depends upon the will of
contracting parties the debtor;
8. Casual- the performance or fulfilment of the 3. In case of reciprocal obligations, when there is a just
condition depends upon chance and/or the will of cause for fixing a period;
third person 4. If the debtor binds himself when his means permit
9. Mixed- conditions depends partly upon the will of a him to do so.
party to the obligation and partly upon chance and/or
will of third persons FOR WHOSE BENEFIT IS THE PERIOD CONSTITUTED (Art.
10.Positive- involves the doing of an act 1196)
11.Negative- involves of omission of an act
12.Conjuctive- several condition in obligation w/c must GR: when a period has been agreed upon for the
be performed performance or fulfilment of an obligation, it is
13.Disjunctive- several condition one or some of them presumed to have been established for the benefit of
must be fulfilled both the CR and DR.
14.Divisible- susceptible of partial performance
15.Indivisible- not susceptible in partial performance. XPN: when it appears from the tenor of the period or
other circumstances that it was established for the
Effect of Impossible or Unlawful Condition: (Art. 1183) benefit of one of the parties.

GR: Impossible Condition annual the obligation w/c
depends upon the parties but not of third person.
XPNs: PD-DON
1. Pre-existing obligation
2. Obligation is divisible
3. In simpe or remuneratory Donations
4. In case of conditions Not to do an impossible thing
Note: in the foregoing, the obligation remain valid, only
the condition is void and deemed to have not been
imposed. It is applicable only to obligations not to do and
gratuitous obligations.
When will the effect of fulfilment of a conition retroact?
1. In Obligation to give- it retroacts to the day of the
constitution of the obligation
2. In obligation to do or not to do- the court may
determine to what date retroactivity shall be allowed,
or it may even refuse to permit retroactivity.
II. OBLIGATIONS WITH A PERIOD
- It is an obligations whose demandability or
extinguishment is subject to the expiration of
period or a term (Art. 1193)
REQUISITES OF A VALID PERIOD OR TERM:
EFFECT OF A TERM BEING FOR THE BENEFIT OF EITHER
CR & DR:
a. When it is for the benefit of the CR- the creditor may
demand the performance of the oligation at any time
but the DR cannot compel him accept payment efore
the expiration of the period (e.g ‘on demand’).
b. When it is for the benefit of the debtor- the debtor
may oppose any premature demand on the part of
the CR for performance of the obligation, or if he so
desires, he may renounce the benefit of the period by
performing his obligation in advance
EFFECT OF FORTUITOUS EVENT IN OBLIGATION W/ A
PERIOD: it only relieves the contracting parties from the
fulfilment of their respective obligation during the term
or period.
WHEN THE DR LOSE HIS RIGHT TO MAKE USE OF THE
PERIOD (Art. 1198)
1. Insolvency of the DR, unless security is provided
2. Did not deliver security promised
3. Impaired security through his own acts or through
fortuitous event, unless he gives a new security
equally satisfactory (if impairment is w/out the fault
of DR, he shall retain the right)
4. Violates undertaking in consideration of extension of
period
5. DR attempts to abscond
III. ALTERNATIVE OBLIGATIONS
  When the choice is rendered impossible through the
Facultative- only one prestation has been agreed creditor’s fault, the DR may bring an action to rescind
upon but another may be given in substitution. the contract w/ damages (Art. 1203)
 Obligation is converted into a simple obligation
Alternative- Bound by different prestation but only is when:
due.  When the person who has the right of choice
has communicated his choice (Art. 1201)
DISTINGUISH BETWEEN FACULTATIVE & ALTERNATIVE  When the only one prestationis practicable
Facultative obligations Alternative Obligations (Art. 1202)
Fortuitous is loss Fortuitous loss of all
extinguishes the prestation will not In Alternative Obligation, When does the choice made
obligation extinguish the obligation take effect?
Culpable loss obliges the Culpable loss of any - The choice made take effects only upon
DR to deliver substitute object due will give rise communication of the choice to the other party
prestation w/out liability to liability of the DR and from such time the obligation ceases to be
to debtor alternative (Art. 1205)
Choice pertains only to GR: Choice pertains to DR NOTE: the notice of selection or choice may be in any
DR XPN: Expressly granted to form provided it is sufficient to make the other party
creditor or third person know that the election has been made.
Only one subject is due Several oBjects are due
May be complied w/ by May be complied w/ by EFFECT OF LOSS OF OBJECTS OF ALTERNATIVE
substitution of one that is fulfilling any of those OBLIGATIONS: (Art. 1205 & 1206)
due alternately due
If principal obligation is If one prestation is void Due to Fortuitous Due to Debtor’s Fault
Event
void, the CR cannot the others free from
Choice belong to Debtor
compel delivery of the vices preserve the
CR shall have a right
substitute validity of the obligation
to indemnify for
If there is impossibility to If various prestation are damages based on
deliver the principal thing impossible to perform ALL ARE DR released from the the value of the last
or prestation, the except one, this one must LOST obligation thing w/c
obligation is be delivered. If all disappeared/service
extinguished, even if the prestations are w/c become
substitute obligation is impossible to perform, impossible
valid the oblgation is DR shall deliver that
DR shall deliver that
extinguished SOME BUT which he shall choose
which he shall choose
NOT ALL from among the
Loss of substitute before Where the choice is given from among the
ARE LOST remainder w/out
the substitution through to the CR, the loss of the remainder
damages
the fault of the debtor alternative through the ONLY ONE
doesn’t make him liable fault of the debtors Deliver that which remains
REMAINS
renders him liable for Choice belong to Creditor
damages. DR released from CR may claims the
ALL ARE obligations price/value of any of
RIGHT OF CHOICE LOST them w/ indemnity for
Art. 1200 belongs to the debtor UNLESS: damages
1. When it is expressly granted to the creditor DR shall deliver that CR may claim any of
2. When it is expressly granted to a third person w/c he shall choose those subsisting
SOME BUT from among the w/out a right to
NOT ALL remainder damages OR
LIMITATIONS TO THE RIGHT OF CHOICE ARE LOST price/value of one of
1. Impossible prestations those lost w/ right to
2. Unlawful prestations damages
3. Those w/c could not have been the object of the ONLY ONE Deliver that w/c remains, in case of fault of DR,
obligations REMAINS CR has a right to indemnity for damages
4. Only one prestation practicable (Art. 1202)
IV. JOINT & SOLIDARY OBLIGATIONS
WHEN CHOICE SHALL PRODUCE EFFECT
Art. 1201: Choice shall produce no effect exept from the Joint Obligations- it is where the entire obligation is to
time it has been communicated. The effect of the notice paid or performed proportionately by the debtors ( Art.
is to limit the obligation of the object or prestation 1208)
selected. Notice of selection or choice may be in any
form provided it is sufficient to make the other party Presumption: Obligation is presumed joint if there is a
know that the selection has been made. It can be: concurrence of several creditors, of several DR, of
- Oral several CR and DR in one and the same obligation (Art.
- In writing 1207)
- Tacit
- Any other equivocal means
 Choice of the DR when communicated to the CR does
not require the latter’s concurrence.
XPN:
1. When the obligation is expressly stated that there is
solidarity
2. When the law requires the solidarity
3. When the nature of the obligation requires solidarity
4. When the nature or condition is imposed upon heirs
or legatees, and the testament expressly makes the
charge or condition in solidum
5. When the solidarity responsibility is imputed by a
final judgment upon several defendants
PRINCIPAL EFFECT OF JOINT LIABILITY
1. Demand by one creditor upon the debtor, produces
the effects of default only with respect to the creditor
who demanded was made, but not w/ respect to
others.
2. Interruption of prescription by the judicial demand of
one creditor upon a debtor, does not benefit the
other creditors nor interrupt the prescription as to
other debtor
3. Vices of each obligation arising from the personal
defect of a particular debtor or creditor does not
affect the obligation or right of the others
4. Insolvency of a debtor does not increase the
responsibility of his co-debtors, nor does it authorize
a creditor to demand anything from his co-debtors
5. Defense of res juridicata is not extended from one
debtor to another
JOINT DIVISIBLE OBLIGATION
Art. 1208: Each creditor can demand only for the
payment of his proportionate share of the credit, while
each debtor can be liable only for the payment of his
proportionate share of the debit
Presumption: Credit or Debt shall be presumed to be
divided into as many equal shares as there are creditors
or debtors.
 Joint creditor cannot act in representation of the
others, neither can a joint debtor be compelled to
answer for the liability of others.
JOINT INDIVISIBLE OBLIGATION
Art. 1209: No creditor can act in representation of
others, neither can a joint debtor be compelled to
answer for the liability of the others.
 If there are two or more DR, the fulfilment of or
compliance w/ the obligations requires the
concurrence of all the DR, although each for his own
share and for the enforcement of the obligations
 In Case of Breach where one of the joint debtors fails
to comply w/ his undertakings, the obligation can no
longer be fulfilled or performed. Consequently, it is
converted into one of indemnity for damages.
 In Case of Insolvency of one of the Debtors, the
others shall not be liable for his shares. To hold
otherwise would destroy the joint character of the
obligation
` into consideration when the obligation was constituted
Joint Divisible Joint Indivisible
Obligations Obligations
In case of breach of In case of breach where
obligation by one of the one of the joint debtors
debtors, damages due fails to comply with his
must be borne by him undertaking, the
alone obligation can no longer
be fulfilled or performed.
Thus action must be
converted into indemnity
for damages.
 Plurality of Creditors: If one or some of the creditors
demands the prestation, the debtor may legally
refuse to deliver to them, he can insist that all the
creditors together receive the thing, and if any of
them refuse to join the others, the DR may deposit
the thing in court by way of consignation.
Solidary Obligations- it is where each of the DR obliges
to pay the entire obligation, and where each one of the
CR has the right to demand from any of the DR, the
payment or fulfilment of the entire obligations (Art.
1207)
Indivisibility Solidarity
Refers to the prestation w/c Refers to the legal tie or
constitutes the object of the vinculum and
obligation consequently to the
subjects or parties of the
obligation
Plurality of subjects is not Plurality of subjects is
required indispensable
In case of breach, obligation When there is liability on
is converted into indemnity the part of the debtors
for damages because the because of the breach, the
indivisility of the obligation solidarity among the
is terminated. debtors remains.
 The indisibility of an obligation does not necessarily
give rise to solidarity. Nor does solidarity itself imply
indivisibility (Art. 1211)
KINDS OF SOLIDARY OBLIGATION:
1. Passive- solidarity on the part of the DR
2. Active- solidarity on the part of the CR
3. Mixed- solidarity on both sides
RULES IN SOLIDARY OBLIGATIONS:
1. Anyone of the solidary creditors may collect or
demand payment of whole obligation; there is
mutual agency among solidary DR (Art. 1214 &
1215)
2. Any of the solidary debtor may e required to pay the
whole obligation; there is mutual guaranty among
solidary debtors (Art. 1216,1217,1222)
3. Each one of solidary creditors may do whatever
maybe useful to the others, but not anyting
prejudicial to them (Art. 1212); however, any
novation, compensation, confusion or remission of
debt executed by any solidary creditor shall
extinguish the obligation w/out prejudice to his
liability for the shares of the other solidary creditor.
Effects of assignment of rights in a solidary obligation:
GR: Solidary creditor CANNOT ASSIGN his right because
it is predicated upon mutual confidence, meaning
personal qualification of each creditor had been taken
(Art. 1213)
XPNs:
1. Assignment to co-creditor; or
2. Assignment is w/ consent of co-creditor.
 V. DIVISIBLE AND INDIVISIBLE OBLIGATIONS

PRIMARY DISTINCTION BETWEEN DIVISIBLE &

INDIVISIBLE

Divisible Indivisible
Susceptible of an obligation Non-susceptible to be
to be performed performed partially; Partial
performance is tantamount
to non-performance