Art. 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 constitutes the condition.

COMMENT: (1) Suspensive and Resolutory Conditions This Article treats of: (a) suspensive conditions —
the happening of which will give rise to the acquisition of a right (also called conditions precedent or
conditions antecedent). Be it noted that what characterizes an obligation with a suspensive condition is
the fact that its effi cacy or obligatory force is subordinated to the happening of a future and uncertain
event; if the suspensive condition does not take place, the parties would stand as if the conditional
obligation had never existed. (Gaite v. Fonacier, L-11827, Jul. 31, 1961, 2 SCRA 831). Examples: 1) “I
promise to do what you ask provided that X condition is fi rst complied with.” (See Phil. Nat. Bank v. Phil.
Trust Co., 68 Phil. 48). 2) A, in his will, gave some property to B, provided that A would die within a
certain period. A did not die during said period. Since the suspensive condition was not complied with, B
is not entitled to inherit. (Natividad v. Gabino, 36 Phil. 663). 3) If in a judgment by a court it is stated that
unless a bond is given, the judgment can be enforced even while it is still on appeal, the giving of the
bond should be considered as partaking of the nature of a suspensive condition. If the bond be not
given, enforcement or execution can issue. (See Santos v. Mojica, L-24266, Jan. 24, 1964).

Bengson v. Chan 78 SCRA 113 ISSUE: If a contract provides for arbitration prior to recourse to courts
but the case was fi led without such needed arbitration, should the case be dismissed?

Art. 1181

CIVIL CODE OF THE PHILIPPINES

192

HELD: No, for the remedy should be to suspend the case until after arbitration is resorted to. (See also
R.A. No. 876, otherwise known as the Arbitration Law).

San Miguel v. Elbinias L-48210, Jan. 31, 1984

Before the writ of preliminary injunction can be granted, the posting of a bond (to answer for
consequent damages) is a condition sine qua non (indispensable suspensive condition or condition
precedent).

Agapito Gutierrez v. Capital Insurance and Surety Co. L-26827, Jun. 29, 1984 If the insurance contract
stipulates that the driver of an insured car must be the owner of a valid and subsisting license, and at
the time of the accident the driver had an expired license, the insurance company would not be liable.

Integrated Construction v. Relova GR 41117, Dec. 29, 1986

FACTS: A decision-award by an arbitration board ordered the Metropolitan Waterworks and Sewerage
System (MWSS) to pay Integrated Construction P13,188.50. Later, Integrated agreed to give MWSS
some discounts provided MWSS would pay the amount on Oct. 17, 1972. MWSS, however, paid only on
Dec. 22, 1972, the amount stated in the decision less the reductions. Three years later, Integrated
moved for execution against MWSS for the balance due under the decision-award. MWSS opposed the
execution setting forth the defense of payment. The judge denied the execution on the ground that the
parties had novated the award by their subsequent agreement. HELD: While the tenor of the
subsequent agreement in a sense novates the judgment award there being a shortening of the period
within which to pay, the suspensive