I. Read Chapter 3: Kinds of Obligations and complete the table below.

OTHER
KINDS OF LEGAL BASIS/APPLICABLE CHARACTERISTICS/
DEFINITION EFFECT ON OBLIGATION EXAMPLE PERTINENT
OBLIGATIONS LAWS ELEMENTS/ REQUISITES
FACTS

Article 1179. Every obligation Pure obligation is immediately It is demandable at once. A simple promissory
whose performance does not demandable but it is not subject note to pay a certain
depend upon a future or uncertain to any condition and there is no amount within a certain
event, or upon a past event specific date for its fulfillment. period.
unknown to the parties, is
demandable at once. (1113)
PURE
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. (1997)

Article 1181. In conditional Conditional obligation whose Future and uncertain is an When the parties agree that the I myself promise to give
obligations, the acquisition of consequences are subject in event upon the happening duty to perform is postponed my friend Nicole a
rights, as well as the one way or another to fulfill a of which certain rights or until a determined or condo unit if I pass the
extinguishment or loss of those condition. obligations will be either determinable date due to the CPA Licensure Exam.
already acquired, shall depend enlarged, created, or pending event, and that this
CONDITIONAL 
upon the happening of the event destroyed. event is certain to happen.
which constitutes the condition. However, the exact date is
(1114) Past but unknown is a unknown
condition must not be
impossible.

Article 1182. When the fulfillment Condition which suspends When condition is fulfilled, Mortgage Bond,
of the condition depends upon the rights and obligations or the obligation arises. whereby the contract is
sole will of the debtor, the validity of the entire contract made subject to the
conditional obligation shall be void. until a certain future event The tie of the law does not purchaser obtaining a
Suspensive If it depends upon chance or upon occurs. Upon the occurrence of appear. loan from a bank or
Condition the will of a third person, the the event, the suspended part other financial
obligation shall take effect in the of the contract or indeed the Existence of obligation is a institution, for a specific
conformity with the provisions of entire contract is brought to life. mere hope. amount usually the
this Code. (1151) purchase price, within a
specified time period.

Resolutory Article 1182. When the fulfillment Condition whereby, upon When the condition is I will sell you my land to
Condition of the condition depends upon the fulfillment terminates an already fulfilled, the obligation you, if I migrate to
sole will of the debtor, the enforceable obligation. It also extinguished. America within three
conditional obligation shall be void. entitles the parties to be The tie law is consolidated. months. However, my
If it depends upon chance or upon resorted to their original migration was not after
the will of a third person, the positions. The condition effects flow four months. My
 obligation shall take effect in the but over it hovers the contract with you is
conformity with the provisions of possibility of termination. revoked.
this Code. (1151)

Article 1183. Impossible conditions, Condition made in a contract When the condition Potestative conditions do not I will give my neighbor a
those contrary to good customs or the fulfillment of which is depends upon the will of create obligations at all, impose P5000 if he cut down
public policy and those prohibited entirely in the control of one of debtor, the obligation shall no duty on the parties, and for the tree on his land
by law shall annul the obligation the parties to the contract. be void because of its this reason are invalid as because I don’t like the
Potestative which depends upon them. If the validity and compliance. clauses in a contract. They are smell of the tree.
Condition obligation is divisible, that part at odds with the basic characters
thereof which is not affected by the When the condition of a contract. In consequence, a
impossible or unlawful condition depends upon the will of potestative condition, even
shall be valid. the creditor, the obligation though written into a contract, is
is valid. void and without effect.

Article 1183. Impossible conditions, Condition which depends upon Partly upon the will of the I will give you my land if
those contrary to good customs or a chance. A casual condition is debtor and partly upon the you win a case which is
public policy and those prohibited not within the control of either will of a third person. pending to a supreme
by law shall annul the obligation party to a contract. The casual court.
Casual which depends upon them. If the condition is that which depends
Condition obligation is divisible, that part on chance, and in no way in the
thereof which is not affected by the power either of the creditor or of
impossible or unlawful condition the debtor.
shall be valid.

Article 1183. Impossible conditions, This condition refers to an Partly upon the will of the I will give you a house if
those contrary to good customs or unreal past condition and its debtor and partly upon the you marry my daughter.
public policy and those prohibited probable result in the present. will of a third person.
by law shall annul the obligation These sentences express a
Mixed which depends upon them. If the situation which is contrary to
Condition obligation is divisible, that part reality both in the past and in
thereof which is not affected by the the present.
impossible or unlawful condition
shall be valid.

Possible
Condition

Negative
Condition

Positive Article 1184. The condition that Refers to an event that is to The obligation is Between the creation of
Condition some event happen at a take place in order for a extinguished: conditional obligation and
determinate time shall extinguish condition to be met. (1) As soon as the time fulfillment of positive/suspensive
the obligation as soon as the time expires without the event condition, the creditor/obligee
expires or if it has become taking place cannot enforce the obligation; his
indubitable that the event will not (2) As soon as it has right is a mere expectancy.
 take place. become indubitable that the
event will not take place
although the time specified
has not expired.

Article 1185.The condition that Condition that forbids or (1) the condition is
some event will not happen at a prevents a party from doing a suspensive
determinate time shall render the specific thing. (2) The obligor actually
obligation effective from the prevents the fulfillment of
moment the time indicated has the condition
elapsed, or if it has become (3) He acts voluntarily
evident that the event cannot
Negative occur.
Condition
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.
(1118)

UNILATERAL

BILATERAL/
RECIPROCAL

WITH A TERM
OR PERIOD

A suspensive condition is a
term or clause within a contract
Suspensive that clearly stipulates a
Term (Ex Die) particular criterion that must be
met in order for the contract to
come into force.

Resolutory Fulfillment terminates an

Term (In Diem) already enforceable obligation

Several   prestations and all of

CONJUNCTIVE
them are due

Two or more of  the prestations

DISTRIBUTIVE
is due

Alternative Article 1200. The right of choice An obligation is alternative Right of choice, as a rule, Kobe borrowed P50,000
belongs to the debtor, unless it has when two things are equally given to debtor. cash from me.  It was
been expressly granted to the due, under an alternative. The agreed that Kobe has
creditor. obligor is bound to render only Right of choice of debtor the alternative to pay
The debtor shall have no right to one of two or more items of not absolute. either in  P50,000 cash
 choose those prestations which are performance. Where a person or an Iphone 6Splus.
impossible, unlawful or which could engages to do, or to give
not have been the object of the several things the payment of
obligation. one will acquit him of all.

Article 1200. The right of choice Facultative obligation refers to a If the obligor can either
belongs to the debtor, unless it has type of obligation where one give a house and a car
been expressly granted to the thing is due, but another is paid or paint two murals for
creditor. in its place. In such types of the satisfaction of his
Facultative The debtor shall have no right to obligations there is no obligation, he cannot
choose those prestations which are alternative provided. The debtor give the car and one
impossible, unlawful or which could is given the right to substitute mural.
not have been the object of the the thing due with another that
obligation. is not due.

Article 1208. If from the law, or the The whole obligation is to be

nature or the wording of the paid or fulfilled proportionately
obligations to which of the by the different debtors and/or
preceding article refers the demanded by different
contrary does not appear, the creditors.
credit or debt shall be presumed to
be divided into as many equal
JOINT
shares as there are creditors or
debtors, the credits or debt being
considered distinct from one
another, subject to the Rules of
Court governing the multiplicity of
suits.

Article 1207. The concurrence of Each one of the debtors is

two or more creditors or of two or bound to render and/or each
more debtors in one and the same one of the creditors has a right
obligation does not imply that each to demand from any of the
one of the former has a right to debtors, entire compliance with
demand, or that each one of the the prestation.
latter is bound to render, entire
SOLIDARY
compliance with the prestation.
There is a solidary liability only
when the obligation expressly so
states, or when the law or the
nature of the obligation requires
solidarity. (1137a)

DIVISIBLE Article 1223. The divisibility or Divisible obligation is one of the

indivisibility of the things that are objects of which, in its delivery
the object of obligations in which or performance, is capable of
there is only one debtor and only partial fulfillment.
one creditor does not alter or
 modify the provisions of Chapter 2
of this Title. (1149)

Article 1223. The divisibility or Indivisible obligation is one of

indivisibility of the things that are the objects of which, in its
the object of obligations in which delivery or performance, is not
INDIVISIBLE there is only one debtor and only capable of partial fulfillment.
one creditor does not alter or
modify the provisions of Chapter 2
of this Title. (1149)

Article 1226. In obligations with a Penal clause is an accessory Penalty substitutes for Effects of the obligation are
penal clause, the penalty shall undertaking attached to an damages and interests  payment and penalty of the
substitute the indemnity for obligation to assume greater damages including the interest if
damages and the payment of liability in case of breach, the Penalty may be enforced there is any...
interest in case of noncompliance, obligation is not fulfilled, or is
if there is no stipulation to the partly or irregularly complied Penalty not substitute for
contrary. Nevertheless, damages with. performance
WITH A PENAL shall be paid if the obligor refuses
CLAUSE to pay the penalty or is guilty of Penal clause presume
fraud in the fulfilment of the subsidiary whether when
obligation. there is performance or no
performance
The penalty may be enforced only
when it is demandable in
accordance with the provisions of
this Code.

II. Read Art. 1189 and 1194, and create an outline or draw a diagram showing the Loss, Deterioration, Improvement (LDI) Rules. Place your outline or diagram below.

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