OBLICON- MODULE 3

1. WHAT IS PURE OBLIGATION?

A pure obligation is one that is demandable at once because it does not
depend upon a future or uncertain event, not on a past event unknown to the
parties and is not an obligation with a resolutory condition. 

2. DEFINE CONDITIONAL OBLIGATION?

A conditional obligation is one the fulfillment of which is a subject to a
certain condition which may be an event, which may or may not happen. It
could be suspensive or resolutory.

3. DEFINE SUSPENSIVE CONDITION

A suspensive condition is a future or uncertain event, the happening of
which give birth to the obligation.

4. DEFINE RESOLUTORY CONDITION

Resolutory condition is an event the passing of which extinguishes the
obligation.

5. WHAT IS POTESTATIVE OBLIGATION?

Potestative condition- one which depends upon the will of one of the
contracting parties.

6. WHAT IS CASUAL OBLIGATION?

Casual condition- depends exclusively upon chance or other factors (upon
the will of a third person), and not upon the will of the contracting parties.

7. WHAT IS AN IMPOSSIBLE OBLIGATION?

Impossible obligation has a condition that is not capable of being performed
physically.
8. WHAT IS AN ILLEGAL OBLIGATION?
Illegal obligation happened when the condition imposed is contrary to law,
good custom or public policy.

9. DEFINE OBLIGATION WITH A PERIOD

An obligation with a period is one whose consequences are subjected in one

way or another to the expiration of said period or term.

10.WHAT IS FACULTATIVE OBLIGATION?

Facultative Obligation – debtor is bound to perform one prestation is due to
deliver one thing with a reserved right to choose another prestation or thing
as substitute for the principal.

[ill. Gigi, upon failure to pay her debt to Carlo in 30 days, will mortgage her
land to secure her debt which shall be payable in 90 days.

11.DEFINE ALTERNATIVE OBLIGATION

Alternative Obligation – debtor is alternatively bound with various

prestations that are due but the performance of one of them is sufficient to
extinguish the obligation.

[ill. John borrowed P50,000 cash from Shiela. It was agreed that John has
the alternative to pay Shiela either in P50,000 cash or an Iphone 6Splus, or a
40” LED TV.

12.DEFINE JOINT OBLIGATION?

A. Joint obligation, each obligor answers only for a part of the whole
liability and to each blige belongs only a part of the correlative rights.
B. A and B jointly borrowed money to C in the amount of P1, 000. A paid
P500 to C. A failed to pay C. Is A obligated to pay P500 to C?
Yes, A is obligated to pay as both A and B are joint debtors in which
each of them should give half of the total amount they borrowed from C.
C can demand only P500 from A, and also, only P500 from B.
13.DEFINE SOLIDARY OBLIGATION
A. Solidary obligation, the relationship between the active and the passive
subjects is so close that each of the former or of the latter may demand
the fulfillment of or must comply with the whole obligation.
B. A and B solidarity borrowed money to C in the amount of P1, 000. A
paid P500 to C. B failed to pay C. Is A obligated to pay P500 to C?
Yes. Since A and B are solidary debtors of C to the amount of P1,000.
C can demand the whole P1,000 from A. A in turn, after paying C, can
ask reimbursement from B which is really B’s share of the obligation.

14.DEFINE DIVISIBLE OBLIGATION

Divisible obligation – is one the object of which, in its delivery or
performance, is capable of partial fulfillment.

15.DEFINE INDIVISBLE OBLIGATION

An indivisible obligation—is one the object of which, in its delivery or
performance, is not capable of partial fulfillment.

16.DEFINE OBLIGATIONS WITH A PENAL CLAUSE

It is an accessory obligation attached to the principal obligation to assure
greater responsibility in case of breach.

17.
1.Impossible Obligation
2. Suspensive Obligation
3. Obligation with a period
4. Casual Obligation
5. Potestative Obligation
6. Pure Obligation
7. Illegal Obligation
8. Facultative Obligation
9. Alternative Obligation
10. Resolutory Obligation
11. Solidarity Obligation
 12. Joint Obligation

18. ACT. 1186, NEW CIVIL CODE. “THE CONDITION SHALL BE

FULFILLED WHEN THE OBLIGOR VOLUNTARILY PREVENTS
ITS FULFILMENT.”
QUESTION: A promised to sell B a car if C could pass the board exam. On
the day of the examination. A caused C to be poisoned and be hospitalized.
Is A still bound to sell the car?
In case the obligor acts voluntarily but not for cause of prevention of
fulfillment of the obligation. It is no longer considered part of this article.
There is no constructive case fulfillment of the condition in this case.

19.ACT. 1187. THE EFFECT OF A CONDITIONAL OBLIGATION TO

GIVE, ONCE THE CONDITION BEEN FULFILLED, SHALL
RETROACT TO THE DAY OF THE CONDITION OF THE
OBLIGATION. NEVERTHELESS, WHEN THE OBLIGATION
IMPOSES RECIPROCAL PRESTATIONS UPON THE PARTIES,
THE FRUITS AND INTERESTS DURING THE PENDENCY OF THE
CONDITION SHALL BE DEEMED TO HAVE BEEN MUTUALLY
COMPENSATED. IF THE OBLIGATION IS UNILATERAL, THE
DEBTOR SHALL APPROPRIATE THE FRUITS AND INTERESTS
RECEIVED, UNLESS FROM THE NATURE AND
CIRCUMSTANCES OF THE OBLIGATION IT SHOULD BE
INFERRED THAT THE INTENTION OF THE PERSON
CONSTITUTING THE SAME WAS DIFFERENT. IN OBLIGATIONS
TO DO AND NOT TO DO, THE COURTS SHALL DETERMINE, IN
EACH CASE, THE RETROACTIVE EFFECT OF THE CONDITION
THAT HAS BEEN COMPLIED WITH. (1120)

QUESTION: Jose in 1998 promised to sell to Maria his land provided Maria
passes the board exam in 2000. Maria passed the bar in 2000. When is Maria
entitled the land, 1998 or 2000?
states that the
conditional obligation
to give will take effect
once the condition
is fulfilled and the
obligation is
declared.
states that the
conditional obligation
to give will take effect
once the condition
is fulfilled and the
obligation is
declared.
states that the
conditional obligation
to give will take effect
once the condition
is fulfilled and the
obligation is
declared.
states that the
conditional obligation
to give will take effect
once the condition
is fulfilled and the
obligation is
declared.
states that the
conditional obligation
to give will take effect
once the condition
is fulfilled and the
obligation is
declared.
Maria entitled the land in 2000 as it is stated in the Art. 1187 that the
conditional obligation to give will take effect once the condition is fulfilled
and the obligation is declared. 

MODULE 4

EXTINGUISHMENT OF OBLIGATION
1. ENUMERATE THE GROUNDS FOR THE EXTINGUISHMENTS OF
OBLIGATIONS
Obligations are extinguished: 

(1) By payment or performance; 

(2) By the loss of the thing due; 

(3) By the condonation or remission of the debt; 

(4) By the confusion or merger of the rights of creditor and debtor; 

(5) By compensation; 
 (6) By novation. 

PAYMENT OR PERFORMANCE
1. UNDER THE NEW CIVIL CODE, WHAT IS
PAYMENT/PERFORMANCE? ART. 1231
Payment means not only the delivery of money but also the performance,
in any other manner, of an obligation. 

2. JUAN BORROWED MONEY FROM PEDRO IN THE AMOUNT

OF 10K. UPON THE DUEDATE, TOMAS APPROACHED PEDRO
TO PAY THE AMOUNT BORROWED BY JUAN. IS PEDRO
OBLIGED TO ACCEPT THE PAYMENT MADE BY TOMAS?
ART. 1236, NEW CIVIL CODE.
The creditor is not bound to accept payment or performance by a third
person who has no interest in the fulfillment of the obligation, unless
there is a stipulation to the contrary. 

Whoever pays for another may demand from the debtor what he has paid,
except that if he paid without the knowledge or against the will of the
debtor, he can recover only insofar as the payment has been beneficial to
the debtor. (1158a) 

3. WHO TO PAY? ART. 1240, NEW CIVIL CODE.

Payment shall be made to the person in whose favor the obligation has
been constituted, or his successor in interest, or any person authorized to
receive it.  (1162a) 

4. PETRA IS 20 YEARS OLD BUT DIAGNOSED WITH A DISEASE

WHERE HER AGE IS EQUIVALENT TO A 7-YEAR OLD GIRL.
PETRA WENT TO ABC BAKESHOP AND BOUGHT A LOAF OF
BREAD AND ATE THEM ALL. KNOWING THIS, MARIA THE
MOTHER OF PETRA WENT TO ABC BAKESHOP AND
DEMANDED THE RETURN OF THE MONEY USED BY PETRA
TO BUY THE LOAF OF BREAD. CAN THE MOTHER GET
BACK THE MONEY? ART. 1241, NEW CIVIL CODE.
 Payment to a person who is incapacitated to administer his property shall
be valid if he has kept the thing delivered, or insofar as the payment has
been beneficial to him. 

Payment made to a third person shall also be valid insofar as it has

redounded to the benefit of the creditor. Such benefit to the creditor need
not be proved in the following cases: 

(1)     If after the payment, the third person acquires the creditor's rights; 

(2)     If the creditor ratifies the payment to the third person; 

(3)     If by the creditor's conduct, the debtor has been led to believe that
the third person had authority to receive the payment. (1163a) 

5. WHERE PAYMENT SHOULD BE MADE? ART. 1251, NEW

CIVIL CODE
Payment shall be made in the place designated in the obligation.
There being no express stipulation and if the undertaking is to deliver a
determinate thing, the payment shall be made wherever the thing might
be at the moment the obligation was constituted. 
In any other case the place of payment shall be the domicile of the
debtor. 
If the debtor changes his domicile in bad faith or after he has incurred in
delay, the additional expenses shall be borne by him. 
These provisions are without prejudice to venue under the Rules of
Court. (1171a) 

6. WHAT IS APPLICATION OF PAYMENT? ART. 1252, NEW

CIVIL CODE.
He who has various debts of the same kind in favor of one and the same
creditor, may declare at the time of making the payment, to which of
them the same must be applied.

Unless the parties so stipulate, or when the application of payment is

 made by the party for whose benefit the term has been constituted,
application shall not be made as to debts which are not yet due. 

If the debtor accepts from the creditor a receipt in which an application of

the payment is made, the former cannot complain of the same, unless
there is a cause for invalidating the contract. (1172a) 

7. WHAT IS DACION EN PAGO? ART. 1245

Dation in payment, whereby property is alienated to the creditor in
satisfaction of a debt in money, shall be governed by the law of sales. (n)

8. WHAT IS CESSION IN PAYMENT? ART. 1255

The debtor may cede or assign his property to his creditors in payment of
his debts. This cession, unless there is stipulation to the contrary, shall
only release the debtor from responsibility for the net proceeds of the
thing assigned. The agreements which, on the effect of the cession, are
made between the debtor and his creditors shall be governed by special
laws. (1175a)  

9. WHAT IS LENDER OF PAYMENT?

Tender of payment is the act, on the part of the debtor, of offering to the
creditor the thing or amount due. The debtor must show that he has in his
possession the thing or money to be delivered at the time of the offer. It is
an act preparatory to consignation, which is the principal, and from
which are derived the immediate consequences which the debtor desires
or seeks to obtain.

10.WHAT IS CONSIGNATION?
Consignation is the act of depositing the thing or amount due with the
proper court when the creditor does not desire, or refuses to accept
payment, or cannot receive it, after complying with the formalities
required by law. It is always judicial and it generally requires a prior
tender of payment which is by its very nature extrajudicial.
LOSS OF THE THING DUE
1. TOMAS PROMISED TO GIVE JUAN HIS MOTORCYCLE WITH
PLATE NO. 1212 ON NOVEMBER 30, 2020. ON NOVEMBER 29,
2020, AT ABOUT 10 O’CLOCK IN THE EVENING, THE
MOTORCYCLE WAS STRUCK WITH A LIGHTENING AND
BURNED. IS TOMAS STILL OBLIGED TO DELIVER ANOTHER
MOTORCYCLE TO JUAN? ART. 1262, NEW CIVIL CODE.
An obligation which consists in the delivery of a determinate thing shall
be extinguished if it should be lost or destroyed without the fault of the
debtor, and before he has incurred in delay.
When by law or stipulation, the obligor is liable even for fortuitous
events, the loss of the thing does not extinguish the obligation, and he
shall be responsible for damages. The same rule applies when the nature
of the obligation requires the assumption of risk. (1182a

2. MARIA PROMISED TO GIVE ANNA A ONE SACK OF RICE ON

DECEMBER 25, 2020. ON DECEMBER 25, 2020 AT ABOUT 6
O’CLOCK IN THE EVENING, THE ONE SACK OF RICE
BROUGHT BY MARIAS WAS SOAKED IN WATER CAUSED BY
FLOOD. IS MARIA STILL OBLIGATED TO DELIVER ONE
SACK OF RICE TO ANNA? ART. 1263, NEW CIVIL CODE.
In an obligation to deliver a generic thing, the loss or destruction of
anything of the same kind does not extinguish the obligation. (n)