Civil Law Review 2

Arts. 1156 to 1230

by: Romar Cambri

Outline
I.
II.
III.
IV.
V.

Definition (Article 1156)

Elements of an Obligation
Different Kinds of Prestations
Classification of Obligations
Sources of Obligations (Article 1157)
A.
B.
C.
D.
E.

Obligation Ex Lege (Article 1158)

Obligation Ex Contractu (Article 1159)
Obligation Ex Quasi-Contractu (Article 1160)
Obligation Ex Delicto (Article 1161)
Obligations Ex Quasi-Delicto (Article 1162)
1. Distinguished from Culpa Contractual and Culpa
Criminal

F. Natural Obligations (Article 1423 to 1430)

G. Estoppel (Article 1431 to 1439)
H. Laches

Outline
VI.

Nature and Effect of Obligations (Article

1163 to 1168)
A. Breaches of Obligations
1.
2.
3.
4.
5.

Delay (Article 1169)

Fraud (Article 1171)
Negligence (Article 1172 to 1173)
Contravention of Tenor of Obligation (Violatio)
Fortuitous Event (Article 1174)

B. Remedies (also see Article 1175, 1176 and 1178)

1. Specific Performance (Article 1177)
2. Rescission (Article 1191)
3. Damages (Article 1170)

C. Subsidiary Remedies
1. Accion Subrogatoria
2. Accion Pauliana
3. Accion Directa

Outline
VII.

Kinds of Civil Obligations

A. Pure Obligations (Article 1179)
B. Conditional Obligations (also see Article 1181, 11831186, and 1192)
1.
2.
3.
4.

Suspensive Condition (Article 1187 to 1189)

Resolutory Condition (Article 1190)
Potestative Condition (Article 1182)
Causal Condition

C. Obligation with a Period (Article 1180 and 1193 to 1198)

D. Alternative Obligation/Facultative Obligation (ARTICLE
1199 to 1206)
E. Joint and Solidary Obligation (Article 1207 to 1208)
1. Joint and Solidary Obligations (Article 1209)
2. Joint Indivisible Obligations (Article 1210)
3. Solidary Obligations (Article 1211 to 1222)

F. Divisible and Indivisible Obligations (Article 1223 to

1225)
G. Obligations with a Penal Clause (Article 1226 to 1230)

I. Definition

Article 1156. An obligation is a juridical

necessity to give, to do or not to do.
Note: Art. 1156 refers only to civil obligations
which are enforceable in court when
breached. It does not cover natural
obligations (Arts. 1423-1430) because these
are obligations that cannot be enforced in
court being based merely on equity and
natural law and not on positive law (Pineda,
Obligations and Contracts, 2000 ed., p3).

II. Elements of an Obligation

1. Juridical tie or vinculum juris or efficient cause is the
efficient cause by virtue of which the debtor has become
bound to perform the prestation (Pineda, Obligations and
Contracts, 2000, p.2).
2. Active subject [creditor (CR) or obligee] is the one who is
demanding the performance of the obligation. It is he in
whose favor the obligation is constituted, established or
created (Pineda, Obligations and Contracts, 2000, p.2).
3. Passive subject [debtor (DR) or obligor] is the one bound
to perform the prestation to give, to do, or not to do
(Pineda, Obligations and Contracts, 2000 ed., p. 2).
4. Object or prestation it is the subject matter of the
obligation which has an economic value or susceptible of
pecuniary substitution in case of noncompliance. It is a
conduct that may consist of giving, doing, or not doing
something. (Pineda, Obligations and Contracts, p. 2, 2000)

III. Different Kinds of Prestations

OBLIGATION TO GIVE

OBLIGATION TO DO

OBLIGATION NOT TO
DO
Covers all kinds of Consists in refraining
works
or
services from doing some acts
whether physical or
mental

Consists
in
the
delivery
of
a
movable
or
immovable thing to
the creditor
i.e. Sale, deposit, i.e. Contract for
pledge,
donation, professional
services
antichresis
like painting, modeling,
singing, etc.

i.e.

Easement
prohibiting
building
proprietor or possessor
from
committing
nuisance(Art.
682),
restraining
order
or
injunction
(Pineda,
Obligations
and
Contracts, p. 3, 2000)

IV. Classification of Obligations

1.

Sanction

a. Civil gives a right of action to compel their performance

b. Natural not based on positive law but on equity and natural law; does not
grant a right of action to enforce their performance, but after voluntary
fulfillment by the obligor, they authorize retention of what has been
delivered/ rendered by reason thereof.
c. Moral cannot be enforced by action but are binding on the party who
makes it in conscience and natural law.

2.

Performance

a. Positive to give; to do
b. Negative not to do

3.

Subject matter

a. Personal to do; not to do

b. Real to give

4.

Object

a. Determinate/specific particularly designated or physically segregated from

all others of the same class.
b. Generic is designated merely by its class or genus.
c. Limited generic generic objects confined to a particular class (e.g. an
obligation to deliver one of my horses) (Tolentino, Civil Code of the
Philippines, Vol. IV, 2002 ed, p. 91)

IV. Classification of Obligations

5.

Person obliged

a. Unilateral only one party is bound

b. Bilateral both parties are bound
Note: A bilateral obligation may be reciprocal or non-reciprocal. Reciprocal
obligations are those which arise from the same cause, wherein each party
is a debtor and a creditor of the other, such that the performance of one is
conditioned upon the simultaneous fulfilment of the other.

6.

Creation

a. Legal imposed by law (Art. 1158)

b. Conventional established by the agreement of the parties like contracts

7.

Susceptibility of partial fulfillment

a. Divisible obligation is susceptible of partial performance (Art. 1223;

1224)
b. Indivisible obligation is not susceptible of partial performance (Art. 1225)

8.
a.

Existence of burden or condition

Pure is not burdened with any condition or term. It is immediately

demandable (Art. 1179)
b.
Conditional is subject to a condition which may be suspensive
(happening of which shall give rise to the obligation) or resolutory
(happening of which terminates the obligation). (Art. 1181)

IV. Classification of Obligations

9.

Character of responsibility or liability

a. Joint each debtor is liable only for a part of the whole liability and to each
creditor shall belong only a part of the correlative rights (8 Manresa 194; Art.
1207)
b. Solidary a debtor is answerable for the whole of the obligation without
prejudice to his right to collect from his co-debtors the latters shares in the
obligation (Art. 1207)

10. Right to choose and substitution

a. Alternative obligor may choose to completely perform one out of the several
prestations (Art. 1199)
b. Facultative only one prestation has been agreed upon, but the obligor may
render one in substitution of the first one (Art. 1206)

11. Imposition of penalty

a. Simple there is no penalty imposed for violation of the terms thereof (Art.
1226)
b. Obligation with penalty obligation which imposes a penalty for violation of
the terms thereof (Art. 1226; Pineda, Obligations and Contracts, 2000 ed, p. 57)

V. Sources of Obligations

Article 1157. Obligations arise from:

(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law;
and
(5) Quasi-delicts.

V. Sources of Obligations
A. Obligation Ex Lege (Article 1158)

Article 1158. Obligations derived

from law are not presumed. Only those
expressly determined in this Code or in
special laws are demandable, and shall
be regulated by the precepts of the
law which establishes them; and as to
what has not been foreseen, by the
provisions of this Book.
Note: If there is conflict between the NCC and a special law, the
latter prevails unless the contrary has been expressly stipulated in
the NCC. (Art. 18, Paras, Civil Code of the Philippines Annotated,
Vol. IV, 2008 ed., p. 86)

V. Sources of Obligations
B. Obligation Ex Contractu (Article 1159)

Article 1159. Obligations arising

from contracts have the force of law
between the contracting parties and
should be complied with in good faith.
What are the requisites for a contract to give rise to
obligations ex contractu?
1. It must contain all the essential requisites of a contract (Art.
1318)
2. It must not be contrary to law, morals, good customs, public
order, and public policy. (Art. 1306)

V. Sources of Obligations
C. Obligation Ex Quasi-Contractu (Article 1160)

Article 1160. Obligations derived from quasicontracts shall be subject to the provisions of
Chapter 1, Title XVII, of this Book. (n)
What is quasi-contract?
It is a juridical relation arising from lawful, voluntary and unilateral acts
based on the principle that no one shall be unjustly enriched or benefited at
the expense of another (Art. 2142).
What are the principal forms of quasi-contracts?
1. Negotiorum gestio (inofficious manager) arises when a person
voluntarily takes charge of the management of the business or property of
another without any power from the latter (Art. 2144).
2. Solutio indebiti (unjust enrichment)takes place when a person received
something from another without any right to demand for it, and the thing
was unduly delivered to him through mistake (Art. 2154).
Note: The delivery must not be through liberality or some other cause.

V. Sources of Obligations
D. Obligation Ex Delicto (Article 1161)

Article 1161. Civil obligations arising from

criminal offenses shall be governed by the
penal laws, subject to the provisions of article
2177, and of the pertinent provisions of
Chapter 2, Preliminary Title, on Human
Relations, and of Title XVIII of this Book,
regulating damages. (1092a)
What is the basis for civil liability arising from delicts as according to the penal code?
Art. 100 of the Revised Penal Code provides that: Every person criminally liable for a felony is
also civilly liable.
A crime has dual character: (1) as an offense against the state because of the disturbance of the
social order; and (2) an offense against the private person injured unless it involves the crime of
treason, rebellion, espionage, contempt and others wherein no civil liability arises on the part of
the offender either because there are no damages to be compensated or there is no private
person injured by the crime (Reyes, The Revised Penal Code, Criminal Law, Book One, 2008, ed.,
p. 875).

V. Sources of Obligations
E. Obligations Ex Quasi-Delicto (Article 1162)

Article 1162. Obligations derived

from quasi-delicts shall be governed
by the provisions of Chapter 2, Title
XVII of this Book, and by special
laws. (1093a)
What are the elements of a quasi-delict?
1. Negligent or wrongful act or omission;
2. Damage or injury caused to another;
3. Causal relation between such negligence or fault and
damage;
4. No pre-exisitng contractual relationship between the parties
(Article 2176).

V. Sources of Obligations

Distinguished from Culpa Contractual and Culpa

CULPA CONTRACTUAL
CULPA AQUILIANA
CULPA CRIMINAL
Criminal
Contractual Negligence

Civil Negligence, Quasi-Delict,

Tort,or Culpa Extra-Contractual

Criminal Negligence

Proof Needed

Preponderance of evidence

Preponderance of evidence

Proof of guilt beyond reasonable

doubt

Onus Probandi

Contracting party must prove:

Victim must prove:

1. The existence of the contract;

1. The damage suffered;

Prosecution must prove the guilt

of the accused beyond
reasonable doubt.

2. The breach thereof.

2. The negligence of the

defendant;
3. The causal connection
between the damage and the
negligence.

Defense
Available

Existence
Contract
between
Parties

of
the

Exercise of extraordinary
diligence (in contracts of
carriage), Force majeure

Exercise of diligence of a good

father of a family in the selection
and supervision of employees

Defenses provided for under the

Revised Penal Code.

There is pre-existing contract

No pre-existing contract

No pre-existing contract

VI. Nature and Effect of Obligations

Required Diligence:
Article 1163. Every person obliged to give something is also obliged to take
care of it with the proper diligence of a good father of a family, unless the law or
the stipulation of the parties requires another standard of care. (1094a)

Right to the Fruits:

Article 1164. The creditor has a right to the fruits of the thing from the time the
obligation to deliver it arises. However, he shall acquire no real right over it until
the same has been delivered to him. (1095)

Right to Compel Delivery:

Article 1165. When what is to be delivered is a determinate thing, the creditor,
in addition to the right granted him by article 1170, may compel the debtor to
make the delivery.
If the thing is indeterminate or generic, he may ask that the obligation be
complied with at the expense of the debtor.
If the obligor delays, or has promised to deliver the same thing to two or more
persons who do not have the same interest, he shall be responsible for any
fortuitous event until he has effected the delivery. (1096)

VI. Nature and Effect of Obligations

Right to the Accessions and Accessories:

Article 1166. The obligation to give a determinate thing includes that of
delivering all its accessions and accessories, even though they may not have
been mentioned.

Right in Case of Breach:

Article 1167. If a person obliged to do something fails to do it, the same shall
be executed at his cost.
This same rule shall be observed if he does it in contravention of the tenor of the
obligation. Furthermore, it may be decreed that what has been poorly done be
undone. (1098)
Article 1168. When the obligation consists in not doing, and the obligor does
what has been forbidden him, it shall also be undone at his expense. (1099a)

VI. Nature and Effect of Obligations

A.Breaches of Obligations (1) Delay - Article 1169
Mora Solvendi
Requisites of mora solvendi?
1. Obligation pertains to the debtor;
2. Obligation is determinate, due and demandable, and liquidated;
3. Obligation has not been performed on its maturity date;
4. There is judicial or extrajudicial demand by the creditor;
5. Failure of the debtor to comply with such demand.
Effects of mora solvendi?
1. Debtor may be liable for damages or interests; and
Note: The interest shall commence from the filing of the complaint
when there is no extrajudicial demand.
2. When it has for its object a determinate thing, debtor may bear the
risk of loss of the thing even if the loss is due to fortuitous event.
3. Rescission or resolution

VI. Nature and Effect of Obligations

A.Breaches of Obligations (1) Delay - Article 1169
Mora Accipiendi
Requisites of mora accipiendi?
1. Offer of performance by a capacitated debtor;
2. Offer must be to comply with the prestation as it should be performed; and
3. Refusal of the creditor without just cause.
Effects of mora accipiendi?
1. Responsibility of debtor is limited to fraud and gross negligence
2. Debtor is exempted from risk of loss of thing; creditor bears risk of loss
3. Expenses by debtor for preservation of thing after delay is chargeable to
creditor
4. If the obligation bears interest, debtor does not have to pay from time of
delay
5. Creditor liable for damages
6. Debtor may relieve himself of obligation by consigning the thing

VI. Nature and Effect of Obligations

A.Breaches of Obligations: (1) Delay - Article 1169

Compensatio Morae
When does a party incur in delay in reciprocal obligations?
In reciprocal obligations, one party incurs in delay from the moment the other party fulfills
his obligation, while he himself does not comply or is not ready to comply in a proper manner
with what is incumbent upon him.

Rules on default
1.

Unilateral obligations
GR: Default or delay begins from extrajudicial or judicial demand mere expiration of the
period fixed is not enough in order that DR may incur delay.
Exceptions:
a. The obligation or the law expressly so dictates;
b. Time is of the essence;
c. Demand would be useless, as debtor has rendered it beyond his power to perform; or
d. Debtor has acknowledged that he is in default.
2. Reciprocal obligations
GR: Fulfillment by both parties should be simultaneous.
Exception: When different dates for the performance of obligation is fixed by the parties.

VI. Nature and Effect of Obligations

A. Breaches of Obligations: (2) Fraud - Article 1171

Article 1171. Responsibility arising from

fraud is demandable in all obligations.
Any waiver of an action for future fraud
is void.
Fraud is an intentional evasion of the faithful performance of the
obligation (8 Manresa 72). It is also known as deceit or dolo.
What are the remedies of the defrauded party?
1. Specific performance (Art. 1233)
2. Resolution of the contract (Art. 1191)
3. Damages, in either case

VI. Nature and Effect of Obligations

A. Breaches of Obligations: (3) Negligence - Articles 1172
to 1173
Article 1172. Responsibility arising from negligence in the
performance of every kind of obligation is also demandable,
but such liability may be regulated by the courts, according to
the circumstances. (1103)
Article 1173. The fault or negligence of the obligor consists
in the omission of that diligence which is required by the
nature of the obligation and corresponds with the
circumstances of the persons, of the time and of the place.
When negligence shows bad faith, the provisions of articles
1171 and 2201, paragraph 2, shall apply.
If the law or contract does not state the diligence which is to
be observed in the performance, that which is expected of a
good father of a family shall be required.

VI. Nature and Effect of Obligations

A. Breaches of Obligations: (4) Contravention of
Tenor of Obligation (Violatio)

What is violation of the terms of the contract?

It is the act of contravening the tenor or terms or
conditions of the contract. It is also known as
violatio, i.e. failure of common carrier to take its
passenger to their destination. (Pineda, Obligations
and Contracts, 2000 ed, p. 50)
Note: Under Art. 1170, the phrase in any manner contravene the
tenor of the obligation includes any illicit act which impairs the strict
and faithful fulfillment of the obligation, or every kind of defective
performance. Such violation of the terms of contract is excused in
proper cases by fortuitous events.

VI. Nature and Effect of Obligations

A.Breaches of Obligations: (5) Fortuitous Event - Article 1174)
What are the requisites of a fortuitous event?
1.
Cause of breach is independent of the will of the debtor;
2.
The event is unforeseeable or unavoidable;
3.
Occurrence renders it absolutely impossible for the debtor to fulfill his obligation in a normal manner
- impossibility must be absolute not partial, otherwise not force majeure; and
4.
Debtor is free from any participation in the aggravation of the injury to the creditor.
Note: The fortuitous event must not only be the proximate cause but it must also be the only and sole
cause. Contributory negligence of the debtor renders him liable despite the fortuitous event (Pineda,
Obligations and Contracts, 2000 ed, p. 62).
If the negligence was the proximate cause, the obligation is not extinguished. It is converted into a
monetary obligation for damages
General Rule: There is no liability for loss in case of fortuitous event.
Exceptions:
1. Law
2. Nature of the obligation requires the assumption of risk
3. Stipulation
4. The debtor is guilty of dolo, malice or bad faith, has Promised the same thing to two or more persons
who does not have the same interest (Art. 1165)
5. The debtor Contributed to the loss (Tan v. Inchausti & Co., G.R. No. L-6472, Mar. 7, 1912)
6. The possessor is in Bad faith (Art. 552)
7. The obligor is Guilty of fraud, negligence or delay or if he contravened the tenor of the obligation (Juan
Nakpil v. United Construction Co., Inc. v. CA, G.R. No. L-47851, Apr. 15, 1988)

VI. Nature and Effect of Obligations

B.Remedies (also see Article 1175, 1176 and 1178)
1.Specific Performance (Article 1177)

Article 1177. The creditors, after having pursued the

property in possession of the debtor to satisfy their claims,
may exercise all the rights and bring all the actions of the
latter for the same purpose, save those which are inherent
in his person; they may also impugn the acts which the
debtor may have done to defraud them. (1111)
What are the remedies in connection with specific performance?
1. Exhaustion of the properties of the debtor (not exempt from attachment under
the law)
2. Accion subrogatoria (subrogatory action) an indirect action brought in the name
of the debtor by the creditor to enforce the formers rights except:
a. personal rights of the debtor
b. rights inherent in the person of the debtor
c. properties exempt from execution (e.g .family home)

3. Accion pauliana (rescissory action) an action to impugn or assail the acts done
or contracts entered into by the debtor in fraud of his creditor.

VI. Nature and Effect of Obligations

B.Remedies (also see Article 1175, 1176 and 1178)
2.Rescission (Article 1191)

Rescission under Article 1191 refers to the cancellation of

the contract or reciprocal obligation in case of breach on the
part of one, which breach is violative of the reciprocity between
the parties. This is properly called resolution.
Note: The rescission under Art. 1380 is rescission based on
lesion or fraud upon creditors.
May an injured party avail of both fulfillment and
rescission as remedy?
GR: The injured party can only choose between fulfillment and
rescission of the obligation, and cannot have both.
Exception: If fulfillment has become impossible, Article 1191
allows the injured party to seek rescission even after he has
chosen fulfillment. (Ayson-Simon v. Adamos,G.R. No. L-39378,
Aug. 28 1984)

VI. Nature and Effect of Obligations

B. Remedies (also see Article 1175, 1176 and 1178)
3. Damages (Article 1170)

Article 1170. Those who in the performance

of their obligations are guilty of fraud,
negligence, or delay, and those who in any
manner contravene the tenor thereof, are
liable for damages. (1101)
When does liability for damages arise?
Those liable under Art. 1170 shall pay damages only if aside from the breach of
contract, prejudice or damage was caused (Berg v. Teus, G.R. No. L-6450, Oct 30,
1954).
Note: If action is brought for specific performance, damages sought must be
asked in the same action; otherwise the damages are deemed waived (Daywalt v.
Augusitinian Corp, 39 Phil 567).

VI. Nature and Effect of Obligations

B. Remedies (also see Article 1175, 1176 and 1178)
3. Damages (Article 1170) : Bar Question
Roland, a basketball star, was under contract for one year to play-for-play exclusively for
Lady Love, Inc. However, even before the basketball season could open, he was offered a
more attractive pay plus fringes benefits by Sweet Taste, Inc.
Roland accepted the offer and transferred to Sweet Taste.
Lady Love sues Roland and Sweet Taste for breach of contract. Defendants claim that the
restriction to play for Lady Love alone is void, hence, unenforceable, as it constitutes an
undue interference with the right of Roland to enter into contracts and the impairment of
his freedom to play and enjoy basketball.
Can Roland be bound by the contract he entered into with Lady Love or can he disregard
the same? Is he liable at all?
How about Sweet Taste? Is it liable to Lady Love?
Answer using Art. 1159: Roland is bound by the contract he entered into with Lady
Love and he cannot disregard the same, under the principles of obligatoriness of
contracts. Obligations arising from contracts have the force of law between the parties.
Answer using Art. 1170: Yes, Roland is liable under the contract as far as Lady Love is
concerned. He is liable for damages under Article 1170 of the Civil Code since he
contravened the tenor of his obligation.
Not being a contracting party, Sweet Taste is not bound by the contract but it can be held
liable under Art. 1314. The basis of its liability is not prescribed by contract but is
founded on quasi-delict, assuming that Sweet Taste knew of the contract. Article 1314 of
the Civil Code provides that any third person who induces another to violate his contract
shall be liable for damages to the other contracting party.

VI. Nature and Effect of Obligations

C. Subsidiary Remedies
1. Accion Subrogatoria
Accion subrogatoria is an action whereby the creditor whose claim
had not been fully satisfied, may go after the debtors (third persons)
of the defendant-debtor.
Requisites of accion subrogatoria:
1. The debtors assets must be Insufficient to satisfy claims against
him;
2. The creditor must have Pursued all properties of the debtor subject
to execution;
3. The right of action must Not be purely personal; and
4. The debtor whose right of action is exercised must be Indebted to
the creditor.
Note: Accion subrogatoria is different and distinct from active subjective
subrogation governed by Articles 1300 to 1304. In the latter, there is change
of creditors whereas in the former there is no change of creditors; the
creditor merely acts in the name and for the account of the debtor after
exhausting the assets of the latter but not enough to satisfy the claims of the
creditor.

VI. Nature and Effect of Obligations

C. Subsidiary Remedies
2. Accion Pauliana
Accion pauliana is an action where the creditor files an action
in court for the rescission of acts or contracts entered into by
the debtor designed to defraud the former.
Note: When the creditor could not collect in any manner, accion pauliana
may be resorted by him to rescind a fraudulent alienation of property
(Regalado, v. Luchsinger and Co., 5 Phil 625).

Requisites of accion pauliana?

1. Defendant must be Indebted to plaintiff;
2. The fraudulent act performed by the debtor subsequent to
the contract gives Advantage to another;
3. The creditor is Prejudiced by such act;
4. The creditor must have Pursued all properties of the debtor
subject to execution; and
5. The creditor has no other Legal remedy.

VI. Nature and Effect of Obligations

C. Subsidiary Remedies
3. Accion Directa
Accion directa is the right of a person to go directly against
another who has no privity to the contract. (Arts. 1652, 1608,
1729, 1893)
1) Art. 1652 subsidiary liability of sublessee for the rent.
2) Art. 1608 right of sellers a retro to redeem property from
persons other than the buyer a retro.
3) Art. 1729 subsidiary liability of owners to laborers and
material men.
4) Art. 1893 the principal may sue the substitute of the
agent with respect to the obligations which the substitute
has contracted under the substitution.

VII. Kinds of Civil Obligations

A. Pure Obligations (Article 1179)
Article 1179. Every obligation whose performance
does not depend upon a future or uncertain event, or
upon a past event unknown to the parties, is
demandable at once.
Every obligation which contains a resolutory condition
shall also be demandable, without prejudice to the
effects of the happening of the event.

VII. Kinds of Civil Obligations

B. Conditional Obligations (also see Article
1181, 1183-1186, and 1192)
1. Suspensive Condition (Article 1187 to 1189)
A condition the fulfillment of which will give rise to the
acquisition of a right. While the condition has not arrived
yet, in the meantime, the rights and obligations of the
parties are suspended.
Note: In suspensive condition or condition precedent, the
efficacy or the 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 never existed.
(Gaite v. Fonacier, 2 SCRA 830; Cheng v. Genato, 300
SCRA 722; Pineda, Obligations and Contracts, 2000, ed. p.
76)

VII. Kinds of Civil Obligations

B. Conditional Obligations (also see Article
1181, 1183-1186, and 1192)
1. Suspensive Condition (Article 1187 to 1189)
What are the effects of fulfillment of the
suspensive condition?
1. Real obligations:
GR: Retroacts to the day of the constitution of the
obligation.
Exceptionss: There is no retroactive effect with
respect to the fruits and interest:
a. In reciprocal obligations, the fruits and interests shall be
deemed to have been mutually compensated;
b. In unilateral obligations, the debtor appropriates the
fruits and interest received before the fulfillment of the
condition unless contrary to the intention of the parties
(Art. 1187)

2. Personal obligations- the court determines the

retroactive effect of the condition fulfilled (Art. 1187)

VII. Kinds of Civil Obligations

B.

Conditional Obligations (also see Article 1181, 1183-1186, and 1192)

2.Resolutory Condition (Article 1190)
Bar Question (1999)
In 1997, Manuel bound himself to sell Eva a house and lot which is being rented by another person, if
Eva passes the 1998 bar examinations. Luckily for Eva, she passed said examinations.
(a) Suppose Manuel had sold the same house and lot to another before Eva passed the 1998 bar
examinations, is such sale valid? Why? (2%)
(b) Assuming that it is Eva who is entitled to buy said house and lot, is she entitled to the rentals
collected by Manuel before she passed the 1998 bar examinations? Why? (3%)
(a) Yes, the sale to the other person is valid as a sale with a resolutory condition because what
operates as a suspensive condition for Eva operates a resolutory condition for the buyer.
Yes, the sale to the other person is valid. However, the buyer acquired the property subject to a
resolutory condition of Eva passing the 1998 Bar Examinations. Hence, upon Eva's passing the Bar,
the rights of the other buyer terminated and Eva acquired ownership of the property.
The sale to another person before Eva could buy it from Manuel is valid, as the contract between
Manuel and Eva is a mere promise to sell and Eva has not acquired a real right over the land
assuming that there is a price stipulated in the contract for the contract to be considered a sale and
there was delivery or tradition of the thing sold.
(b) No, she is not entitled to the rentals collected by Manuel because at the time they accrued and
were collected, Eva was not yet the owner of the property.
Assuming that Eva is the one entitled to buy the house and lot, she is not entitled to the rentals
collected by Manuel before she passed the bar examinations. Whether it is a contract of sale or a
contract to sell, reciprocal prestations are deemed imposed A for the seller to deliver the object sold
and for the buyer to pay the price. Before the happening of the condition, the fruits of the thing and
the interests on the money are deemed to have been mutually compensated under Article 1187.
Under Art. 1164, there is no obligation on the part of Manuel to deliver the fruits (rentals) of the thing
until the obligation to deliver the thing arises. As the suspensive condition has not been fulfilled, the
obligation to sell does not arise.

VII. Kinds of Civil Obligations

B. Conditional Obligations (also see Article
1181, 1183-1186, and 1192)
3. Potestative Condition (Article 1182)
A condition said to be potestative when the condition
depends upon the will of one of the contracting parties
(Art. 1182).

Bar Question (2000)

Pedro promised to give his grandson a car if the latter will
pass the bar examinations. When his grandson passed the
said examinations, Pedro refused to give the car on the
ground that the condition was a purely potestative one. Is
he correct or not?
No, he is not correct. First of all, the condition is not purely
potestative, because it does not depend on the sole will of
one of the parties. Secondly, even if it were, it would be
valid because it depends on the sole will of the creditor (the
donee) and not of the debtor (the donor).

VII. Kinds of Civil Obligations

B.

Conditional Obligations (also see

Article 1181, 1183-1186, and 1192)
4. Causal Condition
Casual condition is the performance or the fulfillment of
the condition which depends upon chance and/or the will
of a third person.
Mixed condition is the performance or fulfillment of the
condition which depends partly upon the will of a party to
the obligation and partly upon chance and or the will of a
third person.
The status of casual and mixed conditions? Casual
and mixed conditions, unlike purely potestative
conditions, are VALID.

VII. Kinds of Civil Obligations

B.

Conditional Obligations (also see Article 1181,

1183-1186, and 1192)
4. Causal Condition
Bar Question (2003)
Are the following obligations valid, why, and if they are valid, when is the obligation
demandable in each case?
a) If the debtor promises to pay as soon as he has the means to pay;
b) If the debtor promises to pay when he likes;
c) If the debtor promises to pay when he becomes a lawyer;
d) If the debtor promises to pay if his son, who is sick with cancer, does not die within one
year. 5%
(a) The obligation is valid. It is an obligation subject to an indefinite period because the
debtor binds himself to pay when his means permit him to do so (Article 1180, NCC).
When the creditor knows that the debtor already has the means to pay, he must file an
action in court to fix the period, and when the definite period as set by the court arrives,
the obligation to pay becomes demandable (Article 1197, NCC).
(b) The obligation to pay when he likes is a suspensive condition the fulfillment of which is
subject to the sole will of the debtor and, therefore the conditional obligation is void.
(Article 1182, NCC).
(c) The obligation is valid. It is subject to a suspensive condition, i.e. the future and uncertain
event of his becoming a lawyer. The performance of this obligation does not depend solely
on the will of the debtor but also on other factors outside the debtors control.
(d) The obligation is valid. The death of the son of cancer within one year is made a negative
suspensive condition to his making the payment. The obligation is demandable if the son
does not die within one year (Article 1185, NCC).

VII. Kinds of Civil Obligations

B.

Conditional Obligations

Bar Question

(1997)

In two separate documents signed by him, Juan Valentino "obligated" himself

each to Maria and to Perla, thus - 'To Maria, my true love, I obligate myself to
give you my one and only horse when I feel like It." - and -'To Perla, my true
sweetheart, I obligate myself to pay you the P500.00 I owe you when I feel like
it." Months passed but Juan never bothered to make good his promises. Maria
and Perla came to consult you on whether or not they could recover on the
basis of the foregoing settings. What would your legal advice be?
I would advise Maria not to bother running after Juan for the latter to make
good his promise. [This is because a promise is not an actionable wrong that
allows a party to recover especially when she has not suffered damages
resulting from such promise. A promise does not create an obligation on the
part of Juan because it is not something which arises from a contract, law,
quasi-contracts or quasidelicts (Art, 1157)].
Under Art. 1182, Juan's promise to Maria is void because a conditional
obligation depends upon the sole will of the obligor.
As regards Perla, the document is an express acknowledgment of a debt, and
the promise to pay what he owes her when he feels like it is equivalent to a
promise to pay when his means permits him to do so, and is deemed to be one
with an indefinite period under Art. 1180. Hence the amount is recoverable
after Perla asks the court to set the period as provided by Art. 1197, par. 2.

VII. Kinds of Civil Obligations

C. Obligation with a Period (Article 1180 and 1193 to 1198)
Obligation with a period or a term is the obligations for whose fulfillment a
day certain has been fixed, shall be demandable only when that day comes. (Art.
1193)

Bar Question:
In a deed of sale of a realty, it was stipulated that the buyer would construct a
commercial building on the lot while the seller would construct a private
passageway bordering the lot.
The building was eventually finished but the seller failed to complete the
passageway as some of the squatters, who were already known to be there at
the time they entered into the contract, refused to vacate the premises. In fact,
prior to its execution, the seller filed ejectment cases against the squatters. The
buyer now sues the seller for specific performance with damages. The defense is
that the obligation to construct the passageway should be with a period which,
incidentally, had not been fixed by them, hence, the need for fixing a judicial
period. Will the action for specific performance of the buyer against the seller
prosper?
No, the action for specific performance filed by the buyer is premature under
Art. 1197 of the Civil Code. If a period has not been fixed although contemplated
by the parties, the parties themselves should fix that period, failing in which, the
Court maybe asked to fix it taking into consideration the probable contemplation
of the parties. Before the period is fixed, an action for specific performance is
premature.

VII. Kinds of Civil Obligations

D. Alternative Obligation/Facultative
Obligation (ARTICLE 1199 to 1206)
Alternative obligation is one where the debtor is
alternatively bound by different prestations but the
complete performance of one of them is sufficient to
extinguish the obligation.
Facultative obligation is one where the debtor is
bound to perform one prestation or to deliver one thing
with a reserved right to choose another prestation or
thing as substitute for the principal.

VII. Kinds of Civil Obligations

D. Alternative Obligation/Facultative
Obligation (ARTICLE 1199 to 1206)

Number
prestation
Manner
compliance
Right to choice

FACULTATIVE OBLIGATIONS
of Only one object is due

Several objects are due

of May be complied with by substitution of May be complied with by fulfilling any of thos
one that is due
Choice pertains only to debtor
GR: Choice pertain to debtor
XPN: Expressly granted to creditor or third person

Effect of fortuitous Fortuitous loss extinguishes the obligation

loss
Effect of culpable Culpable loss obliges the debtor to deliver
loss
substitute prestation without liability to
debtor
Liability
of
the Substitution
has
been
made
and
debtor
communicated to the creditor, the obligor
is liable for the loss of the thing on
account of delay, negligence or fraud

Void prestation
Impossibility
prestation

ALTERNATIVE OBLIGATIONS

Fortuitous loss of all prestation will extinguish the

obligation
Culpable loss of any object due will give rise to
liability to debtor
The creditor shall have the right of indemnity for
damages when, through the fault of the debtor, all
the things which are alternatively the object of the
obligation have been lost or the compliance of the
obligation has become impossible.

If principal obligation is void, the creditor If one prestation is void, the others free from vices
cannot compel delivery of the substitute
preserve the validity of the obligation
of If there is impossibility to deliver the If various prestations are impossible to perform
principal
thing
or
prestation,
the except one, this one must be delivered.
obligation is extinguished, even if the If all prestations are impossible to perform, the
substitute obligation is valid
obligation is extinguished

Loss of substitute

Loss of substitute before the substitution Where the choice is given to the creditor, the loss of
through the fault of the debtor doesnt the alternative through the fault of the debtor
make him liable
renders him liable for damages

VII. Kinds of Civil Obligations

E. Joint and Solidary Obligation (Article 1207 to 1208)
1. Joint and Solidary Obligations (Article 1208)
Joint obligations is one where the credit or debt shall be presumed to be
divided into as many equal shares as there are creditors or debtors, the credit or
debts being considered distinct from one another (Art. 1208).
It is where each debtor is liable only for a proportionate part of the debt and
each creditor is entitled only to a proportionate part of the credit.
Solidary obligations is one where each of the debtors obliges to pay the entire
obligation, and where each one of the creditors has the right to demand from
any of the debtors, the payment or fulfillment of the entire obligation (Art. 1207;
Pineda, Obligations and Contracts, 2000 ed, p. 139).
Chua bought and imported to the Philippines dicalcium phosphate.
When the cargo arrived at the Port of Manila, it was discovered that
some were in apparent bad condition. Thus, Chua filed with Smith, Bell,
and Co., Inc., the claim agent of First Insurance Co., a formal statement
of claim for the loss. No settlement of the claim having been made,
Chua then filed an action. Is Smith, Bell, and Co., solidarily liable upon
a marine insurance policy with its disclosed foreign principal?
No. Article 1207 of the Civil Code clearly provides that "there is a solidary
liability only when the obligation expressly so states, or when the law or the
nature of the obligation requires solidarity." The well-entrenched rule is that
solidary obligation cannot lightly be inferred. It must be positively and clearly
expressed (Smith, Bell & Co., Inc. v. CA, G.R. No. 110668, Feb. 6, 1997).

VII. Kinds of Civil Obligations

E. Joint and Solidary Obligation (Article 1207 to
1208)
2. Joint Indivisible Obligations (Article 1209)

Article 1209. If the division is impossible,

the right of the creditors may be
prejudiced only by their collective acts,
and the debt can be enforced only by
proceeding against all the debtors. If one
of the latter should be insolvent, the
others shall not be liable for his share.
What is the effect of breach of a joint indivisible
obligation by one debtor?
If one of the joint debtors fails to comply with his
undertaking, the obligation can no longer be fulfilled or
performed. It is converted into one of indemnity for damages.
Innocent joint debtor shall not contribute to the indemnity
beyond their corresponding share of the obligation.

VII. Kinds of Civil Obligations

E. Joint and Solidary Obligation
3. Solidary Obligations
What is the effect of solidary obligation?
Each one of the debtors is obliged to pay the entire obligation, and
each one of the creditors has the right to demand from any of the
debtors the payment or fulfillment of the entire obligation.
Rules in a solidary obligation:
1. Anyone of the solidary creditors may collect or demand payment
of the whole obligation; there is mutual agency among solidary
debtors (Arts. 1214, 1215)
2. Any of the solidary debtor may be required to pay the whole
obligation; there is mutual guaranty among solidary debtors (Arts.
1216, 1217, 1222)
3. Each one of solidary creditors may do whatever maybe useful to
the others, but not anything prejudicial to them (Art. 1212);
however, any novation, compensation, confusion or remission of
debt made by any solidary creditors or with any of the solidary
debtors shall extinguish the obligation without prejudice to his
liability for the shares of other solidary creditors (Art. 1215;
Art.1219).

VII. Kinds of Civil Obligations

E. Joint and Solidary Obligation
3. Solidary Obligations
Joey, Jovy and Jojo are solidary debtors under a loan obligation
of P300,000.00 which has fallen due. The creditor has,
however, condoned Jojo's entire share in the debt. Since Jovy
has become insolvent, the creditor makes a demand on Joey to
pay the debt.
1. How much, if any, may Joey be compelled to pay?
2. To what extent, if at all, can Jojo be compelled by Joey to
contribute to such payment? (1998 Bar Question)
1. Joey can be compelled to pay only the remaining balance of P200,
000, in view of the remission of Jojos share by the creditor. (Art. 1219)
2. Jojo can be compelled by Joey to contribute P50,000. When one of
the solidary debtors cannot, because of his insolvency, reimburse his
share to the debtor paying the obligation, such share shall be borne by
all his co-debtors, in proportion to the debt of each (par. 3, Art. 1217).
Since the insolvent debtor's share which Joey paid was P100, 000, and
there are only two remaining debtors - namely Joey and Jojo - these
two shall share equally the burden of reimbursement. Jojo may thus be
compelled by Joey to contribute P50, 000.

VII. Kinds of Civil Obligations

F. Divisible and Indivisible Obligations
(Article 1223 to 1225)
What is the true test in determining divisibility?
Whether or not the prestation is susceptible of partial
performance, not in the sense of performance in separate
or divided parts, but in the sense of the possibility of
realizing the purpose which the obligation seeks to obtain.
If a thing could be divided into parts and as divided, its
value is impaired disproportionately, that thing is
indivisible (Pineda, Obligations and Contracts, 2000 ed, p.
174).

VII. Kinds of Civil Obligations

G. Obligations with a Penal Clause (Article 1226 to 1230)
Penal clause is an accessory obligation or undertaking attached to the principal obligation to
assure greater responsibility in case of breach.
Note: Proof of actual damages suffered by the creditor is not necessary in order that the
penalty may be demanded (Art. 1228).
Can the debtor just choose penalty over non-fulfillment?
GR: No. The debtor cannot exempt himself from the performance of the obligation by paying
the penalty (Art. 1227).
Exception: Yes, when the right has been expressly reserved to the debtor (Art. 1227).
Can the creditor demand both the fulfillment of the principal obligation and the
penalty?
GR: No. The creditor cannot demand the fulfillment of the obligation and the satisfaction of the
penalty at the same time (Art. 1227).
Excetions:
1. When the right has been clearly granted to him;
2. If the creditor has decided to require the fulfillment of the obligation, the performance
thereof should become impossible without his fault, the penalty may be enforced. (Art. 1227)
What is the effect of incorporating a penal clause in an obligation?
GR: The penalty fixed by the parties is a compensation or substitute for damages in case of
breach.
Exceptions: Damages shall still be paid even if there is a penal clause if: SRG
1. there is a Stipulation to the contrary
2. the debtor Refuses to pay the agreed penalty
3. the debtor is Guilty of fraud in the fulfillment of the obligation. (Art. 1126)
Note: The nullity of the penal clause does not carry with it that of the principal obligation.
The nullity of the principal obligation carries with it that of the penal clause. (Art. 1230)