Different Kinds of Obligation Flashcards
An obligation which is immediately demandable, and is not dependent upon any condition and/period. This means that the obligee may demand from the obligor the immediate compliance of the obligation.
Pure obligation
Take note, however, that by immediately demandability, it does not always mean right here, right now, right away. Taking into consideration the nature of the obligation involved, the debtor must at least given a reasonable period of time to enjoy beneficial use of the object of the agreement and to comply with his obligation.
If the obligation is subject to a condition (other than a resolutory condition), then the obligation loses its immediate demandability and becomes dependent upon the happening of the condition.
Conditional Obligation
Characteristics of Condition (2)
- Future and Uncertain
- Past but Unknown
Alice and Bob are entering into a contract for the sale of a are book.
Condition: The sale will be finalized if a renowned book critic provides a positive review for the rare book within the next month.
Is it future and uncertain or past but unknown?
Future and uncertain
The positive review is a future and uncertain event. Both Alice and Bob are unsure whether the critic will give a favorable review.
Alice and Bob are making a contract for the sale of an antique vase.
Condition: The sale will go through if, at the time of making the contract, the vase has been featured in a famous art exhibition, but neither Alice nor Bob knows about this exhibition.
Is it future and uncertain or past but unknown?
Past but unknown
The past event (vase being featured in an art exhibition) is considered a condition because, at the moment they form the contract, Alice and Bob are unaware of this fact. The uncertainty lies in whether or not they will discover that the vase had been showcased in a famous exhibition.
True or False:
A past event can be treated as a condition if it is unknown to the parties of the contract.
True
But since the event already happened, the* element of uncertainty no longer exists. The uncertainty therefore is not with regard the possibility of the event coming into reality, but rather one that *pertains to whether or not the parties will acquire knowledge or awareness of the fact that such event already took place.
True or False:
In order to constitute an event as a condition, it must be UNCERTAIN as well. Generally, a condition is a future AND uncertain event.
True
Uncertainty means that the event may or may not happen.
It is a future and uncertain event, upon the happening of which, the acquisition or extinguishment of an obligation (or right) subject to it depends.
Condition
Two Principal Kinds of Condition
- Suspensive Condition (conditon precedent or condition antecedent)
- Resolutory condition (condition subsequent)
Principal Kinds of Condition
One with the fulfillment of which will give rise to an obligation. In other words, the demandability of the obligation will be suspended until the happening of the uncertain event which constitutes the. condition
Suspensive Condition (Condition Precedent or Condition Antecedent)
Alice agrees to sell her puppy to Bob if the puppy passes a veterinary health check next week.
The sale is pending (suspended) until the health check is completed. If the puppy is healthy, the condition is met, and the sale is finalized.
Principal Kinds of Condition
One with the fulfillment of which will extinguish an
obligation already existing.
Resolutory Condition (Condition Subsequent)
Alice lends her bicycle to Bob, but if Bob damages the bicycle, the lending agreement automatically ends.
The agreement is in effect, but it will be automatically terminated (resolved) if Bob damages the bicycle. The condition leads to the resolution of the agreement.
True or false:
If the suspensive condition is fulfilled, the obligation arises, while if its resolutory condition that is fulfilled, the obligation is extinguished.
True
Classification of Conditional Conditions as to Cause or Origin
- Potestative/Facultative condition
- Casual condition
- Mixed condition
It is a condition that is suspensive in nature and which depends upon the sole will of one of the contracting parties.
This is a condition where something needs to happen, but it depends entirely on the decision or choice of one person.
Potestative/Facultative condition
E.g. You promise to give a gift to your friend if you decide to take a vacation next month.
The condition is potestative because it depends on your own decision to take a vacation. If you decide to go, you fulfill the condition; if you don’t, the condition is not fulfilled.
A condition, one which is subject to chance or upon the will of a third person.
This is a condition based on chance or the decision of someone else, not the people directly involved in the contract.
Casual condition
E.g.Alice promises to pay Bob $100 if a specific painting is declared the winner of an art competition.
The condition (the painting winning the competition) depends on external factors or chance. The obligation to pay is triggered by an event that is not under the control of Alice or Bob but is contingent on the outcome of the art competition.
As the word connotes, it is a combination of potestative and casual conditions.
ie., one that is subject to the will of either parties and upon chance or the will of a third person.
It depends on the will of either party or chance/third person.
Mixed Condition
E.g. You promise to give a gift to your friend if either you decide to throw a party next week, or if a celebrity wishes them happy birthday.
The condition is mixed because it depends on your decision (potestative) or a celebrity’s action (casual), whichever happens first.
Classification of Conditional Conditions as to Mode
- Positive (suspensive) condition
- Negative (suspensive) condition
A condition in which the happening of an event at a determinate time arises obligation.
Positive (suspensive) condition
You promise to give 10,000 to B if B gets married to C before B turns 23.
This is a positive suspensive condition because something needs to happen (B marrying C) at a specific time (before B turns 23).
A condition in which that an event will not happen at a determinate time.
Negative (suspensive) condition)
You promise to give a gift if it doesn’t rain on your friend’s birthday. If it doesn’t rain on your friend’s birthday, the condition is met, and you have to give the gift.
The condition is not capable of fulfillment, legally or physically.
Impossible Condition
Two Kinds of Impossible Conditions
- Physically Impossible Condition
- Legally Impossible Condition
Kinds of Impossible Condition
In nature of things, it cannot exists and cannot be done.
E.g. I will pay you P10,000
(a) if it will not rain in the Philippines for one year.
(b) if you can carry twenty cavans of palay in your shoulder.
Physically Impossible Condition
Kinds of Impossible Condition
When they are contrary to law, morals, good customs, public order, or public policy.
E.g. X will give Y P1,000 if Y
(a) will kill Z (against the law)
(b) will be the common-law wife of X (against morals)
(c) will slap his father (against good customs)
(d) will publicly advocate the overthrow of the government (against public order)
(e) will not appear as a witness against X in a criminal case (against public policy)
Legally Impossible Condition
True or False:
The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him.
Rescind- cancel/ ipagsawalang-bisa/ impugn
True
Based on Article 1191.
It is cancellation. This is only applicable for
obligations that are reciprocal. Meaning, both of each are creditor and debtor of each other.
It is a remedy available to an obligee when the obligor fails to comply with his obligation, to abrograte their contract as if it was never entered into, with the right to recover damages.
Rescission
It is a future and certain event upon the arrival of
which the obligation (or right) subject to it either arises or is terminated.
It is a day certain which must necessarily come (like the year 2010; next Christmas), although it may not be known when, like the death of a person.
Period
True or False:
An obligation with a period is one whose effects or consequences are subjected in one way or another to the expiration or arrival of said period or term.
True
An obligation with a period means that something needs to happen or be done by a certain deadline or time.
True or False
The exercise of a period in a legal context typically benefits the party in whose favor the period is granted.
True
Kinds of Period or Term
- According to effect: (Suspensive Period as Ex Die and Resolutory or In Diem)
- According to source: (Legal, Conventional or voluntary period, and Judicial Perion)
- According to definiteness: (Definite and Indefinite Period)
The obligation begins only from a certain day upon the arrival of the period.
Suspensive Period (ex die)
E.g. If you promise to deliver a gift to your friend on their birthday, the obligation starts only on the day of their birthday.
The obligation is up to a certain day and terminates upon the arrival of that valid period.
Resolutory Period (in diem)
E.g. If you lend your car to a friend until the end of the month, the obligation ends when the month concludes.
This kind of period is provided for by** laws**.
Legal Period
E.g. Statutory requirements that specify the time limit for filing a legal complaint.
Kind of period when it is agreed to by the parties
Period agreed upon by the parties involved.
Conventional or voluntary period
E.g. Parties in a contract agree that payment will be made within 30 days.
Kind of period fixed by the court.
When there is a dispute over when an obligation should be fulfilled, the court may determine a specific timeframe.
Judicial period
E.g. I will pay you little by little/ when I can/ as soon as possible/ when my means permit me to do so. (example of Indefinite period)
Those are period but we don‘t know when it will definitely happen. Therefore, we will seek assistance to the court for the fixation of the period.
A period which is fixed or known when it will come.
Definite Period
E.g. A lease agreement specifying a rental period from January 1 to December 31.
Not fixed or known when it will come. Courts may have the authority to determine the period if it is intended.
Indefinite Obligation
E.g. A promise to pay back a loan “when I can” or “as soon as possible.”
True or False:
A person alternatively bound by different prestations shall completely perform all of them.
False
A person alternatively bound by different prestations shall
completely perform one of them.
Kinds of Obligation According to Object (Prestation)
- Simple Obligation
- Compound Obligation: Conjunctive and Distributive (Alternative or Facultative)
True or False:
An alternative obligation is one that has two or more prestations, all of which are due, but the obligor is required to perform only one to effect the extinguishment of the obligation.
Hence, unlike a conjunctive obligation, an alternative obligation allows choice to the debtor as to which among the prestations due shall be accomplished and performed.
True
An obligation where there is only one
(1) prestation.
Simple Obligation
An obligation where there are two
(2) or more prestations.
Compound Obligations
Kinds of Compund Obligations
One where there are several prestations and all of them are due.
Conjunctive obligation
E.g. D has to deliver a laptop and a printer to C.
Kinds of Compound Obligations
One where two (2) or more of the prestations is due.
Two or more prestations, and only one is due.
Distributive obligation
Kinds of Distributive Obligation
One where several prestations are due but the performance of one is sufficient.
Alternative obligation
D can either deliver a smartphone, a tablet, or a laptop to C.
Kinds of Distributive Obligation
Only one prestation is due, but the debtor may substitute another.
Facultative Obligation
E.g. D is obliged to deliver a specific book to C, but D can substitute it with another book.
True or False:
Once the debtor choses which prestation to perform, the alternative obligation now become a simple obligation.
True
Kinds of Obligations According to the Number of Parties
- Individual obligation - one (1) obligor or one (1) obligee
- Collective obligation (Joint or Solidarity) - two (2) or more debtors and/or two (2) or more creditors
One where the whole obligation is to be paid or fulfilled proportionately by the different debtors and/ or is to be demanded proportionately by the different creditors.
Each obligor is responsible for a specific share, and the fulfillment of the obligation is distributed among them.
Joint Obligation
Also known mancomunada, mancomunadamente, pro rata; proportionately;
―“we promise to pay” which is signed by two or more
persons*
One where each one of the debtors is bound to render, and/or each one of the creditors has a right to demand from any of the debtors, entire compliance with the prestation.
Occurs when two or more persons are bound together in such a way that each can be held individually responsible for the entire obligation.
Solidary Obligation
Also known as solidaria**; **in solidum**;** together and/or separately**; **individually and/or collectively**; **juntos o separadamente;
―“I promise to pay” signed by two or more persons.
Joint or Solidary
In this obligation, all debtors are considered as one person. Meaning, **either of them can pay the whole amount. **
Solidary Obligation
Solidarity on the part of the debtors.
Any of them can be made liable for the fulfillment of the entire obligation.
Passive Solidarity
Solidarity on the part of the creditors.
Any of them can demand the fulfillment of the entire obligation.
Activite Solidarity
Solidarity on the part of the debtors and creditors.
Where each of the debtors is liable to render, and each of the creditors has a right to demand, entire compliance with the obligation.
Mixed Solidarity
It is the solidarity agreed by the parties.
If nothing is mentioned in the contract relating to solidarity, the obligation is only joint.
Conventional Solidarity
It is the solidarity imposed by the law.
Legal Solidarity
It is the solidarity imposed by the nature of the obligation.
Real Solidarity
True or False:
If the obligation is silent to what type of obligation it is, it will be automatically joint.
True
It needs to be expressly stated for it to be solidary. SOLIDARITY NOT PRESUMED.
True or False:
If one debtor becomes insolvent, the other debtors are held liable for the insolvent debtor’s share.
False
Each debtor is responsible only for their proportionate part.
True or False
Indivisibility refers to the prestation, while solidarity refers to the juridical or legal tie that binds ties.
True
True or False:
Money is divisible.
True
True or False
An indivisible obligation is one the object of which, in its
delivery or performance, is capable of partial fulfillment.
False
It is divisible obligation
A divisible obligation is one the object of which, in its
delivery or performance, is not capable of partial fulfillment.
False
It is indivisible obligation.
True or False
Even though the object or service may be physically divisible, an obligation is indivisible if so provided by law or intended by the parties
True
True or False:
If the object is not physically divisible or the service is not susceptible of partial performance, the obligation is always indivisible, the intention of the parties to the contrary notwithstanding.
This rule is absolute.
True
True or False
An obligation is presumed indivisible where there is only
one creditor and only one debtor.
True
It is one which can stand by itself and does not depend for its validity and existence upon obligation.
Principal Obligation
It is one which is attached to a principal obligation and, therefore, cannot stand alone
Accessory Obligation
It is one which contains an accessory undertaking to pay a previously stipulated indemnity in case of breach of the principal prestation, intended primarily to induce its fulfillment.
Obligation with a penal clause
Obligations with a penal cause involve the inclusion of a penalty within a contract to ensure compliance and discourage breaches. The penal cause serves as a form of security, aligning the interests of the parties with the successful fulfillment of their respective obligations.
It is an accessory undertaking attached to an obligation to assume greater liability in case of breach, ie, the obligation is not fulfilled, or is partly or irregularly complied with.
Penal cause
