Kinds Of Obligation Flashcards
What is a Pure Obligation?
An obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties.
Pure obligations are demandable at once.
When is an obligation subject to a resolutory condition demandable?
It is demandable without prejudice to the effects of the happening of the event.
This refers to obligations that may be terminated by a future event.
What defines a Conditional Obligation?
The acquisition of rights depends upon the happening of a future event.
Conditional obligations can be suspensive or resolutory.
What are the two types of conditions in obligations?
- Suspensive
- Resolutory
Suspensive conditions give rise to obligations, while resolutory conditions extinguish them.
What happens if a condition is impossible?
The obligation which depends upon it shall be annulled.
If the obligation is divisible, the part not affected remains valid.
What is a Potestative Condition?
A condition dependent solely on the will of one of the parties.
If it solely depends on the debtor, the obligation is void.
How are physically impossible conditions characterized?
They cannot exist or cannot be done in the nature of things.
Legally impossible conditions are contrary to law or public policy.
What does Article 1186 state about constructive fulfillment?
The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment.
This applies unless the obligor acts in the exercise of a right.
What is the general rule regarding the effects of fulfilled conditions?
The effects shall retroact to the day of the constitution of the obligation.
This applies to obligations to give; the retroactive effect may vary for obligations to do.
What distinguishes a period from a condition?
- A period is certain to arrive
- A condition is uncertain
If a period is impossible, the obligation is void.
What is a Suspensive Period?
An obligation that is demandable only when a day certain has been fixed.
It takes effect immediately but terminates upon the arrival of the day certain.
What are the kinds of loss in obligations?
- Physical Loss
- Legal Loss
- Civil Loss
- Deterioration
- Improvement
Each type of loss affects the obligation differently.
What is the effect of deterioration during the pendency of a condition?
If it deteriorates without the fault of the debtor, the impairment is borne by the creditor.
If through the fault of the debtor, the creditor may choose rescission or fulfillment with indemnity.
What is the creditor’s remedy before the fulfillment of a condition?
The creditor may bring appropriate actions for the preservation of his right.
This includes legal actions to secure rights over the determinate thing.
What is the difference between unilateral and reciprocal obligations in terms of retroactive effect?
- Unilateral Obligations: No retroactive effect
- Reciprocal Obligations: May have retroactive effects
Retroactivity applies unless agreed otherwise.
What characterizes a resolutory period?
It is valid up to a certain day and terminates upon arrival of that period.
Resolutory periods take effect at once.
What happens if an obligation does not state a period but one is intended?
The courts may fix the duration of the period.
This is based on the nature and circumstances of the obligation.
What is Usufruct?
The right to enjoy the use and fruits of a thing belonging to another.
Usufructuaries may make improvements but may not be indemnified.
What is the court’s discretionary power regarding rescission under Article 1191?
The court may allow a period for performance if just cause exists for giving time to the debtor
Under Article 1191, when will rescission not be granted?
For slight breaches of contract; the violation must be substantial
What should a judge do if a debtor is in default but willing to pay the balance if given more time?
Find cause just and grant a term for performance
Define ‘definite’ according to Article 1193.
A day certain is one that must necessarily come, though the exact time may be unknown
Define ‘indefinite’ according to Article 1197.
An obligation without a fixed period, inferred to have a period from its nature or circumstances
What is presumed when a period is designated in an obligation according to Article 1196?
It is presumed to benefit both the creditor and debtor
When does a debtor lose the benefit of the period according to Article 1198?
When the debtor becomes insolvent or fails to provide promised security
What happens if the security given by the debtor deteriorates?
The security is deemed to have disappeared, allowing the creditor to demand payment
True or False: A debtor can recover payments made by mistake during the pendency of a suspensive condition.
True
Under what condition can a debtor recover interests on a mistakenly paid sum?
Only if the creditor acted in bad faith
What is the general rule regarding obligations before the lapse of a period?
The obligation is not demandable before the lapse of the period
What is a ‘simple obligation’?
An obligation where there is only one prestation