HANDOUTS

1. 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 1197.
First let’s start with the obligation with a period since this provision talks about obligation
with a period.

 Obligation with a Period

- it means that the obligation is subject to a certain time frame or a specific period of time
- Future and Certain Event – fixed date
 Conditional Obligation
- It refers to a situation where an obligation or requirements is dependent on a specific
condition being met.
- Future and Uncertain Event – not fixed date/expected to happen in the future.
Article 1180 said, the debtor pay himself with the means permit him to do so with a period. The
obligation is not conditional but with a period because of what said in the court. Because the
payment does not depend upon the will of the debtor, this only that time when they fulfill the
obligation. It is not whether or not they need to pay or to fulfill the obligation, it’s not that. If it
is “Conditional” but in this article its needed to bind himself to deliver the obligation.
Example:
Let's consider a practical example in the context of a personal loan:
Alex borrows $5,000 from Dianne and, due to financial difficulties, agrees to repay the loan
when his financial situation improves.
The agreement might be phrased like this: "Alex shall pay back the $5,000 loan to Dianne when
his means permit him to do so."
Scenario 1 - Alex's Financial Improvement:
A few months later, Alex receives a salary increase or a financial. At this point, his means permit
him to repay the loan. According to Article 1180, the obligation is now considered due, and Alex
is obligated to repay the $5,000 to Dianne.
Scenario 2 - No Improvement in Alex's Financial Situation:
If, however, Alex's financial situation does not improve, the obligation remains outstanding. The
creditor (Dianne) cannot demand repayment until Alex's means permit him to fulfill the
obligation.
Conclusion
- This article addresses a situation where a debtor commits to fulfilling an obligation as
soon as their financial situation allows. It treats such an obligation as having a period (a
specific timeframe) for payment, with certain conditions.
QUESTION: WHEN THE OBLIGATION IS DEMANDABLE?
- Means permit him to do so with a period - ask the court to fixed the date
- Let the court solved the date for the payment.

 Creditor: can’t demand the payment, he is only asking the court to fix the date of
payment. Once, the court already fixed the time the obligation is now becomes
demandable on the date fixed.
 2. Article 1181
In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of
those already acquired, shall depend upon the happening of the event which constitutes the
condition.
This article reiterates the difference between Suspensive Condition or Resolutory Condition.

 Suspensive Condition – the day spent

- The happening of which gives rise to the obligation.
 Resolutory Condition – ending an obligation/termination of obligation
- The happening of which extinguishes the obligation.
 Acquisition of rights – Is an obligations subject to a suspensive condition, the acquisition
of rights by the creditor depend upon the happening of the event which constitutes the
condition.
 Acquisition of rights – obtaining legal entitlements
- Legal process including rights to occupy, use and transfer ownership of the real estate.
Example:
Consider a sales contract in which Party A agrees to sell a piece of artwork to Party B, and
the contract includes a suspensive condition that the sale will be effective only if Party B obtains
financing within 30 days. In this case:
- The suspensive condition is the obtaining of financing by Party B within the specified
time frame.
- Until Party B secures the financing within the 30-day period, the obligation of Party A to
sell the artwork is suspended.
- If Party B successfully obtains financing within the stipulated time, the suspensive
condition is satisfied, and the obligation for Party A to sell the artwork becomes active.

 Loss of rights already acquired – in an obligation subject to a resolutory condition, the

happening of the event which constitutes the condition produces the extinguishment or
loss of rights already acquired.
Example:
Consider a lease agreement where Party A leases a property to Party B, and the contract
includes a resolutory condition that states the lease will terminate if Party B fails to make rent
payments for three consecutive months. In this case:
- The resolutory condition is the failure to make rent payments for three consecutive
months.
- If Party B does fail to make payments for three consecutive months, the lease obligation
is automatically terminated, and Party A may take possession of the property or take
other specified actions.
Conclusion
- This article addresses the legal concept of conditional obligations. It outlines that in
situations where an obligation is subject to a condition (an event that must occur or not
occur), the rights associated with that obligation, including the acquisition,
extinguishment, or loss of those rights, are contingent upon the fulfillment or non-
fulfillment of the specified condition.
 3. Article 1182
When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void. If it depends upon chance or upon the will of a third person,
the obligation shall take effect in conformity with the provisions of this Code.
There are 3 condition of this article;

 Potestative Condition
- A condition suspensive in a nature and which depends upon the sole will of one of the
contracting parties, the obligation subject is Void.

 Casual Condition
- If the suspensive condition depends upon chance or upon the will of a third person, the
obligation subject to it is valid.

 Mixed Condition
- The obligation is valid if the suspensive condition depends partly upon chance and partly
upon the will of a third person.
So from the statement “when the fulfillment of the condition depends upon the sole will of the
debtor” it is called potestative condition. They said the potestative condition that it depend on
the sole will into the debtor it is Void (not effective).
- Fulfillment of the condition – it is applicable to Suspensive Condition
Thus, if resolutory condition even it depends on the will of the debtor it is still valid.
- If it depends upon the chance or upon the will of a third person – it is valid
Conclusion
Article 1182 contributes to the integrity of contractual obligations by voiding conditions
solely dependent on the debtor's will while upholding the validity of conditions that involve
chance or the will of a third person, thereby striking a balance between legal enforceability and
fairness in contractual relationships.
Court said, when the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void.

4. Article 1183
Impossible conditions, those contrary to good customs or public policy and those prohibited
by law shall annul the obligation which depends upon them. If the obligation is divisible, that
part thereof which is not affected by the impossible or unlawful condition shall be valid.
The condition not to do an impossible thing shall be considered as not having been agreed
upon.

The impossible conditions have two kinds: Physically impossible conditions and Legally
impossible conditions.

 Physically impossible conditions - are the conditions that cannot exist, cannot be done
and impossible to happen. For example, “I will pay you P20, 000 if it will not be hot for
one year in the Philippines.
 Legally impossible conditions - are the conditions that are against the law, morals, good
customs, public order or public policy. For example, “I will give you P15, 000 if you will
threaten X by shooting their house.”
The effects of impossible conditions.
1. Conditional obligation void (impossible/not achievable) - the impossible condition
will nullify the obligation depends upon them. The obligation and the condition are
void because the obligor knows that his obligation cannot be fulfilled.
Example
Alice lends $10,000 to Bob under the condition that Bob must find a unicorn and present it to
Alice within the next month.
The agreement might state: "Bob shall repay the $10,000 loan when he successfully finds and
presents a unicorn to Alice within the next month."
Conditional Obligation:
Alice lends $10,000 to Bob with a condition attached: Bob must find and present a
unicorn within the next month.
Impossible Condition:
The condition imposed on Bob, finding and presenting a unicorn, is impossible to fulfill
because unicorns are mythical creatures and do not exist in reality.
Article 1183 Application:
Article 1183 states that impossible conditions void the obligation dependent upon them.
In this case, the condition of finding and presenting a unicorn is impossible, making the entire
obligation null and void.
2. Conditional obligation valid (not impossible/achievable) - the condition that
nothing to do an impossible thing because of that, the obligation can be rendered
and be fulfilled because nothing to do to impossible things and there’s like no
condition.
Example:
Alice agrees to sell her vintage car to Bob under the condition that Bob pays the full
purchase price within 30 days.
The agreement might state: "Bob shall acquire ownership of the vintage car upon payment of
the full purchase price within 30 days.
Conditional Obligation:
Alice's obligation to transfer ownership of the vintage car to Bob is contingent upon a
specific condition: Bob's payment of the full purchase price within 30 days.
Valid Condition:
The condition in this example is valid and achievable. Bob has control over whether he
fulfills the condition by making the payment within the specified timeframe.
Article 1183 Not Applicable:
Article 1183, which discusses impossible conditions, contrary to good customs, or
prohibited by law, is not applicable in this case. The condition here is clear, possible, and not in
violation of any legal principles.
Conclusion
This article deals with the impact of impossible conditions, those contrary to good
customs or public policy, and conditions prohibited by law on obligations. It states that
obligations depending on such conditions will be nullified. However, if the obligation is divisible,
the part unaffected by the impossible or unlawful condition remains valid. Additionally, the
article clarifies that a condition not to do something impossible is considered as if it was never
agreed upon.
Incase:
Suppose Sarah enters into a contract with Alex to sell her a rare, one-of-a-kind painting
by a renowned artist.
The condition in the agreement states: "Alex shall acquire ownership of the painting upon
proving the existence of extraterrestrial life within the next month."
In this scenario:
Legally Impossible Condition:
The condition imposed on Alex, proving the existence of extraterrestrial life within the next
month, is legally impossible to fulfill. Proving the existence of extraterrestrial life is currently
beyond the scope of human scientific capability and understanding.
Article 1183 Application:
Article 1183 states that impossible conditions void the obligation dependent upon them. In this
case, the condition of proving the existence of extraterrestrial life is legally impossible,
rendering the entire obligation null and void.
Void Obligation:
Due to the legally impossible condition, the obligation for Alex to acquire ownership of the
painting is void. Sarah cannot legally enforce the transfer of the painting based on an
impossible task.
5. Article 1184
“The condition that some event happen at a determinate time shall extinguish the
obligation as soon as the time expires or if it has become indubitable that the event will not
take place.”
From the phrase “as soon as the time expires" – it specified the period or duration comes
to an end or it signifies that the obligation is considered fulfilled.

From the Phrase “as soon as it has become indubitable that the event will not take place”
- refers to the point in time when it is unquestionably clear or certain that a specified event,
which is a condition for fulfilling an obligation, will not occur.
This article refers to a positive condition when the happening of an event at a determinate
time extinguishes the obligation.
Example:
Let's consider a real estate contract. Suppose you have a contract to purchase a house, and
the condition is that the seller must complete certain renovations by a specific date, let's say
January 31, 2024. According to Article 1184:
If the renovations are completed by January 31, 2024, the obligation to purchase the house
is fulfilled, and the contract proceeds as planned.
 If, by January 31, 2024, it becomes evident that the renovations will not be completed
(perhaps due to unforeseen circumstances), the obligation under the contract is extinguished,
and the buyer is no longer obligated to purchase the house.
Conclusion
In this way, Article 1184 provides a legal framework for dealing with time-specific conditions
in contracts, ensuring that obligations are either fulfilled promptly or considered extinguished if
the specified event does not occur within the stipulated time.
6. Article 1185
The condition that some event will not happen at a determinate time shall render the
obligation effective from the moment the time indicated has elapsed, or if it has become
evident that the event cannot occur.
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.

From the statement provided “from the moment the time indicated has elapsed” - refers to
the point in time that occurs immediately after the specified or predetermined time period has
passed or concluded.
From the moment “it has become evident that the event cannot occur” - means that there is a
clear and undeniable realization or recognition that the specified event, which is a condition for
a particular obligation, is not going to take place.
And this article refers to a Negative Condition or the opposite condition of the previous
provision of the positive condition that it provides for three situations when a negative shall
become effective and binding.
Example:
Jessie binds himself to give AJ 10, 000 pesos is not yet married to Dianne on December 30.
a.) Jessie is not liable to AJ, if AJ marries Dianne on December 30.
b.) Jessie is liable to AJ if on December 30, AJ is not married to Dianne and if marries Dianne
after December 30. In this case, the condition (not marrying Dianne) if fulfilled upon the
expiration of the time indicated, which is December 30.
c.) Suppose Dianne dies on November 20 without having been married to AJ. The
obligation is rendered effective because it is certain that the condition is not marry
Dianne will be the moment of Dianne’s death on November 20 although the time
indicated (December 0) has not yet elapsed.

Conclusion
Article 1185 addresses conditional obligations where the fulfillment depends on the
non-occurrence of a specified event within a certain timeframe. It outlines the conditions under
which the obligation becomes effective, taking into account the time specified, or if no time is
fixed, considering the probable time contemplated based on the nature of the obligation.
7. Article 1186
The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment.
Due to this provision known as Constructive fulfillment or Presumed Fulfillment the debtor
or the obligor voluntarily withheld the fulfillment of the condition. The condition is considered
fulfilled as if the condition had been made or occurred.
 Constructive Fulfillment of a Resolutory Condition – article 1186 applies also to an
obligation subject to a resolutory condition with respect to the debtor who is bound to return
he has received upon the fulfillment of the condition. It addresses situations where the debtor,
who is obligated to return something upon the fulfillment of the condition
Constructive fulfillment - may come into play when certain circumstances or legal principles
imply that the condition has effectively occurred, triggering the resolution of the contract.
Example
A contract between Robin (the seller) and Jessie (the buyer) for the sale of a vintage car.
The agreement includes a condition that the car must pass a mechanical inspection conducted
by a certified mechanic before the sale is finalized.
Scenario - Voluntary Prevention by the Seller:
The agreement states, "The obligation to sell the vintage car shall be effective upon successful
completion of a mechanical inspection by a certified mechanic within 10 days."
Robin, the seller, intentionally prevents the fulfillment of this condition by providing false
information to the mechanic, dissuading the mechanic from conducting a thorough inspection,
or tampering with the car to ensure it would not pass the inspection.
Legal Consequence - Deemed Fulfilled Condition:
According to Article 1186, since Robin, the obligor (seller), voluntarily prevents the fulfillment of
the condition (successful mechanical inspection), the legal consequence is that the condition is
deemed fulfilled. In this case, the obligation for Bob to purchase the vintage car becomes
effective despite the intentional obstruction of the inspection.
Conclusion
Article 1186 - addresses situations where the person who is obligated to fulfill a condition
takes voluntary actions to prevent the fulfillment of that condition. In such cases, the legal
consequence is that the condition is considered fulfilled, even though it was intentionally
obstructed by the party who was supposed to fulfill it.

Example:
“Boy promised Ganda to deliver his car if Ganda will pass the bar exam”
Then on the day in an examination “Pogi poisoned Ganda”. Therefore, Ganda can’t take the
examination because she was rushed to the hospital due to the poisoned food and because of
that Ganda can’t pass the bar examination.
In this provision article 1186 “Pogi still bound to deliver his car”
Note: The same rule applies in resolutory condition

8. Article 1187
The effects of a conditional obligation to give, once the condition has been fulfilled, shall
retroact to the day of the constitution 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.

This article addresses the Retroactive effects of a conditional obligation, depending on the
nature of the obligation whether it involves giving, reciprocal prestations, or unilateral actions.
Retroactive Effects of fulfillment of suspensive condition - addresses the retroactive
effects of fulfilling a conditional obligation, emphasizing that, once the suspensive condition is
fulfilled, the legal consequences reach back to the very beginning of the obligation.
Example
Alice agrees to sell her house to Bob under the condition that Bob obtains a zoning
permit for a specific business within 90 days. The sale agreement is conditional on this event
(suspensive condition).
Fulfillment of Suspensive Condition:
On the 80th day, Bob successfully obtains the zoning permit. According to the terms of
Article 1187, the effects of the fulfillment of the suspensive condition are retroactive to the day
when Alice and Bob entered into the sale agreement.
Retroactive Legal Consequences:
Legally, it is as if the sale agreement was fulfilled from the day it was established, even
though the actual fulfillment occurred later. Bob now has the legal right to complete the
purchase of the house, and the retroactive effects ensure that the legal status of the
transaction is treated as if the condition had been fulfilled from the outset.
Retroactive Effect in to give - When a conditional obligation involves giving (e.g., transferring
ownership of an item upon a specified condition), the effects of fulfilling the condition are
retroactive to the day the obligation was established. This means that, legally, it is as if the
obligation was fulfilled from the beginning.
- means that, once the specified condition is fulfilled, the legal consequences of fulfilling
the condition are applied as if the obligation had been fulfilled from the very beginning,
dating back to the day when the obligation was initially established.
Example
Alice agrees to sell her antique book collection to Bob, but the sale is subject to the
condition that Bob provides a certificate of authenticity within 20 days. The sale agreement is
conditional upon this event.
On the 15th day, Bob provides the required certificate. The retroactive effect means that, from
a legal standpoint:
The obligation to transfer ownership of the antique book collection is treated as if it had been
fulfilled from the day Alice and Bob entered into the agreement.
Any rights, responsibilities, or legal consequences associated with the fulfillment of the
condition are applied retroactively, creating a seamless legal transition.

Reciprocal Prestations - In cases of reciprocal prestations (obligations on both parties), during

the period when the condition is pending, the fruits and interests (benefits and gains) are
deemed to have been mutually compensated. This implies that, during the waiting period, the
benefits exchanged between the parties are considered balanced.
- In cases of reciprocal prestations, where there are obligations on both parties in a
contract, the concept that "the fruits and interests (benefits and gains) are deemed to
 have been mutually compensated" means that the benefits exchanged between the
parties during the waiting period, when a condition is pending, are considered to be
balanced or offsetting each other.
Example:
A simple real estate transaction between Alice (seller) and Bob (buyer). The agreement
is subject to the condition that Bob obtains a property appraisal within 30 days.
During the 30-day waiting period:
Benefits to Alice: Alice benefits from the potential use of the property during this time.
Benefits to Bob: Bob benefits from any potential increase in the property's value during this
time, as well as the opportunity to secure financing at current market conditions.
Mutually Compensated: The concept of mutually compensated fruits and interests suggests
that, even though the condition is pending, the advantages gained by Alice and Bob during this
period are considered balanced. Alice's use of the property is compensated by Bob's potential
gains in property value and favorable financing conditions.

If the condition is fulfilled, the legal consequences of the reciprocal prestations proceed, and
the benefits and gains exchanged during the waiting period are part of the overall balance of
the transaction.

Unilateral Obligation - For unilateral obligations (obligations imposed on one party), the debtor
(the one with the obligation) is entitled to appropriate the fruits and interests received during
the condition's pendency. However, this is subject to the possible inference of a different
intention from the nature and circumstances of the obligation.
- This statement refers to the treatment of unilateral obligations, where only one party is
bound by the obligation, in the context of a suspensive condition
Example:
Suppose Alice agrees to sell a rare painting to Bob, but the sale is subject to the
condition that Bob obtains a certificate of authenticity within 20 days. During this period:
If it's a typical unilateral obligation, and Bob successfully fulfills the condition, he would be
entitled to appropriate any profits or benefits gained during the waiting period, such as
potential appreciation in the painting's value.
However, if the circumstances or contractual language suggest that Alice expected
compensation for the temporary use of the painting during the condition period, it might infer a
different intention. In this case, legal interpretation may consider whether Alice should be
entitled to some benefits during the condition's pendency.
So in obligations to do and not to do, the courts will assess each case individually to determine
the retroactive effect of the condition that has been complied with.
Conclusion
Article 1187 establishes a legal framework for handling the effects of conditional
obligations, ensuring fairness and clarity in various types of obligations, including giving and
reciprocal prestations. The retroactive effect is a key principle, emphasizing that the legal
consequences of fulfilling the condition are applied retroactively to the inception of the
conditional obligation. The article recognizes the nuances in different types of obligations and
allows for judicial discretion in determining the retroactive effect in certain cases.