Kinds of Obligations

Pure

Without a condition
the effectivity and extinguishment does not depened on the fulfillment or non-fulfillment of a condition or on the expiration of a term or period and is
immediately demandable
Demandable at once
Example: I promise to pay you 1 million, Ill pay you 1 million on demend.

Conditional
a condition is attached to it
effectivity is subordinated to the fulfillment or non-fulfillment of a future and uncertain fact or event
Ill buy your land for 10 million if you pass the last bar examinations (suspensive)
Ill give you my land now, but should you fail in the last bar examinations, your ownership will cease and it will be mine again (resolutory)

Characteristics of a Condition

Future and uncertain

Past event but unknown to the parties
Not impossible

Classification of Obligations
Type of Condition
Suspensive

Resolutory

Fulfillment of condition
results in acquisition of
rights arising out of the
obligation
I promise to do what you ask
provided that X condition is
first complied with
Fulfillment of the condition
results in extinguishment of
rights arising out of the
obligation.

Demandability arising
from the obligation is
suspended.

Obligation arises or
becomes effective;
obligor can be compelled
to comply with what is
incumbent upon him

Rights recognized in Art.

1188, par. 1 is applicable
to resolutory conditions.

Whatever is paid or
delivered by one or both
of the parties upon the
constitution of the
obligation shall have to

Demandable immediately
after its constitution and
rights are immediately
vested in the obligee.

Potestative

Ill give you my car now but

should you pass the bar, the
donation will not be
effective. If you pass the bar,
you must return the car to
me
Fulfillment of the condition
depends on the will of a
party to the obligation.
When it depends exclusively
upon the will of the
creditor- condition and
obligation is valid.
Exclusively upon the debtor
in case of a suspensive
condition condition and
obligation are void.
Debtor in case of resolutory
condition- condition and
obligation are valid. The
same position as the
creditor

Casual

Mixed

Fulfillment of the condition

on chance and or the will of
a third person
Fulfillment of condition
depends partly on the will of
a party to the obligation and
partly on chance and/or will
of a third person.

be returned upon the

fulfillment of the
condition. There is a
return to the status quo.

Possible

Impossible

Condition is capable of
realization according to
nature, law, public, policy or
good customs.
Condition is not capable of
realization according to
nature, law, public policy or
good customs; or when it
restricts certain essential
rights which are necessary
for the free development of
human activity

Conditional obligationsboth obligation and

condition are void.
Conditional obligation is
valid- if condition is
negative, it is
disregarded and
obligation rendered pure
and valid.
Only the affected
obligation is void if the
obligation is divisible,
the part not affected by
the impossible condition
shall be valid.
Only the condition is
void- if pre-existing and
does not depend on the
fulfillment of the
condition which is
impossible for its
existence, only the
condition is void.
Condition considered
not imposed if
impossible/unlawful
condition is attached to
a simple or
remuneratory donation
as well as in a
testamentary
disposition, condition is

considered not imposed

while the obligation is
valid.

Positive Condition

Obligation is extinguished as soon as the time expires or if

it becomes indubitable that the event will not take place.
The obligation is effective from the moment the time
indicated has lapsed, or if it has become evident that the
vent cannot occur, although the time indicated has not yet
lapsed.

Negative Condition

(Intention of the parties, taking into consideration the

nature of the obligation, shall govern if no time has been
fixed for the fulfillment of the condition.)

Obligation with a term/period

TERM
Interval of time which is future and certain
Must necessarily come, although it may not be known
when
Exerts an influence upon the time of demandability or
extinguishment of an obligation
No retroactive effect unless there is an agreement to the
contrary
Left exclusively to the will of the debtor, the existence of
the obligation is not affected, empowers the court to fix
the duration of the obligation
Must be possible otherwise obligation is void.

TERM/PERIOD
Suspensive

CONDITION
Fact or event which is future and uncertain
May or may not happen
Exerts an influence upon the very existence of the
obligation itself
Has retroactive effect
Left exclusively to the will of the debtor, the very existence
of the obligation is affected
Must be possible otherwise obligation is void.

Obligation becomes demandable only

upon arrival of a day certain

Upon the arrival or expiration of

the term or period the
demandability of the obligation is
extinguished, not the acquisition
of the right or the effectivity of the
obligation

Resolutory

Arrival of day certain terminates the

obligation

Legal
Conventional
Judicial
Definite
Indefinite

Granted by law
Stipulated by the parties
Fixed by courts
Date/time is known beforehand
Date/time of day certain is unknown
(e.g. death)
When specifically stated
As when a person undertakes to do
some work which can be done only
during a particular season
Period of grace/grace period

Express
Tacit

Original period

The fulfillment of the obligation is

demandable at once but it is
extinguished or terminated upon
the arrival of the day certain or the
expiration of the term

CONJUNCTIVE
When all the objects or prestations are demandable at the
same time
ALTERNATIVE OBLIGATIONS
Several objects are due
May be complied with by delivery of one of the objects or
by performance of one of the prestations which are
alternatively due
Choice may pertain to debtor, creditor, or third person
Loss/impossibility of all objects/ prestations due to
fortuitous event shall extinguish the obligation
Culpable loss of any of the objects alternatively due before
the choice is made may give rise to liability on the part of
the debtor

DISTRUBUTIVE
When only one is demandable it may either be alternative
or facultative
FACULTATIVE OBLIGATIONS
Only one object is due
May be complied with by the delivery of another object or
by the performance of another prestation in substitution
of that which is due
Choice pertains only to the debtor
Loss/impossibility of the object/prestations due to
fortuitous event is sufficient to extinguish the obligation
Culpable loss of the object which the debtor may deliver in
substitution before the substitution is effected does not
give rise to any liability on the part of the debtor.

SOLIDARY OBLIGATION
Each one of the debtors is bound to render and/or each
one of the creditors has a right to demand entire
compliance with prestation

JOINT OBLIGATION
The whole obligation is to be paid or fulfilled
proportionately by different debtors or demanded
proportionately by different creditors

JOINT DIVISIBLE OBLIGATION

Each creditor can demand only for the payment of his
proportionate share of the credit; each debtor can be held
liable only for the payment of his proportionate share of
the debt

JOINT INDIVISIBLE
Midway between joint and solidary obligations, preserving
the two characteristics of the joint obligation, in that no
creditor can do an act prejudicial to others, and no debtor
can be made to answer for others.

INDIVISIBILITY
Refers to the prestation that is not capable of partial
performance
Exists even if there is only one creditor and one debtor

SOLIDARITY
Refers to the legal tie or vinculum juris and consequently
to the subjects pr parties of the obligation
Exists only if there is more than one creditor or more than
one debtor (plurality of subjects)
Each creditor may demand the entire prestation and each
debtor is bound to pay the entire prestation.
Effect of breach: solidarity remains

Each creditor cannot demand more than his share and

each debtor is not bound to pay more than his share
Effect of breach: obligation is converted into indemnity for
damages; indivisibility is terminated
Only the debtors guilty of breach of obligation is liable for
damages
Other debtors are not liable if one debtor is insolvent

All the debtors are liable for the breach of the obligations
committed by a debtor
All debtors are proportionately liable for the insolvency of
one debtor

Passive Solidary Debtor

Surety (Solidary Guarantor)
Both are solidarily liable to the creditor for the payment of the entire obligation
Liable not only for the payment of the debt of another, but Liable only for the debt of another
also for the payment of a deby which is properly hhis own
Has a right to demand reimbursement from his co-debtors Acquires a right of reimbursement from the principal
of their shares, if he pays the entire amount of the
debtor of the entire amount he has paid
obligation
An extension of time granted by the creditor to one of the An extension of time granted by the creditor to the
solidary debtors without the knowledge of the other
principal debtor would release the surety from the
solidary debtors would not have the effect of releasing the obligation
latter from obligation

Penal Clause
Constitutes an obligation
May become demandable upon default of the
unperformed obligation and sometimes jointly with it

Condition
Does not constitute an obligation
Never demandable

Obligation with a Penal Clause

There is already an existing obligation from the very
beginning
Penalty is dependent upon the non-performance of the
principal obligation

Conditional Obligation
No obligation before the suspensive condition happens

Obligation with a Penal Clause

There is only one prestation
Impossibility of the principal extinguishes also the penalty

Alternative Obligation
Two or more obligations are due
The impossibility of one without the fault of the debtor,
leaves the other subsisting
Debtor can choose which prestation to fulfill

The obligor cannot choose to pay the penalty to relieve

himself of the principal unless this right is expressly
granted to him

Principal obligation itself is dependent upon the uncertain

event

Obligation with a penal clause

Payment of the penalty in lieu of the principal obligation
can be made only by express stipulation
The creditor can demand both prestations

Facultative Obligation
Power of the debtor to make the substitution is absolute

Obligation with a penal clause

Obligation to pay the penalty is different from the principal
obligation
Principal obligation and the penalty can be assumed by the
same person
As a rule, penalty is extinguished by the nullity of the
obligation

Guaranty
Object of the obligations of the principal debtor and the
guarantor is the same
Principal debtor cannot be the guarantor of the same
obligation
Guaranty subsists even when the principal obligation is
voidable unenforceable or a natural one

The creditor can never demand both prestations