Balasico, Sarah S. FM21 SECTION 1. - Pure and Conditional Obligations

Balasico, Sarah S.
FM21
SECTION 1. — Pure and Conditional Obligations
ART. 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. (1113)
Pure Obligation
- A pure obligation is one which is not subject to any condition and no specific date is
mentioned for its fulfillment and is, therefore, immediately demandable.
Example:
 I promise to pay Mr. Autor, the amount of ten thousand pesos (10,000) on January
30, 2019.
Conditional Obligation
- A conditional obligation is one whose consequences are subject in one way or

another to the fulfillment of a condition.
Meaning of condition
- Condition is a future and uncertain event, upon the happening of which, the
effectivity or extinguishment of an obligation (or rights) subject to it depends.
Example:
 Mr. Autor promises to give Ms. Balona a brand-new car if she passes the bar exam.
The obligation cannot be demanded at once but becomes demandable only upon Ms.
Balona passing the Bar.
Characteristics of a Condition
Future and uncertain — In order to constitute an event a condition, it is not enough that it
be future; it must also be uncertain.
Past but unknown — A condition may refer to a past event unknown to the parties. If it
refers to a future event, both its very occurrence and the time of such occurrence must be
uncertain; otherwise, it is not a condition.
Two Principal Kinds of Condition
Suspensive Condition (Condition Precedent or Condition Subsequent)
- A suspensive condition suspends the rights and obligations under a contract until the
condition is fulfilled. Once the condition is fulfilled the contract is deemed to have
been in force from the effective date, not from the date of the fulfilment of the
suspensive condition.
Example:
 Company ABC makes an offer of employment to Mr. Autor, on the 2 nd of December,

on condition that Mr. Autor furnishes the company with proof of his qualifications by
the 31st of December. If Mr. Autor fails to submit proof of his qualification by the 31st
of December, the employment offer and any acceptance thereof will be null and void
as if such offer was never made and or accepted.
Resolution Condition (Condition Subsequent)
- Resolutive condition ends the existence of rights and obligations (or the entire
contract). In the case of a resolutive condition, there is no suspension or
postponement of terms in a contract or the validity of the contract/offer itself. Rights
and obligations come into existence immediately upon agreement between the
parties. If a resolutive condition is fulfilled, the operation of the rights and obligations
cease.
Example:
 On the 2nd of December Company ABC and Mr. Autor enter into a valid employment
contract. The contract determines that if the employee commits a crime, the
employment contract will immediately become null and void. Even though there was
a valid employment contract in place, Mr. Autor can be asked to leave the company
as soon as he commits a crime on the basis that the contract became void and
unenforceable as soon as he committed the crime.
When obligation demandable at once
(1) when it is pure
(2) when it is subject to a resolutory condition
(3) when it is subject to a resolutory period
Effect of happening of Condition:
1. Acquisition of Rights - In obligations subject to a suspensive condition, the

acquisition of rights by the creditor depends upon the happening of the event which
constitutes the condition.
Example:
 Where the loans of Rose from Joy were supposed to become due only at the
time Joy receives from Glenn the proceeds of the approved financing scheme,
and Glenn refused to make releases, the condition for the loan did not happen
and Rose is not, therefore, liable to Joy.
2. Lost of Right Already Acquired - In obligations subject to a resolutory condition, the
happening of the event which constitutes the condition produces the
extinguishment or loss of rights already acquired.
Example:
 Joy sold to Glenn a parcel of land subject to Joy’s right of repurchase. The
ownership already acquired by Glenn under the contract shall be extinguished
or lost should Joy exercise his right of repurchase.

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Balasico, Sarah S.

SECTION 1. — Pure and Conditional Obligations

- A conditional obligation is one whose consequences are subject in one way or

Two Principal Kinds of Condition

Suspensive Condition (Condition Precedent or Condition Subsequent)

 Company ABC makes an offer of employment to Mr. Autor, on the 2 nd of December,

Resolution Condition (Condition Subsequent)

When obligation demandable at once

(1) when it is pure

(2) when it is subject to a resolutory condition

(3) when it is subject to a resolutory period

Effect of happening of Condition:

1. Acquisition of Rights - In obligations subject to a suspensive condition, the

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