Obligations and Contracts : Kinds of Obligations Kinds of Obligations • PRIMARY CLASSIFICATION 1. Pure Obligation 2. Conditional Obligation 3. Obligations with a Period 4. Alternative (Facultative) Obligations 5. Conjunctive Obligations 6. Joint Obligations 7. Solidary Obligations 8. Divisible 9. Indivisible 10. Obligations with a Penal Clause Kinds of Obligations • SECONDARY CLASSIFICATIONS 1. 2. 3. 4. 5. 6. 7. 8. 9. Unilateral Obligation Bilateral Obligation Real Obligation Personal Obligation Determinate Obligation Generic Obligation Positive Obligation Negative Obligation Legal Obligation 10. Conventional Obligation 11. Penal Obligation 12. Civil Obligation 13. Natural Obligation Summary of Sections • Section 1 – Pure and Conditional Obligations • Section 2 – Obligations with a Period • Section 3 – Alternative Obligations • Section 4 – Joint and Solidary Obligations • Section 5 – Divisible and Indivisible Obligations • Section 6 – Obligations with a Penal Clause Summary of Provisions • Section 1 – Pure and Conditional Obligations • Art. 1179 – Definition of Pure and Conditional Obligations • Art. 1181 – Suspensive and Resolutory Conditions • Art. 1180 – Debtor pays “When means permit” • Art. 1182 – Void, Potestative, Casual and Mixed Conditions Summary of Provisions • Art. 1183 – Impossible and Illegal Conditions • Art. 1184 – Positive Conditions • Art. 1185 – Negative Conditions • Art. 1186 – Presumptive Fulfilment of Condition • Art. 1187 – Effects of Fulfilment of Suspensive Condition Summary of Provisions • Art. 1188 – Preservation of Rights and Recovery • Art. 1189 – Loss, Deterioration, Improvement • Art. 1190 – Fulfilment of Resolutory Condition • Art. 1191 – Rescission • Art. 1192 – Breach by both parties Section 1 – Pure and Conditional Obligations • Pure Obligation – one without condition or a term 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. (Art. 1179 par. 1) Example of a Pure Obligation Beshy, can I loan Php. 1,000.00 Uhm…sure.. Example of a Pure Obligation [Continued] I’ll pay you immediately or upon your demand. If you say so. [Wehhh Di nga?] Section 1 – Pure and Conditional Obligations • Conditional Obligation – one where there is a condition. Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event. (Art. 1179 par. 2) Example of a Conditional Obligation I will buy your land for Php. 10M if you pass the bar exams this year. Sure thing! Art. 1180 – Debtor Pays “When means permit” • This is not a conditional obligation. • This situation means that the debtor will pay once he can afford to, once he is able to, once he has the money. Example of a “When means permit” Beshy, can I loan Php. 1,000.00 Uhm…sure.. Example of a “When means permit” I’ll pay you once I have the money. If you say so. [Wehhh Di nga?] What is a condition? • A condition may be a future and uncertain event. • It may also be a past but unknown or uncertain event. • The happening of a condition may give rise (suspensive) or extinguish (resolutory) the obligation Kinds of Conditions [Art. 1181] • Suspensive Condition – the happening of such condition will give rise to an obligation. • Resolutory Condition – the happening of such event will extinguish the obligation. Example of a Suspensive Condition I will buy your land for Php. 10M if you pass the bar exams this year. Sure thing! Example of a Resolutory Condition I will give you Php. 100.00 a day until you finish the 2nd sem. Wow! ??? Art. 1182 – Void Conditions • Potestative Conditon – one which depends upon the sole will of one of the contracting parties. • Casual Condition – depends on a third person or by happening of chance or luck. Art. 1182 – Void Conditions • On the part of the DEBTOR • Potestative Conditon + Suspensive Condition = Void (Illusory) • Potestative Condition + Resolutory Condition = Valid • On the part of the CREDITOR • Potestative Conditon + Suspensive Condition = Valid • Potestative Condition + Resolutory Condition = Valid Art. 1183 – Impossible and Illegal Conditions • Impossible Condition – one whose accomplishment is physically impossible • Illegal Condition – one whose accomplishment is legally impossible or illegal. Example of a Impossible Condition Besh, pay me 1M, I will resurrect you once you die. Sure thing! Example of a Illegal Condition EZ Can you burn my village? Make it appear like a meteor hit it. I will pay you Php 1M Art. 1184 – Positive Condition • There is a condition that some event will happen at a determinate time. • Such event will extinguish the obligation as soon as the time expires or if it appears the obligation cannot be done. • Example: A promises to give his land worth 10M if you will marry X, the ugliest woman in the world, until February 28, 2019. • If X dies or if the marriage did not take place on the date, the obligation has not been performed and thus extinguished. Art. 1185 – Negative Condition • There is a condition that some event should not happen at a determinate time. • Such event will extinguish the obligation as soon as the time expires or if it appears the obligation cannot be done. • Example: A promises to give his land worth 10M if you will not marry X, until February 28, 2019. • If X dies or if the marriage did not take place, the obligation arises. Group Activity • Instructions: • Group yourselves into groups of two (2) • Provide examples of obligations with (DO NOT COPY AN EXAMPLE FROM DE LEON’S BOOK): • Pure Obligation • Conditional Obligation • • • • • • Suspensive Condition Resolutory Condition Potestative Conditon Casual Condition Impossible Condition Illegal Condition • Write down your examples in one whole yellow pad paper • Present one of your examples in front of the class.