CLASSIFICATIONS OF OBLIGATIONS
1) As to Effect:
a) Suspensive Conditions:
Effect: The performance or fulfillment of the condition results in the birth or acquisition of the rights
contemplated in the obligation.
Characteristics: Suspensive conditions delay the enforceability of the obligation until the condition is
met. Once the condition is fulfilled, the rights and obligations become enforceable.
Example: In a real estate purchase contract, the buyer's obligation to pay the purchase price may be
subject to a suspensive condition, such as obtaining financing approval. Until financing is secured
(condition met), the obligation to pay is not enforceable.
b) Resolutory Conditions:
Effect: Resolutory conditions result in the extinguishment of the rights that have previously arisen out of
the obligation.
Characteristics: Resolutory conditions terminate or end existing obligations or rights when the condition
is met. Once the condition occurs, the rights and obligations cease to exist.
Example: In a lease agreement, if the tenant violates a significant lease term (condition subsequent), it
may trigger a resolutory condition leading to the termination of the lease and the extinguishment of the
tenant's obligation to pay rent.
2) As to Form:
a) Express Conditions:
Characteristics: Express conditions are conditions that are expressly and clearly stated in the contract or
legal agreement. They leave no room for ambiguity or interpretation.
Effect: The conditions are explicitly outlined, and the parties are aware of their existence and
requirements.
Example: In a lease agreement, the tenant's obligation to pay rent on the first day of each month is
explicitly stated as an express condition in the contract.
b) Implied Conditions:
Characteristics: Implied conditions are conditions that are not expressly stated in the contract but are
inferred from the conduct of the parties, the nature of the transaction, or legal principles.
Effect: These conditions are not explicitly outlined but are assumed to be part of the agreement based
on context and customary practices.
Example: In a contract for the sale of goods, there may be an implied condition that the goods will be of
merchantable quality, even if this specific condition is not expressly mentioned in the contract. This
condition is inferred from industry standards and legal norms.
3) As to Possibility:
a) Possible Conditions:
Characteristics: Possible conditions are those conditions that are capable of fulfillment according to the
laws of nature, legal requirements, public policy, or good customs.
Effect: If a condition is possible, it is considered valid and enforceable in accordance with legal principles.
Example: A contract may specify that payment is due "upon the completion of a construction project." If
the completion of the project is possible and legally permissible, this condition is valid.
b) Impossible Conditions:
Characteristics: Impossible conditions are those conditions that cannot be fulfilled according to the laws
of nature, legal requirements, public policy, or good customs.
Effect: If a condition is impossible, it is typically considered invalid and unenforceable in accordance with
legal principles.
Example: A contract may state that payment is due "upon the sun rising in the west." Such a condition is
impossible and would generally be considered invalid.
4) As to Cause/Origin:
a) Potestative Conditions:
Cause/Origin: Potestative conditions depend upon the will of the debtor (the party with the obligation)
Characteristics: These conditions are within the control of one of the parties, typically the debtor, who
can decide whether or not to fulfill the condition.
Example: A contract may state that a payment is due "at the debtor's sole discretion." In this case, the
condition depends on the debtor's will, and they can choose when or if to fulfill it.
b) Casual Conditions:
Cause/Origin: Casual conditions depend upon chance or circumstances beyond the control of the
parties, and sometimes upon the will of a third person.
Characteristics: These conditions are influenced by external factors, and the parties may have limited or
no control over their occurrence.
Example: A contract may specify that payment is due "if and when a specific event occurs, such as the
approval of a regulatory authority." The occurrence of the event is outside the parties' control.
c) Mixed Conditions:
Cause/Origin: Mixed conditions depend partly upon the will of a party to the obligation and partly upon
chance and/or the will of a third person.
Characteristics: These conditions have elements of both potestative and casual conditions, combining
aspects of the parties' control and external factors.
Example: A contract may state that payment is due "upon the debtor's request, subject to the approval
of a third-party arbitrator." The debtor's request is within their control, but the approval depends on the
arbitrator's decision.
5) As to Mode:
a) Positive Conditions:
Characteristics: Positive conditions involve the doing of an act, meaning they require the performance of
a specific action or activity.
Effect: The condition is met when the required act is performed as specified in the contract.
Example: A contract may require a seller to deliver goods to a buyer's address within a certain
timeframe. This positive condition is fulfilled when the goods are delivered.
b) Negative Conditions:
Characteristics: Negative conditions involve the omission or refraining from an act, meaning they require
the non-performance of a specific action or activity.
Effect: The condition is met when the required omission or non-performance occurs as specified in the
contract.
Example: A contract may state that a tenant's security deposit will be returned "if the tenant does not
damage the property during the lease term." The negative condition is fulfilled if the tenant refrains
from causing damage to the property.
6) As to Numbers:
a) Conjunctive Conditions:
Characteristics: Conjunctive conditions exist when there are multiple conditions in an obligation, and all
of them must be performed or fulfilled for the obligation to be satisfied.
Effect: All conditions must be met simultaneously for the obligation to be enforceable.
Example: A contract may specify that payment will be made "only if the buyer inspects the goods upon
delivery, confirms receipt in writing, and pays within 30 days." In this case, all three conditions must be
met for the obligation to be fulfilled.
b) Alternative Conditions:
Characteristics: Alternative conditions exist when there are several conditions in an obligation, but only
one of them must be performed or fulfilled for the obligation to be satisfied.
Effect: Any one of the alternative conditions being met is sufficient for the obligation to be enforceable.
Example: A contract may state that a payment will be made "upon the occurrence of either event A or
event B." In this case, if either event A or event B occurs, the obligation is satisfied.
7) As to Divisibility:
a) Divisible Conditions:
Characteristics: Divisible conditions are those conditions that are susceptible to partial performance.
They can be fulfilled in increments or partially.
Effect: Partial fulfillment of a divisible condition leads to partial performance or partial enforcement of
rights and obligations.
Example: A contract may specify that payment will be made "in three equal installments upon the
completion of each project milestone." Each installment is a divisible condition, and payment is made as
each milestone is achieved.
b) Indivisible Conditions:
Characteristics: Indivisible conditions are those conditions that are not susceptible to partial
performance. They must be fulfilled in their entirety.
Effect: Fulfillment of an indivisible condition is an all-or-nothing proposition; either the condition is
entirely met, or it is not.
Example: A contract may require the delivery of a custom-built machine "in full working order." This is an
indivisible condition, and the machine must be fully functional to fulfill the condition.
2 KINDS OF IMPOSSIBLE CONDITIONS
1) Physically Impossible Obligations:

Definition: Physically impossible obligations are obligations that cannot be fulfilled because they
involve actions or outcomes that are inherently impossible according to the laws of nature or the
physical limitations of reality. In other words, there is no way for any party, regardless of their
abilities or circumstances, to perform the obligation.

Enforceability: Physically impossible obligations are generally considered void and unenforceable in
legal agreements because they defy the laws of nature. The law does not require parties to perform
the impossible.

Example: A contract stipulates that a person must "travel back in time to the 19th century and
deliver a letter to a historical figure." Since time travel is currently impossible and violates the laws of
physics, this obligation is physically impossible and unenforceable.
2) Legally Impossible Obligations:

Definition: Legally impossible obligations are obligations that cannot be fulfilled because they go
against the established legal framework, public policy, or legal principles. These obligations may be
theoretically possible from a physical standpoint but are prohibited or restricted by law.

Enforceability: Legally impossible obligations are generally unenforceable because they violate legal
norms, public policy, or established legal principles. Courts will not enforce obligations that are
contrary to the law or public interest.

Example: A contract requires a person to sell a controlled substance, such as illegal drugs. While the
physical act of selling a substance is possible, it is legally impossible because it violates drug laws and
public policy. Such an obligation is legally unenforceable.
EFFECT OF IMPOSSIBLE OBLIGATION
1. Conditional Obligations Rendered Void:

When an impossible condition is integral to the fulfillment of an obligation, and it is impossible for
any party to meet that condition, the entire conditional obligation may be considered void or
unenforceable.

This means that if the condition is impossible to fulfill, the associated obligation cannot come into
effect, and the parties are relieved of their respective duties under the contract.

This principle aligns with the basic legal notion that parties should not be held to the impossible.
2. Conditional Obligations Remain Valid:

In some cases, if an impossible condition is deemed insignificant or unrelated to the primary purpose
of the obligation, the rest of the conditional obligation may still be considered valid and enforceable.

Courts may apply the principle of "severability" in such situations, which allows them to remove
or disregard the impossible condition while preserving the enforceability of the remaining
obligations in the contract.

The validity of the remaining obligations may depend on whether they can still be carried out
without the impossible condition.
Examples:
1. Void Conditional Obligation: A contract states that a person will pay a large sum of money "if they
can fly unaided like a bird." Since human flight without assistance is physically impossible, this
condition renders the entire conditional obligation void, and the person is not obligated to pay.
2. Valid Conditional Obligation with Severed Condition: A contract stipulates that a seller will deliver a
shipment of goods to a buyer "within two hours of receiving a telepathic message." Telepathy is
considered impossible, but the condition of telepathy is unrelated to the primary purpose of
delivering goods. The court may sever the impossible condition and enforce the delivery obligation.
3. Only the Affected Obligation Is Void:

In some cases, when an impossible condition is tied to a specific obligation within a contract, only
that particular obligation may be rendered void, while the rest of the contract remains valid and
enforceable.

This outcome is often determined by whether the impossible condition directly affects the ability to
perform a specific obligation, but other obligations in the contract are still feasible.

Courts may uphold the other obligations if they can be carried out independently of the voided
obligation.
Example:

In a real estate contract, the buyer agrees to purchase a house "on the condition that all the
appliances in the house are made of solid gold." This condition is impossible to fulfill because solid
gold appliances do not exist. However, the primary purpose of the contract is the sale of the house
itself, which is feasible and not dependent on gold appliances. In this case, the condition regarding
the gold appliances may be voided, but the sale of the house remains valid and enforceable.
4. Only the Condition Is Void:

In some situations, an impossible condition may be found void, while the rest of the contractual
obligations remain in effect and enforceable.

This outcome is typically applicable when the impossible condition does not impact the core purpose
or feasibility of the obligations in the contract.

Courts may choose to disregard the impossible condition and uphold the remaining obligations,
which are still achievable.
Example:

A contract states that a seller will provide a product to a buyer "on the condition that the seller
performs a backflip while delivering the product." Performing a backflip during delivery is physically
impossible and irrelevant to the sale of the product. In this case, the impossible condition related to
the backflip may be voided, but the obligation to deliver the product remains valid.