Distinction between SUSPENSIVE CONDITION and RESOLUTORY
CONDITION
- In suspensive condition, when the condition is fulfilled, the obligation
then ARISES;
- In resolutory condition, when the condition is fulfilled, the obligation
EXTINGUISHES.
When is an obligation demandable?
1. When it is pure;
2. When it is subject to resolutory condition;
3. And when it is subject to a resolutory period
When the debtor promises to pay when his means permit him to do so. –
it is deemed to be with a period. The obligation is not anchored on whether
he should pay or not because he is already bound to pay. It is focused on
the duration of the period.
When the condition solely depends upon the condition of the debtor, it shall
be void.
- I will pay you if I want; I will pay you after I have harvested fish”
When the condition solely depends upon the condition of the creditor, it
shall be valid.
- I will pay you upon your demand.
Conditional obligations may be classified into:
1. Suspensive
2. Resolutory
3. Potestative – A condition based upon the sole will of one
contracting parties
o When it is based solely on the will of the debtor, the conditional
obligation shall be void because there is no juridical tie created.
4. Casual – When a condition is based upon chance or upon the will of a
third person.
5. Mixed – When the condition is based partly on the will of one of the
contracting parties and partly based upon chance or upon the will of a
third person.
6. Impossible conditions – It applies when the impossibility already
existed at the time the obligation was constituted.
- If it existed after the constitution of the obligation, the provision
under Article 1266 shall govern.
Two kinds of impossible conditions:
a. Physically impossible conditions – when they, in the nature
of things, cannot exist or cannot be done.
b. Legally impossible conditions – when they are contrary to
law, morals, good customs, public order or public policy.
What is the effect of an impossible condition?
1. Conditional obligation shall be void - It shall annul the obligation
which depend upon them.
2. Conditional obligation shall be valid – if the condition is negative,
that is – not to do an impossible thing, then the obligation is valid. A
condition is always fulfilled when it is not to do an impossible thing. It
is as if there was no condition at all.
3. Only the affected obligation is void – If the obligation is divisible,
the part thereof not affected by the impossible condition shall be
valid. For example: “I will give you P100,000 if you sell my land, and a
car, if you kill Pedro.”
4. Only the condition is void – If the obligation is a pre-existing
obligation, and does not depend upon the fulfillment of the condition
which is impossible, for its existence, only the condition is void.
Example: “D incurred an obligation in the amount of P100,000 in
favor of C. If C later agreed to kill X before D pays him, the condition
to kill is void, but not the pre-existing condition of D to pay C.”