Article 1190

• Article 1190 (1st Paragraph)


  When the conditions have for their purpose the extinguishment of an obligation to give, the parties, upon the fulfillment of said conditions, shall return to each other what they have received.
• Article 1190 (2nd Paragraph)

  In case of loss, deterioration or improvement of the thing, the provisions which, with respect to the debtor, are laid down in the preceding article shall be applied to the party who is bound to return.
• Article 1190 (3rd Paragraph)

  As for obligations to do and not to do, the provision of the second paragraph of Article 1187 shall be observed as regards the effect of the extinguishment of the obligation.
• Effects of Fulfillment of Resolutory Condition (In Obligation to give)

  (a) There is a return to the status quo. In other words, the effect of the fulfillment of the condition is retroactive.
• Effects of Fulfillment of Resolutory Condition

  (1) In obligation to give - When the resolutory condition in an obligation to give is fulfilled, the obligation is extinguished (Art. 1181) and the parties are obliged to return to each other what they have received under the obligation. (part 2)
• Effects of Fulfillment of Resolutory Condition (In Obligation to give)

  (b) In case the thing to be returned is legally in the possession of a third person who did not act in bad faith (part 2. Art. 1387), the remedy of the party entitled to restitution is against the other.
• Effects of Fulfillment of Resolutory Condition (In Obligation to give)

  (c) The obligation of mutual restitution is absolute. It applies not only to the thing received but also to the fruits and interests.
• Effects of Fulfillment of Resolutory Condition (In Obligation to give)

  (d) In obligations to give subject to suspension condition, the retroactivity admits exceptions according as the obligation is bilateral or unilateral. (Art. 1187)
• Effects of Fulfillment of Resolutory Condition (In Obligation to give)

  The reason for the difference is quite plain. The happening of the suspension condition gives birth to the obligation. on the other hand, the fulfillment of the resolutory condition produces the extinguishment of the obligation as though it had never existed. The only possible exception is when the intention of the parties is otherwise.
• Applicability of Article 1189 to party with obligation to return

  The happening of a resolutory condition has the same effect on the creditor as the happening of a suspension condition has on the debtor - an obligation arises. The fulfillment of the resolutory condition converts the creditor into debtor, and the debtor into creditor. Hence, the applicability of the provisions of Article 1189 in case of loss, deterioration, or improvement of the thing. Pending the fulfillment of the condition, the parties are entitled to the rights granted by Article 1188.