Ch. 3 - Section 1

• A pure obligation is one which is not subject to any condition and no specific date is mentioned for its fulfillment.
• A conditional obligation is one whose consequences are subject one way or another to the fulfillment of a condition.
• Condition is a future and uncertain event.
• Suspensive Condition - the demandability of the obligation is suspended until the happening of the certain event which constitutes the condition.
• Resolutory Condition - one the fulfillment of which will extinguish an obligation already existing. Liable now, disappear when done.
• A period is a future and certain event.
• Potestative Condition - the condition depends upon the will of the contracting parties. Example: I will pay you if I want.
• Casual Condition - the condition depends upon the chance or upon the will of a third person; example: If it rains tomorrow, I will give you an umbrella.
• Mixed condition - the condition depends partly upon chance and partly upon the will of a third person.
• Conjunctive Condition - there are several conditions and all must be fulfilled.
• Disjunctive Condition - there are several conditions and only one or some of them must be fulfilled.
• Divisible Condition - the condition is susceptible of partial performance.
• Indivisible Condition - the condition is not susceptible of partial performance.
• Physically impossible conditions - (suspensive conditions) when they, in nature of things, cannot exist or cannot be done.

  Example: I will pay you P10,000 if it rains for one year in the Philippines.
• Legally impossible conditions - when they are contrary to law, morals, good customs, public order, or public policy.
• Article 1186: The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment. Preventive measures is done where the obligor actually prevents the fulfillment of the condition.
• Physical Loss - when a thing perishes as when a house is burned and reduced to ashes.
• Legal Loss - when a thing goes out of commerce or when a thing heretofore legal becomes illegal.

  Example: During the Japanese occupation, American dollars had become impossible since their use was forbidden by law.
• Civil Loss - when a thing disappears in such a way that its existence is unknown.
• If the lost of a thing deteriorates through the fault of the debtor, the creditor may choose between the rescission of the obligation and its fulfillment, with indemnity for damages in either case.
• If a thing is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary.
• Usufruct is the right to enjoy the use and fruits of a thing belonging to another.
• Unilateral - when only one party is obliged to comply with a prestation.
• Bilateral - when both parties are mutually bound to each other. May it be reciprocal or non-reciprocal obligations.
• Rescission (or cancellation) is the process of canceling a contract.