Aliño, Hannah Marie M.

March 7, 2022
BSMAC 1- D The Lawon Obligations & Contracts

Study Guide No. 3 (Chapter 3)

I. True or False. Explain briefly your answer.

1. If the suspensive condition is fulfilled, the obligation is extinguished.

False. The fulfillment of a suspensive condition breathes life into otherwise inoperative
rights and obligations, the fulfillment of a resolutive condition ends the existence of rights
and obligations (or the entire contract). In the case of a resolutive condition, there is no
suspension or postponement of terms in a contract or the validity of the contract/offer
itself. Rights and obligations come into existence immediately upon agreement between the
parties. If a resolutive condition is fulfilled, the operation of the rights and obligations cease.

2. If the resolutory condition is fulfilled, the obligation becomes effective.

False. If the SUSPENSIVE CONDITION is fulfilled, the obligation becomes effective.

3. If the resolutory condition is not fulfilled, the juridical condition is consolidated.

False. A resolutory condition (condition subsequent) extinguishes the obligation upon its
fulfillment. The obligation is demandable at once, without prejudice to the effects of the
happening of the event.[1]Before the fulfillment of a resolutory condition, the preservation
of creditor's rights applies.[2] After the fulfillment of a resolutory condition, Whatever may
have been paid or delivered by one or both of the parties upon the constitution of the
obligation shall have to be returned upon the fulfillment of the condition [3]. There is no
return to the status quo. However, when the condition is not fulfilled, rights are
consolidated and they become absolute in character.

4. In suspensive condition, rights are not yet acquired, but there is a hope or expectancy that
they will soon be acquired.

True. If the suspensive condition is fulfilled, the obligation arises or becomes effective; If the
suspensive condition is not fulfilled, the juridical relation is consolidated. In other words, in
the suspensive condition, rights are not acquired, but there is hope and expectancy that will
be soon acquired.

5. In suspensive condition, rights are already acquired, but subject to the threat of extinction.

False. If the suspensive condition is fulfilled, the obligation arises or becomes effective; if the
resolutory condition is fulfilled, the obligation is extinguished. If the suspensive condition is
not fulfilled, the juridical relation is consolidated.
 In other words, in the suspensive condition, rights are not acquired, but there is hope and
expectancy that will be soon acquired; in case of resolutory condition, rights are already
acquired but subject to the threat of extinction.

6. If the fulfilment of a potestative obligation depends exclusively upon the will of the debtor,
the conditional obligation shall be void.

True. Conditional obligation void. Where the potestative condition depends solely upon the
will of the debtor, the conditional obligation shall be void because its validity and
compliance is left to the will of the debtor (Article 1308) and it cannot, therefore, be easily
demanded. In order not to be liable, the debtor will just not fulfill the condition. There is no
burden on the debtor and consequently, no juridical tie is created. (Article 1156)

7. If the fulfilment of a potestative obligation depends exclusively upon the will of the creditor,
the conditional obligation shall be void.

False. If the condition is potestative in the sense that its fulfillment depends upon the will of
the creditor, the conditional obligations shall be valid. This is because the provision of the
first sentence of Article 1182 extends only to conditions which are potestative to the obligor
or debtor. Besides, the creditor is naturally interested in the fulfillment of the condition
since it is only such fulfillment that the obligation arises or becomes effective.

8. The power to rescind obligations is implied in reciprocal ones in case one of the obligors
should not comply with what is incumbent upon him.

True. Article 1191. The power to rescind obligations is implied in reciprocal ones, in case
one of the obligors should not comply with what is incumbent upon him. The injured party
may choose between the fulfillment and the rescission of the obligation, with the payment
of damages in either case. He may also seek rescission, even after he has chosen fulfillment,
if the latter should become impossible. The court shall decree the rescission claimed, unless
there be just cause authorizing the fixing of a period.

9. A condition has for its requisites futurity and uncertainty.

True. Condition is a future and uncertain event, upon the happening of which, the
acquisition or extinguishment of an obligation (or right) subject to it depends. In order to
constitute an event as a condition, it is not enough that it be future; it must also be
uncertain.

10. A term or period has for its requisites futurity and uncertainty.

False. A term or period has for its requisites futurity and CERTAINTY. A period is a future
and certain event upon the arrival of which the obligation (or right) subject to it either
arises or is terminated.

11. A period may or may not happen.

False. A CONDITION may or may not happen. A period is a certain event which must happen
sooner or later at a date known beforehand, or at a time which cannot be determined, while
a condition is an uncertain event which may or may not happen.
12. A condition will surely come to pass.

True. A period will surely come to pass, although it may not be known when.

13. Article 1199. A person alternatively bound by different prestations shall completely
perform all of them.

False. Article 1199. A person alternatively bound by different prestations shall completely
perform ONE of them.

14. The creditor can be compelled to receive part of one and part of the other undertaking.

False. Article 1131. The creditor CANNOT be compelled to receive part of one and part of
the other undertaking.

15. In alternative obligation, the right of choice belongs to the creditor, unless it has been
expressly granted to the debtor.

False. Article 1200. The right of choice belongs to the DEBTOR, unless it has been expressly
granted to the CREDITOR.

16. In alternative obligation, when the choice has been expressly given to the creditor, the
obligation shall cease to be alternative from the day when the selection has been
communicated to the debtor.

True. Article 1205. When the choice has been expressly given to the creditor, the obligation
shall cease to be alternative from the day when the selection has been communicated to the
debtor.

17. The debtor shall lose the right of choice when among the prestations whereby he is
alternatively bound, only one is practicable.

True. Article 1202. The debtor shall lose the right of choice when among the prestations
whereby he is alternatively bound, only one is practicable. (1134)

18. Alternative obligations may be complied with by the deliveryof one of the objects or by the
performance of one of the prestations which is alternatively due.

True. As to compliance, Alternative obligations may be complied with by the delivery of one
of the objects or by the performance of one of the prestations which is alternatively due.

19. Facultative obligations may be complied by the delivery of another object but not in
substitution of that which is due.

False. Facultative obligations may be complied by the delivery of another object or

20. In alternative obligation, the right of choice may pertain even to the creditor.
 True. As to the right of choice, alternative obligation may pertain even to the creditor or to a
third person.

21. In facultative obligation, the right of choice pertains only to the creditor.

False. As to the right of choice, facultative obligation pertains only to the DEBTOR.

22. In alternative obligation, the loss of one of the objects which are due without any fault of
the debtor is necessary to extinguish the obligation.

False. As to effect of fortuitous loss, in alternative obligation, the loss of one of the objects
which are due without any fault of the debtor DOES NOT extinguish the obligation.

23. In facultative obligation, loss or impossibility of the object or prestation which is due
without the fault of the debtor is not sufficient to extinguish the obligation.

False. As to effect of fortuitous loss, facultative obligation, the loss or impossibility of the
object or prestation which is due without any fault of the debtor is SUFFICIENT to
extinguish the obligation.

24. A stipulated penalty may not be equitably reduced by the courts if it is iniquitous or
unconscionable.

False. Article 1229. The judge shall equitably reduce the penalty when the principal
obligation has been partly or irregularly complied with by the debtor. Even if there has been
no performance, THE PENALTY MAY ALSO BE REDUCED by the courts if it is iniquitous or
unconscionable. (1154a)

25. The nullity of the penal clause carries with it that of the principal obligation.

False. Article 1230. The nullity of the penal clause DOES NOT CARRY with it that of the
principal obligation.

II. True or False. Explain briefly your answer.

1. In alternative obligation, the impossibility of one of the objects due without the fault of the
debtor extinguishes the obligation.

False. In alternative obligation, the loss or impossibility of ALL of the objects or prestations
which are due without the fault of the debtor is necessary to extinguish the obligation
because the loss of one or more of the alternatives through a fortuitous event does not
extinguish the obligation.

2. In facultative obligation, the culpable loss of the object which the debtor may deliver in the
substitution before the substitution is effected does give rise to any liability on the part of
such debtor.
 False. In facultative obligation, the culpable loss of the object which the debtor may deliver
in substitution before the substitution is effected DOES NOT give rise to any liability on the
part of the debtor.
3. In alternative obligation, the nullity of one of the objects does not invalidate of the
obligation which is still in force with respect to those which have no defect.

True. These are various prestation all of which constitute parts of the obligation. In
alternative obligation, the nullity of one prestation does not invalidate the obligation which
is still in force with respect to those which have no vice.

4. The nullity of the principal object invalidates the obligation, even if the substitute object is
valid.

False. The nullity of the principal prestation (i.e. when the object is unlawful or outside the
commerce of man) invalidates the obligation.

5. In case of concurrence of two or more creditors or two or more debtors in one and the same
obligation, the presumption is that the obligation is only joint.

True. The Civil Code provisions establish that in case of concurrence of two or more
creditors or of two or more debtors in one and the same obligation, and in the absence of
express and indubitable terms characterizing the obligation as solidary, the presumption is
that the obligation is only joint.

6. It is incumbent upon the party alleging that the obligation is solidary in character to prove
such fact with a preponderance of evidence.

True. It thus becomes incumbent upon the party alleging that the obligation is indeed
solidary in character to prove such fact with a preponderance of evidence.

7. In a joint obligation, each obligor answers the whole liability.

False. In a joint obligation each obligor answers ONLY FOR A PART OF THE WHOLE
LIABILITY and to each obligee belongs only a part of the correlative rights.

8. In a "joint and several" obligation, the relationship between the active and the passive
subjects is so close that each of them must comply with or demand the fulfilment of the part
obligation.

False. Whereas, in a solidary or joint and several obligation, the relationship between the
active and the passive subjects is so close that each of the former or of the latter may
demand the fulfillment of or must comply with the WHOLE OBLIGATION.

9. The well-entrenched rule is that solidary obligations cannot be inferred lightly. They must
be positively and clearly expressed.

True. The well-entrenched rule is that solidary obligations cannot be inferred lightly. They
must be positively and clearly expressed. A liability is solidary "only when the obligation
expressly so states, when the law so provides or when the nature of the obligation so
requires."
10. In case of breach of a joint indivisible obligation, it will never be converted into an
indemnity for damages.
False. In case of breach of a joint indivisible obligation, the obligation is then converted to
an indemnity for damages.

11. The obligation is deemed to be indivisible when it is to give definite things and those which
are not susceptible of partial performance.

True. Article 1225. For the purposes of the preceding articles, obligations to give definite
things and those which are not susceptible of partial performance shall be deemed to be
indivisible.

12. Indivisibility refers to the prestation that is not capable of partial performance.

True. An indivisible obligation is one the object of which, in its delivery or performance, is
not capable of partial fulfillment.

13. Solidarity refers to the prestation.

False. INDIVISIBILITY refers to the prestation.

14. Indivisibility exist even if there is only one debtor and one creditor.

True. Indivisibility can exist although there is only one (1) debtor and one (1) creditor.
Article 1207

15. Solidarity exists only if there are two or more debtors and two or more creditors.

True. In solidarity, there must be at least two (2) debtors or two (2) creditors. Article 1208

16. Each one of the solidary creditors may do whatever may be useful or beneficial to the others
as well as anything which may be prejudicial to the latter

False. Article 1212. Each one of the solidary creditors may do whatever may be useful to the
others, but not anything which may be prejudicial to the latter. (1141a)

17. As a general rule, a solidary creditor can assign his rights based on the principle of
transmissibility of rights.

False. Article 1213. A solidary creditor cannot assign his rights without the consent of the
others.

18. Solidarity makes a solidary obligor an indispensable party in a suit filed by the creditor.

False. Solidarity does not make a solidary obligor an indispensable party in a suit filed by
the creditor. Article 1216 of the Civil Code says that the creditor may proceed against
anyone of the solidary debtors or some or all of them simultaneously.
19. When the law expressly provides for solidarity of the obligation, each obligor may be
compelled to pray pro-rata the obligation

False. When the law expressly provides for solidarity of the obligation, as in the liability of
co-principals in a contract of agency, each obligor may be compelled to pay the entire
obligation.12 The agent may recover the whole compensation from any one of the co-
principals, as in this case.

20. Suretyship is merely a principal obligation.

False. The surety's obligation is not an original and direct one for the performance of his
own act, but merely accessory or collateral to the obligation contracted by the principal.

21. A surety is not considered in law to be on the same footing as the principal debtor in
relation to whatever is adjudged against the latter.

False. A surety is considered in law to be on the same footing as the principal debtor in
relation to whatever is adjudged against the latter.

22. A surety who pays the creditor has the right to recover that full amount paid from the
principal debtor or debtors.

True. Even as the surety is solidarily bound with the principal debtor to the creditor, the
surety who does pay the creditor has the right to recover the full amount paid, and not just
any proportional share, from the principal debtor or debtors.

23. The penalty shall substitute the indemnity for damages and the payment of interests in case
of non-compliance.

True. Article 1226. In obligations with a penal clause, the penalty shall substitute the
indemnity for damages and the payment of interests in case of non-compliance, if there is
no stipulation to the contrary. Nevertheless, damages shall be paid if the obligor refuses to
pay the penalty or is guilty of fraud in the fulfilment of the obligation.

The penalty may be enforced only when it is demandable in accordance with the provisions
of this Code. (1152a)

24. A principal obligation may exist without an accessory obligation but an accessory obligation
cannot exist without a principal obligation.

True. A principal obligation may exist without an accessory obligation but an accessory
obligation cannot exist without a principal obligation. For example, the contract of mortgage
is an accessory obligation to enforce the performance of the main obligation of
indebtedness. An indebtedness can exist without the mortgage but a mortgage cannot exist
without the indebtedness, which is the principal obligation. In the present case, the
principal obligation is the loan between the parties. The accessory obligation of a penal
clause is to enforce the main obligation of payment of the loan. If therefore the principal
obligation does not exist the penalty being accessory cannot exist.
25. An accessory obligation is not dependent for its existence on the existence of a principal
obligation.

False. An accessory obligation has been defined as that attached to a principal obligation in
order to complete the same or take its place in the case of breach. Note therefore that an
accessory obligation is dependent for its existence on the existence of a principal obligation.