Summary
Highlights
Article 1190 describes the effects of a fulfilled resolutory condition: parties must return what they have received, including fruits and interests. The rules for loss, deterioration, and improvement from Article 1189 apply to the party bound to return the thing. For obligations to do or not to do, the courts determine the retroactive effect.
The video introduces the discussion on obligations, specifically focusing on Articles 1179 to 1192 of the Civil Code. It outlines five main classifications of obligations: demandability (pure, conditional, or with a term), plurality of object (alternative or facultative), plurality of subject (single, joint, or solidary), performance (divisible or indivisible), and sanction (with or without a penal clause).
Pure obligations (Article 1179) are demandable at once, without any condition or specific date for fulfillment. Conditional obligations, in contrast, depend on the fulfillment of a condition, which is a future and uncertain event, or a past event unknown to the parties, affecting the effectivity or extinguishment of the obligation. Conditions require futurity and uncertainty and can also refer to unknown past events.
There are two principal kinds of conditional obligations: suspensive and resolutory. A suspensive condition defers the effectivity of an obligation until the condition is fulfilled, making the obligation arise upon its fulfillment. A resolutory condition extinguishes an existing obligation upon its fulfillment.
An obligation is demandable at once if it is pure, or if it is subject to a resolutory condition or a resolutory period. Article 1180 discusses cases where the debtor binds himself to pay 'when his means permit him to do so,' which is considered an obligation with a period, not a conditional one, and the court can fix the date of payment.
Article 1182 distinguishes different types of conditions based on whose will they depend: potestative (depends on the will of one of the parties), casual (depends on chance or the will of a third person), and mixed (depends on both the will of a party and chance/third person). Potestative conditions depending solely on the debtor's will for a suspensive obligation are void, while those depending on the creditor or a resolutory condition are valid. Casual and mixed conditions are generally valid.
Article 1183 addresses impossible and illegal conditions. These can be physically impossible (cannot exist or be done) or legally impossible (contrary to law, morals, good customs, public policy, or public order). If an obligation's enforceability depends on such conditions, the obligation itself is generally void. However, if the obligation is divisible, the unaffected part remains valid. If an existing obligation has an impossible condition, only the condition is void, not the obligation itself.
Article 1184 deals with positive conditions, stating that an obligation is extinguished if a determinate event does not happen within the specified time or if it becomes certain that the event will not occur. Article 1185 covers negative conditions, where an obligation becomes effective if an event does not happen within a determinate time or if it becomes evident that the event cannot occur. If no time is fixed, the intention of the parties determines the fulfillment.
Article 1186 introduces the concept of 'constructive fulfillment,' where a condition is deemed fulfilled if the obligor voluntarily prevents its fulfillment. This applies to both suspensive and resolutory conditions.
Article 1187 explains the retroactive effect of a fulfilled suspensive condition: the obligation is effective from the day it was constituted. This retroactivity applies to the principal obligation. For reciprocal obligations, fruits and interests during the condition's dependency are mutually compensated. For unilateral obligations, the debtor keeps the fruits and interests unless otherwise stipulated.
Article 1188 allows the creditor to take appropriate actions to preserve their rights before the condition is fulfilled. It also allows the debtor to recover anything paid by mistake during the pendency of a suspensive condition, aligning with the principle against unjust enrichment.
Article 1189 specifies rules for loss, deterioration, or improvement of the object of an obligation (specific things only) during the dependency of a suspensive condition. If loss occurs without the debtor's fault, the obligation is extinguished. If with the debtor's fault, they must pay damages. For deterioration without the debtor's fault, the impairment is borne by the creditor. If with the debtor's fault, the creditor can choose between rescission or fulfillment with damages. Improvements by nature or time benefit the creditor. Improvements at the debtor's expense grant the debtor the rights of a usufructuary.
Article 1191 grants the right to rescind (cancel) a contract in reciprocal obligations if one party fails to comply. This right is implied and alternative to specific performance, both with damages. Reciprocal obligations require simultaneous performance and identic cause. The injured party typically needs to apply to the court for rescission, though exceptions exist where extrajudicial rescission might be allowed.
Article 1192 addresses situations where both parties have breached the obligation. If the first infractor is known, their liability is equitably tempered by the courts. If it cannot be determined which party first violated the contract, the obligation is deemed extinguished, and each party bears their own damages.