Conditional Obligations in Civil Law: Types, Effects, and Validity

Obligations Subject to Condition

These obligations are subject to conditions set out in Civil Code Article 1113 et seq. A condition is defined as an uncertain future event. It is a stipulation added to the contractual agreement between the parties, governing the effectiveness of the requirement and altering the overall scheme itself.

Thus, a conditional obligation is one in which the parties agree to group the obligation by a condition, thereby regulating its effectiveness and overall system performance.

Classification of Conditional Obligations

A. Based on the Will of the Parties

The fulfillment of these obligations depends on the willingness of the parties (the creditor, the debtor, or both). The Code distinguishes two forms:

1. Potestative Conditions: Those whose fulfillment depends on the will of the parties. The Code distinguishes two forms:
   • Purely Potestative: These depend exclusively on the willingness of the debtor. Article 1115 states that the conditional obligation is void when its compliance depends exclusively on the will of the debtor, meaning the debtor is not obligated to anything. Conversely, this condition is admitted when it depends exclusively on the will of the creditor, since in that case an obligational link exists, as it is the creditor's ability to waive the requirement.
   • Simply Potestative: The fulfillment of the obligation depends on the debtor performing or refraining from performing a specific act. The invalidity contained in Article 1115 does not apply, as the fulfillment does not depend solely on the will of the debtor, although their will is a key factor in the event taking place.
2. Casual Conditions: Those that depend on an event outside the control of stakeholders, such as a casualty or depending on the goodwill of a third party stranger to the obligation.
3. Mixed Conditions: Those that depend partly on the willingness of stakeholders and partly on a casualty or the will of a third party.

B. Based on the Nature of the Event

The Civil Code further distinguishes between:

• Affirmative Conditions: These depend on a specific fact or event happening. (Art. 1117).
• Negative Conditions: These rely on the fact or event not happening. (Art. 1118).

C. Based on Compliance with Requirements

A further distinction is made between:

• Proper Conditions: These are the obligations to which is added a true condition (one that meets the requirements of a true condition, i.e., an uncertain future event.)
• Improper Conditions: These omit some requirements, although the Civil Code treats them as real conditions.

Article 1116 provides that the consequence of these improper obligations is to void the obligation if they are purely potestative in nature.

D. Based on Effects on the Obligation

Finally, a distinction is made between conditions suspensive (precedent) and resolutory (subsequent):

• Suspensive (Precedent) Condition: The existence of the claim and the debt depends on this condition. As soon as the condition is met, the debt is due and enforceable.
• Resolutory (Subsequent) Condition: The obligation occurs from the moment it is established, enforceable for all purposes as if it were pure. However, if the condition is met, the obligation is resolved (terminated) and ceases to have effect.