Suspensive Conditions in Contract Law: Impact and Stages
Obligations subject to a suspensive condition are those whose onset of effectiveness depends on the realization of an uncertain future event, i.e., the act constituting the obligation. If the condition is not met, the obligation fails to deploy its effects.
These obligations go through several phases. The result is when the obligation arises (there is a doctrinal view that prefers that the obligation does not arise until the obligation is fulfilled, but the obligation arises, if it fulfills all its essential elements, from the time it was perfected).
Among the obligations, precedent develops several phases:
1. Dependency Status
a) Position of the Creditor (Article 1114 and Eventually on the Right Enshrined in Article 1121)
When the obligation is perfected, the creditor’s position is available so that from the time when the obligation is not perfect, the right holder of credit, according to the doctrine, until the obligation is met, does not acquire the right (Article 1114).
But this is not true, because the creditor is not merely expected but has an eventual right. Therefore, he is deserving because he has a right, because we know that the law protects, setting the creditor’s position, enshrined in Article 1121: the creditor may, before completion of the conditions, bring an action for conservation of their right.
The creditor has a right that can be conserved, confirming that the obligation exists from the time it was perfected. The type of conservation action that the creditor can apply for the preservation of this right is enshrined in Article 1911 of the Civil Code on conservative measures of the debtor’s assets.
b) Borrower
To be a debtor, it is necessary at this stage that the debit card holds, to be. It has some obligations, particularly to give something (to keep). There is no impact between creditor and debtor, listed in Article 1122.1 (where if things get lost without fault of the debtor, the obligation is extinguished) or 1122.4 (where if things deteriorate because of the debtor, the creditor can choose the resolution of the duty or compliance with the corresponding compensation for damages in both cases).
If you are responsible for loss or damage, it is because you need something (must be the duty of diligently keeping the thing). It also has other obligations as set out in Article 1119, which provides compliance with fictitious obligation, where the obligation is not met and the debtor does all it can not to be met. In respect of Article 1123, no event is set to failure, so the creditor is the victim.
c) Supervening Impossibility (Article 1122.1)
In this phase, dependence derives a series of consequences, where before the expiration of the condition, if the thing was lost through no fault of the debtor, the obligation is extinguished. It is due to a fortuitous event or force majeure, the obligation being thus closed, so that the obligation existed.
In the bilateral (Article 1124), one of the benefits at this stage is impossible to quarrel, still working out the consequences, so that there is termination of the contract.
2. Fulfillment of the Condition
The second stage is the fulfillment of the condition; the condition is met.
What are the consequences?
The creditor acquires the right, but not only takes title but can use it; the use is claimed, requiring the debtor.
The debtor’s compliance with the condition and must, must make due provision therefore.
Regarding the requirement in general, we say that the performance of the obligation carries its purification (Article 1114-1119). This means it is no longer a conditional obligation if not already a pure obligation. This situation is comparable to the case in which the condition cannot be met because the debtor does not comply, then to punish the legislator said in 1119 that it is as if he had fulfilled the obligation thus displays all its effects.
If the debtor is very confused and pays before the condition, according to Article 1121.2, if you notice and realize, if you pay in the first phase has the right of recourse, to ask the creditor to give it back.
3. Non-Compliance
The third phase is the phase of non-compliance. Now we have certainty that the condition is not going to comply.
4. Effects
We can put another section on the same level of the three phases in relation to the effectiveness of compliance with the condition precedent (Article 1120.1 and 2). Here we are going to determine how it produces its effects is the condition precedent, which are effects non-retroactive and retroactive.
The 1120 says that compliance with the condition precedent has retroactive effects; we have to go to when the obligation was born. However, the legislature sets out some exemptions to the obligations in certain aspects:
- Acquisition of property law: effective if applied retroactively acquire the right from birth is required, though actually delivered at a later time.
a) Effects of the Interim Phase
Effects that have occurred in the interim phase are consolidated if they are compatible with the purpose of discharging the obligation, and those who do not are eliminated.
b) Effects of the Obligation
The obligation is subject to the condition precedent of giving. The lender acquires the thing at the time liability arises retroactively, but did not: the time of acquisition of the thing has no retroactive effect. Get the thing at the time of acquiring the thing; the general rule applies after fulfilling the condition.
Devices acts of the debtor in the first phase: if the debtor takes the matter of his assets at this stage, and there is a third party who acquires in good faith or bad faith such a thing. Applying the 1120 we have to erase and erase everything that occurs at that stage that we cause trouble, and this is inconsistent because if we keep it, where this time of completion cannot be done. However, in the case of good faith, we cannot erase it, because you bought in good faith is protected in its acquisition, it would be effective retroactively, and performance of the obligation the debtor cannot deliver the thing properly and shall indemnify the creditor, pay the price of the thing due…
Fruits (Article 1120 and 1095): The proper thing bears fruit in the first phase. These benefits accrue to the creditor if we apply the rule of retroactive effect. If we apply the exception, the non-retroactivity, would correspond to the debtor. Two criteria are established according to the nature of the obligation if the obligation is bilateral approach was applied for the exemption, if the obligation is not bilateral, also correspond to the debtor.
The improvements of the thing (Article 1122.5 and 0.6): In the first phase debtor, risks and improve the thing. The condition and the lender benefits from the improvements. The creditor gets the better thing without having to improve the payment of the increased improvement of the thing. All he would withdraw the debtor would be better, whenever possible. If the improvement is a product of nature, exactly the same, goes to the creditor the thing with the improvement.