available on the day needed. On said day no truck was available.

Issue: Was the Company bound still to

supply the trucks? HELD: The Company never incurred the obligation since the condition did not
materialize.

Paulo Ang, et al. v. Furton Fire Insurance Co. L-15862, Jul. 31, 1961 A condition contained in an
insurance policy that claims must be presented within one year after rejection is not merely a
procedural requirement, but in the nature of a condition precedent to the liability of the insurer, or in
other words, a resolutory clause, the purpose of which is to terminate all liabilities in case the action is
not fi led by the insured within the period stipulated.

Luzon Stevedoring Corporation v. CIR L-17411, 18681 and 18683, Dec. 31, 1965 A Christmas bonus is
NOT a demandable and enforceable obligation unless it is made a part of the wage or salary or
compensation and even then the bonus would be CONTINGENT, dependent on the realization of profi
ts. If there be no profi ts, there will be no bonus.

Bengson v. Chan L-27283, Jul. 29, 1977

FACTS: In a contract for the construction of a condominium building, it was expressly agreed that
should there be any dispute, a board of arbitrators must fi rst be resorted to before taking any judicial
action. The owner went to court because the building was not fi nished on time, but there was no prior
resort to arbitration. Issue: Will the case now be dismissed? HELD: No, the case will not be dismissed,
although there was no prior resort to arbitration. This is so because under the Arbitration Law (RA 876),
in a case like this, what the Court should do is to refer the matter to the arbitrators who are supposed to
be selected by the parties.

Art. 1181

CIVIL CODE OF THE PHILIPPINES

196

Luzon Surety Co., Inc. v. Quebrar L-40617, Jan. 31, 1984

If a statute requires the putting up of a bond, it is understood that the conditions prescribed by the
statute shall form part of the bond agreement.

San Miguel v. Elbinias L-48210, Jan. 31, 1984

In fi xing the amount of a bond for the grant of a preliminary injunction, two factors that may be
considered are the market value of the property, and the possible resultant damage if it should turn out
that the injunction should not have been granted.

Art. 1182. When the fulfi llment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void. If it depends upon chance or upon the will of a third person, the
obligation shall take effect in conformity with the provisions of this Code.

COMMENT: (1) Potestative, Casual, Mixed Conditions This Article deals with three kinds of conditions:
(a) potestative — depends on the exclusive will of one of the parties. (This is also called facultative
condition.) (b) casual — depends on chance OR upon the will of a third person. [Example: If I win in the
lotto. (Valid)]
(2) Potestative (Facultative) Condition (a) Potestative on the part of the DEBTOR: 1) if also suspensive —
both the condition and the obligation are VOID, for the obligation is really illusory. [Example: I’ll give
you P1,000,000 next month if I live. (8 Manresa 131).]