Page 296 - Important Provisions of The New Civil Code

Article 1187. The effects of a conditional

obligation to give, once the condition has been

fulfilled, shall retroact to the day of the

constitution of the obligation. Nevertheless,

when the obligation imposes reciprocal

prestations upon the parties, the fruits and

interests during the pendency of the condition

shall be deemed to have been mutually

compensated. If the obligation is unilateral, the

debtor shall appropriate the fruits and interests

received, unless from the nature and

circumstances of the obligation it should be

inferred that the intention of the person

constituting the same was different.

In obligations to do and not to do, the courts

shall determine, in each case, the retroactive

effect of the condition that has been complied

with. (1120)