Title IV: General system of obligations

An obligation is conditional when it depends on a future and uncertain event. The condition is suspensive when its fulfilment renders the obligation pure and simple. It is resolutory when its fulfilment results in the annihilation of the obligation.

The condition must be lawful. Failing this, the obligation is void.

An obligation contracted under a condition whose performance depends solely on the will of the debtor is null. This nullity cannot be invoked where the obligation was performed with full knowledge of the facts.

A suspensive condition is deemed to have been fulfilled if the party who had an interest in it prevented its fulfilment. A resolutory condition is deemed to have failed if its fulfilment was caused by the party who had an interest in it.

A party is free to waive the condition stipulated in its exclusive interest, as long as it has not been fulfilled or has not failed.

Before the suspensive condition is fulfilled, the debtor must refrain from any act that would prevent the proper performance of the obligation; the creditor may perform any conservatory act and attack the debtor’s acts performed in fraud of his rights. What has been paid may be repeated as long as the suspensive condition has not been fulfilled.

The obligation becomes pure and simple as from the fulfilment of the suspensive condition. However, the parties may provide that the fulfilment of the condition will have retroactive effect to the day of the contract. The thing, which is the subject of the obligation, nonetheless remains at the risk of the debtor, who retains administration of it and is entitled to the fruits until the condition is fulfilled. In the…

The fulfilment of the resolutory condition extinguishes the obligation retroactively, without calling into question, where applicable, acts of conservation and administration. Retroactivity does not take place if such is the agreement of the parties or if the services exchanged have found their utility as the mutual performance of the contract progresses.