1. Conditional Obligations

Article 265

An obligation is conditional when its existence or its extinction depends on a future and uncertain event.

Article 266

An obligation is void when the condition upon which it depends is impossible, contrary to morality or to public order, and the condition is suspensive. If the condition is resolutory, the condition itself is deemed to be inexistent.

An obligation depending upon a resolutory condition contrary to morality or public order is, however, void if the condition was the determining factor for undertaking the obligation.

Article 267

An obligation is void when it is subject to a suspensive condition by which the existence of the obligation depends solely on the will of the person who undertook the obligation.

Article 268

When an obligation depends on a suspensive condition, it does not become executory until the condition is realized. Before realization of the condition, such obligation is not subject to compulsory or to voluntary performance. A creditor may, however, take protective measures to safeguard his rights.

Article 269

An obligation is extinguished when the resolutory condition is realized. The creditor must restitute that which he has received: if restitution is impossible by reason of a cause for which he is responsible, he will be liable in damages.

Acts of management carried out by a creditor shall retain their validity notwithstanding the realization of the condition.

Article 270

The fulfillment of a condition is effective retroactively to the day on which the obligation was contracted unless it appears from the will of the parties or by reason of the nature of the contract that the existence of the obligation or its extinction should take effect from the moment of the fulfillment of the condition.

In any case, the condition will not have retroactive effect if the execution of the obligation becomes impossible before the fulfillment of the condition, on account of a cause independent of the debtor and for which he is not responsible.

2. Time Clauses

Article 271

An obligation is for a term if its performance or extinction depends on a future certain event.

An event is considered to be certain if it must happen of necessity even if the time at which it should happen is unknown.

Article 272

When it results from the obligation that the debtor shall only perform the obligation when he is able to do so or when he has the means to do so, the judge will fix a reasonable time for the term, taking into account the actual and future resources of the debtor and allowing for the diligence of a man anxious to perform his obligations.

Article 273

A debtor will forfeit the benefit of the term:

a) if he is declared bankrupt or insolvent in accordance with the provisions of law;

b) if he has, by his own act, appreciably diminished the special security given to the creditor, even if this security was given by a subsequent act or by virtue of the law, unless the creditor prefers to demand additional security. If the reduction of the security is due to a cause for which the debtor is not responsible, he will forfeit his rights to the term unless he provides adequate security;

c) if he does not supply the creditor with the security promised in the contract.

Article 274

An obligation with a suspensive term only becomes due on the date of the expiration of the term. The creditor may, however, even before the end of the term, take measures to protect his rights and may, in particular, ask for security if he fears that the debtor may become bankrupt or insolvent, and has reasonable grounds for his fears.

At the end of a resolutory term, the obligation is extinguished without such extinction having any retroactive effect.