Short answer. You lose the rights you already had. Article 1181 of the Civil Code says that in conditional obligations, the extinguishment or loss of rights already acquired, not just their acquisition, depends on the happening of the event that constitutes the condition. That is precisely what a resolutory condition does once it occurs.
What the law says
In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition.
Civil Code, Article 1181 — Effect of Conditions. Read the full provision →
What Article 1181 actually covers
Article 1181 addresses two different things a condition can do, in the same sentence. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition. A condition is not limited to deciding whether a right comes into existence — it can also decide whether a right that already exists is taken away.
Why your clause falls on the 'loss' side
Your contract already gave you the rights in question; the clause you describe simply says they end once a specified event happens. That fits the second half of Article 1181 directly: the extinguishment or loss of those already acquired is itself something the article says depends on the condition occurring. The rights were not provisional or incomplete before the event — they existed, and the condition's role is to bring them to an end.
What happens once the event actually occurs
Once the event that constitutes the condition happens, Article 1181 treats the loss of your already-acquired rights as the direct consequence, not merely a stop on future rights that had not yet arisen. In other words, the effect runs backward into what you already held, not just forward into what you might otherwise have gained afterward — which is the distinguishing feature of a condition written to end existing rights rather than to create new ones.
Why the wording matters when you read your contract
Because Article 1181 treats acquisition and loss as two separate effects a condition can produce, it is worth reading your own clause carefully to see which one it describes. A clause that says a right arises only if an event happens is about acquisition; a clause that says an existing right ends if an event happens, as yours does, is about loss. The article confirms that both kinds of clauses are equally valid ways for a condition to operate.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Pilipinas Shell Petroleum Corporation vs. Commissioner of Internal Revenue, G.R. No. 172598, December 21, 2007 — read the decision on LawPhil →
- Felix L. Gonzales vs. Heirs of Thomas and Paula Cruz, etc. et al, G.R. No. 131784, September 16, 1999 — read the decision on LawPhil →
- Planters Development Bank (Now China Bank Savings, Inc.) vs. Fatima D.G. Fuerte, G.R. No. 259965, October 7, 2024 — read the decision on LawPhil →
- Elenita V. Macalinao, Kenneth V. Macalinao and Kristel V. Macalinao vs. Cerina, A.K.A. Cerena N. Macalinao and Cindy N. Ma, G.R. No. 250613, April 3, 2024 — read the decision on LawPhil →