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Section 2.

Obligations with a Period

Article 1193. Obligations for whose fulfillment a day certain has been fixed, shall be demandable only when that day
comes.

Obligations with a resolutory period take effect at once, but terminate upon arrival of the day certain.

A day certain is understood to be that which must necessarily come, although it may not be known when.

If the uncertainty consists in whether the day will come or not, the obligation is conditional, and it shall be regulated
by the rules of the preceding Section.

Obligations with a period.


Whose effects or consequences are subjected in one way or another to the expiration or arrival of said
period or term

Period or term.
Future and certain event upon the arrival of which the obligation (or right) subject to it either arises or is
terminated
It is a day certain which must necessarily come, although it may not be known when, like death

Period and condition distinguished.

Period Condition
a certain event which must an uncertain event
happen sooner or later at a
As to fulfilment date known beforehand; or
at a time which cannot be
determined
future past event unknown to
As to time
parties
fixes the time for the causes an obligation either
efficaciousness of the to arise or to cease
obligation
if suspensive, cannot prevent
As to influence on the obligation the birth of the obligation in
due time
if resolutory, it does not
invalidate the fact that the
obligation existed
empowers the court to fix invalidates the obligation
As to effect, when left to debtors will
the duration
unless there is an agreement has retroactive effect
to the contrary, arrival does
As to retroactivity of effects
not have any retroactive
effect

Kinds of period or terms.


1. According to effect:
a. Suspensive period (ex die) obligation begins only from a day certain upon the arrival of period
b. Resolutory period (in diem) obligation is valid up to a day certain and terminates upon arrival of the
period
2. According to source:
a. Legal period when when it is provided by law
b. Conventional or voluntary period when it is agreed to by the parties
c. Judicial period when it is fixed by the court
3. According to definiteness:
a. Definite period when it is fixed or it is known when it will come
b. Indefinite period when it is not fixed or it is not known when it will come; where the period is not fixed
but period is intended, the courts usually empowered by law to fix the same

Article 1194. In case of loss, deterioration or improvement of the thing before the arrival of the day certain, the rules
in Article 1189 shall be observed.

See comments under Article 1189.

Rules in case of loss, deterioration, or improvement of thing during pendency of suspensive


condition.
1. Loss of thing without debtors fault
2. Loss of thing through debtors fault
3. Deterioration of thing without debtors fault a thing deteriorates when its value is reduced
or impaired with or without the fault of the debtor
4. Deterioration of thing through debtors fault
a. Rescission (or cancellation) with damages
b. Fulfillment of obligation with damages
5. Improvement of thing by nature or by time
6. Improvement of thing at expense of debtor

Article 1195. Anything paid or delivered before the arrival of the period, the obligor being unaware of the period or
believing that the obligation has become due and demandable, may be recovered, with the fruits and interests.

Payment before arrival of period.


Applies only to obligations to give
Allows the recovery of what has been paid by mistake before the fulfillment of a suspensive condition
Creditor cannot unjustly enrich himself by retaining the thing/money received before the arrival of the
period

Debtor presumed aware of the period.


The presumption is that the debtor knew that the debt was not due yet
He has the burden of proving the he was unaware of the period
Where the duration of the period depends upon the will of the debtor, payment by him amounts, in effect,
to his determination of the arrival of the period
May no longer recover the thing/money once the period has arrived but he can recover the fruits/ interests
thereof from the ate if premature performance to the date of maturity of obligation

No recovery in personal obligations.


To the obligation to do, it is physically impossible to recover the service rendered
To the obligation not to do, he cannot recover what he has not done

Article 1196. Whenever in an obligation a period is designated, it is presumed to have been established for the
benefit of both the creditor and the debtor, unless from the tenor of the same or other circumstances it should
appear that the period has been established in favor of one or of the other.

Presumption as to benefit of period.


The period is presumed to have been established for the benefit of both the creditor and debtor
Before the expiration of period, the debtor may not fulfil the obligation and neither may the creditor
demand its fulfillment without the consent of the other especially if the latter would be prejudiced or
inconvenienced thereby
Presumption is rebuttable
Exceptions to the general rule.
Tenor of the obligation or the circumstances may show that it was the intention of the parties to constitute
the period for the benefit of either the debtor or creditor
Benefit of the period may be the subject of express stipulation of the parties

1. Term is for the benefit of the debtor alone


He cannot be compelled to pay prematurely but he can if he desires to do so
2. Term is for the benefit of the creditor
He may demand fulfillment even before the arrival of the term but the debtor cannot require him to
accept payment before the expiration of the stipulated period

Computation of term or period.


1. The Administrative Code of 1987 provides Legal Periods
year shall be understood 12 calendar months
month of 30 days, unless it refers to a specific calendar month in which case it shall be computed
according to the number of days the specific month contains
day to a day of 24 hours
night from sunset to sunrise
2. A calendar month is a month designated in the calendar without regard to the number of days it may
contain; the number of days being irrelevant

Article 1197. If the obligation does not fix a period, but from its nature and the circumstances it can be inferred that
a period was intended, the courts may fix the duration thereof.

The courts shall also fix the duration of the period when it depends upon the will of the debtor.

In every case, the courts shall determine such period as may under the circumstances have been probably
contemplated by the parties. Once fixed by the courts, the period cannot be changed by them.

Court generally without power to fix the period.


The period mentioned refers to a judicial period as distinguished from the period fixed by the parties in their
contract which is known as contractual period
If obligation does not state a period and no period is intended, the court is not authorized to fix a period
The courts have no right to make contracts for the parties

Exceptions to the general rule.


There are 2 cases when the court is authorized to fix duration of period
Whenever the court fixes the term of an obligation, it does not thereby amend or modify the same
It merely enforces or carries out the intention of the parties
Cannot arbitrarily fix a period out of thin air

1. No period is fixed but a period was intended


Obligation does not fix a period but it can be inferred from its nature and the circumstances that a
period was intended
2. Duration of the period depends upon the will of the debtor
See comments under Article 1180
The court may fix the duration of the period to forestall the possibility that the obligation may never be
fulfilled
In fixing the term, the court is merely enforcing the implied stipulation of the parties
In every case, the court shall determine such period as may under the circumstances have been probably
contemplated by the parties
When duration of period depends upon the will of the debtor.
Period is a future and certain event upon the arrival of which the obligation subject to it
either arises or is extinguished

1. The debtor promises to pay when his means permit him to do so


Obligation shall be deemed to be one with a period
What depends on the debtors will is not whether he should pay or not for indeed he
binds himself to pay
What is left only to his will is the duration of the period
If debtor and creditor cant agree as to the specific time for payment, the court shall
fix the same on the application of either party
2. Other cases
As when the debtor binds himself to pay:
a. little by little
b. as soon as possible
c. from time to time
d. at any time I have the money
e. in partial payments
f. when I am in a position to pay

Legal effect where suspensive period/condition depends upon will of debtor.


1. The existence of the obligation is not affected although the period depends upon the sole will of the debtor.
It is only the performance with respect to time that is left to the will of the debtor
2. If the obligation is subject to a condition which depends upon the sole will of the debtor, the conditional
obligation is void because in such case, it is actually the fulfillment of the obligation that depends upon the
will of the debtor

Period fixed cannot be changed by the courts.


1. If there is a period agreed upon and it has already lapsed, the court cannot fix another period
2. From the moment the parties give their acceptance and consent to the period fixed by court, said period
acquires the nature of a contract because the effect of such acceptance and consent us exactly the same as
if they had expressly agreed upon it and having been agreed upon by them, it becomes a law governing their
contract. The parties may modify the term by a new agreement

Article 1198. The debtor shall lose every right to make use of the period:

(1) When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or security for
the debt;

(2) When he does not furnish to the creditor the guaranties or securities which he has promised;

(3) When by his own acts he has impaired said guaranties or securities after their establishment, and when through a
fortuitous event they disappear, unless he immediately gives new ones equally satisfactory; [not included in the
article (when guaranties or securities given have been impaired or have disappeared)]

(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to the period;

(5) When the debtor attempts to abscond.

When obligation can be demanded before lapse of period.


The general rule is that the obligation is not demandable before the lapse of the period
Debtor shall lose every right to make use of the period, that is, the period is disregarded and obligation
becomes pure and immediately demandable
Exceptions (based on the fact that the debtor might not be able to comply with his obligation)
- look at the underlined phrases in the article above

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