OBLIGATIONS WITH A

PERIOD
Articles 1193 to
1198 of the Civil
Code are about
Obligation 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.(1125a)
OBLIGATION WITH A PERIOD
An obligation with a period is
one whose consequences are
subjected in one way or another to
the expiration or arrival of said
period or term.
(8Manresa 158; see Lirag Textiles,
Inc. vs. Court of Appeals, 63 SCRA
374[1975].
 PERIOD OR TERM
Period or Term- refers to
interval of time, which either
suspends demandability or
produces extinguishment of the
obligation.
The period must be: future, certain,
and possible(Tolentino, 1987).
it is a day certain which must
necessarily come although it may
not be known when.
Note:
Fortuitous event does not
interrupt the
running of the period. It
only relieves the
contracting parties from
the fulfillment of their
respective obligations
during the period.
 KINDS OF PERIOD
1. Ex die (suspensive period)- period
with a suspensive effect.
Obligation becomes demandable after
the lapse of the period.

2. In diem (resolutory period) - period

with a resolutory effect. Obligation is
demandable at once but is
extinguished upon the lapse of the
period.
TERM/PERIOD AND CONDITION
DISTINGUISHED
Term/Period Condition
1. It is an interval of time 1. It is a fact or event
which is future and which is future and
certain. uncertain.
2. It must necessarily 2. It may or may not
come although it may happen.
not be known when. 3. It has an effect on the
3. It has an effect on the existence of the
time of demandability obligation.
or extinguishment of an
obligation
TERM/PERIOD AND CONDITION
DISTINGUISHED
Term/Period Condition
4. No retroactive effect 4. Has retroactive
unless there is an effect.
agreement to the 5. When it is left
contrary. exclusively to the will of
5. When it is left the debtor, the very
exclusively existence of the
to the will of the debtor, obligation is affected
the existence of the
obligation is not
affected
 EXAMPLE
PERIOD/TERM AND CONDITION
1.I will pay you 30 days
from delivery of my
order.
Period/term – 30 days
Condition- from delivery of
order.
 EXAMPLE
PERIOD/TERM AND CONDITION
2. I will give you the House and Lot in
Tagaytay upon the death of your horse
within two years.
Period/term- upon the death of the horse
(this is certain to happen although it
may not be known when)
Condition- within two years (the horse
may or may not die within two years)
 EXAMPLE
PERIOD/TERM AND CONDITION
3. when you reach 17, I will give you
support in your study until you graduate
from college provided you maintain an
average grade of 90 in your Senior High
School.
Period/term – upon reaching 17 (because
this produces the start of the obligation
to support the schooling) and until
graduation (which extinguish the
obligation)
Condition- Maintain 90 average grade.
 EXAMPLE
PERIOD/TERM AND CONDITION
4. If you passed the 2020 bar
examination, I will reimburse all your
expenses starting from the time of your
review up to the final examination.
Period/term – 2020 bar examination (only
period considered)
Condition- upon passing the bar (a
reimbursement will be made retroactive
from time of review until final
examination)
 EXAMPLE
PERIOD/TERM AND CONDITION
5. I will pay you 500 a month or if I want
to.
Period/term- Monthly payment by debtor
(exclusive will but it does not affect the
obligation)
Condition- If I want to (existence of the
obligation is affected as debtor may or
may not pay)
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. (n)
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.
This is about payment before the arrival
of the period in obligation to give as this
does not apply to personal obligation.
Unless debtor renounce the period,
anything paid before the intended period
may be recovered. This is based on the
principle that no one shall be unjustly
enrich at the expense of another.
Fruits and interest may also be recovered
from the time of performance before the
period.
Once the intended period has arrived, the
money or thing delivered can no longer
be recovered.
 EXAMPLE
X signed a promissory note
acknowledging his debt to Y for 5M
payable on November 29, 2020
with 20% interest.
X believing that this was due on
November 29, 2019, delivered to Y
a land worth 4M with livestock
worth 1M.
 EXAMPLE
X can recover the increase value of the
land as well as the increase livestock
from November 29, 2019 up to November
28, 2020.
However, if X was aware that the debt is
due on November 29, 2020 and despite
the knowledge of the period, paid Y, X is
deemed to have renounce the period and
can no longer recover the payment as
well as the increase in value of the land
and increase livestock.
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.
 BENEFIT OF THE PERIOD
Presumption:
Period in an obligation is
presumed to be established for the
benefit of both the creditor and
debtor, UNLESS: If from
the tenor of the obligation or other
circumstances, it shall appear that
the period
has been established in favor of either
the creditor or debtor
 BENEFIT OF THE PERIOD
CREDITOR DEBTOR
Creditor may demand Debtor may oppose any
the fulfillment or premature demand on the
part of the obligee
performance of the for the performance of the
obligation at any time obligation, or if he so
but the obligor cannot desires, he may
compel him to accept renounce the benefit of th
payment before the e period by performing his
obligation in advance
expiration of the period
 EXAMPLE
FOR THE BENEFIT OF THE CREDITOR AND
DEBTOR

X owes Y 1M ,with 25% interest,

payable on November 15,
2019.
Y cannot demand X to pay 1M
before November 15, 2019.
X, without the consent of Y, pay
1M before November 15, 2019.
 EXAMPLE
PARTIES AGREE THE TERM FOR THE
BENEFIT OF THE DEBTOR
On November 15, 2019, X
borrowed from Y 10M payable on
November 15, 2021.
The period ,November 15, 2021, is
deemed to be for the benefit of X.
X can pay anytime before
November 15, 2021.
 EXAMPLE
PARTIES AGREE THE TERM FOR THE
BENEFIT OF THE CREDITOR

X owe Y 10k payable on

November 19, 2019 or upon
demand.
Y can demand payment
anytime but X cannot pay
before November 19, 2019.
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.
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;
(4) When the debtor
violates any undertaking,
in consideration of which
the creditor agreed to the
period;
(5) When the debtor
attempts to abscond.
In this situations, the obligation
becomes immediately due
and demandable even if the
period has not yet expired.
The obligation is thus
converted into a pure
obligation
(Tolentino,1987)
WHEN DEBTOR LOOSES THE
RIGHT TO USE PERIOD
1. Debtor becomes insolvent, unless he
gives a guarantee or security for his debt
after obligation is contracted;
2. Debtor fails to furnish the guaranties or
securities promised;
3. Debtor by his own act impaired said
guaranties or securities after their
establishment , and when through a
fortuitous event they disappear, unless
he immediately gives new one equally
satisfactory.
WHEN DEBTOR LOOSES THE
RIGHT TO USE PERIOD
4. Debtor violates any undertaking, in
consideration of which the creditor
agreed to the period.
5. Debtor attempts to abscond
6. By law or stipulation
7. Parties stipulate an acceleration
clause
 EXAMPLE
DEBTOR BECOMES INSOLVENT
X borrowed on September 30,
2019, 50K from Y payable on
January 30, 2020. If X becomes
insolvent on October 15, 2019, Y
can demand immediate payment
even before January 30, 2020
unless X gives a new security for
his obligation.
 EXAMPLE
WHEN DEBTOR DOES NOT FURNISH
GUARANTIES OR SECURITIES PROMISED
X borrowed on September 30,
2019, 50K from Y payable on
January 30, 2020. X promised to
deliver title of his land to secure
his debt. If X fails to deliver he
shall loose his right to the period
and Y can demand immediate
payment of the obligation even if it
is not yet due.
 EXAMPLE
WHEN GUARANTIES OR SECURITIES GIVEN
HAVE BEEN IMPAIRED OR DISAPPEARED
X borrowed on September 30, 2019,
5M from Y payable on January 30,
2020. X delivered title of his land to
secure his debt but the house was
damaged by an earthquake. Y can
demand immediate payment even
before due date unless X gives a new
security to guarantee the debt.
 EXAMPLE
DEBTOR VIOLATES THE UNDERTAKING
X borrowed on September 30, 2019,
5M from Y payable on October 30,
2019. Y agreed to extend the period
until January 2020 in consideration of
the easement provided by X on his
land. If X closes the easement, Y can
demand payment from X because X
violates his undertaking when he
closes the easement.
 REFERENCES
R.A 386 Civil code of the Philippines
batasnatin.com
scribd.com
Ispuoblicon2015.wordpress.com
https://www.academia.edu/UP 2010
oblicon reviewer