1196

Obligor paid when not yet due and demandable = MAY be recovered.
Creditor - entitled to fruits only when it becomes due and demandable not at constitution of
obligation

Period = for the benefit of BOTH. Usually for the debtor, but the laws says the former.
Before arrival of period = cannot compel payment nor receiving of payment.

Sample: Bank loan installment = Only 6 months upon instituting the loan. You cannot pay the
entire indebtedness even with interest. You must wait for the 10-year period. For tax purposes.

GR: For benefit of BOTH

EXP: Implied or Expressed or Tacitly

“On” = period is fixed. Benefit for both

“On or before” = benefit for debtor. Debtor can compel creditor to receive the payment. This is
IMPLIED that this PERIOD is for the benefit of debtor cos of the term “on or before”.

1197 - It does not fix a period, but through its nature and circumstance it can be inferred that
duration was intended.

1) Nature and circumstance it can be inferred that duration was intended.

2) Duration of period upon the will of the debtor
3) Debtor binds himself when his means permit him to do so

GR: Action to fix period, is separate to action for performance.

EXP: If it is just for formality.

Action to fix period reckoned from the institution of the contract.

Action for performance, reckoned from when the obligation in the contract becomes due and
demandable.

1198 - Debtor loses his right to make use of the period. Debtor can already be compelled EVEN
if PERIOD did not come yet.

Instances:

1) After the contract, becomes INSOLVENT, unless sureties/guaranties. Liabilities greater

than assets. Chattel mortgage car – di muna pwede singilin
2) Not furnish the S/G promised. – document of real estate mortgage, not ready, such
promise to put up the collateral, then you can disregard the perio. Pwede mon a sya
singilin.
 3) Puts up collateral, DUE to negligence – house as collateral burned, there was damage
reducing its value no longer the value as was constituted originally as promised. PWEDE
na singilin. Disregard period.

Collateral is TOTALLY lost, due to FE/N – car damaged due to lightning, DISREGARD
PERIOD. Creditor singilin na debtor.

Putting up another collateral – debtor maintains his right to make use of the period.

4) There was agreement of period that creditor did not ascend to. Loan 50k, debtor asks he
be given 2 years, creditor scared debtor might migrate to another country. As long as
you do not leave the country, within the 2 year period. WITHOUT SUCH PHRASE the
creditor WOULD NOT HAVE agreed to it. Not complying with such condition, creditor
may disregard the period and sisingilin na agad si debtor.
5) Debtor attempts to abscond – trying to hide. Loan with a bank, you stipulated your
residence, suddenly without informing the bank you change you address. They have lost
ways in reaching out to you. The bank may disregard the period, then singilin ka na
agad.

READ CASES:

Gonzales v. Lim 528 scra 507 (Conditions at the perfection, condition in the performance)
Article 1182:
Osmena v. Rama 43 PH 873 / Trillana v. Quezon college 93 PH 383
Mixed conditions: Hermosa v. Longara 93 PH 971
NATELCO v. CA and CamSur 230 351
Article 1186: Doctrine of Constructive fulfillment v. Constructive of a mixed conditional
obligation
Int’l Hotel Corporation v. Joaquin Jr. 695 scra 382
Article 1183: Impossible conditions
GSIS v. CA 542 scra 367
Article 1187: 1544
Article 1191: Tacit Resolutory condition (Tolentino)
Calilap-Asmeron v. DBP 661 scra 54
1197: Fixing of period:
Macasaet v. macasaet 439 scra 625