171.

Is an interval of time, exerting an influence on an obligation as a consequence of a juridical act,

either suspends its demandability or produces its extinguishment?

A. Period

B. Condition

C. Demand

D. Delay

A. Period is a time of definite length. Definite, having distinct or certain limits; determinate in extent of
character; limited; fixed – as definite period (Capiral vs. Manila Electric Company, L-15721, December
27, 1963).

When the debtor binds himself to pay when his means permit him to do so, the obligation shall be
deemed to be one with a period.

Examples of phrases similar to “when his means permit him to do so”

1. “When I have money”

2. “As soon as I have money”

3. “When I can afford to pay”

In connection with the above, the following provision is material, to wit:

Art. 1179. 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.

The period is presumed to have been established for the benefit of both the creditor and debtor.

The extension of a lease contract must be made before the term of the agreement expires, not after.
Upon the lapse of the stipulated period, courts cannot belatedly extend or make a new lease for the
parties, even on the basis of equity.
Thus, the period of the lease contract is deemed to have been set for the benefit of both parties. Its
renewal may be authorized only upon their mutual agreement or at their joint will. Its continuance,
effectivity or fulfillment cannot be made to depend exclusively upon the free and uncontrolled choice of
just one party. While the lessee has the option to continue or to stop paying the rentals, the lessor
cannot be completely deprived of any say on the matter. Absent any contrary stipulation in a reciprocal
contract, the period of lease is deemed to be for the benefit of both parties (LL and Company
Development and Agro-Industrial Corporation vs. Huang Chao Chun and Yang Tung Fa, G.R. No. 142378,
March 7, 2002)

172. I. A condition has for its requisites futurity and certainty.

II. A term or period has for its requisites futurity and uncertainty.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

D. Obligation with a period is an obligation for whose fulfillment a day certain has been fixed, shall be
demandable only when the day comes.

A day certain is understood to be that which must necessarily come, although it may not be known
when (Art. 1193, NCC). Moreover, when the debtor binds himself to pay when his means permit him to
do so, the obligation shall be deemed to be one with a period (Art. 1180, NCC).

For example, X promised to give his particular laptop to Y on December 30, 2018.

173. I. A condition may or may not happen.

II. A term or period will surely come to pass, although it may not be known when.
A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

C. CONDITION vs. TERM/PERIOD

Condition Term or Period

A condition refers to an event A term or period refers to an interval of time

A condition has for its requisites futurity and uncertainty A term or period has for its requisites
futurity and certainty

A condition may or may not happen A term or period will surely come to pass although it may not be
known when

A condition has retroactive effects A term or period does not have retroactive effects unless there
is an agreement to the contrary

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

A. Resolutory period

B. In diem

C. Ex die

D. Suspensive condition

C. An obligation with a suspensive period (ex die) is an obligation for whose fulfillment a day certain has
been fixed, it shall be demandable only when that day comes (Art. 1193, NCC).
For example, X promised to give P10,000 to Y on February 14, 2018. Take note that X will be liable upon
demand by Y on February 14, 2018.

175. Obligations which take effect at once, but terminate upon arrival of the day certain.

A. Suspensive period

B. In diem

C. Ex die

D. Resolutory condition

B. Obligation with a resolutory period (in diem) take effect at once, but terminate upon arrival of the day
certain (Art. 1193, NCC).

For example, X promised to give P100 a day to Y until May 30, 2018. Let it be noted that the obligation
of X is immediately demandable. However, X’s liability to Y will be extinguished on May 30, 2018.

176. The court is not authorized to fix a period. The following are the exceptions, except:

A. If the obligation does not fix a period, but from its nature and circumstances it can be inferred that a
period was intended.

B. If the period depends upon the will of the creditor.

C. In under the circumstances the parties have contemplated a period.

D. When the debtor binds himself to pay when his means permit him to do so.

B. General Rule:

The court is not authorized to fix a period.

Exceptions:
 1. If the obligation does not fix a period, but from its nature and circumstances it can be inferred that a
period was intended (Art. 1197, NCC).

2. If the period depends upon the will of the debtor (Art. 1197, NCC).

3. If under the circumstances the parties have contemplated a period (Art. 1197, NCC).

4. When the debtor binds himself to pay when his means permit him to do so (Art. 1180, NCC).

177. The debtor loses the right to make use of period in the following instances, except:

A. When after the obligation has been contracted, he become insolvent, unless hi gives a guaranty or
security for the debt.

B. When the debtor furnished the creditor the guaranties or securities.

C. When the debtor violates any undertaking in consideration of which the creditor agreed to the
period.

D. When the debtor attempts to abscond.

B. The debtor loses right to make use of period in the following instances:

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

Example:

In a contract of loan agreed upon on JULY 1, 2018, X, the debtor, and Y, the creditor, agreed that X will
pay his obligation in the amount of P100,000 on December 31, 2018. Further they agreed that Y cannot
demand payment either that December 31, 2018. Subsequently, on September 1, 2018, X turned
insolvent. In this case, Y need not wait for December 31, 2018, he can immediately demand the
obligation, as an exception. However, if X gives a guarantor or pledge or mortgage as security, the Y only
demand the obligation on December 31, 2018.

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

Example:

In a contract of loan agreed upon on July 1, 2018, X, the debtor, and Y, the creditor, agreed that X will
pay his obligation in the amount of P100,000 on December 31, 2018. X, likewise, promised to deliver his
only car, as pledge or security, on August 1, 2018. Further they agreed that Y cannot demand payment
earlier that December 31, 2018.

On August 1, 2018, X failed to deliver his only car; hence his obligation becomes immediately
demandable. This means that Y need not wait for December 31, 2018 before he can make a demand.

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:

Example:

In a contract of loan agreed upon on July 1, 2018, X, the debtor, and Y, the creditor, agreed that X will
pay his obligation in the amount of P100,000 on December 31, 2018. In order for Y to grant the said loan
of X, the latter mortgaged his only house as a security. However, on October 1, 2018, said house was
totally destroyed by an earthquake. Consequently, the obligation of X becomes immediately
demandable and Y need not wait for December 31, 2018 unless X will give a new security which is
satisfactory to Y. For instance, a land to be constituted as a real estate mortgage in favor of Y.

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

Example:

On October 1, 2018, X asked Y for the latter to lend P10,000 to the former to be paid on December 31,
2018. Y told X that he can lend the said amount provided that X will no longer smoke cigarette until
December 31, 2018; otherwise, the obligation becomes immediately demandable. X agreed to the said
undertaking. If on November 1, 2018, X was caught smoking cigarette, then his obligation become
immediately demandable.

5. When the debtor attempts to abscond.

Attempt to abscond means attempt to escape. This is a sign of bad faith because the debtor intends to
evade his obligation.

178. A owes B P150,000 due on June 30, 2018. A executed a mortgaged in favor of B on A’s building. On
June 10, 2018, the mortgaged building was totally lost due to an earthquake. On June 12, 2018, B
demanded payment from A. Is B’s demand valid?

A. No. The obligation is one with a definite period, thus the creditor cannot demand fulfillment of the
obligation before it due.

B. No. the mortgage was extinguished because the object of the contract was lost through a fortuitous
event.
C. Yes. The debt becomes due at once because the object of mortgage was lost.

D. Yes. The debt becomes due at once because the period’s benefits is given solely to the creditor
thereby giving the creditor the right to demand performance even before the due date.

C. The debtor loses right to make use of period 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.

179. An obligation where there is only one object.

A. Simple obligation

B. Conjunctive obligation

C. Compound obligation

D. Distributive obligation

A. Examples: “X bound himself to deliver his only dog to Y.” “D owes C P5,000.”

180. An obligation where there are two or more objects.

A. Simple obligation

B. Compound obligation

C. Conjunctive obligation

D. Distributive obligation

B. There are two kinds of compound obligation, that is, conjunctive obligation and distributive
obligation.