OBLIGATIONS AND CONTRACTS Obligations with a Period GQ 1.

Chapter 3 – Different Kinds of Obligations

Section 2 – Obligations with a period
1. What are the primary classifications of obligations? 
a) Pure and conditional obligations
b) Obligations with a period
c) Alternative (Arts. 1199- 1205.) and facultative obligations (Art. 1206.)
d) Joint and solidary obligations;
e) Divisible and indivisible obligations; and
f) Obligations with a penal clause.
2. What is a term or period? 
- A period is a future and certain event upon the arrival of which the obligation (or right)
subject to it either arises or is terminated.
3. What is an obligation with a period? 
- An obligation with a period is one whose effects or consequences are subjected in one
way or another to the expiration or arrival of said period or term.
4. When is an obligation with a period demandable? 
- It can only be demandable when that period expires.
5. Distinguish period from condition 
(a) As to fulfillment - A condition is an uncertain event; but a period is an event which must happen
sooner or later, at a date known beforehand, or a time which cannot be determined.
(b) As to time - A period refers to the future, while a condition may under the law refer even to the
past.
(c) As to influence on the obligation - A condition causes an obligation to arise or to cease but a
period merely fixes the time or the efficaciousness of an obligation.
(d) As to effect, when left to debtor’s will - A period which depends upon the will of the debtor
empowers the court to fix the duration, while a condition which depends upon the sole will of the
debtor invalidates the obligation
(e) As to retroactivity effects - Unless there is an agreement to the contrary, the arrival of a period
does not have any retroactive effect while the happening of a condition has retroactive effect.
6. What are the kinds of period? 
a. According to effect 
a) Suspensive period (ex die). - The obligation begins only from a day certain upon the ar-
rival of period; and
b) Resolutary period (in diem) - The obligation is valid up to a day certain and terminates
upon arrival of the period.
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b. According to source 
a) Legal Period - when it is provided for by laws;
b) Conventional or voluntary period - when it is agreed to by the parties; and
c) Judical period - when it is fixed by the court.
c.According to definiteness 
a) Definite period- when it is fixed or it is known when it will come; and
b) Indefinite period - when it is not fixed or it is not known when it will come. Where the pe-
riod is not fixed but a period is intended, the courts are usually empowered by law to fix the
same.
7. What is the effect when prior to the arrival of the day certain, the object of the obligation: 
a.Is lost 
1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished;
2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it perishes, or goes out of commerce, or disappears in
such a way that its existence is unknown or it cannot be recovered;
b. Deteriorates 
1) When the thing deteriorates without the fault of the debtor, the impairment is to be borne
by the creditor;
2) If it deteriorates through the fault of the debtor, the creditor may choose between the rescis-
sion of the obligation and its fulfillment, with indemnity for damages in either case;
c.Improves 
1) If the thing is improved by its nature, or by time, the improvement shall inure to the bene-
fit of the creditor;
2) If it is improved at the expense of the debtor, he shall have no other right than that granted
to the usufructuary.
8. What is the effect if the debtor pays the obligation prior to the arrival of the day certain?
- The recovery of what has been paid by mistake before the fulfillment of a suspensive
condition is allowed. The creditor cannot unjustly retain the thing or money
received before the arrival of the period.
9. Is the debtor presumed to be aware of the period or not? 
- The debtor is presumed to know that debt is not yet due. The obligor many no longer
recover the thing or money once the period has arrived but he can recover the fruits or
interests from the date of premature performance to the date of maturity of the obligation.
10. To whose benefit is the period established? 
- The tenor of the obligation or the circumstances may, however, show that it was the
intention of the parties to constitute the period for the benefit of either the debtor or the
creditor.
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11. What are the exceptions to the general rule and what does it mean? Can you give an example? 
(1) No period is fixed but a period was intended - the obligation does not fix a period but it can be
inferred from its nature and the circumstances that a period was intended.
Ex. D agreed to construct the house of C. The parties failed to fix the period within which the
construction is to be made.
Here, the court can fix the term for it is evident that the parties intended that D should construct
the house within a certain period.
(2) Duration of the period depends upon the will of the debtor.
Ex. Kristia borrowed a sum of money amounting to Php 20,000.00 from Bryan. It was not
stipulated in the contract when Kristia will pay Bryan. The court may fix a period because it can be
inferred from its nature and circumstances that a period was intended.
12. How do you compute a period? 
a.Year - twelve (12) calendar months.
b. Month - are of thirty (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.
c.Day - of twenty-four (24) hours.
d. Night - from sunset to sunrise.
13. “I will give you a car 3 months from June 7”. When is the obligation demandable? 
- The obligation is demandable on September 7.
14. “I will give you a car 2 years from June 7”. When is the obligation demandable? 
- The obligation is demandable on June 7 after the next 2 years.
15. Who has the power to fix the period? 
- The court is authorized to fix the period.
16. When is the Court allowed to fix a period? 
- The court may fix a period when there is no fixed period, but it can be inferred that a
period was intended by the parties from its nature and the circumstances and when the
duration of the period depends upon sole will of the debtor.
17. “I will give you a motorcycle.” When is the obligation demandable? 
- This is pure obligation. A pure obligation is immediately demandable. It is an obligation
with respect to which no condition precedent remains which has not been
performed(ART.1179)
18. What is the effect if the determination of the period depends upon the will of the debtor? 
- 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.
19. What is the effect if the determination of the condition depends upon the will of the debtor? 
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- If the obligation is subject to a condition which depends upon the sole will of the debtor,
the conditional obligations is void (Art. 1182) because in such case, it is actually the
fulfillment of the obligation that depends upon the will of the debtor.
20. Can court change the agreed period? 
- A period cannot be fixed by the court.
21. When can a creditor demand even before the arrival of the day certain? Can you explain each case? 
- 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;(ART1198)
22. D obtained a loan from C in the amount of 50,000 Pesos, payable on August 10. As security for his
debt, D mortgaged his car in favor of C. The car however was substantially damaged through
fortuitous events. What rights if any, does C have under the law? May C demand payment from
D even before August 10? 
- Yes C is guarantee to pay D mortgaged of his car because of the damage due to fortuitous
event. Article.1198 paragraph 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;