Section 2: Obligation with a Period

ART 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.
Obligation with a period
-one 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 which the obligation subject to it either arises or terminated
-a day certain which must necessarily come, although may not be known

Period and condition distinguished

-if both are impossible, obligation is void

Kinds of period or term

According to effect:
• Suspensive period (ex die).
→The obligation begins only from a day certain upon the arrival of the period (Art. 1193, par. 1.);
• Resolutory period (in diem).
→The obligation is valid up to a day certain and terminates upon the arrival of the period. (par. 2.)
According to source:
• Legal period.
→When it is provided for by law;
• Conventional or voluntary period.
→When it is agreed to by the parties (Art. 1196.);
• Judicial period.
→When it is fixed by the court. (Art. 1197.)
According to definiteness:
• Definite period.
→When it is fixed or it is known when it will come (Art. 1193, par. 3.);
• Indefinite period.
→When it is not fixed or it is not known when it will come. Where the period is not fixed but a period is intended, the courts are
usually empowered by law to fix the same. (see Art. 1197.)

ART. 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 article 1189

ART. 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.
-The creditor cannot unjustly enrich himself by retaining the thing or money received before the arrival of the period.

Debtor presumed aware of period.

-The presumption is that the debtor knew that the debt was not yet due
-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.
- The obligor may no longer recover the thing or money once the period has arrived but he can recover the fruits or interests
thereof from the date of premature performance to the date of maturity of the obligation

No recovery in personal obligations.

-no application to obligations to do or not to do because as to the former, it is physically impossible to recover the service
rendered, and as to the latter, as the obligor performs by not doing, he cannot, recover what he has not done.

ART. 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 the debtor.
-This means that before the expiration of the period, the debtor may not fulfill the obligation and neither may the creditor demand
its fulfillment without the consent of the other
-the presumption, ofc, is rebuttable

Exceptions to the general rule.

-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. The benefit of the period may be the subject of express stipulation of the
parties.
Term is for the benefit of the debtor alone.
→He cannot be compelled to pay prematurely, but he can, if he desires, do so.
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.

The Administrative Code of 1987 provides:
• Legal Periods
→“Year’’ =twelve calendar months
→ “month’’ = thirty days, unless it refers to a specific calendar month and shall be computed according to the number of days the
specific month contains
→ “day,’’ = twenty-four hours
→ “night’’ = from sunset to sunrise

Calendar month
-a month designated in the calendar without regard to the number of days it may contain.
-It is the “period of time running from the beginning of a certain numbered day up to, but not including, the corresponding
numbered day of the next month
-if there is not a sufficient number of days in the next month, then up to and including the last day of that month.

Under the Administrative Code, a year is composed of 12 calendar months, the number of days being irrelevant,
Under the Civil Code a year is equivalent to 365 days, whether it be a regular year or a leap year.

ART. 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 a period
-refers to a judicial period as distinguished from the period fixed by the parties in their contract which is known as contractual
period.
-if the 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.

-When the court is authorized to f x the duration of the 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
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
Duration of period depends upon the will of the debtor. - under article 1180

-the court must 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

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

The existence of the obligation
-not affected although the period depends upon the sole will of the debtor.
- performance with respect to time is only left to the will of the debtor.
Validity of obligation
-If the obligation is subject to a condition which depends upon the will of the debtor, the conditional obligation is void (Art.
1182.) because in such case, it is actually the fulfillment of the obligation that depends upon the will of the debtor. (see Art. 1308.

Period fixed cannot be changed by the courts.

Period agreed upon by the parties
- it has already lapsed or expired, the court cannot fix another period.
Period fixed by the courts
- From the very moment the parties give their consent to the period fixed by the court, said period acquires the nature of a
covenant, because the effect of such acceptance and consent by the parties is exactly the same as if they had expressly agreed
upon it,
-However, the parties may modify the term by a new agreement.

ART. 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.

When obligation can be demanded before lapse of period.

-the obligation is not demandable before the lapse of the period. However, the debtor shall lose every right to make use of the
period, that is, the period is disregarded and the obligation becomes pure and, therefore, immediately demandable if:
• When debtor becomes insolvent.
• When debtor does not furnish guaranties or securities promised.
Ex:D promised to mortgage his house to secure the debt. If he fails to furnish said security as promised, he shall lose his right to
the period.
• When guaranties or securities given have been impaired or have disappeared.
Ex: If the debt is secured by a mortgage on the house of D, but the house was burned through his fault, the obligation also
becomes demandable unless D gives a new security equally satisfactory.
In this case, the house need not be totally destroyed as it is sufficient that the security be impaired by the act of D. But
in case of a fortuitous event, it is required that the security must disappear. But if the security given deteriorates in such a manner
as to become illusory, it must be deemed to have disappeared or lost as contemplated in paragraph 3.
If the debt is secured by a bond, the failure of D to renew the bond or replace it with an equivalent guarantee upon its
expiration will likewise give C the right to demand immediate payment.
• When debtor violates an undertaking
Ex: Now, suppose that C in the example agreed to the period in consideration of the promise of D to repair the piano of C free of
charge. The violation of this undertaking by D gives C the right to demand immediate payment of the loan.
• When debtor attempts to abscond.
-mere attempt or intent to abscond is sufficient

The exception are on the fact that the debtor might not be able to comply with his obligation