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.
Period vs Condition
- A term or period is a future AND certain event while a condition is a future AND
uncertain event.
- A period must necessarily come, although it may not be known when while a
condition may or may not happen.
- A period exerts an influence upon the demandability or extinguishment of
obligation while a period exerts an influence upon the existence or birth of the obligation.
- A period does not have any retroactive effect unless agreed upon by the parties
while there is retroactivity in case of conditions.
- When a period is solely left to the will of the debtor, the existence of the
obligation is not affected and Courts may fix the period but if the condition is solely left to
the will of debtor, it becomes potestative hence the conditional obligation becomes invalid.
Classifications of Period
(1) Suspensive Period (ex die)- it is suspensive when the obligation becomes
demandable only upon the arrival of the the day certain. Example: A decided to donate a
parcel of land to B to be delivered upon B’s death. Please take note that what is
suspended here is not the acquisition of rights or the effectivity of the obligation but
merely its DEMANDABILITY.

(2) Resolutory Period (in diem)- it is resolutory when the obligation is demandable
at once, although it is terminated upon the arrival of the day certain. Example: A is given
the usufruct of a parcel of land with mango trees on it for 10 years. This means that A can
enjoy the right to the use and right to the fruits of such parcel of land for a period of 10
years. After expiration of 10 years then A has the obligation to return the parcel of land

with mango trees on it to the owner. So in this case, you can see that the obligation is
effective, is demandable immediately and is only terminated upon the arrival of the period
which is 10 years.

(3) Legal Period- the period is legal when it is granted by law. Examples:
In Art. 1606, the period of conventional redemption is 4 years from the date of the
contract in the absence of an agreement. If there is an agreement then it should not
exceed 10 years from the date of the contract.
(4) Conventional Period- the period is stipulated by the parties.
 (5) Judicial Period- the period is fixed by the Courts. Example: Art 1197 provides that if
the obligation does not fix a period but from the nature and circumstances of the obligation, it
can be inferred that a period is necessary then the Courts are allowed to fix
the period. The period fixed by the Court is a judicial period. Once fixed, it can no longer
be judicially changed.

(6) Definite Period- when the date or time is known beforehand. Example: On July
18, 2018 you will have your preliminary examination.

(7) Indefinite Period- an event will necessarily come, although it may not be known
when. Examples: date of death; date of Eid’l Fitr

Effect of Fortuitous Event on an Obligation subject to a Term or Period

- Its only effect is to relieve the contracting parties from the fulfillment of their
respective obligations during the term or period. It does not stop the running of the term
or period agreed upon.

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.
- This is already explained in 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.

Effect of Advanced Payment or Delivery

- This article only applies to an OBLIGATION TO GIVE.
- If the obligor, being unaware of the period or believing that the obligation has
become due and demandable paid or delivered anything before the arrival of the period,
he may recover what he has paid or delivered with fruits and interests.
- If the payment or delivery was made voluntarily or with knowledge of the period
or the fact that the obligation has not yet become due and demandable, then Art. 1195
does not apply.

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.

Benefit of a Term or Period

- Under Art. 1196, the general rule is that the period is for the benefit of both the
debtor and creditor. Consequently, the creditor cannot demand the performance of the
obligation before the expiration of the designated period; neither can the debtor compel
the creditor to accept performance of the obligation before the designated period.
- Example: In a contract of loan, A promised to pay his indebtedness to B in three
equal monthly installments. (July 15, August 15, September 15) Following the general
rule:
* The creditor cannot ask the debtor to accelerate payments meaning he cannot
ask for the payment of the August 15 and September 15 installment on July 15. This is
true even if the debtor is willing to pay the interest also.
* Similarly, the debtor cannot compel the creditor to accept advance payments of
August 15 and September 15 installment on July 15.
* There are several reasons why the creditor cannot be compelled to accept
advance payment: (1) payment of interest; (2) the creditor may want to keep his money
safe from sudden decline in purchasing power of peso, etc.

Exception
- If from the tenor of the obligation, the period was established for the benefit of
either the debtor or creditor.
- If it is established in favor of the creditor, then he can compel the debtor to
perform the obligation any time. But he cannot be compelled by the debtor to accept
advance performance of obligation.
- If it is established in favor of the debtor, then he may renounce the benefit of the
period and perform his obligation in advance or he may oppose premature demand on the
part of the creditor.

Computation of term or period

1 year= 365 days
months= 30 days
days= 24 hrs
night= sunset to sunrise
if months designated by their name
exclude the first, include the last
if the last day is Sunday or legal holiday, the time shall not run until the end of the
next day which is neither Sunday or holiday

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.
When can the court fix the period?
(1) First, when the obligation does not fix a period, but from its nature and the
circumstances, it can be inferred that a period was intended by the parties.
(2) If the duration of the period depends solely on the will of the debtor.
(Potestative Term)
Example of #1- There is an agreement between the parties regarding the construction of
house but they failed to fix a definite period.

Example #2- When the debtor has executed a promissory note promising to pay his
indebtedness to the creditor “little by little” or “as soon as possible” or “as soon as he has
the money.” In this case, the remedy of the creditor is to ask the Court to fix the duration
thereof.
Potestative Condition vs Potestative Term
- In potestative condition, if the condition is solely dependent on the will of the
debtor, the conditional obligation becomes invalid. It becomes illusory.

- In case of a potestative term, the term can be left solely to the will of the debtor.
What is left to the will of the debtor in this case is not the determination of existence of
obligation but merely the determination when the obligation shall be fulfilled. But in order to
prevent the obligation from becoming illusory, Art 1197 allows the creditor to ask the court to
fix the duration of the term or period.

Judicial Period
- Once the period is fixed by the Court, it cannot be judicially changed anymore. It
becomes a covenant, the law between the parties.

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.
 - With respect to the first ground, there is no need for judicial declaration of
insolvency. Insolvency here must be understood in its common meaning- when the debtor
is financially incapable of complying with his debts and liabilities. The insolvency must
arose after contracting the obligation.

- However, if there is a guaranty or security for the debt, the debtor, in spite of his
insolvency, does not lose his right to the period.

- With respect to the second ground, when the debtor does not furnish the
guaranties or securities promised, it is but logical that he shall lose the benefit of the term
or period. The obligation becomes pure hence due and demandable immediately.
Example: Second mortgage
- Third grounds:
(1) If the guaranty or security is impaired through the fault of the debtor, he shall
lose his right to the benefit of the period; however if it is impaired without his fault, he

shall retain his right.

(2) If the guaranty or security disappears through any cause, even without any
fault of the debtor, he shall lose his right to the benefit of the period.

But in either case, the debtor, shall not lose his right to the benefit of the period if
he gives a new guaranty or security which is equally satisfactory.
- Fourth ground is self-explanatory
- Fifth ground: To abscond means to go into hiding.