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CHAPTER 3
DIFFERENT KINDS OF OBLIGATIONS

Section 2
OBLIGATIONS WITH A PERIOD

1. OBLIGATION WITH A PERIOD is one whose fulfillment a period or term has been fixed.
PERIOD is a certain length of time which determines the effectivity or the extinguishment of obligations.
Requisites of a valid period:
a. It must refer to the future
b. It must be certain (sure to come)
c. It must be physically and legally possible
2. Period distinguished from Condition.
PERIOD CONDITION
a. As to fulfillment Certain event Uncertain event
b. As to time Future event Past or future event
c. As to effect, when left to debtor’s will Court will fix the period Obligation is invalid
d. As to retroactivity of effects Does not have retroactive Has retroactive effect
effect

3. Kinds of Period
a. According to effect
i. Suspensive (ex die). The arrival of the period will give rise to obligation.
ii. Resolutory (in diem). The arrival of the period extinguishes the obligation.
b. According to source
i. Legal - provided by law
ii. Conventional/voluntary - by agreement
iii. Judicial - fixed by the court
c. According to definiteness
i. Definite – the exact date and time is known and given
ii. Indefinite – Something that will surely happen, but the date of happening is unknown

4. Payment before Arrival of Period.

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. (Art. 1195)

5. Presumption as to Benefit of Period.

Presumed to be for the benefit of both creditor and debtor unless otherwise stated.
Circumstances which indicate for whom the benefit of the term is:
a. For the benefit of both
 When there is interest stipulated
 When the creditor is interested in keeping his money safely invested or when the creditor wants to
protect himself from the dangers of currency depreciation.
b. For the benefit of the debtor
 When the loan is without interest
 When payment is to be made “within” a certain period from date of contract
c. For the benefit of the creditor
 When stipulated, as when the contract provides that no payment should be made until after a
certain given period.

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6. When Court may fix a Period.

Court shall determine such period as probably contemplated by the parties. Once fixed by the courts, the
period cannot change by them.
a. When the period depends upon the will of the debtor
b. When although the obligation does not fixed a period, it can be inferred that a period was intended

7. When the Debtor Losses the Benefit of the Period (The creditor may demand immediate payment)
a. When he becomes insolvent, unless he gives a guaranty or security for the debt
b. When he fails to furnish the guaranties or securities which he has promised
c. 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
d. When the debtor violates any undertaking, in consideration of which the creditor agreed to the period
e. When the debtor attempts to abscond.

8. PROBLEMS:
1. “I will support you from the time X marries.” Is this an obligation with a term or a conditional
obligation?
2. “I will begin supporting you if your father dies.” Is this a conditional obligation or an obligation with a
term?
3. “I will begin supporting you from the time your father dies of malaria.” Is this an obligation with a
term?
4. “I will pay you my debt when my means permit me to do so.” Is this an obligation with a condition or
an obligation with a term?
5. If an obligation is demandable “on or about December 5, 2021,” when is it really demandable?
6. An obligation stated: “A will give B a car the moment X becomes 30 years old.” Now, X is only 28.
Suppose X dies at the age of 29, should A still give the donation?
7. A was supposed to pay B P1,000,000 on December 31, 2022. But believing that the obligation was due
and demandable already on December 31, 2021, A paid B the P1,000,000 on said date. How much may
A recover from B, say on June 30, 2022?
8. Suppose in the preceding problem, A had paid prematurely knowing fully well of the existence of the
term, how much can A recover?

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