SECTION 2 : Obligations at a time which

cannot be
with a Period determined

ART. 1193. Obligations for whose (2) As to only to the Future and
time future also to a
fulfillment a day certain has been fixed,
past event
shall be demandable only when that day unknown to
comes. the parties

Obligations with a resolutory period take (3) As to infl merely fixes the causes an
effect at once, but terminate upon arrival uence on time for the obligation to
the efficaciousness arise or to
of the day certain.
obligation of the cease.
obligation.
A day certain is understood to be that If suspensive, it —->
which must necessarily come, although cannot prevent idedetermin
it may not be known when. the birth of the e kung
obligation in mag-aarise
If the uncertainty consists in whether the due time; ba or
if resolutory, it magceceas
day will come or not, the obligation is
does not annul, e ung
conditional, and it shall be regulated by even in fiction, obligation
the rules of the preceding Section. the fact of its
(1125a) existence.

obligation with a period —> finifix lng un

time of the
- one whose consequences are
effectivity
subjected in one way or another to
the expiration of said period or term (4) As to depends upon A condition
effect, when the will of the which
Period or Term left to debtor depends
debtor’s will empowers the upon the
- a future and certain event upon the
court to fix the sole will of
arrival of which the obligation (or duration thereof the debtor
right) subject to it either arises or is invalidates
terminated. —-> the
- It is a day certain which must obligation
necessarily come (like the year
2005; next Christmas), although it —>
potestative
may not be known when, like the on the part
death of a person. (Art. 1193, par. 3.) of the
+ Death of a person = hindi debtor; it is
natin alam kung kailan invalid
mamatay ang isang tao but
definitely that day will come (5) As to Unless there is the
retroactivity an agreement happening
of effects. to the contrary, of a
Period and condition distinguished. the arrival of a condition
period does not has a
have any retroactive
PERIOD CONDITIO retroactive effect.
N effect
(1) As to A certain event an uncertain
—->
fulfillment. which must event
happen sooner
or later at a
date known
beforehand, or
PERIOD MUST BE POSSIBLE,
● PERIOD IS IMPOSSIBLE (e.g.,
February 30, because it will never
come; within 24 hours to deliver a
ship in a foreign country because it
is too short) = OBLIGATION IS VOID
Kinds of period or term.
(1) According to effect:
(a) Suspensive period (ex die). — The
obligation begins only from a day certain
upon the arrival of the period (Art. 1193, par.
1.); and
● What is suspended is not the
obligation itself but its demandability
(b) Resolutory period (in diem). — The
obligation is valid up to a day certain and
terminates upon the arrival of the period.
(par. 2.)
● Demandable at once and arrival of a
period will extinguish or terminate
the obligation
(b) 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.)
● Fixed na nga pero d mo alam kelan
darating
○ Death
○ Hindi nagset or hindi nafix
ung period sa
nagapag-usapan pero may
intention on the parties to fix
a period, courts may fix the
same period according to the
intention of the parties
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. (n)
● Suspensive period eto, art. 1189
nmn is suspensive condition tho
parehas lang ung rule

LOSS OF THING
(2) According to source:
without obligation = exception
(a) Legal period. — When it is provided for debtor’s extinguished =
by law; fault. and the debtor negligenc
● Payment of income taxes (fortuitous is not liable to e, in
event) the creditor delay,
(b) Conventional or voluntary period. — fraud,
generic
When it is agreed to by the parties (Art.
thing
1196.); and
● Kung ano ung nakalagay sa contract through Liable for
and napag-agreehan debtor’s damages
fault.
(c) Judicial period. — When it is fixed by the Negligence=
damages
court. (Art. 1197.)
● When the obligation depends upon
the will of the debtor empowers the
court to fix the duration thereof DETERIORATION OF THE THING

(3) According to definiteness: without Creditor will bear

debtor’s the loss
(a) Definite period. — When it is fixed or it is fault.
known when it will come (Art. 1193, par. 3.); THE DEBTOR
and IS NOT LIABLE
● Alam mo na beforehand kung kelan through Liable for
dadating debtor’s damages
fault.
a) Rescission (or
 ● Pwede manyari na akala mo due na
cancellation) of
the obligation ung oblig, so akala mo due na ung
with damages; utang mo so nagbayad ka but later
on narealized mo n next pa pla ung
(b) Fulfillment of due= PAYMENT BY MISTAKE,
the obligation So in that case, pwedeng bawiin for
also with the mean time na hindi pa naman
damages
ang-aarive ung suspensive period,
pwedeng bawiin muna ung nabayad
by mistake= RECOVER kac HINDI
IMPROVEMENT OF THE THING PA NAMAN DUE AND
DEMANDABLE
By nature Benefit the E.g.
creditor The Payment was supposed to be
paid on December 31, 2020

at expense Right to
The debtor, by mistake, paid his
of the Usufruct
debtor. obligation on Dec. 31 2019
Debtor can
improve but ● May one yr pa para
nd pd singilin makapagbayad,
ung creditor, ● June 30= may recover
only have the 2000 + 120 ( ung interest,
right to
legal rate 12% a yr,)
enjoyment

Can remove
the
improvement
without
damaging the
thing, PWEDE
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. (1126a)
● Implies only to real obligation or
obligation to give
● similar to Article 1188, paragraph 2,
which allows the recovery of what
has been paid by mistake before
the fulfillment of a suspensive
condition.
● REASON: The creditor cannot
unjustly enrich himself by retaining
the thing or money received before
the arrival of the period.
NO RIGHT TO RECOVER IF THE
DEBTOR HAD THE KNOWLEDGE
OF THE PERIOD
● Kung alam naman talaga na
ung pagbabayad ay sa 2020
pa but despite the knowledge
he insisted the payment
● The principle of Solutio
Indebiti will not apply, he
deemed to have impliedly
renounced the period.
DEBTOR CAN NOT RECOVER WHAT HE
HAD PAID BY MISTAKE IF THE DEBT
HAD ALREADY MATURED.
● Kagaya kanina, nagbayad ng 2019,
but ung date ngayon is 2021 na,
hindi na pwedeng irecover kasi ung
due date na dec. 31, 2020
nag-expire na, he may recover only
the interest from dec. 31 2019 to
december 31 2020
NO RIGHT OF RECOVERY IN PERSONAL
OBLIGATIONS
● Article 1195 has no application to
obligations to do or not to do
● TO DO = it is physically impossible
to recover the service rendered
● NOT TO DO= as the obligor
performs by not doing, he cannot, of
course, 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. (1127)
Presumption as to benefit of period.
● Presumption as regards the
beneficiality of the period stipulated
by the parties
● OBLI subj to a PERIOD fixed by the
PARTIES = the period is presumed
to have been established for the
benefit of both the creditor and the
debtor.
○ Kac nga nag-uuusap yan, if
may napagkasunduan sila, it
is pressumed na un ung
convenient to both of the
parties
○ 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
especially if the latter would
be prejudiced or
inconvenienced thereby.
The presumption, of course, is
rebuttable.
EXAMPLE:
On January 1, D borrowed from C
P10,000.00 payable on December 31 at
18% interest.
D cannot pay before December 31 without
the consent of C. Neither can C compel D to
pay before the expiration of the term.
● Pwede naman magbayad ahead of
time provided na magcoconsent si
creditor
● It is presumed that the period
designated, which is December 31,
has been established for the benefi t
of both. D is benefi ted because he
can use the money for one year. C is
also benefi ted because of the
interest the money would earn for
one year.
●
In a contract of the loan with interest, the
term is generally for the benefit of both the
lender and the borrower.
This is also the case even where there is no
interest stipulated but the creditor receives,
in place of interest, other benefits by reason
of the period.
● May mga benefits kac ung period so
hindi pwedeng basta basta lang
balewalain without the consent of
the other
GENERAL RULE:
Period stipulated is presumed to be for
the benefit of the both parties.
EXEMPTION TO THE GENERAL RULE:
When 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.
● Pwedeng ang direction ng period
para sa benefit ng debtor lang or
creditor lang
EXEMPTION (1) Period is for the benefit
of the debtor alone
● He cannot be compelled to pay
prematurely, but he can, if he
desires, do so.
● Kung gusto niyang magbayad ahead
of time= PWEDE, pero he cannot be
 compelled to pay before the due
date
EXAMPLES:
(1) D borrowed from C P10,000.00 to be
paid within one year without interest.
● 1 yr period deemed intended for the
benefit of the debtor only, he can
pay anytime but he cannot be
compelled to pay before 1 yr
● The debtor have until 1 yr to pay it,
the debtor cannot be compelled to
pay the loan by the creditor without
the consent of the debtor, but if the
debtor want, he can pay anytime
basta before
(2) D promised to pay his debt “on or before
December 31, 2004.”
● May option ang debtor na pd na
before dec 31, 200 siya magbayad,
or pd na dec 31, 2004 na
EXEMPTION (2) PERIOD is for the benefit
of the creditor alone.
● 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.
● Kabaliktaran nung una
● Hindi pa man dumadating ung
period pwede nang magdemand si
creditor, pero si debtor if he wishes
to pay before the arrival of the period
he cannot do so without the consent
of the creditor
Computation of term or Period
● BASIS = Administrative Code of
1987 ( executive order no. 292)
○ “Legal Periods = “Year’’ shall
be understood to be twelve
calendar months: “month’’ of
thirty 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; “day,’’ to a
day of twenty-four hours; and
“night’’ from sunset to
sunrise.’’
○ To illustrate: One calendar
month from December 31,
2007 will be from January 1,
2008 to January 31, 2008;
one calendar month from
January 31, 2008 will be from
February 1, 2008 until
February 29, 2008.
● CIVIL CODE: “When the law speaks
of years, months, days or nights, it
shall be understood that years are of
three hundred sixty-fi ve (365) days
each; months of thirty (30) days;
days of twenty-four (24) hours; and
nights from sunset to sunrise. If
months are designated by their
name, they shall be computed by the
number of days which they
respectively have. In computing a
period, the fi rst day shall be
excluded, and the last day included.”
(Art. 13 thereof.)
RECONCILE = USE THE PRINCIPLE OF
STATUTORY CONSTRUCTION TO
HARMONIZE THE CONFLICTING
PROVISIONS
● The Administrative Code of 1987
being the more recent law governs
the computation of legal periods.
● More recent law will PREVAIL over
the previous law
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. (1128a)
● May limited authority ung court to
fix a period but take note that the court is
generally without the power to fix the period,
the period being mentioned refers to a
judicial period
contractual period
● period fixed by the parties in their
contract
GENERAL RULE: 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
● If makikita sa agreement na wala
naman talagang intention ung
parties to put a period then the court
cannot come to fix a period for the
parties, THE ONLY TIME THT THE
COURT CAN FIX THE PERIOD IS
WHEN THERE IS MANIFEST
INTENTION ON THE PARTIES TO
BE BOUND BY A PERIOD YET
HINDI LANG NAREFLECT SA
KANILANG AGREEMENT
● THE COURT HAVE NO RIGHT TO
MAKE CONTRACTS FOR THE
PARTIES< NAG-INTERPRET LANG
ANG COURNT NG CONTRACTS
MERON ANG PARTIES TO
REFLECT TO THEIR INTENTIONS
GENERAL RULE: Courts are not
empowered or not authorized to fix a
period for the party
Exceptions to the general rule.
No period is fixed but a period was
intended.
● When there is no period but a period
was intended by the parties
○ Wlng nakalagay na period
pero makikita mo naman na
the way that the agreement
is bounded eh may intention
to be bound by a period pero
ung agreement fails to fix the
period
● If the obligation does not fix a period
but it can be inferred from its nature
and the circumstances that a period
was intended by the parties, the
court may fix the period.
EXAMPLES:
(1) X agreed to construct the house of Y.
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 X should
construct the house within a certain period.
(see Concepcion vs. People, 74 Phil. 63
[1942].)
Duration of period depends upon the will
of the debtor.
● Art. 1180
Whenever the court fixes the term of an
obligation, it does not thereby modify or
ammend, but it is merely enforcing the
implied stipulation of the parties( merely
enforces or carried out the intention of the
parties)
● Hindi magdadag-dag ng kontrata
ang court , iinterapret lang niya
Legal effect where suspensive period/
condition depends upon will of debtor.
(1) 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.
● Art 1180
● Supensive period depends upon the
will of the debtor: PWEDE
(2) 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.)
● Suspensive condition depends upon
the sole will of the debtor(Potestative
condition): VOID
RULE: Period fixed cannot be changed
by the courts.
(1) If there is a period agreed upon by the
parties and it has already lapsed or expired,
the court cannot fix another period.
● In default na ung isa jan
 ● COURT CAN ONLY FIX WHEN; no
period is fixed but a period is
intended and duration of the
period is upon the will of the
debtor
(2) From the very moment the parties give
their acceptance and 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, and having been agreed
upon by them, it becomes a law governing
their contract. The period fixed in a final
judgment is res judicata and as such forms
an integral part of the imperfect contract
which gave rise to its designation by the
court, and thence, forward part of a perfect
and binding contract. Consequently, the
court cannot change it. (Barretto vs. City of
Manila, 11 Phil. 624 [1908].) However, the
parties may modify the term by a new
agreement.
● If hindi satisfied dun sa ano ng court
they can modify to new agreeement
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. (1129a)
When obligation can be demanded before
lapse of period.
GENERAL RULE: Before the arrival of
the suspensive period hindi mo pwedeng
idemand ‘yan
● the obligation is not demandable
before the lapse of the period.
1198 provides that there are cases where
an obligation can be demanded even
prior to the lapse of the period agreed
upon.
The debtor shall lose every right to make
use of the period:
○ Mawawalan na ng karapatan
na gamitin ung benefit of the
period which is for his benefit
○ It means that the creditor can
demand payment even
before the maturity date
● the period is disregarded and the
obligation becomes pure and,
therefore, immediately demandable
○ MAGIGING PURE( which is
immediately demandable)
The exceptions are based on the fact that
the debtor might not be able to comply with
his obligation.
(1) When debtor becomes insolvent. —
● Insolvent = one person is insolvent if
hindi siya makapagbayad ng
obligasyon at pagkakautang at the
time that the obligation becomes due
and demandable
= or he is financial distress na mas
malaki ung liabilities kesa sa
kaniyang assets
EXAMPLE:
D owes C P10,000.00 due and
payable on December 20. If D
becomes insolvent, say on
September 10, C can demand
immediate payment from D even
before maturity unless D gives
sufficient guaranty or security
● Due and payable on Dec.20
● Debtor becomes insolvent on
september 10= before the
 obli becomes due and
demandable ( 3 months
before)
● Can the creditor demand
payment even if the period
has not yet arrived? Yes, the
basis is Art 1198 par. 1, the
creditor can demand
immediate payment from the
debtor even before the
maturity unless the debtor
gives a sufficient guaranty or
security for the debt
(pwedeng ipromise ung car
as a security )
● The insolvency in this case
need not be judicially
declared. It is sufficient that
the assets of Debtor are less
than his liabilities or Debtor is
unable to pay his debts as
they mature.
Note: that the insolvency of Debtor must
occur after the obligation has been
contracted.
(2) When debtor does not furnish
guaranties or securities promised. —
● Ex. nagcontract ng obli si debtor and
creditor, napagusapan na the debtor
is supposed to give or furnish
halimbawa the collateral gurantee or
security because of that debt or
loan, tapos hindi naman niya
binibigay kay creditor, in that case,
the creditor can avail the remedy(
debtor= he shall lose his right to the
period, Creditor= can immediately
demand the payment)
(3) When guaranties or securities given
have been impaired or have disappeared.
— undertaking by D gives C the right to
● nangutang dahil sa isang security or
grantee kaso ung gurantee or
security na ito ay na-impare or kaya
nagdissapear, hindi na secured ung
loan, the remedy can be avail
● EXAMPLE:
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
● Bec of negligence or fault of
debtor= the house need not
be totally destroyed as it is
sufficient that the security be
impaired by the act of Debtor
○ Ung bahay naburned
down bec of the
debtor, not need to be
totally destroyed,
sufficient na na
na-impared
● in case of a fortuitous event,
it is required that the security
must disappear.
○ Bec of furtuitious
event ung bahay
nasunog, need na
total burned down
● 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.
○ Bec of fortuitous
event nagdeteriorate
lng, it must become
dissaped or lost
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.
(4) When debtor violates an undertaking.
—
● Example: the C agreed to the period
in consideration of the promise of D
to repair the piano of C free of
charge. The violation of this
demand immediate payment of the
loan.
● Kaya nagpautang kasi si C kasi sabi
ni D he will repair the piano free of
charge, but when D violated the
undertaking to repair the piano, it will
make the obligation due and
demandable
○ The fact na hindi ginawa ung
piano, that is a violation of
 D’s undertaking, kasi without
that promised the C hindi
namna papautangin si D

(5) When debtor attempts to abscond. —

● Before the due date of the
obligation, D (debtor) changed his
address without informing C
(creditor) and with the intention of
escaping from his obligation. This
act of D is a sign of bad faith which
results in the loss of his right to the
benefit of the period stipulated.
Observe that a mere attempt or
intent to abscond is sufficient.
○ Debtor changed address and
wd intention from escaping
○ Hal. magkapitbahay lang, tas
madaling aarw nag aalsa
balutan ung D and wala ng
planong bumalik= mere
attempt= pwede nang
puntahan at singingilin
○ Mere attempt to abscond
would mean forfeture of the
benefit of the suspensive
period
● Kapag tinataguan na ng Debtor, par.
5, sign na ayaw na magbayad,
demandable na