I.

Definitions
Define or give the meaning of the following:
1. Obligation with a period
‌Obligation with a period is one whose effects ore consequences are subjected in one way
Or another to the expiration or arrival of said period or term. (Article 1193).
2. 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. It is a day which must necessarily come,
Although it may not be known when, like the death of a person. (Article 1193).
3. Indefinite period
‌Indefinite period is a 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. (Article 1193).
II. Discussions
1. Has the debtor the right to recover what he has paid to the creditor before the arrival of
The period agreed upon? Explain.
Yes, but Article 1195 states that it only applies in cases where the debtor is not aware of the
Period and feels that the duty has immediately become payable or demandable, in this
In this instance, it is recoverable along with the benefits and interests. But the debtor is limited to
Obtain the money before the maturity date. Finally, the debtor is unable to
Recoup the money as soon as he knows the date or duration.

2. If an obligation does not state a period for its performance, has a party the right to ask a
Court to fix a period or the duration thereof? Explain.
Yes, but Article 1197 states that the court cannot set a deadline if the obligation
Doesn’t need a time frame. Only in situations where there is no set time but one was planned or
where the debtor’s volition governs the length of the period, may the court impose one. In order
to prevent the risk that the obligation would never be completed, the court set a deadline.
 3. Give the cases when the obligee can demand the performance of an obligation even
Before the arrival of the period agreed upon.
As per Article 1198, the obligee has the right to require the fulfilment of an obligation even
Prior to the start of the prearranged time:
1) When the debtor runs out of money.
It denotes that the debtor’s ability to fulfil or make payments for the obligation, barring the
debtor from providing collateral to be secured the obligation. It must come to an insolvency after
an obligation has been shrunk.
2) When the debtor fails to provide the pledged security or guarantees.
It indicates that the debtor has neither provided security for the obligation or shown
The debtor’s entitlement to the period will be forfeited to the creditor.

3) When promised securities or guarantees have deteriorated or vanished.

If the security was destroyed as a result of an unforeseeable event or as a result of the debtor’s
negligence, the debtor is required to replace the item with one of equal value.
4) When a debtor breaches a commitment.
This is the point at which the debtor forfeits the right to the period for failing to fulfill his
promise.
5) If the debtor makes an attempt to flee.
This one has the debtor attempting to avoid paying his debt. He will no longer be entitled to the
period.

II. Problems
Explain or state briefly the rule or reason for your answer.
1.D (debtor) borrowed P10,000 from C (creditor) at 15% interest per annum payable on
December 31. Can D require C to accept payment before December 31?
D cannot require C to accept payment before December 31. As stated in Article 1196, the period
is designated for the benefit of the debtor and the creditor. In other words, D cannot require C to
accept payment, neither, C can require payment.
2.D binds himself to give P10,000 to C upon the death of the father of D. Is the obligation Of D
conditional or one with a period?
According to Article 1193, paragraph 3, a day certain is understood to be that which must
necessarily come, although it may be known when. In which case, the day that D’s father will die
is unknown, but it will certainly come. Therefore, this one is considered as an obligation with a
period. Unlike a conditional one, it is characterized by the fact that it is an uncertain occurrence,
meaning it may or may not occur.

3.D obtained a loan from C in the amount of P50,000, payable on August 10. As security For his
debt, D mortgaged his car in favor of C. The car, however, was substantially Damaged without
the fault of D. What rights, if any, does C have under the law? May C demand payment from D
even before August 10?
Even though D was not at fault for the substantial damage to the car, still C has the right to
Demand the payment from D even before August 10 unless D immediately replaces the car with
The equivalent value or a new security equally satisfactory. (Art. 1198).