SECTION 2 OBLIGATIONS WITH A PERIOD

ARTICLE 1193 • If resolutory, it does not invalidate the fact

that the obligation existed.
-Obligations for whose fulfillment a day certain
has been fixed, shall be demandable only when 4. As to effect, when left to debtor’s will – A
that day comes. period which depends upon the will of the
debtor empowers the court to fix the duration
-Obligations with a resolutory period take effect
thereof. (Art. 1197, par. 2.), while a condition
at once but terminate upon arrival of the day
which depends upon the sole will of the debtor
certain.
invalidates the obligation (Art. 1182, par. 2.)
-A day certain is understood to be that which
5. As to retroactivity of effects – Unless there is
must necessarily come, although it may not be
an agreement to the contrary, the arrival of a
known when.
period does not have any retroactive effect,
-If the uncertainty consists in whether the day while the happening of a condition has
will come or not, the obligation is conditional, retroactive effect.
and it shall be regulated by the rules of the
• Art. 1183., a period must be possible. If the
preceding section. (1125a)
period is impossible, the obligation is void.
Obligation with a Period

-Effects or consequences are subjected in one

Kinds of Period or Term
way or another to the expiration or arrival of
said period or term. 1. According to effect:

Period a.) Suspensive period (ex die) – the obligation

-Future and certain event upon the arrival of
which obligation (or right) subject to it either
arises or is terminated.
begins only from a day certain upon the arrival
of period (Art. 1193, par. 1.)
Examples:

Period and Condition Distinguished • “I will pay you 30 days from today”

1. As to fulfillment – A period is a certain event • “I will support you from the time your father
which must happen sooner or later at a date dies”
known beforehand, or at a time which cannot
• “I will pay you when my means permit me to
be determined, while a condition is an
do so”
uncertain event.
b.) Resolutory period (in diem) – the obligation
2. As to time – A period refers only to the
is valid up to a day certain and terminates upon
future, while a condition may refer also to a
arrival of the period.
past event unknown to the parties.
Examples
3. As to influence on the obligation – A period
merely fixes the time for the efficaciousness of • “I will give you P500 a month until the end of
the obligation. A condition causes an obligation the year”
either to arise or to cease.
• “I will support you until you die”
•If suspensive, it cannot prevent the birth of
the obligation in due time.
 SECTION 2 OBLIGATIONS WITH A PERIOD
2. According to source:
a.) Legal period
- When it is provided for by laws;
b.) Conventional or voluntary period
- When it is agreed by the parties (Art. 1196.);
c.) Judicial period
- When it is fixed by the court. (Art 1197.)
3. According to definiteness
a.) Definite period
- When it is fixed or it is known when it will
come (Art. 1193, par. 3.);
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. (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.
Effect of Loss, Deterioration,
Improvement Before Arrival of Period
ART. 1189
• When the conditions have imposed with the
intention of suspending the efficacy of an
obligation to give, the following rules shall be
observed in case of the improvement, loss,
deterioration of the thing during the pendency
of the condition:
1. If the thing is lost without the fault of the
debtor, the obligation shall be extinguished.
2. If the thing is lost through the fault of the
debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it
perishes, or goes out of commerce, or
disappears in such a way that its existence is
unknown or it cannot be recovered.
3. When the thing deteriorates without the fault
of the debtor, the impairment is to be borne by
the creditor.
4. If it deteriorates through the fault of the
debtor, the creditor may choose between the
rescission of the obligation and its fulfillment,
with indemnity for damages in either case.
5. If the thing is improved by its nature, or by
the time. The improvement shall inure to the
benefit of the creditor.
6. If it is improved at the expense of the debtor,
he shall have no other right than that granted to
the usufructuary. (1122)
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
or
Art. 1195
• It applies only to obligation to give.
• It is similar to Article 1188, paragraph 2, which
allows the recovery of what has been paid by
mistake before the fulfillment of a suspensive
condition.
 SECTION 2 OBLIGATIONS WITH A PERIOD
• 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.
• He has the burden of proving that he was
unaware of the period.
• Where the duration of the period depends
upon the will of the debtor (Art. 1197, par 3),
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 obligation.
Example:
D owes C P10,000 which was supposed to be
paid on December 31 this year. By mistake, B
paid his obligation on December 31 last year.
No Recovery in Personal Obligations
-Article 1195 has no application to obligations
to do or not to do.
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
• In an obligation subject to a period fixed by
the parties, the period is presumed to have
been established for the benefit of both the
creditor and debtor.
Example:
On January 1, D borrowed from C P10,000
payable on December 31 at 15% 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.
Exceptions to the General Rule
1. Term is for the benefit of the debtor alone.
Examples:
a. D borrowed from C P1,000 to be paid within
one (1) year without interest.
b. D promised to pay his debt “on or before
December 31, 2008.”
c. D promised to pay his debt “for a term of five
(5) years counted from this date.”
2. Term is for the benefit of the creditor.
Examples:
A.D borrowed from C P1,000 payable on
December 31 with the stipulation that D cannot
make payment before the lapse of the period
but C may demand fulfillment even before said
date.
Computation of Term or Period
1. The Administrative Code of 1987 provides:
a. Legal Periods (Chap. VIII, Book 1, Sec. 31
thereof.)
– “Year” : 12 months
– Month : 30 Days (unless it refers to a specific
calendar month)
 SECTION 2 OBLIGATIONS WITH A PERIOD
– Day : 24 hours
– Night : from sunset to sunrise
2. A calendar month is a month designated in
the calendar without regard to the number of
days it may contain.,
To illustrate:
One calendar month from December 31, 2010
will be from January 1, 2011 to January 31,
2011.
One calendar month from January 31, 2011 will
be from February 1, 2011 until February 28,
2011.
• Under the Administrative Code, a year is
composed of 12 calendar months, the number
of days being irrelevant.
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
• 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.
(Tolentino vs. Gonzales, 50 Phil. 577)
Example:
D obliges himself to pay C P10,000. Since the
obligation does not fix a period, not even the
court may fix a period.
Exceptions to the General Rule
1. No period is fixed but a period was
intended.
Example:
D agreed to construct the house of C. The
parties failed to fix the period within which the
construction is to be made.
2. Duration of the period depends upon the
will of the debtor.
Examples:
a. “when my means permit me to do so” (Art.
1180)
b. “little by little” (Scone vs. Francisco, 24 Phil.
309)
c. “from time to time”;
d. “at any time I have the money” (Soriano vs.
Abalos, 84 Phil. 206)
e. “in partial payments” (Levy Hermanos vs.
Paterno, 18 Phil. 353); and
f. “when I am in a position to pay.”
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.
 SECTION 2 OBLIGATIONS WITH A PERIOD

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.