OBLIGATION WITH A

PERIOD OF TIME
 WHAT IS A PERIOD OR TERM?
A period is a future and certain event upon the
arrival of which the obligation subject to it either
arises or is terminated. It is a day certain which
must necessarily come, although it may not be
known when, like the death of a person.
 7 CASES CONSIDERED TO BE
“OBLIGATION WITH A PERIOD”
1. Little by little
2. In partial payment
3. Payable ASAP
4. When I can afford it
5. When I have the money
6. When I am able to
7. When my means permit me to do so
 PERIOD CONDITION

certain uncertain

future only future/past but unknown

(*influence upon obligation) (*) on the very existence of

only upon its demandability obligation itself
 PRESUMPTION THAT THE PERIOD IS
FOR THE BENEFIT OF BOTH
DEBTOR AND CREDITOR
Whenever in an obligation a period has been
designated, it shall be presumed to have been
established for the benefit of both the creditor and
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.
CASE
In 1994, during the Japanese occupation, the debtor
borrowed 216,000 pesos in Japanese military notes
from the creditor, promising to pay within one year
from May 8, 1948 in the legal tender in the
Philippines. In the later part of 1944, the debtor
tendered the payment of the principal including the
interest up to the date of maturity. The creditor
refused to accept payment. Can the creditor be
compelled to accept payment before maturity?
ANSWER
No. In the case of De Leon vs. Syjuco, the Supreme
Court held that the refusal of the creditor to accept
the tender of payment was justified in view of the
fact that the term or period in this case is presumed
to have been established for the benefit of both the
creditor and debtor in accordance with Article 1196
of the Code. There are several reasons why the
creditor cannot be compelled to accept payment.
ANSWER
1. Payment of interest
2. The creditor may want to keep his money
invested safely instead of having it in his hands, in
which case, by fixing the period, he is thus able to
protect himself against sudden decline in the
purchasing power of the currency loaned.
 CAN THE DEBTOR PERFORM THE
OBLIGATION BEFORE THE EXPIRATION
OF SUCH PERIOD?
The general rule is that when a period is designated for
the performance or fulfillment of an obligation, it is
presumed to have been established for the benefit of both
creditor and debtor. Consequently, the creditor cannot
demand the performance of the obligation before the
expiration of the designated period; neither can the debtor
perform the obligation before the expiration of the period.
EFFECT IF GIVEN TO
DEBTOR ALONE
 When the period should appear to have been
established for the benefit of the debtor, what
are the effects?
1. He may oppose any premature demand on the
part of the creditor for performance of the
obligation.
2. If he so desires, he may renounce the benefit of
the period by performing his obligation in advance
 5 INSTANCES WHEN DEBTOR
LOSES RIGHT TO USE PERIOD
1. Debtor is insolvent.
2. Debtor attempts to abscond.
3. Impairment of guarantees/securities.
4. Failure to furnish guarantees/securities promised.
5. Violation of undertaking.