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

begins only from a day certain upon the arrival
-Future and certain event upon the arrival of
of period (Art. 1193, par. 1.)
which obligation (or right) subject to it either
arises or is terminated. 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: 1. If the thing is lost without the fault of the

debtor, the obligation shall be extinguished.
a.) Legal period
2. If the thing is lost through the fault of the
- When it is provided for by laws;
debtor, he shall be obliged to pay damages; it is
b.) Conventional or voluntary period understood that the thing is lost when it
perishes, or goes out of commerce, or
- When it is agreed by the parties (Art. 1196.); disappears in such a way that its existence is
c.) Judicial period unknown or it cannot be recovered.

- When it is fixed by the court. (Art 1197.) 3. When the thing deteriorates without the fault
of the debtor, the impairment is to be borne by
the creditor.
3. According to definiteness 4. If it deteriorates through the fault of the
a.) Definite period debtor, the creditor may choose between the
rescission of the obligation and its fulfillment,
- When it is fixed or it is known when it will with indemnity for damages in either case.
come (Art. 1193, par. 3.);
5. If the thing is improved by its nature, or by
b.) Indefinite period the time. The improvement shall inure to the
benefit of the creditor.
- When it is not fixed or it is not known when it
will come. Where the period is not fixed but a 6. If it is improved at the expense of the debtor,
period is intended, the courts are usually he shall have no other right than that granted to
empowered by law to fix the same. (Art. 1197.) the usufructuary. (1122)

ART. 1194 ART. 1195

-In case of loss, deterioration or improvement -Anything paid or delivered before the arrival of
of the thing before the arrival of the day the period, the obligor being unaware of the
certain, the rules in article 1189 shall be period or believing that the obligation has
observed. become due and demandable, may be
recovered with the fruits and interests.

Payment Before Arrival of Period

Effect of Loss, Deterioration, or
Improvement Before Arrival of Period Art. 1195

ART. 1189 • It applies only to obligation to give.

• When the conditions have imposed with the • It is similar to Article 1188, paragraph 2, which
intention of suspending the efficacy of an allows the recovery of what has been paid by
obligation to give, the following rules shall be mistake before the fulfillment of a suspensive
observed in case of the improvement, loss, condition.
deterioration of the thing during the pendency
of the condition:
 SECTION 2 OBLIGATIONS WITH A PERIOD

• The creditor cannot unjustly enrich himself by been established for the benefit of both the
retaining the thing or money received creditor and debtor.

before the arrival of the period. Example:

On January 1, D borrowed from C P10,000

payable on December 31 at 15% interest. D
Debtor Presumed Aware of Period
cannot pay before December 31 without the
• The presumption is that the debtor knew that consent of C. Neither can C compel D to pay
the debt was not yet due. before the expiration of the term.

• He has the burden of proving that he was

unaware of the period.
Exceptions to the General Rule
• Where the duration of the period depends
1. Term is for the benefit of the debtor alone.
upon the will of the debtor (Art. 1197, par 3),
payment by him amounts, in effect, to his Examples:
determination of the arrival of the period.
a. D borrowed from C P1,000 to be paid within
• The obligor may no longer recover the thing one (1) year without interest.
or money once the period has arrived but he
b. D promised to pay his debt “on or before
can recover the fruits or interests thereof from
December 31, 2008.”
the date of premature performance to the date
of maturity of obligation. c. D promised to pay his debt “for a term of five
(5) years counted from this date.”
Example:

D owes C P10,000 which was supposed to be

paid on December 31 this year. By mistake, B 2. Term is for the benefit of the creditor.
paid his obligation on December 31 last year.
Examples:
No Recovery in Personal Obligations
A.D borrowed from C P1,000 payable on
-Article 1195 has no application to obligations December 31 with the stipulation that D cannot
to do or not to do. make payment before the lapse of the period
but C may demand fulfillment even before said
Art. 1196
date.
Whenever in an obligation a period is
designated, it is presumed to have been
established for the benefit of both the creditor Computation of Term or Period
and the debtor, unless from the tenor of the
1. The Administrative Code of 1987 provides:
same or other circumstances, it should appear
that the period has been established in favor of a. Legal Periods (Chap. VIII, Book 1, Sec. 31
one or of the other. (1127) thereof.)
Presumption as to Benefit of Period – “Year” : 12 months
• In an obligation subject to a period fixed by – Month : 30 Days (unless it refers to a specific
the parties, the period is presumed to have calendar month)
 SECTION 2 OBLIGATIONS WITH A PERIOD

– Day : 24 hours right to make contracts for the parties.

(Tolentino vs. Gonzales, 50 Phil. 577)
– Night : from sunset to sunrise
Example:

D obliges himself to pay C P10,000. Since the

2. A calendar month is a month designated in
obligation does not fix a period, not even the
the calendar without regard to the number of
court may fix a period.
days it may contain.,

To illustrate:
Exceptions to the General Rule
One calendar month from December 31, 2010
will be from January 1, 2011 to January 31, 1. No period is fixed but a period was
2011. intended.

One calendar month from January 31, 2011 will Example:

be from February 1, 2011 until February 28,
D agreed to construct the house of C. The
2011.
parties failed to fix the period within which the
• Under the Administrative Code, a year is construction is to be made.
composed of 12 calendar months, the number
2. Duration of the period depends upon the
of days being irrelevant.
will of the debtor.

Examples:
ART. 1197
a. “when my means permit me to do so” (Art.
• If the obligation does not fix a period, but 1180)
from its nature and the circumstances it can be
b. “little by little” (Scone vs. Francisco, 24 Phil.
inferred that a period was intended, the courts
309)
may fix the duration thereof.
c. “from time to time”;
• The courts shall also fix the duration of the
period when it depends upon the will of the d. “at any time I have the money” (Soriano vs.
debtor. Abalos, 84 Phil. 206)

• In every case, the courts shall determine such e. “in partial payments” (Levy Hermanos vs.
period as may under the circumstances have Paterno, 18 Phil. 353); and
been probably contemplated by the parties.
f. “when I am in a position to pay.”
Once fixed by the courts, the period cannot be
changed by them.

ART. 1198
Court Generally without Power to Fix a Period • The debtor shall lose every right to make use
• If the obligation does not state a period and of the period:
no period is intended, the court is not 1. When after the obligation has been
authorized to fix a period. The courts have no 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.