CHAPTER 3: DIFFERENT KINDS OF OBLIGATIONS

This chapter discusses 6 sections (Primary Classifications of Obligations) which are the different
kinds of obligations. However, the different kinds of obligations are not limited to these 6
sections. Another provisions in civil code also provide other kinds of obligations (Secondary
Classification of Obligation)

SECONDARY CLASSIFICATION OF OBLIGATION

1. Unilateral & Bilateral Obligations
a. Unilateral – only one of the parties have the obligations
b. Bilateral – both parties have obligations to each other
2. Real & Personal Obligations
a. Real – obligations to give
b. Personal – obligation which is either to do or not to do
Note: If it’s to do, positive personal obligation. If it’s not to do, negative personal
obligation.
3. Determinate & Generic Obligations
a. Determinate – obligation has specific thing/object
b. Generic – obligation is to deliver a generic object
4. Civil & Natural Obligations
a. Civil – if one of the parties will not perform his obligation, the other party can go to
court and enforce the obligation
b. Natural – there is no longer a civil obligation because it already lapse a prescription.
But, if the debtor voluntarily performs his obligation, he cannot recover what he is given.
5. Legal, Conventional, & Penal Obligations
a. Legal – provided by the law
b. Conventional – agreed by the parties
c. Penal – imposed whenever a person violates a law or right

SECTION 1. – PURE AND CONDITIONAL OBLIGATIONS

 ARTICLE 1179. EVERY OBLIGATION WHOSE PERFOMANCE DOES NOT DEPEND UPON A
FUTURE AND UNCERTAIN EVENT, OR UPON A PAST EVENT UNKNOWN TO THE PARTIES, IS
DEMANDABLE AT ONCE. EVERY OBLIGTION WHICH CONTAIN A RESOLUTORY CONDITION
SHALL ALSO BE DEMANDABLE, WITHOUT PREJUDICE TO THE EFFECTS OF THE HAPPENING
OF THE EVENT.

 Pure Obligations – is an obligation which are not subject to any condition and no
specific date (period) is mentioned, so it’s demandable at once.
 Conditional Obligation – is one whose consequences are subject in one way or another
to the fulfilment of a condition.
Note:
 When we say PERIOD, we talk about future time that is certain to come. It’s
arrival of the period. Ex. Date (Dec. 25, 2024)
 When we say CONDITION, it is a future and uncertain event, or past event
unknown to the parties. It’s the happening of the condition. But, mostly it is
future & uncertain event.
Two Principal Kinds of Condition
a) Suspense Condition (condition precedent or condition antecedent) – the happening of
the condition will give rise to an obligation (or right) if it’s already fulfilled. The
obligation is suspended until the happening of the uncertain event which constitutes
the condition. Ayha pa liable ang debtor kung mahitabo and condition
b) Resolutory Condition (condition subsequent) – the creditor’s obligation will be
extinguish once the resolutory will happen. Liable karon ang debtor pero it will
extinguish the moment mahitabo ang condition.
When obligation is demandable at once (immediately):
i. When it’s pure
ii. When it’s subject to a resolutory condition. Ex. “I will give you 1k per month until
you passed this semester”
iii. When it’s subject to a resolutory period Ex. “I will give you 1k per month until you
reach your birthday”
 ARTICLE 1180. WHEN THE DEBTOR BINDS HIMSELF TO PAY WHEN HIS MEANS PERMIT HIM
TO DO SO, THE OBLIGATION SHALL BE DEEMED TO BE ONE WITH A PERIOD, SUBJECT TO
THE PROVISIOS OF ARTICLE 1197
Note:
 If the contract states, “I promise to pay you 10k if I have the money” – It’s a
valid obligation which is a period. (It’s a period but not fixed means the payment
will be made anytime the debtor have the money)
 When a creditor cannot agree as to when the payment will be made by the
debtor, he can go to court and ask to fix the period.
Where duration of period depends upon the will of debtor.
i. The debtor promises to pay when his means permit him to do so – the obligation
shall be deemed to be one with a period
ii. Other cases – “little by little”, “as soon as possible”, “from time to time”, “at any
time I have the money”, “in partial payments”, “when I am in a position to pay”

 ARTICLE 1181. IN CONDITIONAL OBLIGATIONS, THE ACQUISITION OF RIGHTS, AS WELL AS

THE EXTINGUISHMENT OR LOSS OF THOSE ALREADY ACQUIRED, SHALL DEPEND UPON
THE HAPPENING OF THE EVENT WHICH CONSTITUTES THE CONDITION.
Effects of happening of condition
i. Acquisition of rights – it is subject to suspensive condition, the acquisition of rights
by the creditor depends upon the happening of the event which constitutes the
condition.
ii. Loss of rights already acquired – subject to resolutory condition, the happening
which constitutes the condition produces the extinguishment or loss of rights
already acquired.

 ARTICLE 1182. WHEN THE FULFILLMENT OF THE CONDITION DEPENDS UPON THE SOLE
WILL OF THE DEBTOR, THE CONDITION OBLIGATION SHALL BE VOID. IF IT DEPENDS UPON
THE CHANCE OR UPON THE WILL OF A THIRD PERSON, THE OBLIGATION SHALL TAKE THE
EFFECT IN CONFORMITY WITH THE PROVISIONS OF THIS CODE.
Note:
 This article talks about additional 2 classification of condition, POTESTATIVE AND
CASUAL.
Classification of conditions
1) As to effect:
a) Suspensive – the happening of which gives rise to the obligation
b) Resolutory – the happening of which extinguishes the obligation
2) As to form:
a) Express – the condition is clearly stated
b) Implied – the condition is merely inferred
3) As to possibility:
a. Possible – the condition is capable of fulfilment, legally, and physically
b. Impossible – the condition is not capable of fulfilment, legally, or physically
4) As to cause or origin:
a) Potestative – the condition depends upon the will of one of the contracting
parties
b) Casual – the condition depends upon the chance or upon the will of a third
person
c) Mixed – the condition depends partly upon the chance and partly upon the will of
a third person
5) As to mode:
a) Positive – the condition consists in the performance of an act
b) Negative – the condition consists in the omission of an act
6) As to numbers:
a) Conjunctive – there are several conditions and all must be fulfilled. Ex. You must
passed all the major subjects, then I’ll give you 1k.
b) Disjunctive – there are several conditions and only one or some of them must be
fulfilled. Ex. You must pass the Law subject or Intacc sujects, then I’ll give you
1k.
7) As to divisibility:
a) Divisible – the conditions is susceptible of partial performance. Pwede putol ang
pag happen sa condition.
 b) Indivisible – the conditions is not susceptible of partial performance. Isa ra gud

 Potestative Condition – a condition suspense in nature and which depends solely of the will
of the debtor or creditor. Ex. “I will give you 1k if I will be here tomorrow @ 1pm.” – Ang
debtor ang mag buot kung mo tunga ba sya, at the same time, ayha ra ma liable ang
debtor kung mo tunga sya. So, this obligation is NOT VALID. (Because the debtor can
easily avoid the obligation by not coming tomorrow.)
Where suspensive condition depends upon the will of the DEBTOR.
i. Conditional obligation void. – Where the potestative condition depends solely
upon the will of the DEBTOR, the conditional obligation shall be void or not valid.
ii. Only the condition is void. – If the obligation is a pre-existing one and, therefore,
does not depend for its existence upon the fulfilment by the debtor of the
potestative condition, only the condition is void leaving the unaffected the
obligation itself.
Where suspensive condition depends upon the will of the CREDITOR.
i. If the condition depends exclusively upon the will of the creditor, the obligation
is valid. Ex. “I will give you 1k if you will be here tomorrow.” – A potestative
condition but the condition is dependent upon the CREDITOR.
Where resolutory condition depends upon will of debtor
i. If the condition is resolutory in nature, the obligation is valid although its
fulfilment depends upon the sole will of the debtor.

 Casual Condition – if the suspensive condition depends upon chance or upon the will of a
third person, the obligation subject to it is valid. Ex. “I will give you an umbrella if it will
rain today.” “I will give you 1k if Sir Dags (third person) will be absent today.”
 Mixed Condtion – the obligation is valid if the suspensive condition depends partly upon
the chance and partly upon the will of the third person. Ex. “I will give you 1k if Sir Dags
will be absent tomorrow and if you will be here tomorrow.”

 ARTICLE 1183. IMPOSSIBLE CONDITION, THOSE CONTRARY TO GOOD CUSTOMS OR PUCLIC

POLICY AND THOSE PROHIBITED BY LAW SHALL ANNUL THE OBLIGATION WHICH DEPENDS
UPON THEM. IF THE OBLIGATION IS DIVISIBLE, THAT PART THEREOF WHICH IS NOT
AFFECTED BY THE IMPOSSIBLE OR UNLAWFUL CONDITION SHALL BE VALID. THE
CONDITION NOT TO DO AN IMPOSSIBLE THING SHALL BE CONSIDERED AS NOT HAVING
BEEN AGREED UPON.
Note:
 This article refers to suspensive conditions. It applies only to cases where the
impossibility already existed at the time the obligation was constituted. If the
impossibility arises after the creation of the obligation, Article 1266 governs.
Two kinds of Impossible Conditions – (obligation is void or not valid)
i. Physically Impossible Conditions – when they, in nature of things, cannot exist or
cannot be done. Dili mahitabo tungod sa nature. Ex. “I will give you 10k if you
can make the dead person alive again.”
ii. Legally Impossible Conditions – when they are contrary to law, morals, good
customs, public order, or public policy. Ex. “I will give you 10k if you make
marijuana and give it to me.” (Physically possible but legally impossible because
marijuana is against the law.)
Effects of impossible conditions
i. Condition obligation void – impossible condition annul the obligation which
depends upon them. The reason behind the law is that the debtor knows his
obligation cannot be fulfilled. He has no intention to comply with his obligation.
So, both obligation and condition are void.
ii. Conditional obligation valid – the condition is negative, that is, not to do an
impossible thing, it is disregarded and the obligation is rendered pure and valid.
Ex. “I promise to give you 10k if you will not do drugs.”
iii. Only the affected obligation void – if the obligation is divisible, the part thereof
not affected by the impossible condition shall be valid.
iv. Only the condition void – if the obligation is a pre-existing obligation, and,
thereof, does not depend upon the fulfilment of the condition which is
impossible, for its existence, only the condition is void.
 ARTICLE 1184. THE CONDITION THAT SOME EVENT HAPPEN AT A DETERMINATE TIME
SHALL EXTINGUISH THE OBLIGATION AS SOON AS THE TIME EXPIRES OR IF IT HAS BECOME
INDUBITABLE (CLEAR) THAT THE EVENT WILL NOT TAKE PLACE.

 Positive (Suspensive) Condition – the happening of an event at a determinate time. The

obligation is extinguished:
a. as soon as the time expires without the event taking place; or
b. as soon as it has become clear that the event will not take place although the time
specified has not expired.

 ARTICLE 1185. THE CONDITION THAT SOME EVENT WILL NOT HAPPEN AT A DETERMINATE
TIME SHALL RENDERED THE OBLIGATION EFFECTIVE FROM THE MOMENT THE TIME
INDICATED HAS ELAPSED, OR IF IT HAS BECOME EVIDENT THAT THE EVENT CANNOT
OCCUR. IF NO TIME HAS BEEN FIXED, THE CONDITION SHALL BE DEEMED FULFILLED AT
SUCH TIME AS MAY HAVE PROBABLY BEEN CONTEMPLATED, BEARING IN MIND THE
NATURE OF THE OBLIGATION.

 Negative Condition – an event will not happen at a determinate time. The obligation shall
become effective and binding:
a. From the moment the time indicate has elapsed without the event taking place; or
b. From the moment it has become evident that the event cannot occur, although the
time indicated has not yet elapsed.
Note:
 If no time is fixed, the circumstances shall be considered to arrive at the intention of
the parties. This rule may also be applied to a positive condition.

 ARTICLE 1186. THE CONDITION SHALL BE DEMEED FULFILLED WHEN THE OBLIGOR
VOLUNTARILY PREVENTS ITS FULFILLMENT.

Constructive Fulfilment of Suspensive Condition.

Three requisites for the application of this article:
1) The condition is suspensive;
2) The obligor actually prevents the fulfilment of the condition; and
3) He acts voluntarily.
Note:
 Ex. 1. “X promise Y to give Y 10k, if Y will be at Liceo.” – Valid because it is
suspensive on the part of the creditor.
2. “Gi kulata ni X si Y the night before and na hospital si Y, so wala naka tunga si
Y sa liceo pagkaugma.” – Normally, dili liable si X because the condition did not
happen, but since it was X who prevented the condition from happening, X still be
liable because it was as if the condition happened. In other words, the debtor
prevented the condition from happening.
Constructive Fulfilment of Resolutory Condition.
Article 1186 applied also to an obligation subject to a resolutory condition with
respect to the debtor who is bound to return what he has received upon the
fulfilment of the condition.

 ARTICLE 1187. THE EFFECTS OF A CONDITIONAL OBLIGATION TO GIVE, ONCE THE

CONDITION HAS BEE FULFILLED, SHALL RETROACT TO THE DAY OF THE CONSTITUTION OF
THE OBLIGATION. NEVERTHELESS, WHEN THE OBLIGATION IMPOSES RECIPROCAL
PRESTATION UPON THE PARTIES, THE FRUITS AND INTEREST DURING THE PENDENCY OF
THE CONDITION SHALL BE DEEMED TO HAVE VEEN MUTUALLY COMPENSATED. IF THE
OBLIGATIONIS UNILATERAL, THE DEBTOR SHALL APPROPRIATE THE FRUITS AND
INTERESTS RECEIVED, UNLESS FROM THE NATURE AND CIRCUMSTANCES OF THE
OBLIGATION IT SHOULD BE INFERRED THAT THE INTENTION OF THE PERSON
CONSTITUTING THE SAME WAS DIFFERENT.
IN OBLIGATION TO DO AND NOT TO DOM THE COURTS SHALL DETERMINE, IN EACH CASE,
THE RETROACTIVE EFFECT OF THE CONDITION THAT HAS BEEN COMPLIED WITH.

Retroactive effects of fulfilment of suspensive condition

i. In obligation to give – an obligation to give subject to a suspensive condition
becomes demandable only upon the fulfilment of the condition. However, once the
 condition is fulfilled, its effect shall retroact to the day when the obligation was
constituted. Ex. “I will give you a cow if you pass this subject (which will be fulfilled
on Dec.). Assumed as if, the cow got pregnant prior to Dec, so the obligation is not
only to give you a cow but as well its fruit.”
ii. In obligation to do or not to do – with respect to the retroactive effect of the
fulfilment of a suspensive condition, in obligation to do or not to do, no fixed rule is
provided.
Retroactive effects as to fruits and interests in obligation to give.
i. In reciprocal obligation – there is no retroactivity because the fruits and interest
received during the pendency of the condition are deemed to have been mutually
compensated. This rule is necessary for purposes of convenience since the parties
would not have to render mutual accounting of what they have received.
ii. In unilateral obligation – there is usually no retroactive effect because they are
gratuitous. The debtor receives nothing from the creditor. Thus, fruits and interest
belong to the debtor unless from the nature and other circumstances of the
obligation it should be inferred that the intention of the person constituting the
same was different.

 ARTICLE 1188. THE CREDITOR MAY, BEFORE THE FULFILLMENT OF THE CONDITION, BRING
THE APPROPRIATE ACTIONS FOR THE PRESERVATION OF HIS RIGHT. THE DEBTOR MAY
RECOVER WHAT DURING THE SAME TIME HE HAS PAID BY MISTAKES IN CASE OF A
SUSPENSIVE CONDITION.

Rights pending fulfilment off suspensive condition

i. Right of creditor – he may take or bring appropriate actions for the preservation of
his right, as the debtor may render nugatory the obligation upon the happening of
the condition.
ii. Right of debtor – he is entitled to recover what he has paid by mistake prior to the
happening of the suspensive condition because the creditor may or may not be able
to fulfil the obligation imposed and hence, it is not certain that the obligation will
arise.

 ARTICLE 1189. WHEN THE CONDITION HAVE BEEN 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 OR DETERIORATION OF THE TING
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 DETERORIATES THROUGHT 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 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.
Note:
 In (1), this is an application of the rule of fortuitous event if it’s a specific thing.
 The thing is lost when it perishes, a physical loss.
 In (3) & (4), talks about deterioration (ang value sauna, pag abot later ni ubos)
 In (3). Ex. “I will give you a cow if you pass this subject. Assumed that the cow is on
a diet or in the area where the cow resides, there is an outbreak wherein it
deteriorates the cow without the fault of the debtor. So, when the condition is
fulfilled and the obligation arise, the debtor will give the cow even though it
deteriorates.
 In (4). Ex. Same example to (3) but this time, the debtor intentionally didn’t feed
the cow that is why it deteriorates, then the creditor has the right to either receive
the cow even though it deteriorates or not to receive the cow. In both cases, debtor
is liable to pay for damages.
 In (5) & (6), talks about improvement (increase the value)
 In (5). The increase of the thing or value is belong to the creditor.
  In (6). The debtor can get back what we expensed provided it will not destroy the
object.
 Usufruct – right to enjoy the use and fruits of a thing belonging to another.
Requisites for the application of Article 1189
1) The obligation is a real obligation;
2) The object is a specific or determinate thing;
3) The obligation is subject to suspensive conditions;
4) The obligation is fulfilled; and
5) There is loss, deterioration, or improvement of the thing during the pendency of the
condition.
Kinds of Loss
i. Physical loss – when a thing perishes.
ii. Legal Loss – when a thing goes out of commerce. Ex. “I promise to give you a cow
on Dec. Assumed that on Dec, the cow become endangered species, the law has
passed by congress, making the sell/transfer of cow illegal.”
iii. Civil loss – the thing disappears in such a way that its existence is unknown or it is
known but cannot be recovered.
Rules in cases of loss, deterioration or improvement of thing during pendency of
suspensive condition
1) Loss of thing without debtor’s fault
2) Loss of thing through debtor’s fault
3) Deterioration of thing through debtor’s fault
4) Improvement of thing by nature or by time
5) Improvement of thing at expense of debtor

 ARTICLE 1190, WHEH THE CONDITION HAVE FOR THE PURPOSE THE EXTINGUISHMENT OF
AN OBLIGATION TO GIVE, THE PARTIES, UPON THE FULFILLMENT OF SAID CONDITIONS,
SHALL RETURN TO EACH OTHER WHAT THEY HAVE RECEIVED.
IN CASES OF LOSS, DETERIORATION, OR IMPROVEMENT OF THE THING, THE PROVISIONS
WHICH, WITH RESPECT TO THE DEBTOR, ARE LAID DOWN IN THE PRECEDING ARTICLE
SHALL BE APPLIED TO THE PATY WHO IS BOUND TO RETURN.
AS FOR OBLIGATION TO DO AND NOT TO DO, THE PROVISIONS OF THE SECOND
PARAGRAPH OF ARTICLE 1187 SHALL BE OBSERVED AS REGARDS THE EFFECT OF THE
EXTINGUISHMENT OF THE OBLIGATION.

Effects of fulfilment of resolutory condition

i. In obligation to give – when the resoluroy obligation is fulfilled, the oblgation is
extinguished.
ii. In obligation to do or not to do – in such obligation, the courts shall determine the
retroactive effect if the fulfilment of the resolutory condition.

 ARTICLE 1191. THE POWER TO RESCIND OBLIGATION IS IMPLIED IN RECIPROCAL ONES, IN

CASE ONE OF THE OBLIGORS SHOULD NOT COMPLY WITH WHAT IS INCUMBENT UPON HIM.
THE INJURED PARTY MAY CHOOSE BETWEEN THE FULFILLMENT AND THE RESCISSION OF
THE OBLIGATON, WITH THE PAYMENT OF DAMAGES IN EITHER CASE. HE MAY ALSO SEEK
RESCISSION, EVEN AFTER HE HAS CHOSEN FULFILLMENT, IF THE LATTER SHOULD BECOME
IMPOSSIBLE.
THE COURT SHALL DECREE THE RESCISSION CLAIMED, UNLESS THERE BE JUST CAUSE
AUTHORIZING THE FIXING OF A PERIOD.
THIS IS UNDERSTOOD TO BE WITHOUT PREJUDICE TO THE RIGHT OF THIRD PERSION WHO
HAVE ACQUIRED THE THING, IN ACCORDANCE WITH THE ARTCILE 1385 AND 1388 AND
THE MORTGAGE LAW

Kinds of obligation according to the person obliged

i. Unilateral – only one party is obliged to comply the obligation
ii. Bilateral – both parties are mutually bound to each other. In other words, both
parties are debtor and creditor to each other. In bilateral obligation, it may be
reciprocal (usually mao ang agkahitabo) or non-reciprocal.
a. Reciprocal obligation – the power to receive is implied (meaning to cancel the
obligation.)
b. Non-reciprocal – which do not impose simultaneous and correlative
performance on both parties. In other words, if one party cannot fulfilled its
obligation, then the other party not only can file damages for a specific
 performance but it can also receive or cancel the obligation with damages.
(Unfair man kung isa lng sa ila ang nag perform)

 ARTICLE 1192. IN CASE BOTH PARTIES HAVE COMMITTED A BREACH OF THE OBLIGATION,
THE LIABILITYY OF THE FIRST INFRACTOR SHALL BE EQUITABLY TEMPERED BY THE
COURTS. IF IT CANNOT BE DETERMINED WHICH OF PARTIES FIRST VIOLATED THE
CONTRACT, THE SAME SHALL BE DEEMED EXTINGUISHED, AND EACH SHALL BEAR HIS
OWN DAMAGES.

Where both parties are guilty of breach

i. First infractor known – one party violated his obligation, the other party also
violated, then the liability of the first infractor should be equitably reduced.
ii. First infractor cannot be determined – one party violates his obligation followed by
the other, but it cannot be determined which of them was the first infractor, then
the contract shall be deemed extinguished and each shall bear his own damages.
Note:
 When both parties are guilty and parehas ang weight sa ilang violation, the court
will not entertain them.

SECTION 2. – OBLIGATIONS WITH A PERIOD

 ARTICLE 1193. OBLIGATION FOR WHOSE FULFILLMENT A DAY CERTAIN HAS BEEN FIXED,
SHALL BE DEMANDABLE ONLY WHEN THAT DAY COMES.
OBLIGATION WITH THE RESOLUTORY PERIOD TAKE EFFECT AT ONCE, BUT THE TERMINATE
UPON THE ARRIVAL OF THE DAY CERTAIN.
A DAY CERTAIN IS UNDERSTOOD TO BE THAT WHICH MUST NECESSARILY COME,
ALTHOUGH IT MAY NOT BE KNOWN WHEN.
IF THE UNCERTAINTY CONSISTS IN WHETHER THE DAY WILL COME OR NOT, THE
OBLIGATION IS CONDITIONAL, AND IT SHALL BE REGULATED BY THE RULES OF PRECEDING
SECTION.
Note:
 When we talk about PERIOD, it is the arrival of the period.
 When we talk about CONDITION, it is happening of the condition.
Kinds of period or term
i. According to effect:
a. Suspensive period (ex die) – the obligation begins only from the day certain
upon the arrival of the period
b. Resolutory period (in diem) – the obligation is valid up to a day certain and
terminated upon the arrival of the period.
ii. According to source:
a. Legal period – provided by the law. Ex. Payment of Taxes (you are required to
pay income tax at a certain date)
b. Conventional or voluntary period – it is agreed to by the parties. Ex. Nagsabot
ang debtor and creditor na mo bayad si debtor at a certain date.
c. Judicial Period – it is fixed by the court. Ex. If you win a case and the court
imposed a liability to the other party at a certain date.
iii. According to definiteness:
a. Definite Period – fixed or it is known when it will come.
b. Indefinite Period – 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.
Note:
 In insurance company, it is an obligation of a period. Although we don’t know when
the event will happen but surely it will happen.
 In example of insurance company applicable only to those people who die due to
covid, then it is an obligation with a condition.

 ARTICLE 1194. IN CASE OF LOSS, DETERIORATION OR IMPROVEMENT OF THE THING

BEFORE THE ARRIVAL OF THE DAT CERTAIN, THE RULES IN ARTICLE 1189 SHALL BE
OBSERVED.
 ARTICLE 1195. ANYTHING PAID OR DELIVERED BEFORE THE ARRIVAL OF THE PERIOD OR
BELIEVING THAT THE OBLGATION HAS BECOME DUE AND DEMANDABLE, MAY BE
RECOVERED, WITH THE FRUITS, AND INTEREST.

Note:
o To better understand, for example, “I promise to give you 100k on Dec. 31, 2026.
Assumed that the debtor thought na due na sya pagka Dec. 31, 2025 munang nag
bayad sya og 100k. In this case, pwede kwaon balik sa debtor ang 100k if he is
unaware. (Where the duration of the period depends upon the will of the debtor)

 ARTICLE 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.

Presumption as to benefit of period

o In an obligation subject to period of fixed by the parties, for the benefit of both
parties, debtor may not fulfil the obligation and neither may the creditor demand its
fulfilment before the period. Ex. “I borrowed 100k and promise to pay after 12
months but I will pay monthly interest until 12 month. As debtor, dili sya mo ingon
sa debtor na mo bayad after a month of borrowing 100k tungod kay 12 month ang
sabot and same goes to creditor na di pa sya mo demand of payment (principal +
interest)
o In computing the period, exclude the first day, include the last day.

Exception of the rule

i. Term is for the benefit of the debtor alone
ii. Term is for the benefit of the creditor alone

 ARTICLE 1197. IF THE OBLIGATION DOES NOT FIX A PERIOD, BUT FROM ITS NATURE AND
CIRCUMSTANCES IT CAN BE INFERRED THAT A PERIOD WAS INTENDED, THE COURTS MAY
FIX THE DURATION THEREOF.
THE COURT 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 UNDERT THE
CIRCUMTANCES HAVE BEEN PROBABLY CONTEMPLATED BY THE PARTIES. ONCE FIXED BY
THE COURTS, THE PERIOD CANNOT BE CHANGED BY THEM.

Note:
 If the obligation does not specified a period tungod kay nakalimot ang parties (a
period was intended by the parties nakalimot lng sila), so in this case, the court will
provide the period.
 If the obligation states that no period is intended and no fixed period, then the
obligation becomes pure obligation so it’s demandable at once or immediately.

 ARTICLE 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 THE ESTBALISHMENT, AND WHEN THROUGHT A FORTUITIOUS 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
Note:
 In this article, the period is intended for the benefit of the debtor. Therefore, the
creditor cannot demand for the fulfilment of the obligation until the agreed certain
period comes.
When obligation can be demanded before the lapse of period (Kanus-a man mawa ang
rights sa debtor? – based on the fact that the debtor might not be alble to comply with his
obligation)
i. When the debtor becomes insolvent.
- Ex. na bankcrupt ang debtor wala pa ang due date sa ilang kasabotan, so
pwede na mo demand ang creditor sa payment anytime. Pero if mo ingon
ang debtor na naa syay ikapuli na mas valuable, then pwede mo hula tang
creditor until its agreed due date.
ii. When debtor does not furnish guaranties or securities promised.
- Ex. Nangutang ang debtor tas payable on Dec 31, tas di mo sugot ang
creditor na dili ibaligya sa debtor ang yuta. Pero kinanghanglan naman
ang kwarta sa debtor, to be followed nalang daw ang titulo sa yuta
pagkaugma. So gi pautang on the condition na ihatod sa debtor ang titulo
pagkaugma pero walay ni abot sa creditor. In this case, the obligation is
demandable at once.
iii. When guarantied or securities given have been impaired or have
disappeared.
- [Same ex to ii] Gihatod ang titulo pero tungod sa fortuitous event or
tungod sa debtor nawala, then obligation is demandable at one.
iv. When debtor violates the undertaking
v. When debtor attempts to abscond
- Nakahiring ang creditor na ang debtor kay ka-andam na para mo mosibat,
then the obligation is demandable at once.