Section 2 – Obligations with a Period 2.

Indefinite Period – when it is not fixed or it is not

known when it will come.
ART. 1193. Obligations for whose fulfillment a day Art. 1194. In case of loss, deterioration, or improvement
certain has been fixed, shall be demandable only when of the thing before the arrival of the day certain, the rules
that day comes. in Art. 1189 shall be observed.

Obligations with a resolutory period take effect at once, Rules to apply for loss, deterioration, improvement of the
but terminate upon arrival of the day certain. thing BEFORE the arrival of the period:
Particulars Effect
A day certain is understood to be that which must Lost WITHOUT debtor’s fault Obligation is extinguished
necessarily come, although it may not be known when. Lost THROUGH debtor’s Damages
fault
If the uncertainty consists in whether the day will come Deteriorates WITHOUT Impairment is to be borne
or not, the obligation is conditional, and it shall be debtor’s fault by the creditor
regulated by the rules of the preceding Section. Deteriorates THROUGH The creditor may choose
debtor’s fault between:
Obligations with a period – is one whose consequences are - Recission + Damages
- Fulfillment + Damages
subjected in one way or another to the expiration of said
Improvement by its nature or Improvement shall inure to
period or term.
by time the benefit of the creditor
Improvement at the expense He shall have no other
Period – a future AND certain event, upon the arrival of of the debtor right than that granted to
which the obligation subject to it either arises or is the usufructuary.
terminated. It is a day certain which must necessarily come
although it may not be known when. Art. 1195. Anything paid or delivered before the arrival
of the period, the obligor being unaware of the period or
Period vs. Condition believing that the obligation has become due and
Particulars Period Condition demandable, may be recovered with fruits and interests.
As to fulfillment Certain event Uncertain event
which must Article 1195 applies only to obligations to give. It is similar
happen sooner or to Article 1188, paragraph 2, which allows the recovery of
later or at a time
what has been paid by mistake before the fulfi llment of a
which cannot be
suspensive condition. The creditor cannot unjustly enrich
determined
As to time Refers only to May refer to past himself by retaining the thing or money received before the
the future events unknown arrival of the period.
to the parties
As to influence Merely fixes the Causes an ART. 1196. Whenever in an obligation a period is
on the time for the obligation to designated, it is presumed to have been established for
obligation efficaciousness arise or cease the benefit of both the creditor and the debtor, unless
of the obligation from the tenor of the same or other circumstances it
As to effect Empowers the Invalidates the should appear that the period has been established in
when left to court to fix the obligation favor of one or of the other.
debtor’s will duration
As to Does not have Has retroactive Presumption as to benefit of period:
retroactivity of retroactive effect effect General Rule: It is presumed to have been established for
effects UNLESS there is the benefit of both the creditor and debtor.
an agreement to
the contrary
This means that before the expiration of the period, the
debtor may not fulfill the obligation and neither may the
If the period is impossible, the obligation is void.
creditor demand its fulfillment without the consent of the
other especially if the latter would be prejudiced or
Kinds of Period or Term:
inconvenienced thereby.
 According to Effects:
1. Suspensive Period – the obligation begins only
Exception: When the tenor of the obligation or
from a day certain upon the arrival of period.
circumstances show that it was the intention of the parties to
2. Resolutory Period – the obligation is valid up to a
constitute the period for the benefit of either the debtor or the
day certain and terminates upon arrival of the
creditor.
period.
ART. 1197. If the obligation does not fi x a period, but
 According to Source
from its nature and the circumstances it can be inferred
1. Legal Period – when it is provided for by laws
that a period was intended, the courts may fi x the
2. Conventional Period – when it is agreed by the
duration thereof.
parties
3. Judicial Period – when it is fixed by court.
The courts shall also fix the duration of the period
when it depends upon the will of the debtor.
 According to Definiteness
1. Definite Period – when it is fixed or it is known In every case, the courts shall determine such period
when it will come; and as may under the circumstances have been probably
contemplated by the parties. Once fixed by the courts, the
period cannot be changed by them.

If the obligation does not state a period and no period is

intended, the court is not authorized to fi x a period. The
courts have no right to make contracts for the parties.

If the obligation does not fix a period but it can be inferred

from its nature and the circumstances that a period was
intended by the parties, the court may fi x the period. If the
period fixed is extended by agreement, to be valid the same
must be for a definite time, although if no precise date is
fixed, it is sufficient that the time can readily be determined.
In case the period of extension is not precise, Article 1197
applies.

Legal effect where suspensive period/condition depends

upon the will of the debtor:
(1) The existence of the obligation is not affected although the
period depends upon the sole will of the debtor. It is only
the performance with respect to time that is left to the will
of the debtor.
(2) If the obligation is subject to a condition which depends
upon the will of the debtor, the conditional obligation is
void (Art. 1182.) because in such case, it is actually the
fulfillment of the obligation that depends upon the will of
the debtor.

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;
(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.

General Rule: The obligation is not demandable before the

lapse of the period.

Exception: 5 instances enumerated under Art. 1198, the

period is disregarded and the obligation becomes pure and,
therefore, immediately demandable.