Section 2. ± ± Obligations with a Period
Article 1193 Obligations for whose fulfilment a day certain has been fixed, shall be demandable only when that day comes. Obligations with a resolutory period take effect at once, but terminate upon arrival of the day certa rtain. A day certain is understood to be that which must necessarily come, although it may not be known when. If the uncerta rtainty consists in whether the day will come or not, the obligation is conditional, and it shall be regul gulate ated by the rul rules of the preceding Section. (112 (1125a 5a))
Obligation with a Period Period y
One whose consequences are subjected in one way or another to the expiration of said period or term
PERIOD Length of time which determines the effectivit effectivityy or the the extinguis extinguishment hment of the the obligation y
WHY
IS IT IMPORTANT?
There are obligations you can do, but you need time. Obligations with a period answers answers the question WHEN. Example: Example: Paying Paying a house ² not everybody everybody can buy a house at once
Period and condition distinguished Period
Condition
As to fulfilment
An event which must happen sooner or later, at a date known beforehand, or a time which cannot be determined
An uncertain event
As to time
Always refers to the future
May also refer to a past event unknown to the parties
As to influence on the obligation
Merely fixes the time or the efficaciousness of an obligation
Causes an obligation to arise or to cease
Period
Condition
As to effect, when left to Depends upon the will Depends upon the sole debtor·s will of the debtor empowers will of the debtor the court to fix the invalidates the obligation duration thereof As to retroactivity of effects
Unless there is an agreement to the contraty, the arrival of a period does not have any retroactive effect
Retroactive effect
Kind of period 1.
According to effect:
a)
Suspensive (ex die) - when the obligation becomes demadable only upon the arrival of the period .
b)
Resolutory (in diem) - the period is resolutory when the performance must terminate upon the arrival of the period
2. According to source
a) Legal - when it is granted by law b) Conventional or Voluntary - when it is stipulated by the parties c) Judicial - when it is fixed by the courts * 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
3. According to definiteness
a) Definite - refers to a fixed know date or time b) Indefinite - refers to an event which will necessarily happen but the date of its happening is unknown
GAME Instructions:
y
Count of from 1 to 4. Form into groups. Select one representative per group.
y
Whoever
y
raises his/her hands first will have the opportunity to answer the question.
QUESTION 1
According to definiteness, it is a kind of period that refers to a fixed know date or time.
DEFINITE
QUESTION 2 (Analogy)
Suspensive: demandable only upon the arrival of the period; __________: performance must terminate upon the arrival of the period
RESOLUTORY
QUESTION 3
According to source, what kind of period is agreed upon by the parties?
CONVENTIONAL OR VOLUNTARY PERIOD
QUESTION 4 (Analogy)
As to time, ________: refers only to future; Condition: refers past event unknown to parties HINT:
Length of time which determines the effectivity or the extinguishment of the obligation
PERIOD
Article 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. (n)
1. If the thing is lost without the fau lt of the debtor, the obligation shall be extinguished 2. If the thing is lost through the fault of the debtor, he will be obliged to pay the damages 3. If the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor
4. If the thing deteriorates through the fault of the debtor, the creditor may choose between the rescission of the obligation and its fulfillment, with indemnity for damage in either case 5. If the thing is improved by its nature, or by time, the improvement shall inure to the benefits of the creditor 6. If the thing is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary
GAME QUESTION 1:
In case that the the thing was lost without the fault of the debtor, what will happen to the obligation?
OBLIGATION IS EXTINGUISHED
QUESTION 2:
In case that the thing deteriorates with fault of the debtor, what will happen to the obligation?
RESCISSION OR FULFILLMENT OF OBLIGATION WITH INDEMNITY FOR DAMAGES
QUESTION 3:
In case the thing is improved by nature or time, what happens to the obligation?
IMPROVEMENT OF OBLIGATION FOR THE BENEFIT OF THE CREDITOR
Article 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. (1126a)
Same as article 1188 but the presumption is that the debtor knew that the debt was not yet due
y
y
Has
no application to obligations to do or not to do because it is physically impossible to recover the service rendered
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. (1127)
y
y
y
The benefit must be made so that it would be fair for both debtor and creditor. In this case, it is likewise stated that the debtor may only pay his/her debt only at the date of maturity or at the actual date stipulated.The same also applies to the creditor where he/she cannot demand payment from the borrower before the deadline. Unless, there is consent between both parties where it is agreed upon that payment due can be paid ahead of time.
y
y
Example: Debtor owes Creditor 1000 pesos when the former borrowed money from the latter on January 1st and must be paid on December 31st. As such, if there is no consent and/or is not stated in the contract, debtor cannot pay back creditor before December 31 and conversely, creditor cannot demand that debtor pay him before the due date. Example: If there is consent or agreement, then it must be done so that the creditor would not be inconvenienced.
Article 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. (1128a)
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 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. (1129a)
y
When
the debtor loses the benefit of the
period
The debtor shall lose every right to make use of the period
The term is extinguished
The obligation is demandable at once
GAME TRUE OR FALSE: QUESTION1
The court may fix the period if from the nature and circumstances of the obligation it can be inferred that a period was intended?
TRUE
TRUE OR FALSE: QUESTION 2
It is physically possible to recover service rendered for obligations to do.
FALSE
When
the debtor loses the benefit of using the period, QUESTION 3
What
will happen to his right to the period?
LOSES THE RIGHT TO USE THE PERIOD
When
the debtor loses the benefit of using the period, QUESTION 4
What
will happen to the period or term?
PERIOD OR TERM WILL BE EXTINGUISHED
When
the debtor loses the benefit of using the period, QUESTION 5
What
will happen to the obligation?