Articles 1193-1198 PDF

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Notes in law on obligation and contract...

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ARTICLES 1193-1198 SECTION 2 OBLIGATIONS WITH A PERIOD

1. Suspensive period (ex die) 2. Resolutory period (in diem) According to source:

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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 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 the preceding Section. (1125a) An Obligation with a Period is one whose effects or consequences are subjected in one way or another to the expiration or arrival of said period or term. A period or term is a future and certain event upon the arrival of which the obligation (or right) subject to it either arises or is terminated.

1. Legal period 2. Conventional or voluntary period 3. Judicial period According to definiteness: 1. Definite period 2. Indefinite 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) 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) Payment Before Arrival of Period. The law allows the obligor to recover what has been paid by mistake before the fulfilment of a suspensive condition. The creditor cannot unjustly enrich himself by retaining the thing or money received before the arrival of the period. Debtor Presumed Aware of Period The debtor is presumed to know that the debt was not yet due. If payment was made before the period, the debtor has the burden of proving that he was unaware of the period.

Period vs. Condition Like a condition, a period must be possible. If the period is impossible, the obligation is void. Example: I will repair your computer on February 30, 2021.

Note: The obligor may no longer recover the thing or money once the period has arrived. The debtor however, can recover the fruits or interests thereof from the date of premature performance to the date of maturity of the obligation. Example: D owes C P5,000.00 payable on November 1, 2020. By mistake, B paid his obligation on November 1, 2019. Assuming that today is May 1, 2020, D can recover the P5,000 plus

Kinds of Period or Term According to effect:

P150 which is the interest for one half year at the legal rate of 6% or a total of P5,150. But D cannot recover, except the interest, if the debt had already matured. Neither can there be

a right to recovery if D had knowledge of the period. The theory under solutio indebiti obviously will not apply (Art. 2154.) D is deemed to have impliedly renounced the period. No Recovery in Case of Personal Obligation In Positive Personal Obligation or obligation to do, it is physically impossible to recover the service rendered. In Negative Personal Obligation or Obligation not to do, as the obligor performs by not doing, he cannot, of course, recover what he has not done. 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) Presumption as to Benefit of Period In an obligation subject to a period fixed by the parties, the period is presumed to have been established for the benefit of both the creditor and debtor.

must be a stipulation granting the benefit of the term to the creditor only. How is the term or period computed? Legal Periods: Year = Twelve calendar months (Number of days being irrelevant) Month = Thirty days (unless it refers to a specific calendar month) Week = Seven days Day = Twenty-four hours Night = From sunset to sunrise Note: In counting the period, the rule is to exclude the first day and include the last day. 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.

Exceptions to the General Rule

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)

1. Term is for the benefit of the debtor alone

Classification of Period as to who fixed

Example: D borrowed from C 1,000.00 to be paid within one (1) year without interest.

1. Judicial period - Period as fixed and determined by the courts.

In this case, the period of one (1) year should be deemed intended for the benefit of D only. Therefore, he can pay any time but he cannot be compelled to pay before due date. 2. Term is for the benefit of the creditor Example: D borrowed from C P1,000.00 payable on November 1, 2020 with the agreement that D cannot make payment before the lapse of the period but C may demand payment even before due date.

2. Contractual period - Period as stipulated by the parties. Note: Generally, the court cannot fix the period for the parties. If the obligation does not state a period and no period is intended, the court is not authorized to fix a period. The courts have no right to make contracts for the parties. Example: D obliges himself to pay C 10,000.00. Since the obligation does not fix a period, not even the court may fix a period. The reason is because the contract is the law

Here, C can demand payment at any time but D cannot shorten the period without the C’s consent. Usually, there

between the parties and the court cannot change its terms for them....