Oblicon Study Guide - aaa PDF

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STUDY GUIDE 4Obligation with a PeriodI. DefinitionsDefine or give the meaning of the following: Obligation with a period  Obligation with a period is one whose effects ore consequences are subjected in one way or another to the expiration or arrival of said period or term. (Article 1193). Period  ...

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STUDY GUIDE 4 Obligation with a Period I. Definitions Define or give the meaning of the following: 1. Obligation with a period  Obligation with a period is one whose effects ore consequences are subjected in one way or another to the expiration or arrival of said period or term. (Article 1193).

2. Period  A period is a future and certain event upon the arrival of which the obligation (or right) subject to it either arises or is terminated. It is a day which must necessarily come, although it may not be known when, like the death of a person. (Article 1193).

3. Indefinite period  Indefinite period is a period when it is 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. (Article 1193).

II. Discussions 1. Has the debtor the right to recover what he has paid to the creditor before the arrival of the period agreed upon? Explain. Yes, but according to Article 1195, it only applies if the debtor is unaware of the period and believes that the obligation has become due or demandable at once, in this case, it can be recovered together with the fruits and interests. But the debtor can only recover the payment before the maturity date comes. And lastly, the debtor cannot recover the payment when he is aware about the date or period.

2. If an obligation does not state a period for its performance, has a party the right to ask a court to fix a period or the duration thereof? Explain. Yes, but according to Article 1197, the court may not fix a period if the obligation does not require a period. The court may only fix a period when no period is fixed but a

period was intended or the duration of the period depends upon the will of the debtor. The court put a period to avoid the possibility that the obligation may never be fulfilled.

3. Give the cases when the obligee can demand the performance of an obligation even before the arrival of the period agreed upon. According to Article 1198, the obligee can demand the performance of an obligation even before the arrival of the period agreed upon: 1) When the debtor becomes insolvent. o It means that the debtor becomes unable to perform or pay the obligation, unless the debtor gives a collateral to guaranty and secured the debt. The insolvency must occur after obligation has been contracted. 2) When debtor does no furnish guaranties or securities promised. o It means that the debtor fails to secure his debt or show collateral to the creditor, the debtor will lose his right to the period. 3) When guaranties or securities given have impaired or have disappeared. o When the security got destroyed due to debtor’s fault, and when it was destroyed due to fortuitous event, the debtor should replace the thing with the same value. 4) When debtor violates an undertaking. o This is when the debtor did not follow his undertaking, the right to the period will be lost. 5) When debtor attempts to abscond. o This one is when the debtor tries to escape his obligation. His right to the period will be lost.

III. Problems Explain or state briefly the rule or reason for your answer. 1. D (debtor) borrowed P10,000 from C (creditor) at 15% interest per annum payable on December 31. Can D require C to accept payment before December 31? D cannot require C to accept payment before December 31. As stated in Article 1196, the period is designated for the benefit of the debtor and the creditor. In other words, D cannot require C to accept payment, neither, C can require payment.

However, in this case, D can pay C the P10,000 with one-year interest as long as he have C’s consent to accept the payment before the due date.

2. D binds himself to give P10,000 to C upon the death of the father of D. Is the obligation of D conditional or one with a period? This one is considered as an obligation with a period. According to Article 1193, paragraph 3, a day certain is understood to be that which must necessarily come, although it may be known when. Here, the day that D’s father will die is unknown, but it will certainly come. Unlike when it is a conditional one, one characteristic of it is that, it is an uncertain event, means it may or may not happen.

3. D obtained a loan from C in the amount of P50,000, payable on August 10. As security for his debt, D mortgaged his car in favor of C. The car, however, was substantially damaged without the fault of D. What rights, if any, does C have under the law? May C demand payment from D even before August 10? Since D’s car got substantially destroyed without his fault, based on Article 1198, it is considered as a fortuitous event. In this case, D will not be made liable unless he replace the car with the equivalent value, if D failed to do this, C will have the right to demand payment immediately to D even before August 10....