Section 2 Obligations with the period

Article 1193-

Period- Future and certain event upon arrival of which obligation will arise or extinguish
Distinguish as to Period Condition
Fulfillment Certain event Uncertain Event
Time Future event Future and Past event
Influence on obligation Duration for fulfillment Obligation arise or cease
Effect, when left to the will of Duration is fix by court Depends on sole will of
debtor debtor
Retroactive effects Doesn’t have Retroactive Has Retroactive effect

Kinds of period
Suspensive Period
Resolutory period
Article 1194(see article 1189)

Article 1195- Payment Before arrival of period

-applies only to obligation to give

- allows recovery for what has been paid for mistake plus interest before
fulfillment of suspensive condition.
-Debtor is presumed aware of period
-No recovery in personal Obligation-(Service performed cant be recovered)
Article 1196 GENERAL RULE: Presumed that both parties benefited of period.

Exception to general rule

o Benefit of period may be subject to stipulation of the parties
 Term for benefit of debtor alone –The rules is that he cannot pay
prematurely but he can pay any time before due date.
 Example: D borrowed from C 1000 to be paid Within one
year without interest.
 Term for benefit of creditor alone – He can demand for payment
before arrival of the term but creditor cannot require him to accept
payment before the expiration of stipulated period.
 Example: D borrow from C 1000 payable in December 31.
With stipulation, C can demand payment even before said
date.
Article 1197-
Court Generally without power to fix period.
- If obligation is not stated and no period intended. Court is not authorized to fix a
period.
Exceptions
1. No period fixed but a period is intended
Example: D agreed to construct house of C. The parties failed to fix period
within which construction is to be made. ( The court can fix the period for what is
intended by parties)
2. Duration of the period depends on will of debtor
The Debtor is given a duration to pay his debt.
If no specific time it will fix by the court.
Article 1198
Obligation is not demandable before the lapse of the period.
The debtor shall lose every right to make use of the period, the period is
disregarded and obligation is pure and immediately demandable.
Exceptions
Immediately demandable When
1. debtor becomes insolvent
-insolvency debtor occurs after obligation is contracted
2. debtors no furnish(provide) guaranties or securities promised
3. guaranties or securities given have been impaired or have disappeared.
4.Debtor Violates undertaking (promise to do something)
5. When Debtor attempts to abscond(escape)
 Section 3 – Alternative Obligation
- Various prestation are due but the performance of 1 is sufficient determined by
choice of debtor.

Article 1199 –

Kinds of Obligation according to object

1.Simple Obligation- 1 prestation
2. Compound Obligation – 2 or more Prestation
A. Conjunctive obligation- Several prestation and all due
B. Distributive Obligation- 2 or more prestation are due
2 types of Distributive obligation
Alternative Obligation Facultive Obligation
# of prestation - several prestation due but -only one prestation due but debtor may
performance of 1 is sufficient. substitute another.

Right of - Right of choice may be given Right to make of substitution is given only
choice to creditor or 3rd party to debtor

Loss Through Does not extinguished Loss of thing due extinguished the
Fortuitous obligation obligation.
event
Loss through A. Debtor doesn’t render him A. Debtor is Liable
Debtor’s liable
Fault B. When choice belongs to B. The loss of substitute before the
creditor and loss of 1 substitution through Debtor’s Fault Does
alternative gives rise to liability not render him Liable.

Article 1200
General rule-
Prestation at debtor’s choice exception is when choice is granted to creditor.
Debtor choice is not absolute
Cannot choose prestation which is
1. Impossible
2. Unlawful
3. Or could not been object of obligation
Article 1201
Alternative becomes simple obligation after other party made a choice. When choice is
made and communicated it is irrevocable and cannot be change unless there is consent to other
party.
General Rule: All rights may be waived
Article 1202
If The choice has been made. Only 1 prestation is practicable

Article 1203
Debtor can rescind the contract if it is creditor’s fault.
Rescission- Return of things which is object of obligation with fruits.
Example: D borrowed from C 10,000. It was agreed that instead of 10,000, they
could deliver Piano, or Car, or Phone.
If fault of C that Piano is destroyed then D can rescind contract
In case of rescission. Debtor must return what he owes + interest and
Creditor must pay Debtor for the value of item plus damages.
Article 1204
If some prestation have been lost or impossible even through fault of debtor,
creditor can choose another prestation.
If it all prestation are lost through fault of debtor, then the creditor shall have
the right to indemnity for the damages. If it causes by fortuitous event,
obligation is extinguished.
Article 1205-Choice belongs to Creditor if it expresses to him
Rules in case of loss before creditor’s choice
Thing is Loss
Through fortuitous event- may claim another prestation
Through Debtor’s fault – may claim another with right to damages
All Things is Loss
Through Debtor’s fault- price of item +Indemnity.
 Through fortuitous event – Obligation is Extinguish
Article 1206
Facultive obligation- 1 prestation but Obligor may render another substitution.
Ex. I will give Piano but I may give you a Car.

Lost Through Fortuitous event Through Debtor’s Fault

Before Substitution
(Principal thing is Due) Obligation is Extinguished Liable pay for Damages
After Substitution
(Substitute thing is due)