Obligations with a Period/Term. Article 1193 - Article 1198. Obligations and Contracts.

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Summary

This video discusses articles 1193 to 1198 of Philippine law concerning obligations with a period or term. It defines periods, differentiates them from conditions, classifies different types of periods, and explains the effects of loss, deterioration, and improvement before a day certain. The video also covers the effect of payment before the period arrives, the benefit of a period for both parties, when courts can fix a period, and when a debtor loses the right to use the period.

Highlights

Introduction to Obligations with a Period (Article 1193)
00:00:00

The video revisits the discussion on obligations classified according to demandability, specifically focusing on Articles 1193 to 1197. Article 1193 defines obligations with a period, where fulfillment is demandable only when a certain day arrives. It distinguishes a 'day certain' (an event that must happen) from a 'condition' (an uncertain event), clarifying that a period is a future and certain event determining an obligation's effectivity or extinguishment. A 'day certain' is one that will necessarily come, though the exact date may not be known.

Kinds of Periods and their Requisites
00:02:50

Periods are categorized by source: legal (fixed by law), voluntary (by parties), and judicial (by court). They are also classified by effect: suspensive (suspends demandability until the period arrives) and resolutory (terminates the obligation upon arrival). Periods can be definite (fixed known date) or indefinite (will happen, but date unknown). Requisites for a period include referring to a future event, certainty, and possibility.

Effects of Loss, Deterioration, or Improvement (Article 1194)
00:05:12

Article 1194 states that in cases of loss, deterioration, or improvement of the subject matter before the arrival of the day certain, the rules in Article 1189 shall be observed. This means the same regulations apply to obligations with a period as to conditional obligations regarding these situations.

Effect of Payment Before Arrival of Period (Article 1195)
00:06:02

Article 1195 addresses payments or deliveries made before the period arrives. If the obligor was unaware that the period had not yet arrived, they may recover what was paid, including fruits and interest. However, if the payment was made with awareness of the period, the debtor is considered to have waived the benefit of the term and cannot recover the payment.

Benefit of the Period (Article 1196)
00:09:44

Article 1196 establishes a presumption that a period is for the benefit of both the creditor and the debtor, unless circumstances indicate otherwise. If for mutual benefit, neither party can demand performance before the period expires. If for the creditor's benefit, the creditor can demand performance anytime, but the debtor cannot pay early. If for the debtor's benefit, the debtor can pay early but cannot be compelled to pay before the period ends.

When Courts May Fix a Period (Article 1197)
00:14:00

Article 1197 outlines two grounds for courts to fix an obligation's period: when the obligation's nature infers a period was intended but not fixed, or when the period depends solely on the debtor's will. Once fixed by the court, the period cannot be changed. The courts do not fix a period if none was intended, if it is demandable at once, or if it is already specified by law.

When the Debtor Loses the Right to Use the Period (Article 1198)
00:15:39

Article 1198 details five scenarios where the debtor loses the right to use the period, making the obligation immediately demandable: (1) if the debtor becomes insolvent (unless a guarantee is provided), (2) if the debtor fails to furnish promised guarantees, (3) if existing guarantees are impaired or disappear due to the debtor's actions or a fortuitous event (unless new satisfactory ones are given), (4) if the debtor violates an undertaking, and (5) if the debtor attempts to abscond. A mere attempt to abscond is sufficient.

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