Obligations: Period vs. Condition

Obligation with a Period

• Demandability or extinguishment is subject to the term's expiration.
• The obligation's beginning or end is set on a specific day.
• Example: D must give C his laptop on December 31, 2021

Day Certain

• It must necessarily arrive, although the exact date may be unknown (Art. 1193).
• Example: The obligation of D to give C P5,000 upon B's death is an obligation with a period because death is certain to happen.

Distinguishing Period from Condition

Condition (EFCD)

• An event that may or may not occur.
• Can refer to future or past events unknown to involved parties.
• Causes an obligation to either arise or cease.
• A suspensive condition dependent on the debtor's will annuls the obligation (Art. 1182).

Period (MFMA)

• An event that must occur, with a known or undetermined date.
• Always refers to the future.
• Sets the time for an obligation's effectiveness.
• If the period depends on the debtor's will, the court can determine its duration (Art. 1197, par. 2).

Kinds of Period (ES)

As to Effect (EI)

Ex die (suspensive period)

• A period with suspensive effect.
• Obligation becomes demandable after the period lapses (Art. 1193)
• Latin term meaning "from a certain day."
• Example: X promised to give P5,000 to Y on December 1, 2021.

In diem (resolutory period)

• A period with resolutory effect.
• Obligation is demandable at once but is extinguished at the end of the period (Art. 1193).
• is a Latin term for "until a certain day”.
• Example: X promised to give P100 per day to Y until December 1, 2021.

As to Source (LVJ)

Legal period

• Fixed by law.

Voluntary period

• Agreed upon by the parties.

Judicial period

• Fixed by the court.

Determining the presence of a period

• When fulfillment depends on the debtor's means, it's an obligation with a period.
• The creditor can ask the court to fix the period (Art. 1180, 1197).
• Court may fix the period if the obligation's nature implies it, even if unstated (Art. 1197).

Examples of Obligations Dependent on Debtor's Will

• "When my means permit me to do so."
• "Little by little."
• "As soon as I have the money."
• "As soon as possible."
• "In partial payments."

Kinds of Obligations According to the Number of Prestations

Simple Obligation

• Involves only one prestation.
• Example: D is to give a specific ring to C

Compound Obligation

• Involves several prestations.
• May be conjunctive or distributive.

Conjunctive Obligation

• All prestations must be performed.
• Example: D is to give C a specific ring, a specific watch, and a specific bracelet.

Distributive or Disjunctive Obligation

• May be either alternative or facultative.

Alternative Obligation

• Involves several prestations, but complete performance of one is enough to extinguish the obligation (Art. 1199).
• Example: D is obliged to give C a specific ring, a specific watch or a specific bracelet
• Delivery of any of the three articles extinguishes the obligation.

Right to Choose Prestation

• Belongs to the debtor unless expressly given to the creditor (Art. 1199)

Limitations on Debtor's Right to Choose

• The debtor must perform the chosen prestation completely and cannot compel the creditor to accept partial performance (Art. 1199).
• The debtor cannot choose impossible, unlawful, or prestations that couldn't be the object of the obligation (Art. 1199).

When an Alternative Obligation Becomes Simple

• When the debtor communicates the choice to the creditor (Art. 1201).
• When only one prestation is practicable (Art. 1202).
• When the creditor communicates their choice to the debtor, if the right to choose was expressly given (Art. 1205).

Rules for Loss/Impossibility Before Choice is Communicated

Right of Choice with the Debtor (Art. 1204)

• If some are lost through a fortuitous event or the debtor’s fault, the debtor delivers any remaining or the one that subsists
• If all are lost through a fortuitous event, the obligation is extinguished
• If all are lost through the debtor’s fault, the debtor pays the value of the last lost item plus damages.
• If all except one are lost through the debtor's fault, and the remaining item is lost to a fortuitous event, the obligation is extinguished.
• If all except one are lost to a fortuitous event, and the remaining item is lost due to the debtor's fault, the debtor pays damages.

Right of Choice with the Creditor (Art. 1205)

• If some are lost through a fortuitous event, the debtor delivers what the creditor chooses from the remainder or the one that subsists.
• If all are lost through a fortuitous event, the obligation is extinguished.
• If some are lost through the debtor's fault, the creditor may claim any of the remaining items, or the price plus damages for any of the items lost through the debtor’s fault.
• If all are lost through the debtor's fault, the creditor can claim the price of any of them plus damages.

Fortuitous Event

• An unforeseen or inevitable event.
• Examples: Earthquake, Flood, Typhoon, Fire, Theft.