Assignment No. 4 PDF

Assignment No. 4 1. What is an obligation with a period?’ An obligation with a period is one whose consequences are subjected in one way or another to the expiration of said period or term. 2. What is a term or a period? A period is a future and certain event upon the arrival of w...

Assignment No. 4 1. What is an obligation with a period?’ An obligation with a period is one whose consequences are subjected in one way or another to the expiration of said period or term. 2. What is a term or a 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 certain which must necessarily come (like the year 2005; next Christmas), although it may not be known when, like the death of a person. 3. Distinguish a period from a condition. The differences are as follows: (1) As to fulfillment. — A period is a certain event which must happen sooner or later at a date known beforehand, or at a time which cannot be determined, while a condition is an uncertain event; (2) As to time. — A period refers only to the future, while a condition may refer also to a past event unknown to the parties; (3) As to influence on the obligation. — A period merely fixes the time for the efficaciousness of the obligation. If suspensive, it cannot prevent the birth of the obligation in due time; if resolutory, it does not annul, even in fiction, the fact of its existence. On the other hand, a condition causes an obligation to arise or to cease. Because of this difference, a period does not carry with it, except when there is a stipulation expressly made by the parties, the same retroactive consequences that follow a condition; (4) As to effect, when left to debtor’s will. — A period which depends upon the will of the debtor empowers the court to fix the duration thereof (Art. 1197, par. 2.), while a condition which depends upon the sole will of the debtor invalidates the obligation (Art. 1182.); and (5) As to retroactivity of effects. — Unless there is an agreement to the contrary, the arrival of a period does not have any retroactive effect, while the happening of a condition has retroactive effect. Like a condition (see Art. 1183.), a period must be possible. If the period is impossible (e.g., February 30, because it will never come; within 24 hours to deliver a ship in foreign country because it is too short), the obligation is void. 4. Define the following: a. Suspensive period - The obligation begins only from a day certain upon the arrival of the period. b. Resolutory period - The obligation is valid up to a day certain and terminates upon the arrival of the period. c. Legal period - When it is provided for by law. d. Conventional period - When it is agreed to by the parties. e. Judicial period - When it is fixed by the court. f. Definite period - When it is fixed or it is known when it will come. g. Indefinite 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. 5. What happens when the debtor pays before the arrival of the period? Article 1195 applies only to obligations to give. It is similar to Article 1188, paragraph 2, which allows the recovery of what has been paid by mistake before the fulfillment of a suspensive condition. The creditor cannot unjustly enrich himself by retaining the thing or money received before the arrival of the period. Under the former provision, the debtor could recover only the fruits or interests but not the thing or sum given or paid in advance. This rule was deemed unjust and “contrary to the manifest intention of the parties.’’ OR ART. 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. 6. In whose benefit is a period for? 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 the debtor. This means that before the expiration of the period, the debtor may not fulfill the obligation and neither may the creditor demand its fulfillment without the consent of the other especially if the latter would be prejudiced or inconvenienced thereby.  In a reciprocal contract like a lease, the period must be deemed to have been agreed upon for the benefit of both parties, absent language showing that the term was deliberately set for the benefit of the lessee or the lessor alone. The presumption, of course, is rebuttable. 7. How is a period computed? (1) The Civil Code provides: “When the law speaks of years, months, days or nights, it shall be understood that years are of three hundred sixty-five (365) days each; months of thirty (30) days; days of twenty-four (24) hours; and nights from sunset to sunrise. If months are designated by their name, they shall be computed by the number of days which they respectively have. In computing a period, the first day shall be excluded, and the last day included.” (Art. 13 thereof.) If the last day is a Sunday or a legal holiday, the time shall not run until the end of the next day which is neither Sunday nor a holiday. A year is equivalent to 365 days regardless of whether it is a year or a leap year. (2) The Administrative Code of 1987 (Exec. Order No. 292.), however, provides: “Legal Periods — “Year’’ shall be understood to be twelve calendar months; “month’’ of thirty days, unless it refers to a specific calendar month in which case it shall be computed according to the number of days the specific month contains; “day,’’ to a day of twenty-four hours; and “night’’ from sunset to sunrise.’’ (3) A calendar month is “a month designated in the calendar without regard to the number of days it may contain. “It is the “period of time running from the beginning of a certain numbered day up to, but not including, the corresponding numbered day of the next month, and if there is not a sufficient number of days in the next month, then up to and including the last day of that month.’’ To illustrate: One calendar month from December 31, 2007 will be from January 1, 2008 to January 31, 2008; one calendar month from January 31, 2008 will be from February 1, 2008 until February 29, 2008.  Under the Administrative Code, a year is composed of 12 calendar months, the number of days being irrelevant, whereas under the Civil Code a year is equivalent to 365 days, whether it be a regular year or a leap year. There exists a manifest incompatibility in the manner of computing legal periods. The Administrative Code of 1987 being the more recent law governs the computation of legal periods. 8. Give the instances when the court may fix the period. If the obligation does not fix a period but it can be inferred from its nature and the circumstances that a period was intended by the parties, the court may fix the period. If the period fixed is extended by agreement, to be valid the same must be for a definite time, although if no precise date is fixed, it is sufficient that the time can readily be determined. In case the period of extension is not precise, Article 1197 applies. 9. When may an obligation be demand before the lapse of a period? The general rule is that the obligation is not demandable before the lapse of the period. However, in any of the five (5) cases mentioned in Article 1198, the debtor shall lose every right to make use of the period, that is, the period is disregarded and the obligation becomes pure and, therefore, immediately demandable. The exceptions are based on the fact that the debtor might not be able to comply with his obligation. (1) When debtor becomes insolvent. (2) When debtor does not furnish guaranties or securities promised. (3) When guaranties or securities given have been impaired or have disappeared. (4) When debtor violates an undertaking. (5) When debtor attempts to abscond.