Understanding Obligations with a Period

I'm attorney Marie-Kris Batan Lasco. This is my virtual classroom. Welcome to my YouTube channel. In this channel, I shall aim to simplify the law. I shall discuss concepts and principles of law in under 10 minutes. Hi, in this video, I would like to talk about obligations with a period. What then is a period? A period is a future and certain event. As opposed to a condition which I have discussed in another video, I will put the link down below. As opposed to a condition, a condition is a future and uncertain event. Your period, however, is a future and certain event. In obligations with a period, it is the arrival of this future and certain event that will bring about the demandability of an obligation or its extinguishment. Please note that a condition is future and uncertain. In other words, that event may or may not happen while a period is certain to happen. That is why we say that a condition is future and uncertain. period is future and certain take a look at article 1193 it says obligations for whose fulfillment a day certain has been fixed shall be demandable only when that day comes. As I've said earlier on, the period in an obligation with a period determines whether the obligation now becomes demandable or when it is extinguished or terminated. That first paragraph of Article 1193 gives you an example where the period determines the demandability of the obligation. Let me give you an example. example I will give you 20,000 pesos on December 25 2023 that is a day that is certain to come it is future and it is a certain event as that date will necessarily come that is now an example of a period the arrival of which will determine demandability of the obligation in our example the obligation was giving the giving of 20 000 pesos and the period was set at december 25 2023 and so when that date arrives the oblige or the person whom you promise to pay the 20 000 pesos can demand from you the fulfillment of that obligation now let's take a look at the second part paragraph of article 1193 it says obligations with a resolutory period take effect at once but terminate upon arrival of the day certain this time it tells you that the period the arrival of the period will now extinguish the obligation in other words the obligation has is already there and the arrival of the period will terminate or extinguish the obligation. Let me give you an example. An example, I will give you a 10,000 peso monthly allowance until December 31, 2024. In that example, the obligation is demandable at once. It takes effect at once. The giving of the 10,000 peso monthly allowance. And that obligation obligation will end upon the arrival of the period. And in that example, the period was set at December 31, 2024. So remember the two examples that I gave you. The first example was an obligation to give 20,000 pesos on December 25, 2023. The period will affect the demand. of the obligation. It triggers its demandability. We actually call that period a suspensive period because the arrival of such period will make the obligation Demandable. In our second example, the obligation was to give a P10,000 monthly allowance until December 31, 2024. The peer... involved here is actually a resolutory period. Why resolutory? Because the arrival of the period in our example, December 31, 2024, will extinguish the obligation. In other words, in that example, the obligation became demandable at once. That's basically your second paragraph of Article 1193. It became demandable at once. And when the period will arrive your December 31, 2024 the obligation to give a 10,000 monthly allowance will stop. It will now be extinguished. So that discussion basically tells you the two ways of classifying your period. It could be suspensive or it could be resolutory. Now there are other ways of classifying a period. You could also classify it depending on whether it's a definite period. Thank you. or it's an indefinite period like a definite period is that which i already gave a day certain an exact date or you can even you can even have a period which says i will deliver to you a specific parcel of land one year from today so that's very definite indefinite would be something in the future but is certain to happen like i will donate to you this particular parcel of land when my pet rabbit dies because death is certain it is future but it is certain to happen so it's indefinite because you do not know when that will happen another way of classifying your periods would be the source of the period so it could be conventional meaning by agreement of the parties it could be legal as that means it is provided for by law or it could be judicial meaning it is the court who has decided upon the period. Now let's venture into the discussion on the consequences of having an obligation with a period. So for example, you borrowed money from a friend. You borrowed 50,000 pesos and both of you agreed that you will pay two years from today a year from now you paid him the fifty thousand pesos probably thinking that two years have already lapsed You paid to him the 50,000 pesos when in fact it is actually not yet due and demandable because both of you agreed that it will be paid two years from today. But you paid one year from today. what are the consequences of such? Can you still get back the money that you paid in advance once you realize that your debt was... in fact not yet due the answer is yes you can actually get back the money that you paid why because the period has not arrived yet and in that example the period was set two years from today and yet you paid one year early that is basically your article 1195 which says 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 interest. Remember, however, that recovery can be done if the obligor or the person who paid, in our example, you, you paid the 50,000 pesos believing that it was already due. Because if you were aware that you were paying your debt in advance then article 1195 cannot be applied you can no longer get the money that you paid because you were aware that you were paying in advance remember that the recovery of the amount that you paid if you were truly unaware if you truly believe that it was actually already due and demandable and then two months after the payment you realized, oh, I paid early. I want to get the money back. Yes, you can get the money back. In fact, you can also get the interest from the advance payment. But when do you start? and stop computing the interest. Of course, you start counting the interest from the time that you wrongly paid up to the time that you will get back the advance payment. Now, supposing you realize that you made an advance payment on the day that it is now due and demandable. In other words, as what we've mentioned, you paid one year in advance. But then you realize such advance payment two years from the time that you you promised. It's already due and demandable. Can you still recover the money? Not anymore. Why not? Because the debt is already due and demandable. You can no longer get it back. But how about the fruits and interest? Yes, you may recover. Now, when do you start counting the interest? Of course, from the time that you wrongfully paid in advance up to the time that the debt was. Let's also look into Article 1196. 1196 says that whenever in an obligation a period is designated, it is presumed to have been established for the benefit of both the creditor and the creditor. the debtor unless from the tender of the same or other circumstances it should appear that the period has been established in favor of one or of the other what does this mean this means that when there is is a period, that period is supposed to benefit both the debtor and the creditor. Let me give you an example. A, the debtor. B, the creditor, agreed that A will pay back his loan of 100,000 pesos to B on August 5, 2025. That was their agreement. The period there is August 5, 2025. Your Article 1195 tells you that that period is supposed to benefit both A and B. What does that mean? This means that A, your debtor, cannot compel B, the creditor, to accept payment before August 5, 2025. 2025 in the same manner b the creditor cannot compel a the debtor to make payment before or after the arrival of the period why do we say that that is for the benefit of both because if we were to allow the debtor to compel b to accept payment prior to the the arrival of the period, which in our example is August 5, 2025, then you will be depriving the creditor of interest. If you cut short the payment, if you cut short the period of the payment rather, then it will deprive the creditor of interest. So that period is supposed to benefit both the debtor and the creditor. In the same way, your creditor cannot compel the debtor. debtor to pay before the period. Why? Because the debtor may not be ready to pay yet before the period, nor can the creditor compel the debtor to pay after the period because then it may be burdensome on the part of the debtor as it will also accumulate interest. So that is what is meant. By a period, the presumption of such is for the benefit of both the debtor and the creditor. Of course, just like any general rule, rule, there is an exception. And your Article 1196 actually tells you of that exception. And that is when from the tenor of the obligation, it is clear that the period was created for the benefit of just one party. Let me give you an example. A, the debtor, and B, the creditor, agreed that A will pay his debt of 50,000 pesos to B. be on or before august 5 2025 with that agreement the period of on or before august 5 2025 who do you think is the period for who do you think will benefit from that period that period actually benefits the debtor. Why the debtor? Because this time, the debtor has an option to pay when the period arrives, August 5, 2025. or to pay prior to that period. The debtor can compel the creditor to accept the advance payment. The debtor can compel the creditor to accept payment before August 5, 2025. However, the creditor cannot compel the debtor to make payment before August 5, 2025. The creditor has to wait. for the period to arrive to be able to compel payment. In other words, if the obligation is on or before a certain period, that obligation with a period, that period is actually beneficial to the debtor. This is an exception to the general rule. So that is it for this video. There will be more videos on obligations to the... period in fact on all other types of obligations so please do subscribe to my channel and click the notification bell so that you will be notified when I make any new video uploads I hope you learned something from this video see you next time in MDL classroom I hope you learned something from this video if you have please click like subscribe and that notification bell so that you will be notified of new video uploads thank you for watching see you you next time in MBL classroom.

I'm attorney Marie-Kris Batan Lasco. This is my virtual classroom. Welcome to my YouTube channel. In this channel, I shall aim to simplify the law.

I shall discuss concepts and principles of law in under 10 minutes. Hi, in this video, I would like to talk about obligations with a period. What then is a period? A period is a future and certain event.

As opposed to a condition which I have discussed in another video, I will put the link down below. As opposed to a condition, a condition is a future and uncertain event. Your period, however, is a future and certain event. In obligations with a period, it is the arrival of this future and certain event that will bring about the demandability of an obligation or its extinguishment. Please note that a condition is future and uncertain.

In other words, that event may or may not happen while a period is certain to happen. That is why we say that a condition is future and uncertain. period is future and certain take a look at article 1193 it says obligations for whose fulfillment a day certain has been fixed shall be demandable only when that day comes. As I've said earlier on, the period in an obligation with a period determines whether the obligation now becomes demandable or when it is extinguished or terminated.

That first paragraph of Article 1193 gives you an example where the period determines the demandability of the obligation. Let me give you an example. example I will give you 20,000 pesos on December 25 2023 that is a day that is certain to come it is future and it is a certain event as that date will necessarily come that is now an example of a period the arrival of which will determine demandability of the obligation in our example the obligation was giving the giving of 20 000 pesos and the period was set at december 25 2023 and so when that date arrives the oblige or the person whom you promise to pay the 20 000 pesos can demand from you the fulfillment of that obligation now let's take a look at the second part paragraph of article 1193 it says obligations with a resolutory period take effect at once but terminate upon arrival of the day certain this time it tells you that the period the arrival of the period will now extinguish the obligation in other words the obligation has is already there and the arrival of the period will terminate or extinguish the obligation.

Let me give you an example. An example, I will give you a 10,000 peso monthly allowance until December 31, 2024. In that example, the obligation is demandable at once. It takes effect at once. The giving of the 10,000 peso monthly allowance.

And that obligation obligation will end upon the arrival of the period. And in that example, the period was set at December 31, 2024. So remember the two examples that I gave you. The first example was an obligation to give 20,000 pesos on December 25, 2023. The period will affect the demand.

of the obligation. It triggers its demandability. We actually call that period a suspensive period because the arrival of such period will make the obligation Demandable. In our second example, the obligation was to give a P10,000 monthly allowance until December 31, 2024. The peer... involved here is actually a resolutory period.

Why resolutory? Because the arrival of the period in our example, December 31, 2024, will extinguish the obligation. In other words, in that example, the obligation became demandable at once. That's basically your second paragraph of Article 1193. It became demandable at once. And when the period will arrive your December 31, 2024 the obligation to give a 10,000 monthly allowance will stop.

It will now be extinguished. So that discussion basically tells you the two ways of classifying your period. It could be suspensive or it could be resolutory.

Now there are other ways of classifying a period. You could also classify it depending on whether it's a definite period. Thank you. or it's an indefinite period like a definite period is that which i already gave a day certain an exact date or you can even you can even have a period which says i will deliver to you a specific parcel of land one year from today so that's very definite indefinite would be something in the future but is certain to happen like i will donate to you this particular parcel of land when my pet rabbit dies because death is certain it is future but it is certain to happen so it's indefinite because you do not know when that will happen another way of classifying your periods would be the source of the period so it could be conventional meaning by agreement of the parties it could be legal as that means it is provided for by law or it could be judicial meaning it is the court who has decided upon the period.

Now let's venture into the discussion on the consequences of having an obligation with a period. So for example, you borrowed money from a friend. You borrowed 50,000 pesos and both of you agreed that you will pay two years from today a year from now you paid him the fifty thousand pesos probably thinking that two years have already lapsed You paid to him the 50,000 pesos when in fact it is actually not yet due and demandable because both of you agreed that it will be paid two years from today.

But you paid one year from today. what are the consequences of such? Can you still get back the money that you paid in advance once you realize that your debt was...

in fact not yet due the answer is yes you can actually get back the money that you paid why because the period has not arrived yet and in that example the period was set two years from today and yet you paid one year early that is basically your article 1195 which says 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 interest. Remember, however, that recovery can be done if the obligor or the person who paid, in our example, you, you paid the 50,000 pesos believing that it was already due. Because if you were aware that you were paying your debt in advance then article 1195 cannot be applied you can no longer get the money that you paid because you were aware that you were paying in advance remember that the recovery of the amount that you paid if you were truly unaware if you truly believe that it was actually already due and demandable and then two months after the payment you realized, oh, I paid early. I want to get the money back. Yes, you can get the money back.

In fact, you can also get the interest from the advance payment. But when do you start? and stop computing the interest. Of course, you start counting the interest from the time that you wrongly paid up to the time that you will get back the advance payment.

Now, supposing you realize that you made an advance payment on the day that it is now due and demandable. In other words, as what we've mentioned, you paid one year in advance. But then you realize such advance payment two years from the time that you you promised.

It's already due and demandable. Can you still recover the money? Not anymore. Why not? Because the debt is already due and demandable.

You can no longer get it back. But how about the fruits and interest? Yes, you may recover.

Now, when do you start counting the interest? Of course, from the time that you wrongfully paid in advance up to the time that the debt was. Let's also look into Article 1196. 1196 says that whenever in an obligation a period is designated, it is presumed to have been established for the benefit of both the creditor and the creditor. the debtor unless from the tender of the same or other circumstances it should appear that the period has been established in favor of one or of the other what does this mean this means that when there is is a period, that period is supposed to benefit both the debtor and the creditor.

Let me give you an example. A, the debtor. B, the creditor, agreed that A will pay back his loan of 100,000 pesos to B on August 5, 2025. That was their agreement.

The period there is August 5, 2025. Your Article 1195 tells you that that period is supposed to benefit both A and B. What does that mean? This means that A, your debtor, cannot compel B, the creditor, to accept payment before August 5, 2025. 2025 in the same manner b the creditor cannot compel a the debtor to make payment before or after the arrival of the period why do we say that that is for the benefit of both because if we were to allow the debtor to compel b to accept payment prior to the the arrival of the period, which in our example is August 5, 2025, then you will be depriving the creditor of interest. If you cut short the payment, if you cut short the period of the payment rather, then it will deprive the creditor of interest. So that period is supposed to benefit both the debtor and the creditor.

In the same way, your creditor cannot compel the debtor. debtor to pay before the period. Why?

Because the debtor may not be ready to pay yet before the period, nor can the creditor compel the debtor to pay after the period because then it may be burdensome on the part of the debtor as it will also accumulate interest. So that is what is meant. By a period, the presumption of such is for the benefit of both the debtor and the creditor. Of course, just like any general rule, rule, there is an exception.

And your Article 1196 actually tells you of that exception. And that is when from the tenor of the obligation, it is clear that the period was created for the benefit of just one party. Let me give you an example.

A, the debtor, and B, the creditor, agreed that A will pay his debt of 50,000 pesos to B. be on or before august 5 2025 with that agreement the period of on or before august 5 2025 who do you think is the period for who do you think will benefit from that period that period actually benefits the debtor. Why the debtor?

Because this time, the debtor has an option to pay when the period arrives, August 5, 2025. or to pay prior to that period. The debtor can compel the creditor to accept the advance payment. The debtor can compel the creditor to accept payment before August 5, 2025. However, the creditor cannot compel the debtor to make payment before August 5, 2025. The creditor has to wait.

for the period to arrive to be able to compel payment. In other words, if the obligation is on or before a certain period, that obligation with a period, that period is actually beneficial to the debtor. This is an exception to the general rule. So that is it for this video.

There will be more videos on obligations to the... period in fact on all other types of obligations so please do subscribe to my channel and click the notification bell so that you will be notified when I make any new video uploads I hope you learned something from this video see you next time in MDL classroom I hope you learned something from this video if you have please click like subscribe and that notification bell so that you will be notified of new video uploads thank you for watching see you you next time in MBL classroom.

Transcript for:Understanding Obligations with a Period

Transcript for:
Understanding Obligations with a Period