section 2 obligations with a period

Obligation with a Period

An obligation whose demandability or extinguishment depends upon a future and certain event

Day Certain

A day which must necessarily come although the exact date may be unknown

Term or Period

The length of time or point in time which determines when an obligation becomes demandable or is extinguished

Condition vs Period

A condition is future and uncertain while a period is future and certain

Kinds of Period or Term

Suspensive period and resolutory period

Suspensive Period (Ex Die)

A period after which the obligation becomes demandable

Resolutory Period (In Diem)

A period after which the obligation is extinguished

Effect of Suspensive Period

Obligations whose performance is set for a specific day can only be demanded when that day arrives

Effect of Resolutory Period

The obligation is demandable at once but is extinguished upon arrival of the period

Exception to Payment in Advance

The debtor may recover if he paid without knowing the period or if the period is for his benefit

Period Established in Favor of the Debtor

The creditor cannot demand early payment but the debtor may pay before the period

Period Established in Favor of the Creditor

The debtor cannot pay early and the creditor may refuse early payment

Period Established in Favor of Both

Neither party may demand or make payment before the period

Loss of Right to Use the Period

The debtor loses the benefit of the period in cases provided by law

Loss of Period Due to Insolvency

When the debtor becomes insolvent unless he gives sufficient security

Loss of Period Due to Failure to Give Security

When the debtor fails to furnish the guaranty or security promised

Loss of Period Due to Impairment of Security

When the debtor impairs the guaranty or security through his own acts

Loss of Period Due to Violation of Undertaking

When the debtor violates the conditions of the obligation

Loss of Period Due to Attempt to Abscond

When the debtor attempts to abscond or flee