Obligation with a Period

Question 1

“Period”, defined and distinguished from
“Condition”

Answer 1

1. A certain length of time which determines the
   effectivity
   or
   extinguishment of obligations.
2. Different from “condition” in that the event in a period will necessarily come (a “day certain”- that which necessarily comes although it may not be known when (1 193))
3. The obligation to pay “until defendant shall have obtained a loan from the National City Bank of New York”, does not involve a “day certain” for it may or it may not happen, hence, not a period but a condition. (see Berg vs.
   Magdalena Estate)

Question 2

Problem
- On January 10, 2010, D and C entered into a
contract whereby D would deliver to C “100 dozens of fresh eggs per week until January 10, 2014”. Beginning November 10, 2013, however, D was unable to deliver fresh eggs to C after D’s farm was wrecked by Typhoon Yolanda. On January 11, 2014, Debtor’s farm was rehabilitated and D started doing business again. C, then wrote D a letter to deliver eggs for eight ( weeks (for D’s non-delivery of eggs from Nov. 10, 2013 to Jan. 10, 2014) from January 11, 2014, but D refused invoking expiration of the contract. Was C’s action valid?

what is the effect of a fortuitous events on a PERIOD?
we know what it does to obligations but how about to a period?

8 weeks of non-delivery

Answer 2

2 POVS

first - suspended because of the FE so the effect is that you cover for the missed weeks

second - not suspended and since it is FE it actually ended on Jan

Effect of Fortuitous event on Period
In a period in diem (resolutory), the happening of a fortuitous event upon the term or period is not to stop the running of the term or period but merely to relieve the contracting parties from the fulfillment of their respective obligations during the pendency of the event. (see Victorias Planters vs.
Victorias Milling)

in victoria’s milling, there was a order to sotp milling in japaenese occupation.

Question 3

so during pandemic, clients would ask if they are to ‘add’ to the non delivery on those weeks? No.

Question 4

• In case of Loss, Deterioration, and Improvement of a specific object: 1189 will apply!
• Any payment (by mistake or in good faith) made before the arrival of the period, the obligor may recover it plus interest (6%, legal rate, because the debtor was deprived of the use the money) and fruits, if any (because, legally the property still belonged to the debtor at the time of the premature payment.)

Question 5

Conventional Period is presumed for the benefit of both creditor and debtor:

• Meaning:
  The creditor cannot prematurely
  demand fulfillment from the debtor; and debtor cannot also prematurely compel the creditor to accept the payment [see: Nepomuceno vs.
  Narciso/ (so, no one will be in default and be liable for its legal consequences before the arrival of the period);
• Example of period for the benefit of both creditor and debtor: loan obligation to be paid in four years with 12% interest per annum.

Answer 5

ex. borrow 120m and payable in (1) one year, so 10m per month, but 0% interest. who is benefitted?

just the debtor, the period is beneficial to the debto

the creditor here is prejudiced, this is a PERIOD for the benefit of the debtor BUT when you have a conventional period, it is the benefit for both creditor and debtor where it is benecial to both of them.

if there is interest

Question 6

“Art. 1196. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of both the creditor and the debtor, unless from the tenor of the same or other circumstances it should appear that the period has been established in favor of one or of the other”

this the case

the period is the beenfit of the debtor and the reditor bc of the interest. the debtor cannot premautrely compel the creditor to accept payment

Question 7

Court to fix the period (1197):
1. When no period is fixed by the parties but it can be inferred that a period was intended by the parties;
2. When the duration of the period depends upon the will of the debtor;
1180 (when debtor’s means permit him to do so)

Answer 7

Period fixed by the Court
-Action to fix the period must be filed within ten (10) years from perfection of the contract.
-Once fixed by the courts, they (courts) cannot anymore change them, but the parties can by mutual agreement!
(1197)
-Until the period fixed by the courts has arrived, the creditor cannot demand performance! He must first ask the court to fix the period. (Gonzales vs. de Jose).

Question 8

Debtor shall lose right to make use of the period:
* Effect:
creditor can now demand fulfillment even before
the arrival of the period as it (period) is deemed extinguished!
* Instances or Grounds:
1. Insolvency after contracting the obligation.
2. Failure to furnish guaranty/security
3. Impairment or Loss of guaranty/security
4. Violation of undertaking
5. Attempt to abscond (1198)

ex. 10 years ang loan, and for the benefit of the creditor, the debtor has to respect the period.

most common question, is number 1, (1h;08m)

1. Insolvency after contracting the obligation.

D and C enter into contract. D is already insolvent. C discovered it later. 1hr 9minutes is the answer.

not knowledge of insolvency but the fact of insolvency for it to apply. the reason

caveat emptor - you the buyer, you have to examine the thing buying for apparent and visible defects so that the property. if you find the defect after buying, you cannot return it. caveat emptor is based on estoppel

insolvency must have occured AFTER. even if there is credit invesitagation and thereby granted a loan but then the debtor has become insolvent and therefore C is given the right to dmenad fulfillment of the entire obligation.

if insolvency took place BEOFRE hte loan, and it was found out after, then that is the fault of the C why he fialed to discover before agreeing on the loan.