Module 4

Question 1

What is a period or term?

Answer 1

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.

Question 2

Whenever a period has been designated in an obligation, for whose benefit is it presumed?

Answer 2

Whenever in an obligation a period has been designated, it shall be
presumed to have been established for the benefit of BOTH the
creditor and 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 (Art. 1196).

Question 3

Can the debtor perform the obligation before the expiration of such
period?

Answer 3

as a general rule, the
creditor cannot demand the performance of the obligation before
the expiration of the designated period; neither can the debtor
perform the obligation before the expiration of the period.

Question 4

Effect if Given to Debtor Alone

Answer 4

1. He may oppose any premature demand on the part of the creditor
   for performance of the obligation;
2. If he so desires, he may renounce the benefit of the period by
   performing his obligation in advance.

Question 5

The debtor shall lose every right to make use of the period:

Answer 5

1. When after the obligation has been contracted, he becomes
   INSOLVENT, unless he gives a guaranty or security for the debt;
   Note: The insolvency need not be judicially declared in an
   insolvency proceeding.
2. When he DOES NOT FURNISH to the creditor the GUARANTIES OR
   SECURITIES which he has promised;
3. When by his own acts he has IMPAIRED SAID GUARANTIES or
   securities after their establishment, and when through a
   FORTUITOUS EVENT THEY DISAPPEAR, unless he immediately gives
   new ones equally satisfactorily;
4. When the debtor VIOLATES ANY UNDERTAKING, in consideration of
   which the creditor agreed to the period; or
5. When the debtor attempts to ABSCOND (Art. 1198).

Question 6

period upon the arrival of which the obligation terminates

Answer 6

Resolutory Period

Question 7

The court may fix the period:

Answer 7

a. If the obligation does not fix a period, but from its nature and
the circumstances it can be inferred that a period was
intended; or
b. When it depends upon the will of the debtor (i.e., when the
debtor binds himself to pay when his means permit him to do
so) (Art. 1180).

Question 8

When the obligation fails to fix a period, or when it depends upon the will
of the debtor, what should the creditor do before he can demand
payment?

Answer 8

The creditor must ask the court to set the period, before he can
demand payment. The period to be fixed by the court becomes part of the contract and until it has expired no action to enforce payment
can be maintained (Art. 1197).

Question 9

(Alternative Obligation or Facultative Obligation) An obligation is alternative when two
things are equally due, under
an alternative. The obligor is bound to
render only one of two or more items
of performance.

Answer 9

Alternative Obligation

Question 10

(Alternative Obligation or Facultative Obligation) Several objects are due.

Answer 10

Alternative Obligation

Question 11

(Alternative Obligation or Facultative Obligation) Facultative obligation refers to a type of obligation where one thing
is due, but another is paid in its
place. In such type
of obligations there is no
alternative provided. The debtor is
given the right to substitute the
thing due with another that is not
due.

Answer 11

FACULTATIVE OBLIGATION

Question 12

(Alternative Obligation or Facultative Obligation) It may be complied with by the
delivery of one of the objects or by
performance of one of the
prestations which are alternatively
due.

Answer 12

Alternative Obligation

Question 13

(Alternative Obligation or Facultative Obligation) The right of choice may pertain to the debtor. If expressly granted, the right of
choice may also pertain to the
creditor or third person.

Answer 13

Alternative Obligation

Question 14

(Alternative Obligation or Facultative Obligation) Only one object is due.

Answer 14

FACULTATIVE OBLIGATION

Question 15

(Alternative Obligation or Facultative Obligation) It may be complied with by the
delivery of another object or by the
performance of another prestation
in substitution of that which is due.

Answer 15

FACULTATIVE OBLIGATION

Question 16

(Alternative Obligation or Facultative Obligation) Loss/impossibility of all
objects/prestations due to fortuitous
event shall extinguish the obligation.

Answer 16

Alternative Obligation

Question 17

(Alternative Obligation or Facultative Obligation) The right of choice pertains only to the debtor.

Answer 17

FACULTATIVE OBLIGATION

Question 18

(Alternative Obligation or Facultative Obligation) Loss/impossibility of the
object/prestations due to fortuitous
event is sufficient to extinguish the
obligation.

Answer 18

FACULTATIVE OBLIGATION

Question 19

(Alternative Obligation or Facultative Obligation) As to culpable loss before choice, it may give rise to liability on the part of the debtor.

Answer 19

Alternative Obligation

Question 20

(Alternative Obligation or Facultative Obligation) It does not give rise to any liability on the part of the debtor.

Answer 20

FACULTATIVE OBLIGATION

Question 21

(Alternative Obligation or Facultative Obligation) Example:
A is obligated to give B either 1 sack
of rice or 1 sack of corn. In this case,
since A’s obligation to give 1 sack of
rice or corn is in the alternative, the
fulfilment of 1 extinguishes the
obligation.

Answer 21

Alternative Obligation

Question 22

(Alternative Obligation or Facultative Obligation) Example:
A is obligated under a contract to
give B a Samsung 2-door
refrigerator on January 02, 2020,
but he is allowed to substitute it to
another thing that is not due. On
the said date, A, the obligordebtor, may render a Hanabishi 2-
door fridge to B in substitution to
the Samsung refrigerator.

Answer 22

FACULTATIVE OBLIGATION