ART 1169
default will commence except where it clearly appears that the
time for the performance of the obligation is of the essence.
ORDINARY DELAY- failure to perform an obligation on time
LEGAL DELAY/DEFAULT/MORA- failure to perform an obligationART 1192. In case both parties have committed a
on time which failure constitute a breach of the obligation
breach of the obligation, the liability of the first
infractor shall be equitably tempered by the courts. If it
KINDS OF DELAY
cannot be determined which of the parties first violated
MORA SOLVENDI- delay on the part of the debtor to fulfill histhe contract, the same shall be deemed extinguished,
obligation by reason of a cause imputable to him
and each shall bear his own damages.
Effects: a. debtor is guilty of breach of the obligation
b. Liable for interest in case of obligations to pay money or forTwo situations under this article
damages for other obligations
1. First infractor known-one party violated his
c. Liable even in fortuitous event when the obligation is to
obligation; subsequently, the other also violated his
deliver a determinate thing.
part of the obligation.
* In an obligation to deliver a generic thing, the debtor is not
2. First infractor cannot be determined- One party
relieved from liability for loss of a fortuitous event.
violated his obligation followed by the other, but it
cannot be determined which of them was the first
MORA ACCIPIENDI-delay on the part of the
infractor.
creditor without justifiable reason to accept the performance
Result: Contract extinguished, and each shall bear his
of the obligation
own damages
Effects: a. The creditor is guilty of breach of obligation
b. Liable for the damages suffered by the debtor
ART 1193. Obligations for whose fulfillment a day
c. Bears the risk of loss of the thing due
certain has been fixed, shall be demandable only when
d. If the obligation is money, the debtor is not liable for
that day comes.
interest from the time of the creditor’s delay
e. The debtor may release himself from the obligation by the
Obligations with a resolutory period take effect
consignation of the thing or sum due
at once but terminate upon arrival of the day certain.
COMPENSATIO MORAE- delay of the obligors in reciprocal
A day certain is understood to be that which
obligations
must necessarily come, although it may not be known
Effects: The delay of the obligor cancels out the effects of the when.
delay of the oblige and vice versa.
b. If the delay of one party is followed by that of the other, the
If the uncertainty consists in whether the day
liability of the first infractor shall be equitably tempered or
will come or not, the obligation is conditional, and it
balanced by the courts.
shall be regulated by the rules of the preceding Section.
General rule of Delay:
Delay begins only from the moment the creditor demands,
judicially or extrajudicially, the fulfillment of the obligation.
Meaning of OBLIGATION WITH A PERIOD
One whose consequences are subjected in one
way or another to the expiration of said period or
term.
Exceptions:
PERIOD OR TERM-future and certain event upon the arrival of
1. When the obligation so provides
which the obligation (or right) subject to it either arises or is
2. When the law so provides
terminated.
3. When time is of the essence
It is a day certain which must necessarily come,
Ex: agreements executed in the form of options;
although it may not known when, like the death
unilateral contracts; mercantile contracts; subject
of person
matter is of speculative or fluctuating value; contract
Period
Condition
relates to mining property
As to
Certain event
Uncertain event
4. When demand would be useless
fulfillment
which must
5. When there is performance by a party in reciprocal
happen sooner
obligations
or later at a
date known
beforehand
REQUISITES:
As to time
Refers only to
Future and
1.
failure of the obligor to perform obligation on the
the future
past event
DATE agreed upon;
unknown to
2.
demand (not mere reminder or notice) by the
the parties
creditor;
3.
failure to comply with such demand
*Demand shall be made only if the obligation is due and
demandable but creditor has the burden of proving that a
previous demand has been made.
* It is not sufficient that the law or obligation fixes a date for
performance; it must further state that after the period lapses,
As to
influence on
the
obligation
Fixes the
efficaciousness
of the
obligation.
If suspensive:
cannot
prevent the
birth of
obligation in
due time
If resolutory:
does not annul
the fact of its
existence
Causes an
obligation to
arise or cease
As to effect,
when left to
debtor’s will
Empowers the
court to fix the
duration
thereof
Unless
stipulated, it
does not have
any
retroactive
effect
Invalidates the
obligation
As to
retroactivity
Has a
retroactive
effect
other circumstances it should appear that the
period has been established in favor of one or the
other.
Computation of period
a. Year- 365 days
b. Months- 30 days
c. Day- 24 hours
d. Night- from sunset to sunrise
e. If the month are designated by their name- compute
based on the days of that month
*In computing a period, the first day shall be excluded and
last day included.
*If the last day is Sunday or a legal holiday, the time shall not
run until the end of the next day which is neither Sunday nor a
holiday.
ART 1197. If the obligation does not fix a period, but
from its nature and the circumstances it can be inferred
that a period was intended, the courts may fix the
duration thereof.
The courts shall fix the duration of the period
when it depends upon the will of the debtor.
In every case, the courts shall determine such
period as may have under the circumstances have been
KINDS OF PERIOD OR TERM:
probably contemplated by the parties. Once fixed by the
According to effect:
a. Suspensive period (ex die)- the obligation beginscourts, the period cannot be changed by them.
only from a day certain upon the arrival of the
*This period refers to judicial period.
period
CONTRACTUAL PERIOD- period fixed by the parties in their
b. Resolutory period (in diem)- the obligation is
valid up to a day certain and terminates upon thecontract
arrival of the period
Court will fix a period:
1. When no period is mentioned, but it is inferable
According to source:
from the nature and circumstances of the
a. Legal period- when it is provided for by law
obligation that a period was intended by the
b. Conventional or voluntary period- when it is
parties.
agreed to by parties
c. Judicial period- when it is fixed by the court
2. When the period is dependent upon the will of
the debtor.
According to definiteness:
a. Definite period- when it is fixed or it is known

If the obligation does not
when it will come
state and intend a period,
b. Indefinite period- when it is not fixed or it is not
the court is not authorized
known when it will come
to fix a period.

The court must fix the
ART 1194. In case of loss, deterioration or
duration of the period to
improvement of the thing before the arrival of the
prevent the possibility that
certain, the rules in Art 1189 shall be observed.
the obligation may never be
fulfilled or to cure a defect
ART 1195. Anything paid or delivered before the
in a contract whereby it is
arrival of the period, the obligor being unaware of
made to depend solely
the period or believing that the obligation has
upon the will of one of the
become due and demandable, may be recovered,
parties.
with the fruits and interests.
*Applies only to obligations to give.
*No recovery in personal obligation because it is
physically impossible to recover the service rendered
nor recover what he has not done.
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
*Predicated on the absence of any period fixed by the parties (
or the fact that period fixed is made to depend on the debtor’s
will)but it can be inferred that a period is intended.
Ultimate facts to be alleged in complaint
1. Facts showing that a contract was entered into,
imposing on one of the parties an obligation or
obligations in favor of another
2. Facts showing or from which inference may be
reasonably drawn, that a period for performance was ART 1199. A person alternatively bound by
intended by the parties.
different prestations shall completely perform
one of them. The creditor cannot be compelled
PERIOD FIXED CANNOT BE CHANGED BY THE COURTS
to receive part of one and part of the other
1. Period agreed upon by the parties- if there is a periodundertaking.
agreed upon by the parties and it has already lapsed
or expired, the court cannot fix another period.
OBLIGATION ACCORDING TO OBJECT
2. Period fixed by the court- From the very moment the 1. SIMPLE OBLIGATION- one where there is only
parties give their acceptance and consent to the
one prestation
period fixed by the court, said period acquires a
2. COMPOUND OBLIGATION- one where there are
covenant because the effect of such acceptance and
two or more prestations
consent as if they had been expressly agreed upon it,
a. CONJUCTIVE OBLIGATION- one where
and having been agreed upon by them, it becomes a
there are several prestations and all of
law governing their contract.
them are due.
3. Period fixed in a final judgement.
b. DISTRIBUTIVE OBLIGATION-one where
one of the two or more prestations is due.
May be alternative or facultive.
ART 1198. The debtor shall lose every right to
make use of the period:
OBLIGATIONS WITH PLURAL PRESTATIONS:
1. When after the obligation has been
1.
CONJUNCTIVE OBLIGATION - an
contracted, he becomes insolvent, unless
obligation where the debtor has to perform
he gives a guaranty or security for the
ALL the several prestations in the contract to
debt;
extinguish the obligation.
The insolvency need not be
2. ALTERNATIVE OBLIGATION – an obligation
judicially declared. It is
where the debtor is required to fulfill ONLY
sufficient that debtor could
ONE of the several prestations to
not pay his debts due to
extinguish the obligation.
lack of money or funds.
3. FACULTATIVE OBLIGATION – an obligation
where the debtor is bound to perform ONLY
2. When he does not furnish to the creditor
ONE prestation, with a reserved right to
the guaranties or securities which he has
choose another prestation as SUBSTITUTE for
promised;
the principal.
3.
4.
5.
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
satisfactory;
a. If security was lost through debtor’s
fault - impairment
b. If security was lost through fortuitous
event - disappearance
When the debtor violates any
undertaking, in consideration of which the
creditor agreed to the period;
When the debtor attempts to abscond.

- Mere attempt to abscond is
sufficient. It is an indication of
bad faith.
GENERAL RULE:
Obligation is not demandable before the
lapse of the period.
EXCEPTIONS:
Those stipulated under Art 1198 wherein
the debtor shall lose every right to make use of the
period, that is, the period is disregarded and the
obligations becomes pure and therefore, immediately
demandable.