Article 1194 If the uncertainty consists in whether the day will come or not, the

obligation is conditional, and it shall be regulated by the rules of the

In case of loss, deterioration or improvement of the thing before preceding Section. (1125a)
the arrival of the day certain, the rules in Article 1189 shall be
observed. DISCUSSION
Sa oras ng pagkawala, pagkasira o pagpapabuti ng gamit bago Concept of Term. Period and term have the same meaning and are
dumating an tinakdang araw, ang mga patakaran na nasa Artikulo used interchangeably. It consists in a space or length of time upon
1189 ang dapat sundin. the arrival of which, the demandability or extinguishment of an
obligation is determined.
Discussion:
Distinguished from Condition. Term is different from condition with
the following distinction
This article speaks of loss, deterioration or improvement of the thing
before the arrival of the day certain.
 As to FULFILLMENT. Being an uncertain event, condition may or may
not happen while term is sure to happen whether at an exact date
Condition of the known or at indefinite time.
Thing 
Effect As to INFLUENCE ON THE OBLIGATION. A condition may cause the
arising or extinguishment of an obligation while a term has no effect
or influence upon the existence of the obligation
 As to TIME. Condition can refer to a past event unknown to the
Lost*
parties while a period always refers to the future.
 As to WILL OF DEBTOR. A condition which depends exclusively on
 Without fault of
the will of the debtor annuls the obligation, while a period left to the
the debtor Obligation is extinguished debtor’s will merely empowers the court to fix such period.

Requisites of Period.
 Fault of the
debtor Obligation to pay damages
 Future
 Certain
Deteriorates
 Possible
 Without fault of
the debtor Kinds of Terms.
The impairment is borne by the creditor

1. (ex die) – Suspensive refers to a condition whereby, an enforceable

 Fault of the The creditor may choose to rescind with obligation starts after an uncertain event occurs; a term or period
debtor indemnity for damages, or have it fulfilled, with a suspensive effect, which means the obligation becomes
but still with indemnity for damages effective only from the arrival of a certain day. Illustration:A vowed
to support B from the death of B’s father, which means the
Improvement obligation only begins from the death of B’s father.

 By its nature 2. (in diem) – Resolutory refers to a condition whereby, upon

Inures to the benefit of the creditor
fulfillment terminates an already enforceable obligation; a term or
period with a resolutory effect, which means the obligation will
 At the expense of subsist up to a certain day and it terminates upon the arrival of that
The debtor shall have no other right than day. Illustration: X assured to support Y until Y reaches her majority
the debtor
that granted to the usufructuary. age, which means the obligation is already effective but will
terminate once Y turns 18.
*It is understood that the thing is lost when it perishes, or goes out
of commerce, or disappears in such a way that its existence is Other Classifications
unknown or it cannot be recovered.

1. Legal – when the period is fixed by law

Illustration: 2. Voluntary – when the period is agreed upon by the parties
3. Judicial – when the period is fixed by the court for the performance
of the obligation
Jay obliged himself to sell his yacht to Zola at half its purchasing 4. Express – specifically stated
price on Zola’s graduation, provided Zola graduates on time. On 5. Tacit – understood from the nature of the thing, or from the
April 25, 2016, Zola graduated, on time and with honors. However, provision of the law
the day before his graduation, Typhoon Hayan destroyed the yacht. 6. Original Period
Since the loss happened before the day certain, and the loss was 7. Period of Grace – an extension fixed by the parties or by the court
due to a fortuitous event, the obligation of Jay to sell his yacht to 8. Definite – the date and time are known
Zola is extinguished. 9. Indefinite or indeterminate – the event will definitely happen but
the time and date is unknown
Art. 1193. Obligations for whose fulfillment a day certain has been
fixed, shall be demandable only when that day comes.Obligations
with a resolutory period take effect at once, but terminate upon Effect of Period. Obligations with a term are demandable only when
arrival of the day certain. the day fixed for their performance arrives. Thus, in actions for the
recovery of debts payable in installments, those not yet due and
A day certain is understood to be that which must necessarily payable cannot be demanded in the complaint.
come, although it may not be known when.
Suspension of Period. Although the contract shall be deemed
suspended if fortuitous event or force majeure transpires does not
necessarily mean that an event or contract will stop its period from The delay in making a selection does not constitute to losing the
running for what it is agreed upon. For example, Y was indebted to selection. However, if before any choice is made, a case is filed in
X, Y promised to pay all his debt every week for 6 months in which X court, an issue may arise regarding the prestation that will be
agreed. One day, Y was bumped by a car causing him not to work for
enforce. The Code is silent on the point of who will make the
3 weeks. The period of him paying his debt in three weeks was
suspended but he must still pay his debt in 6 months’ time. selection, although there are three possibilities:

the court will make the choice;

Effect of Moratorium Laws. Moratorium is used to denote a period
of time during which the law authorizes a delay in payment of debts the court may order the debtor, or
or performance of some other legal obligation. This moratorium is
most often invoked during the times of distress, such as wars or the creditor will make the choice within a certain period.
natural disasters.
Moreove, when there is a delay in the selection of the prestation,
the fair resolution is to punish the one who is responsible to exercise
ARTICLE 1200 OBLIGATIONS BECAME SIMPLE – the rule stated in this the right of choice and caused the delay. If the debtor caused the
article is a simple logical consequence of the second paragraph of
dealy, the courd should authorize the creditor to make the choice
Art 1200 ( election by others – alternative obligations between
parties, when one party perform the prestation with intention to because this gives the impression that the debtor has waived his
discharge the obligation, then he is released and the choice is right by causing the delay. The same rule applies if it is the creditor
entrusted by the party to a third person. who incurred the delay in making the choice or selection.

WHERE CREDITORS MAY CHOOSE – article 1202 is only applied when ARTICLE 1202 When all of the prestations, except one, have become
the debtor has the right to choose. Unless otherwise art 1205 will be impossible or unlawful, the debtor loses his right of choice. This is
applied when prestation remains practicable either by fortuitous because the obligation loses its alternative character. It becomes a
event or due to fault of the debtor simple obligation.

By default, the debtor has the right of choice in selecting which When the debtor loses the right of choice the obligation becomes
obligation to perform unless otherwise stipulated. The debtor simple. this article applies only when the debtor has the right to
cannot select prestations that are: (a) impossible; (b) unlawful; or (c) choose. EXAMPLE X is obliged to give either object A or object B or
which could not have been the object of the obligation.
Object C. if objects A and B are lost by a fortuitous event before the
choice can be made, X can only deliver object C, because the
If the debtor cannot make a choice according to the terms of the
obligation has become a simple one
obligation due to the acts of the creditor, the debtor has the right to
rescind the contract with damages
ARTICLE 1203 NOTE: Please observe that the contract is not
automatically rescinded; the law says that the debtor “may rescind,”
The obligation ceases to be alternative and converted into a simple
implying that he may allow it to remain in force insofar as the
obligation to perform the only feasible and practicable prestation,
unless otherwise provided by law. possible choice or choices are involve.Example A agreed to paint
either the residential house or commercial building of B at
WHERE CREDITORS MAY CHOOSE – article 1202 is only applied when 100,000.00. B, however sold his commercial building. The alternative
the debtor has the right to choose. Unless otherwise art 1205 will be of painting the building has become impossible because of the
applied when prestation remains practicable either by fortuitous change in ownership. A has now the option to paint the residential
event or due to fault of the debtor. house or rescind the contract with damages, if he suffered any.

1204 Loss by fault of the debtor. – The debtor has the right to choose. If
ARTICLE 1201 The notice of selection or choice of prestation may be only some of the prestations are rendered impossible, the fault of the
communicated in writing, verbally, impliedly or by any other
debtor does not make him liable for the damages. The debtor will only
unequivocal means.
be liable for the damages when all the prestations become impossible
through his fault.
Effects of choice or selection:
Effect of Fortuitous event. – If all the prestations become impossible due
1. The obligation will be limited only to the chosen or selected to fortuitous event, the obligations is extinguish. Therefore, the debtor is
prestation with all the natural consequences arising from it; not liable for the damages.

2. The choice is irrevocable, otherwise, the other pary might be If one or more of the prestations due become impossible by fortuitous
exposed to damages which may arise from costly preparation in event. leaving only one prestation, and then this last prestation become
impossible by the fault of the debtor, the debtor will be liable for the
waiting for the performance of the announced prestation.
damages, with the value of the last prestation as the basis.
The performance is not binding if the debtor simply performed his
But if some of the prestations become impossible by fault of the debtor,
choice of prestation without announcing it to the creditor. The
and then the remaining prestation become impossible by fortuitous
debtor can recover what he had delivered, performed, or paid,
event, the obligation is extinguished and the debtor is relieved from
under the law on quasi-contracts.
liability.

The law grants the debtor to make the choice unless the creditor is This is the effect of loss of object of obligation, if some of the objects of
expressly granted the said right. When making the choice, the law an obligation have been lost or become impossible even through fault of
does not require that the choosing party first secure the conformity the debtor , the latter is not liable since he has the right of choice and
of the other party, because that will only frustrate the clear the obligation can still be performed. And if, all of them have been lost
intention of the law and the alternative nature of the obligation. or have become impossible through his fault, the creditor shall have the
right to indemnity for damages since the obligation can no longer be
Effect of delay in making a selection complied with. The basis of indemnity shall be fixed taking as basis the
value of the thing lost.