Benefit of the period
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. (1127)
If the period is for the benefit of either of the creditor or debtor, the creditor may
demand the
fulfillment or
performance of
the obligation at
any time but the
obligor cannot
compel him to
accept payment
before the
expiration of the
period and the debtor may oppose any
premature demand on
the part of the obligee for
the performance of the
obligation, or if he so
desires, he may
renounce the benefit of
the period by performing
his obligation in advance.If the period is for the benefit of the debtor alone, he shall lose every right to make use of it: (a) when after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or security for the debt; (b) when he does not furnish to the creditor the guaranties or securities which he has promised; (c) 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; (d) when the debtor violates any undertaking, in consideration of which the creditor agreed to the period; (e) when the debtor attempts to abscond [1] (f) when required by law or stipulation; and (g) if parties stipulated an acceleration clause.
[1] Art. 1198, Civil Code.