Skip to content
MiPRFácil
ESEN
Public Utilities

Falling into insolvency ends the term even with no court declaring it

Last reviewed: September 12, 2026 — VerifiedPoder Judicial

In short

Article 308 draws the line between the two modalities with a single test, and it is not the one people assume: a term is the future fact that necessarily must occur and to which the start or end of an act’s effects is subordinated, and it is a condition if the fact may or may not occur. What decides is not that there is a date, but that it is certain; that is why Article 309 admits a term whose moment is unknown, so long as the event must happen. That same article sets the default rule: an act subject to neither a term nor a suspensive condition has immediate efficacy. Article 310 fits in one line and decides many cases: it is presumed the term is established in benefit of both parties. Article 311 lets the holder perform conservatory acts on their right even with the suspensive term pending, and marks the most important difference from the condition: fulfilment of the resolutory term has no retroactive effect. Conditions look backward; terms do not. Article 312 settles the contract that does not say when: if the term is indeterminate or has been left to the debtor’s will, the court must fix its duration, and the claim to fix it may be joined to the one demanding performance, so two lawsuits are not needed. And Article 313 is the sharpest: the term lapses if the debtor falls into insolvency, even if not declared in a judgment, unless they secure performance; and it also lapses if the debtor does not grant the promised guarantees, or if these diminish or are extinguished by their will or by fortuitous event. Note the ending: even a fortuitous event costs the debtor the term, with nobody at fault.

External link

Go to the official site

You'll leave MiPRFácilOpens in a new tab

bvirtualogp.pr.gov

What is it?

They are Articles 308 to 313 of the Civil Code of 2020: what a term is, whose benefit it is presumed for, who fixes it when missing, and when it is lost.

Who can do it?

Anyone owing or collecting on a term, and anyone with a contract that does not say when performance is due.

Requirements

Documents you need

Cost

Check the current cost with the official agency.

Step by step

  1. Step 1: Ask whether the fact is certain

    Article 308: it is a term if it must necessarily occur; a condition if it may or may not.

  2. Step 2: You need not know the date

    Article 309: there is a term even if the when is unknown, so long as the event must happen.

  3. Step 3: With no term, it is due now

    Same article: an act with neither a term nor a suspensive condition has immediate efficacy.

  4. Step 4: The term belongs to both

    Article 310: it is presumed the term is established in benefit of both parties.

  5. Step 5: Conserve your right while it runs

    Article 311: the holder may perform conservatory acts even with the suspensive term pending.

  6. Step 6: The term does not look back

    Same article: fulfilment of the resolutory term has no retroactive effect, unlike the condition.

  7. Step 7: If it does not say when, ask the court

    Article 312: the court must fix the duration, and that claim may be joined to the one for performance.

  8. Step 8: Watch the guarantees

    Article 313: the term falls if the debtor fails to grant the promised ones or they diminish or die.

Where to do it

These six articles describe no procedure before any agency. The Code does not define here what insolvency is or how it is shown when not declared in a judgment. It does not say what securing performance takes in order to save the term. It does not say what the court weighs when Article 312 orders it to fix the duration, or before which forum it is sought. It does not say whether the debtor may pay early when the term benefits both, beyond that presumption. And it says nothing about default or interest, which live in the obligations Book and are covered separately on this site. None of those gaps is filled here.

How long it takes

Check the current processing time with the official agency.

What to do if something goes wrong

If you are the creditor, the article to keep at hand is 313, because it lets you stop waiting without asking anyone’s permission: the term lapses if the debtor falls into insolvency, even if not declared in a judgment, unless they secure performance. The same article adds two situations people forget that require no insolvency at all: the debtor failing to grant the guarantees they promised, or those guarantees diminishing or being extinguished. And mind the ending, because the Code includes a fortuitous event there: if the guarantee is lost through nobody’s fault, the term falls all the same. It is written that way. If you are the debtor, the piece that is yours is Article 310: it is presumed the term is established in benefit of both parties, so it is not yours alone and the creditor has a say about moving it up. And if what you have is a contract that does not say when performance is due, or that left it to whatever you decide, Article 312 does not leave you in limbo: the court must fix the duration, and the claim to fix it may be joined to the one demanding performance, which saves a whole lawsuit. Before anything, classify properly. Article 308 does not look at whether there is a date on the paper but at whether the fact must occur by force: if it is certain, it is a term; if it may or may not, it is a condition, and the regime changes. That distinction decides, for instance, whether fulfilment looks backward, because Article 311 says fulfilment of the resolutory term has no retroactive effect, while with conditions retroactivity is the rule. And if the contract has neither a term nor a suspensive condition, there is nothing to wait for: its efficacy is immediate. MiPRFácil does not represent anyone in court and gives no legal advice.

Common mistakes

  • Calling a term a condition: Article 308 looks at whether the fact must necessarily occur.
  • Believing there is no term without a date: Article 309 admits a term whose moment is unknown.
  • Waiting for insolvency to be declared in a judgment before claiming: Article 313 does not require it.
  • Forgetting the term also falls if the promised guarantees are not granted.
  • Assuming a fortuitous event saves the debtor: the same article lists it among the causes.
  • Treating the term as yours alone: it is presumed established in benefit of both parties.
  • Giving up on a contract that does not say when: Article 312 orders the court to fix the duration.
  • Applying the condition’s retroactivity to the resolutory term: Article 311 says it has none.

Frequently asked questions

What is the difference between a term and a condition?

Article 308 says a term is a future fact that must necessarily occur, and a condition if it may or may not.

The debtor is insolvent. Must I wait for the due date?

Article 313 voids the term if the debtor falls into insolvency, even undeclared, unless they secure performance.

The contract does not say when to pay. What now?

Article 312 orders the court to fix the duration, and that claim may be joined to the one for performance.

Is the term only for the debtor’s benefit?

No. Article 310 presumes the term is established in benefit of both parties.

Official sources

These are the government pages this guide is based on.

Last verified

September 12, 2026

MiPRFácil is an independent informational website and is not affiliated with, endorsed by, or operated by the Government of Puerto Rico or any government agency.

MiPRFácil does not submit applications on your behalf.

Was this guide helpful?

Did you find out-of-date information?

Did you find out-of-date information?

No account needed. We don't ask for personal data.