Which of the following is an obligation with a period for the benefit of both the debtor and creditor? *

(A) payable if I like

(B) payable when I like

(C) payable on or before December 31, 2020

(D) payable on December 31, 2020

(E) payable when able.

(D) payable on December 31, 2020

Step-by-step explanation

Under Article 1196 of the New Civil Code, 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. It can be clearly inferred from this provision that as a general rule, the period designated by the parties is for the benefit of both of them. The exception lies when their intention would manifest otherwise.

The period "payable on December 31, 2020" is for the benefit of both parties. Since the period is fixed at a particular date, it presupposes that the debtor cannot pay prematurely and the creditor cannot demand prematurely. Both of them must fulfill their obligation on that specific period fixed by them.