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Lesson 1 Obligations
Business Administration
Pangasinan State University
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Obligation
OBLIGATION
An obligation is a juridical necessity to give, to do or not to do.
The term obligation is derived from the Latin word obligatio which means tying or binding. It is a tie or bond recognized by law by virtue of which one is bound in favor of another to render something – and this may consist in giving a thing, doing a certain act, or not doing a certain act.
Obligor – one who has the duty of giving, doing or not doing.
Obligee – one who has the right to the performance of the obligation.
Obligation is a juridical necessity because in case of non-compliance, the courts of justice may be called upon by the aggrieved party to enforce its fulfillment or, in default thereof, the economic value that it represents.
Civil obligations – obligations which give to the creditor or obligee a right under the law to enforce their performance in courts of justice.
Natural obligations – do not grant a right of action to enforce their performance although in case of voluntary fulfillment by the debtor, the latter may not recover what has been delivered or rendered by reason thereof.
Four essential requisites of an obligation
a. A passive subject (called debtor or obligor) – the person who is bound to the fulfillment of the obligation; he who has the duty.
b. An active subject (called creditor or obligee) – the person who is entitled to demand the fulfillment of the obligation; he who has a right.
c. Object or prestation (subject matter of the obligation) – the conduct required to be observed by the debtor. It may consist in giving, doing, or not doing. Without the prestation, there is nothing to perform.
d. A juridical or legal tie (also called efficient cause) that which binds or connects the parties to the obligation.
Obligation, right, and wrong distinguished
a. Obligation is the act or performance which the law will enforce.
b. Right is the power which a person has under the law, to demand from another any prestation.
c. A wrong (cause of action), is an act or omission of one party in violation of the legal right or rights (i., recognized by law) of another.
In law, the term injury is also used to refer to the wrongful violation of the legal right of another.
The essential elements of a legal wrong or injury are:
a. a legal right in favor of a person (creditor / plaintif) b. correlative legal obligation on the part of another (debtor / defendant) c. an act or omission by the latter in violation of said right with resulting damage to the former.
Kinds of obligation according to the subject matter
a. Real obligation (obligation to give) is that in which the subject matter is a thing which the obligor must deliver to the obligee.
b. Personal obligation (obligation to do or not to do) is that in which the subject matter is an act to be done or not to be done.
- Positive personal obligation or obligation to do or to render service.
- Negative personal obligation is obligation not to do (which naturally includes obligations “not to give”).
Sources of obligations
a. Law – when they are imposed by law itself. b. Contracts – when they arise from the stipulation of the parties. c. Quasi-contracts – when they arise from lawful, voluntary and unilateral acts which are enforceable to the end that no one shall be unjustly enriched or benefited at the expense of another.
d. Crimes or acts or omissions punished by law – when they arise from civil liability which is the consequence of a criminal offense.
e. Quasi-delicts or torts – when they arise from damage caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between the parties.
Compliance in good faith – compliance or performance in accordance with the stipulations or terms of the contract or agreement.
e. The debtor may release himself from the obligation by the consignation or deposit in court of the thing or sum due.
In compensatio morae, the delay of the obligor cancels the delay of the obligee and vice versa. The net result is that there is no default or delay on the part of both parties.
Lesson 1 Obligations
Course: Business Administration
University: Pangasinan State University
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