Obligation
Concept
• Generally the term “obligation” is a duty to do or not to do
something. An obligation is the responsibility of a party to
meet the terms of a contract or agreement. An obligation
binds together two or more determinate persons. The
obligation can be understood in the following sense
Common sense:: Synonymous to legal duty.
Narrow sense : Duty corresponding to a proprietary right in
personam.
Legal sense: Bond of vinculum( legal tie) juris which binds together
two or more determinate individuals. An obligation is the bond of
legal necessity or vinculum juris which binds together two or more
determinate individuals’
According to National Civil Code 2074 Obligation is created if there is
a legal compulsion for one to do or to abstain from doing any act and
if one omits to do or does such an act
Definition
Black’s law dictionary ‘a legal duty or moral duty to do or not to do something’.
Fredrick Pollock: obligation in its popular sense as merely synonym for ‘duty’.
Kant – Obligation is the possession of the will of another, as a means of
determining it, through my own, in accordance with the law. Of freedom, to a
definite act.
Holland- An obligation is a tie, whereby one person is bound to perform certain
act for the benefit of another.
Salmond- An obligation is defined as a proprietary right in personam or a body
which corresponds to such a right.
Anson- Obligation is a control exercisable by definite persons over definite
persons for the purpose of definite acts or forbearances reducible to a monetary
value
Sources of Obligation
In modern time, the laws of different countries clearly express the
sources of obligation.
Some of the sources are as follows
• i) Obligation that arises from contract
• ii) Obligations that arise from indirect or quasi contract
• iii) Obligation that arises from the unjust enrichment
• iv) Obligations that arises from the unilateral commitment of any
person to assume obligation
• vi) Obligations arising from law
Circumstances to be created obligation
According to National Civil Code 2074 sec 494. Circumstances in
which obligation is created: maintained as follows:
(a) By a law,
(b) By a contract,
(c) By an indirect or quasi-contract,
contract,
(d) By an unjust enrichment,
(e) By an unilateral commitment of any person to assume obligation,
(f) By an act to be treated as tort under law,
(g) By an act to be treated as a quasi-tort
quasi under law
Types of Obligations
Domestic obligation
Fiduciary obligation
Official obligation
(See NCC sec493 to 503)