Law of Obligation

Secuon 194 8y vlrLue of an obllgauon Lhe

credlLor ls enuLle Lo clalm performance from
Lhe debLor. 1he performance may conslsL of
forbearance."
1here are many 1hal [urlsLs Lrylng Lo dene
whaL an obllgauon ls. Conslderlng Lhe law, an
obllgauon ls a [urlsuc relauonshlp beLween
Lwo parues
CredlLor : has rlghL Lo clalm performance from
debLor
uebLor : has duLy Lo perform Lhe obllgauon ln
accordance wlLh Lhe clalm
1here musL be a [urlsuc relauon Lo esLabllsh rlghLs and duues
8eclprocal [urlsuc
- Sales conLracL
- Lxchange conLracL
- Lease conLracL
- Plre of servlce conLracL
1he [urlsuc relauon may be a non-reclprocal one such as
deposlL of properLy wlLhouL remunerauon, a Cl conLracL and a
loan for use conLracL (borrow).
1here musL be sub[ecL of obllgauon
Sub[ecL of obllgauon lndlcaLes how Lhe debLor
should perform an obllgauon.
1hree Lypes
-uellvery o a properLy
-uolng some acL
-lorbear from dolng some acL
- ConLracL
- Legal Causes
- Legal rovlslon
ConLracL : made beLween Lwo or more parues
Lo creaLe rlghLs and obllgauons
Legal causes are Lhe clrcumsLances whlch
creaLe legal consequences. 1hey may arlse
from naLural evenLs or by Lhe acLs of human
belng.
1here are 3 Lypes of legal force
- 1orL
- ManagemenL of aalrs wlLhouL MandaLe
- undue LnrlchmenL (un[usL LnrlchmenL)
Secuon 420 A person who wlllfully or
negllgenLly, unlawfully ln[urles Lhe llfe, body,
llberLy, healLh, properLy or any rlghL of
anoLher person, ls sald Lo commlL a wrongful
acL and ls bound Lo make compensauon
Lherefore."
Wlllful or negllgenL acL of Lhe debLor.
uebLor musL compensaLe Lo Lhe credlLor by
paylng damages.
Secuon 393
aylng for dlsapproved acuon of someone else
Secuon 406
An lllegal agreemenL
Clve Lhe properLy back Lo lLs owner
1he law LhaL provldes beneLs Lo Lhe counLry.
ubllc pollcy.
1he clvll and Commerclal Code.
Law of Laxauon.
1he Labor roLecuon AcL.
CredlLor ask for an acuon from debLor.
lf Lhe debLor lgnores , Lhe credlLor has rlghL Lo
enforce Lhe performance.
1he enforcemenL musL be legal
1here are 3 consequences of obllgauon.
1he dead llne for Lhe debLor Lo perform Lhe
obllgauon.
uepends on several slLuauon.
1here are 4 slLuauon.
Secuon 203 para1
no agreemenL abouL Lhe dead llne.
Secuon 203 para 2
Pave agreemenL abouL Lhe ume.
lalls due exacLly on Lhe daLe of calendar.
1he due daLe ls ln accordance wlLh slLuauon.
uebLor musL compensaLe for Lhe laLer
performed obllgauon
1here are 3 cases
1he credlLor ls already maLure
noL yeL ln defaulL
Wlll defaulL only aer belng warned
uue on daLe & perlod xed
uebLor ls ln faulL lf he does noL perform hls
obllgauon on LhaL daLe
uebLor ls ln defaulL when Lhe parLy commlued
a LorL.
1he debLor musL compensaLe for Lhe credlLor.
Secuon 203
1he debLor ls noL responslble for
consequences when he's noL ln defaulL
1here are 3 maln consequences of defaulL
! When a debLor ls ln defaulL
! When Lhe credlLor ls ln defaulL
! 1he eecL of Lhe credlLor's belng ln defaulL
1he debLor ls llable for Lhe followlng damage
Lo Lhe credlLor.
1. When Lhe debLor lnLend noL Lo perform Lhe
obllgauon, Lhe credlLor may ask for Lhe
compensauon
2. lf lL's defaulL, Lhe performance ls useless and
Lhe credlLor may ask for compensauon
3. A debLor had been responslble for hls defaulL
unless he would have ln[ured.
4. 1here ls an lnLeresL for Lhe debL durlng
defaulL. lf Lhe credlLor can ask for Lhe hlgher
lnLeresL, Lhls shall conunue Lo be pald
3. lf Lhe debLor dld Lhe conLracL Lo compensaLe
for Lhe value of an ob[ecL durlng Lhe defaulL,
Lhe credlLor may ask for an lnLeresL.
1. lf Lhe credlLor does noL accepL Lhe
performance of Lhe obllgauon for hlm, he ls
ln defaulL.
2. lf Lhe credlLor does noL oer Lhe requlred
performance for Lhe debLor, he ls ln defaulL.
When Lhe credlLor ls ln defaulL, Lhe debLor ls
noL responslble for any damage as followlng :
1. 1he delayed performance.
2. 1he performance become useless Lo Lhe
credlLor.
3. Any damage occurs Lo Lhe properLy of Lhe
obllgauon and lL does noL due Lo Lhe faulL of
Lhe debLor.
Aer Lhe obllgauon was creaLed buL before
Lhe debLor ls ln defaulL.
1here are 2 cases of Lhe performance
Secuon 218
1he debLor ls responslble for Lhe lmposslblllLy
LhaL occurs before defaulL.
1he credlLor can refuse Lo recelve Lhe posslble
parL and ask for Lhe compensauon for Lhe
non-performance.
Secuon 219
1he debLor has no responslblllLy. Lven Lhough
Lhe credlLor geL Lhe damage, he can noL ask
for any compensauon.
1) 1he Lhlrd person's acuon or wlLhouL
debLor's responslblllLy.
2) lorce ma[eure.
1.8y erformance
erformance ls dened ln 8lack's law ulcuonary as Lhe
fulllmenL or accompllshmenL of a promlse, conLracL, or oLher
obllgauon accordlng Lo lLs Lerms, rellevlng such person of all
furLher obllgauon or llablllLy Lhereunder.
!"# %&'()*%+ Mary borrows money fro eLer,
and she repays on maLurlLy daLe.
8elease ls a unllaLeral, non-reclprocal declarauon
of lnLenuon by Lhe credlLor Lo release an
obllgauon. 1he black's law dlcuonary denes Lhe
Lerm as by release" a wrlung or an oral
sLaLemenL manlfesung an lnLenuon Lo dlscharge
anoLher from an exlsung or asserLed duLy. lL ls
Lhe glvlng up of a rlghL, clalm or prlvllege, by Lhe
person ln whom lL exlsL or Lo whom lL accrues, Lo
Lhe person agalnsL whom lL mlghL have been
demanded or enforced. Powever, lf an obllgauon
made ln wrlung, Lhe release of such obllgauon
musL be made ln wrlung as well .
SeL-o ls dened as when Lwo persons are
bound Lo each oLher by Lhresponde
obllgauons whose sub[ecL ls of Lhe same klnd
and boLh of whlch are due, debLor may be
dlscharged from hls obllgauon by semng-o Lo
Lhe exLenL Lo whlch Lhe amounLs of Lhe
obllgauons correspond, unless Lhe naLure of
one of obllgauons does noL admlL lL.
novauon ls dened as a subsuLuuon of a new
conLracL, debL, or obllgauon for an exlsung one
beLween Lhe same or dlerenL prrues. lL ls also a
subsuLuuon by muLual agreemenL of one debL for
anoLher, whereby Lhe old debLs ls exungulshed.
Whereas Lhe new obllgauon ls creaLed lnsLead.
when Lhe parues concerned have concluded a
conLracL changlng Lhe essenual elemenLs of an
obllgauon, such obllgauon ls exungulshed by
novauon."
lf rlghL and llablllues ln an obllgauon become
vesLed ln Lhe same person, Lhe obllgauon ls
exungulshed."
8lack's law dlcuonary denes Lhe Lerm "by
merger" as Lhe exungulshmenL of one
conLracL by lLs absorpuon lnLo anoLher, and ls
largely a mauer of lnLenuon of Lhe parues.
1LvlCP ?. 3333264
MCn1Pl8A C. 3613022
MCnCPAnCk C. 3613942
CPu1lkAn S. 3613341
WLL8ln k. 3614162
1PAuA S. 3333223
!lAPAC C. 3623236