OBLIGATION
Definition of obligation
Sources of obligation
Types of obligation
THE CONCEPT OF OBLIGATION
This chapter is intended to introduce the students
to the basic notions of obligations and contracts
that are crucial to understand the chapters that
follow.
The conceptual foundation of obligation traces as
far back to ancient Roman law which defines
obligation as a means of an undertaking or legally
binding relationships where one party promises the
other party to perform some acts or to do
something.
DEFINITION OF OBLIGATION
 OBLIGATION. A generic word, derived from the Latin
substantive "obligatio" having many, wide, and varied
meanings, according to the context in which it is used.
 Black's law dictionary defines obligation as “a legal duty or
moral duty to do or not to do something”.
 The binding power of a vow, promise, oath, or contract, or
of law, civil, political, or moral, independent of a promise;
that which constitutes legal or moral duty, and which
renders a person liable to coercion and punishment for
neglecting it.
OBLIGATION OF CONTRACT
 OBLIGATION OF A CONTRACT: is the duty of
performance. That which law in force when
contract is made obliges parties to do or not to do,
and remedy and legal means to carry it into effect.
SOURCES OF OBLIGATION
 In modern time, the laws of different countries clearly
express the sources of obligation. For instance, French civil
code classifies the source of obligation as;
I.
Obligation that arises from contract
II.
Obligations that arise beyond the contract
III. Obligation that arises from the unlawful acts
IV. Obligations that arises from the causing of physical
injure or causing material damage
V. Obligations arising from law
SOURCES OF OBLIGATION CONT..
In so far as an obligation arising from the law is concerned, it happens
in situations when law imposes obligations on persons to give or not
to give, to do or not to do some acts recognized in almost all-legal
systems.
Obligation arising from the law is a unilateral obligation imposed on
citizens or contracting parties without their consent. It includes
among other things
 Obligation to pay income taxes
 Obligations of creditors
 Obligation of debtors
 Obligations of families to their children, etc.
TYPES OF OBLIGATIONS
Obligations can be classified based on the nature of
activities, and the number of parties legally bound by the
obligation. Accordingly, they can be classified into:
1) Divisible obligation
This is one whereby a party undertakes to perform its
obligations by dividing into parties. For instance, if A and B
owed C 1,000 USD such parties to the obligation perform or
discharge the obligations by paying half (part) of the debt to
C, which is 500 each.
TYPES OF OBLIGATIONS CONT..
 2) Indivisible obligations
In this type of obligation, the performance of the obligation
undertaken cannot be divided into parts. Hence, in this type
of obligation partial performance is impossible given the
conditions and circumstances of its formation, which does
not allow the performance of obligation by dividing into
parts.
3) Positive obligation
This is a situation where a person's obligation is to do or to
give some thing to another. It requires an action from the
debtor.
TYPES OF OBLIGATIONS CONT..
4) Negative obligation.
 This is a situation where a person's obligation does not to
do some thing or it refrains from doing some thing. Such
obligations are also called obligations not to do.
 Example, company A may agree with company B in which
company A under takes an obligation not to produce or sell
certain goods in the same market.
TYPES OF OBLIGATIONS CONT..
 Based on the number of parties legally bound, obligations
can be classified into unilateral, bilateral, and multilateral
obligations.
 a) Unilateral obligation arises from contract in which two
parties are participate. However, only one of the parties is
legally bound by the contract for the benefit of the other
contracting party. Example, donations
 b) Bilateral obligation arises from a contract entered into
by two parties in which these contracting parties are bound
legally to each other on equal terms. Accordingly, there are
two promisors and two promises.
TYPES OF OBLIGATIONS CONT..
c) Multilateral obligation. This is a case where more than two
persons undertake to perform an obligation. Such
obligations can be classified into three:
1) Simple joint obligation: each liable for its own share
2) Joint obligations: jointly debtors to creditors
3) Several and joint obligations: co-debtors shall be jointly
and severally liable
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