Frederick S.

Valdevieso
III BSBA major in Marketing Management
BusLaw101 Obligation and Contracts

Kinds of Obligation
Primary Obligation
A primitive obligation, which in one sense may also be called a principal obligation, is
one which is contracted with a design that it should, itself, be the first fulfilled.
A. Pure and Conditional Obligation
A pure obligation is one where its performance of does not depend upon a future or
uncertain event, or upon a past event unknown to the parties, resulting in such
obligation being immediately due and demandable.
As a sub-set of a pure obligation, a reciprocal obligation is one which arise from the
same cause, and which each party is a debtor and a creditor of the other, such that the
obligation of one is dependent upon the obligation of the other. Necessarily, the
performance of each reciprocal obligation is conditioned upon the simultaneous
completion of the other. Hence, both obligations must be performed at the same time.
In a reciprocal obligation, the power to rescind obligations is implied if one of the
obligors does not comply with what was incumbent upon him. Thus, in a breach of a
reciprocal obligation, the injured party may choose between: (a) the fulfillment of the
obligation with damages, or (b) the rescission of the obligation damages. If the
fulfillment of the first option becomes impossible after it is chosen, the injured party
may still seek rescission. The right to rescission does not prejudice the rights of third
persons who may have lawfully acquired the thing. If it cannot be determined who first
violated the contract, the agreement is deemed extinguished resulting in either party
bearing their own damages.
nditional Obligations

A pure obligation is one where its performance of does not depend upon a future or
uncertain event, or upon a past event unknown to the parties, resulting in such
obligation being immediately due and demandable.

As a sub-set of a pure obligation, a reciprocal obligation is one which arise from the
same cause, and which each party is a debtor and a creditor of the other, such that the
obligation of one is dependent upon the obligation of the other. Necessarily, the
performance of each reciprocal obligation is conditioned upon the simultaneous
completion of the other. Hence, both obligations must be performed at the same time.

In a reciprocal obligation, the power to rescind obligations is implied if one of the

obligors does not comply with what was incumbent upon him. Thus, in a breach of a
reciprocal obligation, the injured party may choose between: (a) the fulfillment of the
obligation with damages, or (b) the rescission of the obligation damages. If the
fulfillment of the first option becomes impossible after it is chosen, the injured party
may still seek rescission. The right to rescission does not prejudice the rights of third
persons who may have lawfully acquired the thing. If it cannot be determined who first
violated the contract, the agreement is deemed extinguished resulting in either party
bearing their own damages.

A conditional obligation is one which requires the happening of an event for a right to be
acquired (suspensive condition) for a right to be extinguished (resolutory condition).
Consequently, a conditional obligation is one the performance of which depends on an
uncertainty (whether the day will come or not).
As a sub-set of a conditional obligation, a suspensive condition is a future event the
happening of which results in the acquisition of a right and the creation of the
corresponding obligation. Logically, an obligation depending on a suspensive condition
may be extinguished once: (a) the time expires; or (b) it has become indubitable that the
event will not take place.
Example 1: A car distributor placed an order for 20 luxury cars from a car maker
company provided that the latter deliver the goods within 12 months. It was expressly
agreed and stipulated in writing that full payment depended on the prompt delivery of
the goods. If the cars are delivered within the agreed period, the car company acquires
to right to demand full payment for the purchase and its obligation to deliver is
extinguished. Conversely, if the cars are not delivered after the expiration of the period,
the car distributors obligation to pay is extinguished.
Example 2: A museum bought a Picasso painting from an art gallery with the express
agreement that full payment will be made only upon delivery. If the painting is
delivered, the museums obligation to pay arises. If the painting is not delivered because

it was burned due to a fire, the museums obligation is extinguished as it is indubitable

that there will never be a delivery of the painting anymore.
In the alternative, a suspensive condition may depend on a negative event or that
something does not happen at a determine time. In this case, the obligation is effective:
(a) from the moment the time indicated has elapsed; or (b) if it becomes evident that the
event cannot occur. If there is no stipulated time, the suspensive condition is considered
fulfilled at such time as what they may have probably contemplated taking into
consideration the nature of the obligation.
As a sub-set also of a conditional obligation, a resolutory condition is a future event the
happening of which results in the extinguishment or loss of a right already acquired.
Otherwise stated, a resolutory condition automatically grants the exercise of a right and
creates the corresponding obligation subject to the happening of the event that may
result in the termination of the right or obligation.
Example: A clothing company engaged a celebrity as its product ambassador so long the
latter does not endorse a particular rival business. If the celebrity is caught promoting
the products of that rival business, the clothing company may terminate the contract as
the resolutory condition took effect.
While conditional obligations are allowed, some are void as in these cases: (a) a
potestative condition or one wherein the fulfillment depends upon the sole will of the
debtor resulting in injustice to the creditor; or (b) a condition not to do an impossible
thing as it simply cannot be done.
Meanwhile, an obligation may be annulled if: (a) it depends on impossible conditions;
(b) it is contrary to good customs or public policy; and (c) it is prohibited by law.
Whether a condition is suspensive or resolutory, such condition is considered fulfilled if
the debtor voluntarily prevents its fulfillment. A conditional obligation which has been
fulfilled retroacts to the day of its constitution, including its effects. If the obligation
carries reciprocal prestations upon the parties, the fruits and interests are deemed
mutually compensated during the pendency of the condition. If the obligation is
unilateral, the debtor is to appropriate the fruits and interests received except as
otherwise may have been intended by the parties through the inference of the nature
and circumstances of the obligation.
Example: A realty company engaged the services of a construction firm for the purpose
of building a townhouse. The two businesses agreed to a progress billing wherein
payment will be made for every phase completed. To be entitled to the remaining
balance, the last phase involves the painting of the townhouse. If the realty company
refuses to have it painted regardless of the reasons despite having agreed to it, the

construction firms obligation to paint is considered fulfilled. The latter may demand for
the release and payment of the remaining balance.
Further, prior to the fulfillment of the condition, the creditor has the right to initiate
proper actions in order to preserve its right. On the other hand, the debtor is allowed to
recover what has been paid by mistake prior to the happening of the suspensive
condition.
If the conditions were imposed for the purpose of suspending the efficacy of an
obligation to give, the following are the rules to be observed in case of improvement,
loss, or deterioration of the thing during the pendency of the condition:
(1) If the thing is lost without the fault of the debtor, the obligation is extinguished;
(2) If the thing is lost through the fault of the debtor, he is obliged to pay damages; it is
understood that the thing is lost when it perishes, or goes out of commerce, or
disappears in such a way that its existence is unknown or it cannot be recovered;
(3) When the thing deteriorates without the fault of the debtor, the impairment is to be
borne by the creditor;
(4) If it deteriorates through the fault of the debtor, the creditor may choose between the
rescission of the obligation and its fulfillment, with indemnity for damages in either
case;
(5) If the thing is improved by its nature, or by time, the improvement inures to the
benefit of the creditor; and
(6) If it is improved at the expense of the debtor, he has no other right than that granted
to the usufructuary.
In addition to the above rules, if the conditions are designed to extinguish an obligation
to give, the parties are required to return to each other what they have received upon the
happening of the conditions. In case of loss, deterioration or improvement of the thing,
the party bound to return is to observe the rules mentioned in the earlier paragraph.

B. Obligation with Period

An obligation with a period is one that has a fixed day certain for its fulfillment. Such an
obligation is demandable only when that day comes. The term a day certain refers to
that which must necessarily come, although it may not be known when.

Example: A furniture shop sold to a hotel carpets from India with the agreement that
the items will be imported and delivered within the calendar year. The furniture shop
has until the end of the calendar year to perform its obligations to the hotel.
If the thing is lost, deteriorates, or improves prior to the arrival of the day certain, the
following rules are to be followed.
(1) If the thing is lost without the fault of the debtor, the obligation is extinguished;
(2) If the thing is lost through the fault of the debtor, he is obliged to pay damages; it is
understood that the thing is lost when it perishes, or goes out of commerce, or
disappears in such a way that its existence is unknown or it cannot be recovered;
(3) When the thing deteriorates without the fault of the debtor, the impairment is to be
borne by the creditor;
(4) If it deteriorates through the fault of the debtor, the creditor may choose between the
rescission of the obligation and its fulfillment, with indemnity for damages in either
case;
(5) If the thing is improved by its nature, or by time, the improvement inures to the
benefit of the creditor; and
(6) If it is improved at the expense of the debtor, he has no other right than that granted
to the usufructuary.
Whether unaware of the period or believing that the obligation has become due and
demandable, the debtor has the right to recover anything he paid or delivered, including
the fruits and interests thereof, prior to the arrival of the period.
There is a rebuttable presumption that an obligation with a period has been established
for the benefit of both the creditor and the debtor. If there is no period stipulated, the
courts may fix a period so long as it can be inferred that one was intended from nature
and the circumstances of the prestation. Conversely, the courts may fix the duration of
the period if the parties agreed that the fulfillment of the obligation depends upon the
will of the debtor.
Example: A restaurant bought meat products from its supplier with the agreement that
the former will pay only when it has the financial capacity to do so. In such a case, the
supplier may file a complaint in order for the court to decide the period when the
restaurant should pay
The courts will determine the appropriate period depending on what the parties may
have probably contemplated based on the circumstances. Once the period is fixed by the
court, the parties cannot change them.

The debtor loses the right to make use of the period in the situations:
(1) When after the obligation has been contracted, he becomes insolvent, unless he gives
a guaranty or security for the debt;
(2) When he does not furnish to the creditor the guaranties or securities which he has
promised;
(3) When by his own acts he has impaired said guaranties or securities after their
establishment, and when through a fortuitous event they disappear, unless he
immediately gives new ones equally satisfactory;
(4) When the debtor violates any undertaking, in consideration of which the creditor
agreed to the period; and
(5) When the debtor attempts to abscond.

C. Alternative Obligations
An alternative obligation is one wherein the debtor is permitted to complete his
obligation by performing either one of the different prestations which he is alternatively
bound. The debtors choice produces legal effect reckoned from when the choice has
been communicated to the creditor. The creditor cannot be required to receive partial
performance of one undertaking and on another i.e. the debtor must complete
performance of either one of the alternative obligations.
Example: A realty company paid a construction firm to build either one of the following:
a house, a bridge, or a tower. To comply with its obligation, the construction firm may
choose to build a house. Once chosen, the construction firm is obligated to complete it.
By default, the debtor has the right of choice in selecting which obligation to perform
unless otherwise stipulated. The debtor cannot select prestations that are: (a)
impossible; (b) unlawful; or (c) which could not have been the object of the obligation.
Further, the debtors right of choice ceases when only one remained practicable from the
prestations whereby he could have been alternatively bound. If the debtor cannot make
a choice according to the terms of the obligation due to the acts of the creditor, the
debtor has the right to rescind the contract with damages.
On the other hand, if all of the alternative obligations have been lost or compliance
becoming impossible due to the fault of the debtor, the creditor has the right to
indemnity for damages against the debtor, including those other than the value of the
last thing or service. The indemnity is based on the value of the last thing which
disappeared, or that of the service which last became impossible.

If the right of choice is with the creditor, the obligation ceases to be alternative from the
day when the selection has been communicated to the debtor. Until then, the debtors
responsibility is governed by the following rules:
(1) If one of the things is lost through a fortuitous event, he is to perform the obligation
by delivering that which the creditor should choose from among the remainder, or that
which remains if only one subsists;
(2) If the loss of one of the things occurs through the fault of the debtor, the creditor
may claim any of those subsisting, or the price of that which, through the fault of the
former, has disappeared, with a right to damages;
(3) If all the things are lost through the fault of the debtor, the choice by the creditor
falls upon the price of any one of them, also with indemnity for damages.
A facultative obligation is one wherein the debtor is permitted to render a prestation in
substitution of the only obligation agreed upon with the creditor.
The debtor is not liable for the loss or deterioration of the thing intended as a substitute
even if the latter was the result of his negligence. However, the debtor is liable thereof
once the substitution has been made and he is guilty of delay, negligence or fraud.

D. Facultative Obligation
Facultative obligation refers to a type of obligation where one thing is due, but another
is paid in its place. In such type of obligations there is no alternative provided. The
debtor is given the right to substitute the thing due with another that is not due.
The following is an example of a case law (Louisiana) differentiating between
Facultative obligation and Alternative Obligation:
A difference exists between the alternative obligation and facultative obligation. In the
alternative obligation there are two things equally due, under an alternative, it is true
duo sunt in obligatione. In the facultative obligation, on the contrary, but one thing is
due, unaest in obligatione; the other may be paid in its place, but it is not due, it is only
in Facultatesolutionis; from which the name facultative obligation. [Salles v. Stafford,
Derbes& Roy, Inc., 17 La. App. 440 (La.App. 1931)]

E. Joint and Solidary Obligations

A joint and solidary obligation or solidary obligation is one wherein either one of several
creditors has the right to demand full and complete compliance of an obligation against

either one of the debtors. In such an obligation, the debtors are sureties who are liable
for the full amount of the debt incurred by the principal debtor. A surety is liable
regardless of whether it benefitted from the debt incurred by the principal debtor.
Example: In a loan document, a company president signed as a surety binding himself
solidarity to pay a P10 million debt borrowed by his company from a bank. If the debt is
unpaid, the bank may collect the full P10 million debt either from the company or its
president.
Due to the consequences, a solidary obligation arises only when: (a) the obligation
expressly so states; or (b) the law or the nature of the obligation requires solidarity.
A joint obligation is one wherein credit or debt is divided into as many shares as there
are creditors or debtors. The credits or debts are disti1nct from one another. Hence, the
debtor is only liable for its corresponding share of the debts. If from the law or the
nature or the wording of the obligation does not show a joint and solidary obligation,
then it will be presumed to be a joint obligation.
Example: To complete a townhouse project, an architecture firm and construction
company jointly borrowed and equally divided a P20 million from a lending institution.
If either debt is not paid after becoming due and demandable, the lending institution
can only collect P10 million from the architecture firm. The lending institution will have
to collect the remaining P10 million from the construction company.
In a joint indivisible obligation, the right of the creditors may be prejudiced only by their
collective acts. To enforce such an obligation, the creditor has to proceed against all of
the debtors. If one of the debtors is insolvent, the others are liable for his share.
Example: A telecommunications company bought a huge satellite dish from a tech
company. To deliver such a big cargo, the tech company and a forwarding logistics firm
jointly agreed to deliver the satellite dish to the telecommunications company. To
compel performance of such a joint indivisible obligation, the telecommunications
company will have to sue both the tech company and forwarding logistics.
These are the Rules on Joint and Solidary obligations:
(1) If an obligation is indivisible, it does not necessarily follow that the obligation is joint
and solidary, nor does solidarity of itself imply indivisibility. Nonetheless, there may be
solidarity even if the creditors and the debtors are not bound in the same manner and by
the same periods and conditions.
(2) Either one of the solidary creditors may act and do whatever may be useful to the
others. However, neither may act in such a way as to be prejudicial to the rest. Hence, a
solidary creditor cannot assign his rights without the consent of the others.

(3) Either one of the debtor may pay any one of the solidary creditors. However, the
debtor is required to pay to the creditor who has made a demand if one has been made.
(4) If any of the solidary creditor and any of the solidary debtor enters into novation,
compensation, confusion or remission of debt, the obligation is extinguished without
prejudice to the consequences of remission. The creditor responsible for the latter, as
well as the one who has collected the debt, is liable to the other for the corresponding
share of his co-creditors.
(5) The creditor has the right to proceed against any one of the solidary debtors or some
or all of them simultaneously. If the solidary debtor who has been sued was unable to
fully pay the debt, the creditor may proceed against the others until the debt has been
fully and completely paid.
(6) Should one of the solidary debtors pay in full the debt, the obligation is extinguished
so long as the obligation has not yet prescribed or become illegal. If there are more than
one solidary debtors who offer to pay, the creditor has the right to choose which offer to
accept. The solidary debtor who paid has the right to reimbursement against his codebtors only the share which corresponds to each, with the interest for the payment
already made. No interest may be demanded if payment was made before the debt is
due. However, if one of the solidary debtors is insolvent, his share is proportionally
borne by all the other co-debtors.
While the creditor may release a solidary debtor with respect to the latters share in the
obligation, the latter is not released from his obligation to the other co-debtors should
the debt have been totally paid by anyone of them prior to the remission made by the
creditor. If one of the solidary debtor successfully obtained a remission of the whole
obligation from the creditor, the said debtor is not entitled to any reimbursement from
his co-debtor.
The joint and solidary obligation is extinguished if the thing has been lost or if the
prestation has become impossible without the fault of the solidary debtors. However, if
just any one of them was at fault, all are responsible to the creditor, for the price and the
payment of damages and interest, without prejudice to their action against the guilty or
negligent debtor. These rules apply as well if one of the debtors incurred delay after a
judicial or extrajudicial demand by the creditor and the thing is lost or the performance
has become impossible due to a fortuitous event.
If the creditor has filed an action, a solidary debtor has the right to avail himself of all
defenses that are derived from the nature of the obligation and of those which are
personal to him, or pertain to his own share. For defenses that personally belong to the
other co-debtors, the solidary debtor may avail himself thereof only as regards that part
of the debt for which the latter are responsible.

F. Divisible and Indivisible Obligations

A divisible obligation is one that requires the giving of definite things and the same
can be partially performed. Conversely, an indivisible obligation is one that requires the
giving of definite things and the same cannot be partially performed.
The above two obligations should differentiated from the divisibility or indivisibility of
the things which are the object of the obligations and there is only one debtor and one
creditor.
Despite the object or service being physically divisible, the obligation is indivisible if it is
so provided by law or intended by the parties. In the case of an obligation not to do, the
divisibility or indivisibility thereof is determined by the character of the prestation.
A joint indivisible obligation gives rise to indemnity for damages from the time anyone
of the debtors does not comply with his undertaking. Debtors who are ready, willing,
and able to comply are only required to contribute to the indemnity only up to
corresponding portion of the price of the thing or of the value of the service in which the
obligation consists.
If a divisible contract contains illegal terms but they can be separated from the legal
ones, the latter are valid and may be enforced. Similarly, the unaffected part in a
divisible obligation remains valid.
An indivisible obligation is one which is not susceptible of division; as, for example, if I
promise to pay you one hundred dollars, you cannot assign one half of this to another,
so as to give him a right of action against me for his share. A single obligation is one
without any penalty; as, where I simply promise to pay you one hundred dollars. This is
called a single bill, when it is under seal. A penal obligation is one to which is attached a
penal clause which is to be enforced, if the principal obligation be not performed. In
general equity will relieve against a penalty, on the fulfillment of the principal
obligation. A joint obligation is one by which several obligors promise to the obligee to
perform the obligation. When the obligation is only joint and the obligors do not
promise separately to fulfill their engagement they must be all sued, if living, to compel
the performance; or, if any be dead, the survivors must all be sued. A several obligation
is one by which one individual or several individuals bind themselves separately to
perform the engagement. In this case each obligor may be sued separately, and if one or
more be dead their respective executors may be sued. The obligation is, purely personal
when the obligor binds himself to do a thing; as if I give my note for one thousand
dollars, in that case my person only is bound, for my property is liable for the debt only
while it belongs to me, and if I lawfully transfer it to a third person, it is discharged.

G. Obligations with a Penal Clause

If there is no stipulation to the contrary, the penalty in obligations that carry a penal
clause substitutes the indemnity for damages, as well the payment of interests in case of
non-compliance. This penalty is referred to as liquidated damages. To be entitled to the
penalty, the creditor is not required to show proof of actual damages.
In addition to the liquidated damages, the debtor is liable for damages if he refuses to
pay the penalty or is guilty of fraud in the fulfillment of the obligation. However, it must
be noted that the penalty is enforceable only if the same is demandable.
The debtor cannot avoid the performance of his obligation by simply paying the penalty
except if he has been expressly granted this as a matter of contractual right. Conversely,
the creditor cannot demand at the same time the fulfillment of the obligation and the
satisfaction of the penalty except if he has been clearly granted this right as well. If the
creditor chose to require the fulfillment of the obligation and the same becomes
impossible without his fault, the penalty may now be enforced against the debtor.
The courts are mandated to equitably reduce the penalty after a determination that the
principal obligation has been partly or irregularly complied by the debtor. The courts
may also reduce the penalty if it is iniquitous or unconscionable despite nonperformance.
If the penal clause is nullified by a court, the principal obligation remains valid. If the
principal obligation is nullified, the penal clause is likewise invalidated.

Secondary Obligation
A secondary obligation is one which is contrasted and is to be performed in case the
primitive cannot be. For example, if I sell you my house, I bind myself to give a title but I
find I cannot as the title is in another, then my secondary obligation is to pay you
damages for my non-performance of my obligation.
A. Bilateral and Unilateral Obligation
What is a bilateral contract?
When most people think of contracts, bilateral agreements come to mind. In its most
basic form, a bilateral contract is an agreement between at least two people or groups.
Most business and personal contracts fall into this category.

Examples of bilateral contracts are present in everyday life. You're entering this type of
agreement every time you make a purchase at your favorite store, order a meal at a
restaurant, receive treatment from your doctor or even checkout a book at your library.
In each circumstance, you've promised a certain action to another person or party in
response to that person or party's action.
What is a unilateral contract?
The easiest way to understand unilateral business contract is by analyzing the word
'unilateral.' In its simplest terms, unilateral contracts involve an action undertaken by
one person or group alone. In contract law, unilateral contracts allow only one person to
make a promise or agreement.
You might see examples of unilateral contracts every day, too; one of the most common
instances is a reward contract. Pretend you've lost your dog. You place an advertisement
in the newspaper or online offering a $100 reward to the person who returns your
missing pooch. By offering the reward, you're offering a unilateral contract. You promise
to pay should anyone fulfill the obligation of returning your dog. You're the only person
who has taken any action in this contract, as no one is specifically responsible or
obligated to finding your dog passed on this interaction.
Another common example of a unilateral contract is with insurance contracts. The
insurance company promises it will pay the insured person a specific amount of money
in case a certain event happens. If the event doesn't happen, the company won't have to
pay.
How are bilateral and unilateral contracts alike?
Both unilateral and bilateral contracts can be breached. Consider the term 'breach'
synonymous with 'break.' This means breach of contract can be defined as a broken
contract, stemming from failure to fulfill any term of a contract without a justifiable,
lawful excuse.
Common examples of broken unilateral contracts might include any situation in which
the person promising the pay in exchange for a completed act refuses. For example, if
you offer $100 for the return of your dog, but then refuse to pay because you think the
person who brought the dog back stole him, you'd likely be in breach of contract because
you broke your word about the payment. Bilateral contracts can also be breached. A
bilateral contract might be broken if a coworker refuses to complete his or her portion of
a job; when an employee does something prohibited by his or her job contract; or even
when a customer prevents the contractor from satisfying the obligation or finishing the
project at hand.

You also need to prove the same criteria should you decide to enforce a bilateral or
unilateral contract in court. In each situation, you need to establish:
The contract existed.
The contract was broken.
You suffered a loss.
The person you're challenging was responsible.
What's the difference between bilateral and unilateral contracts?
At first glance, the most obvious difference between bilateral and unilateral contracts is
the number of people or parties promising an action. Bilateral contracts need at least
two, while unilateral contracts only obligate action on one part.
The other differences might be a bit more subtle. Look at what's being offered. In
unilateral contracts, one offering the deal promises to pay when a certain act or task is
complete, but bilateral contracts allow for an upfront exchange.
What works best?
Both unilateral and bilateral contracts are enforceable in court. For example, a
unilateral contract is enforceable when someone chooses to begin fulfilling the act
demanded by the promisor. A bilateral contract is enforceable from the get-go; both
parties are bound the promise.

B. Real and Personal Obligation

The obligation is personal in another sense, as when the obligor binds himself to do a
thing, and he provides his heirs and executors shall not be bound; as, for example, when
he promises to pay a certain sum yearly during his life and the payment is to cease at his
death.
The obligation is real when real estate, and not the person, is liable to the obligee for the
performance. A familiar example will explain this: when an estate owes an easement, as
a right of way, it is the thing and not the owner who owes the easement. Another
instance occurs when a person buys an estate which has been mortgaged, subject to the
mortgage, he is not liable for the debt, though his estate is. In these cases the owner has
an interest only because he is seised of the servient estate, or the mortgaged premises,
and he may discharge himself by abandoning or parting with the property.

The obligation is both personal and real when the obligor has bound himself, and
pledged his estate for the fulfillment of his obligation.

C. Determinate and Generic (Determinate and Indeterminate)

An absolute obligation is one which gives no alternative to the obligor, but he is bound
to fulfil it according to his engagement. An alternative obligation is, where a person
engages to do, or to give several things in such a manner that the payment of one will
acquit him of all; as if A agrees to give B, upon a sufficient consideration, a horse or one
hundred dollars.In order to constitute an alternative obligation, it is necessary that two
or more things should be promised disjunctively; where they are promised
conjunctively, there are as many obligations as the things which are enumerated, but
where they are in the alternative, though they are all due, there is but one obligation,
which may be discharged by the payment of any of them.The choice of performing one
of the obligations belongs to the obligor, unless it is expressly agreed that all belong to
the creditor. If one of the acts is prevented by the obligee, or the act of God, the obligor
is discharged from both.A determinate obligation, is one which has for its object a
certain thing; as an obligation to deliver a certain horse named Bucephalus. In this case
the obligation can only be discharged by delivering the identical horse.
An indeterminate obligation is one where the obligor binds himself to deliver one of a
certain species; as to deliver a horse, the delivery of any horse will discharge the
obligation.

D. Civil and Natural Obligation

CIVIL OBLIGATION, Civil law. One which binds in law, vinculum juris, and which may
be enforced in a court of justice.
NATURAL OBLIGATION, Civil law. One which in honor and conscience binds the
person who has contracted it, but which cannot be enforced in a court of justice.
A natural obligation arises from circumstances in which the law implies a particular
moral duty to render a performance. It may not be enforced by judicial action; however,
whatever has been freely performed in compliance with a natural obligation may not be
an example of a natural obligation is an obligation that has been extinguished by
PRESCRIPTION or discharged in bankruptcy. Similar to moral consideration.
A natural or moral obligation is one which cannot be enforced by action, but which is
binding on the party who makes it, in conscience and according to natural justice. As for
instance, when the action is barred by the act of limitation, a natural obligation is

extinguished. Although natural obligations cannot be enforeed by action, they have the
following effect: 1. No suit will lie to recover back what has been paid, or given in
compliance with a natural obligation. A natural obligation is a sufficient consideration
for a new contract.
A civil obligation is one which has a binding operation in law, vinculum juris, and which
gives to the obligee the right of enforcing it in a court of justice; in other words, it is an
engagement binding on the obligor.
Civil obligations are divided into express and implied, pure and conditional, primitive
and secondary, principal and accessory, absolute and alternative, determinate and
indeterminate, divisible and indivisible, single and penal, and joint and several. They are
also purely personal, purely real, and both real and mixed at the same time. Express or
conventional obligations are those by which the obligor binds himself in express terms
to perform his obligation.

E. Legal, Conventional and Penal

A Legal obligation can exist independent of any means of enforcement. An example
might be a contract with someone living in a foreign country. The Legal Obligation is
created by the Contract. But if a party to the contract refuses to honor their obligation
there may be no means to force them to do so, or punish them for failing to do so.
Conventional obligations arise from contracts, although contracts are themselves
sometimes erroneously referred to as conventional obligations.
A penal obligation is one to which is attached a penal clause which is to be enforeed, if
the principal obligation be not performed. In general equity will relieve against a
penalty, on the fulfillment of the principal obligation.