Unit 10

Question 1

1. Obligation Definition:

Answer 1

-Legal link between two parties (creditor and debtor).
-Creditor entitled to demand behavior from the debtor (giving, doing, or refraining).

Question 2

Debtor’s requirements

Answer 2

lawful, possible, determined, and economically valuable behavior

Question 3

Types of Obligations:

Answer 3

joint obligations
Joint and several obligations

Question 4

joint obligations

Answer 4

-Divide a credit or debt equally among creditors or debtors.
-Joint creditors can each request their share of the obligation’s object.
-Each jointly obliged debtor is exclusively liable for their portion of the debt.

Question 5

Joint and several obligations

Answer 5

-Treat a debt or credit as a single entity, not divided.
-Joint and several creditors can request the entire credit.
-In joint and several obligations, the creditor can demand the full object from each debtor, and each debtor must fulfill the entire obligation.
-Payment by one joint and several debtor extinguishes the obligation.

Question 6

Extinction of obligation (1)

Answer 6

-Performance:
>Fulfillment occurs when the debtor fully performs the obligation.
>Partial performance does not extinguish the obligation.

-Confusion:
Obligation ends when creditor and debtor become the same person.

-Setoff:
>Occurs when two parties owe each other reciprocating debts.
>Complete setoff happens when debts have the same economic value.
>Partial setoff extinguishes debts by the coinciding amount.

Question 7

Extinction of obligation(2)

Answer 7

-Remission:
>Forgiving a debt leads to the extinguishment of the obligation.

-Novation:
>Replacement of one obligation with another, as agreed by the parties.

-Prescription or Lapse:
>Obligations extinguished by the expiration of time: prescription.
Legal system sets deadlines for performance to ensure legal certainty.

Question 8

Failure to comply with obligation

Answer 8

(legal, contractual, or non-contractual); and may be caused by reasons of quantity, deadline, quality, etc.

> debtor may demand compensation for damages

Question 9

types of compensation

Answer 9

• Damages suffered:
  >consists of the economic value of the loss suffered by creditor as a results of the breach
  -Loss of profit:
  >is the future earnings that the creditor would have obtained if creditor would have fulfilled its obligation.
  -Moral damage
  >is the creditor’s mental pain and suffering as a result of the debtors breach

Question 10

Private autonomy principle

Answer 10

Consent is not subject to any regulation, and the principle of freedom of contract is governed by the Private Autonomy Principle.
>Individuals are free to regulate their own economic interests
>Limited by the subjection to the law, morality, and public order

Question 11

For a contract to be a source of legal obligations, three elements must be presented

Answer 11

-Consent of the Parties:
>Agreement between two or more parties through an offer and acceptance.
>Consent requires capacity, consciousness, and freedom for validity.
>Mistakes, violence, intimidation, or malice void consent.
>Error in consent occurs with false knowledge, especially in essential matters.
-Intimidation:
>Rational fear of imminent harm to a party or their family.
-Malice (Fraud):
>Deceptive language or cunning schemes leading to an undesired contract.

Question 12

Form of contract

Answer 12

-contracts must be honoured, no matter the form of the contract was
Except:
>Insurance contracts with multiple clauses and specific employment contracts mandated by law require written documentation.
>real estate or company incorporation contracts

Question 13

Time limit of payment

Answer 13

-as disclosed in the contract
-if not included :
> payment is due within thirty days of receiving goods or services.
>Payment terms can be extended, but not beyond sixty days, if agreed upon by both parties.

Question 14

Commercial sale contract

Answer 14

One party agrees to deliver, the other to pay. Contract begins on mutual consent. Goods transfer ownership on delivery fulfillment.

Question 15

delivery obligations:

Answer 15

Provide specified goods at agreed time and place, meeting quality standards.

Question 16

Guarantee obligations:

Answer 16

Eviction: Ensure buyer won’t lose goods to third-party claims.
Defects: Deliver defect-free goods; buyer reports visible defects promptly.

Question 17

Reporting defect goods

Answer 17

Report visible defects on delivery or forfeit claim rights. If unseen during delivery, report within four days. Internal defects within thirty days.

Question 18

Buyer’s Duties:

Answer 18

Payment:
Pay the price within specific terms, max 30 days if unwritten, max 60 days if written in commercial obligations.

Question 19

Buyer’s Goods Reception:

Answer 19

Facilitate Delivery:
Accept goods promptly, specifying delivery details as needed.

Cooperation for Delivery:
Cooperate as planned; goods assumed available at the seller’s premises.

Refusal or Delay:
Unreasonable refusal or delay is a breach; the seller may store goods at buyer’s cost until resolved.

Seller’s Lateness:
Buyer excused from taking goods and paying if the seller is late.