What is an obligation?

An obligation legally enables a creditor to demand conduct from a debtor. It need not concern money: delivery, services or refraining from conduct can be owed. Contracts, torts and unjust enrichment are different sources, affecting applicable rules.

Concepts and performance

1. Parties Creditors hold claims and debtors owe performance. In reciprocal contracts, one person may be creditor for one obligation and debtor for another. These are relational roles. 2. Scope Care, protection and information duties may accompany the main performance. Contracts and law establish scope. Payment does not necessarily fulfill every duty. 3. Proper performance Recipient, place, time and quality matter. Third-party or partial performance follows particular rules. Preserve payment and delivery records.

Delay, liability and discharge

4. Default An obligation becoming due differs from default. Notice requirements and consequences vary. Identical interest or compensation does not follow every delay. 5. Nonperformance Impossibility, fault and the type of breach affect consequences. Claims depend on applicable conditions. Another party’s failure does not automatically eliminate all one’s own duties. 6. Ending and limitation Performance, release and set-off have different requirements. Limitation does not invariably extinguish the obligation itself; its invocation and effects differ. Periods, starting points and interruptions require assessment of the specific claim.