Legal Definitions - law of obligations

The law of obligations is a fundamental area of civil law that governs the duties and rights between specific individuals. It focuses on situations where one person (the obligor) owes a specific duty or performance to another person (the obligee), often involving money, services, or property. Unlike property law, which deals with rights against the world concerning a thing, the law of obligations deals with personal claims that one individual has against another.

This field primarily covers three main sources of obligations:

• Contracts: Obligations arising from agreements voluntarily entered into by parties.
• Torts (Civil Wrongs): Obligations to compensate for harm caused to another, even without a prior agreement.
• Unjust Enrichment (Restitution): Obligations to return benefits received unfairly at another's expense.

Here are some examples illustrating the law of obligations:

• Example 1: A Service Contract

  A small business hires a web designer to create a new e-commerce website. They sign a contract detailing the scope of work, the completion deadline, and the payment schedule. In this scenario, the web designer is the obligor with the duty to deliver the website as agreed, and the business is the obligee with the right to receive the website. Conversely, the business is the obligor with the duty to pay the agreed fee, and the web designer is the obligee with the right to receive payment. This entire relationship, based on their voluntary agreement, falls squarely within the law of obligations.

• Example 2: A Car Accident

  While driving, Person A is distracted and rear-ends Person B's car, causing significant damage and minor injuries to Person B. Even though there was no prior agreement between them, Person A (the obligor) now has a legal obligation under tort law to compensate Person B (the obligee) for the damage to their vehicle, medical expenses, and any other losses incurred. This duty to make amends for harm caused, arising from a civil wrong, is a key component of the law of obligations.

• Example 3: Accidental Overpayment

  A university's accounting department accidentally processes a scholarship payment twice for a student. The student receives an extra payment they were not entitled to. In this situation, the student, having received a benefit unfairly, becomes the obligor. They have an obligation under the principle of unjust enrichment to return the overpaid amount to the university (the obligee). This obligation arises not from a contract or a wrongful act, but from the legal principle that one party should not unfairly retain a benefit at another's expense.