Dr.
Ahmad Alhusban
Sources of Obligation
Before studying the sources of obligation, some important terminologies must be
reviewed and some crucial questions must be asked.
• Law
• Obligation
• Right
• Debtor
• Creditor
• Commitment
• Duty
• Default rule
• Mandatory rule
In addition, some important question must be answered in order to help us to
understand the nature of the sources of obligation:
• Question 1: What is an obligation?
• Question 2: What does mean the term “sources of obligation”?
• Question 3: Why do students in accounting and commercial law program
take this course?
• Question 4: What is the legal framework that govern source of obligation?
• Question 5: Why civil law is an essential legal framework for accounting
and commercial law students?
Obligation
The term ‘obligation’ is widely used. Depending on the context, the use of the
word leads to an univocal meaning or to ambiguous meanings.
For instance, the term ‘obligation’ in the singular or ‘obligations’ in the plural is
univocal when it refers to what one party has agreed to perform under the terms
of an agreement. In this sense, the positive counterpart of the obligation is the
right (‘rights and obligations’), that is to say what the creditor is entitled to receive
from the debtor. This is a classical view of the term ‘obligation’ seen as ‘a tie
which exists between at least two individual persons which enables one person to
request something from the other’1.
The law of obligations is one branch of private law under the civil law legal
system. It is the body of rules that organizes and regulates the rights and duties
arising between individuals. The specific rights and duties are referred to as
obligations, and this area of law deals with their creation, effects and extinction.
1
J. GHESTIN, M. BILLIAU, G. LOISEAU, Le régime des créances et des dettes, Traité de droit civil, LGDJ,
2005, n°4, p.3. This definition appears as a common basis for the various academic proposals
An obligation is a legal bond by which one or more parties (obligants) are bound
to act or refrain from acting. An obligation thus imposes on the obligor a duty to
perform, and simultaneously creates a corresponding right to demand
performance by the obligee to whom performance is to be tendered.
Justinian first defines an obligation as "a legal bond, with which we are bound by
necessity of performing some act according to the laws of our State." He further
separates the law of obligations into contracts, delicts, quasi-contracts, and quasi-
delicts.
According to the Jordanian civil law Art. 68; legal relationship between an
obligee and an obligor whereby the obligee has a claim against his obligor for the
transfer of a property right, or to perform or refrain from performing an act.
Elements of obligation
Every obligation has four essential requisites otherwise known as the elements of
obligation. They are:
1. The obligor: obligant duty-bound to fulfill the obligation; he who has a
duty.
2. The obligee: obligant entitled to demand the fulfillment of the obligation;
he who has a right.
3. The subject matter, the prestation: the performance to be tendered.
4. A legal bond: the cause that binds or connects the obligants to the
prestation.
Types of obligations
There are many types of obligations (e.g. civil, natural, social, religious, moral).
However, mainly there are two types of obligations, civil and natural obligations:
Civil obligation is the one which has been established by one of the sources of
obligation and has two elements: legal relationship (creditor and debtor) ad
enforceability where the creditor is eligible to enforce the debtor to execute the
obligation. Whereas natural obligation was basically a civil obligation but it
turned natural because of missing the enforceability element for a legal reason
such as the prescription.
Natural obligation cannot be established by any sources of obligation, which is
the opposite of the civil obligation. As a result, natural obligation is based on a
civil obligation at the very beginning.
In relation to social obligation, there is no a legal promise. Consequently, the
absence of the legal relationship as a creditor and debtor between parties in the
social obligation leads to ignore discussing the enforceability element. For
example, if a father promises his son to help the latter in his wedding expenses,
the son cannot enforce the father later on by the court to execute this social
obligation. The uncertainty of how much, when, where and other terms and
condition makes this obligation uncertain. However, if the father promises his
son to pay 10.000 Jordanian dinar if the son gets married from a specific girl, this
obligation is certain and, as a result, is considered as a civil obligation. In any
event, the relationship between the parties is considered social but not legal.
Therefore, it may create social effect rather than legal; and the fail of execution
of a social obligation may face
Classification
Obligations arising out of the will of the parties are called voluntary, and those
imposed by operation of law are called involuntary.
Sometimes these are called conventional and obediential. The events giving rise
to obligations may be further distinguished into specified categories.
Voluntary
• Bilateral promise (contract)
• Unilateral promise - undertaking by promisor only to perform, not
requiring the agreement of the beneficiary
• Quasi-contract
Involuntary
• Delicts and quasi-delicts (equivalent to the common-law tort).
• Unjust enrichment
• Law
However, according to the Jordanian civil law the Personal obligations or rights
shall arise out of dispositions, legal events and the law, and the sources of
obligations shall be as follows:-
1. contracts;
2. unilateral acts;
3. acts causing harm (torts);
4. acts conferring a benefit; and
5. the law.