Chapter 80

COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 80 OBLIGA TIONS 1DIVISION 3 GENERAL OBLIGA TIONS PART 1 OBLIGATIONS DEFINED CHAPTER 80 OBLIGATIONS Article 1. Definition. Article 2. General Rules of Interpretation. Article 3. Joint or Several Obligations. Article 4. Conditional Obligations. Article 5. Alternative Obligations. ARTICLE 1 DEFINI TION § 80101. What are Obligations. § 80102. How Incurred and Enforced. § 80101. What are Obligations. An obligation is a legal duty by which a person is bound to do or not to do a certain thing. SOURCE: CC § 1427. § 80102. How Incurred and Enforced. An obliga tion arises either from: 1. The contract of the parties; or 2. The operation of law . An obligation arising from operation of law may be enforced in the manner provided by law , or by civil action or proceeding. SOURCE: CC § 1428. ARTICLE 2COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 80 OBLIGA TIONS 2GENERAL RULES OF INTERPRET ATION § 80201. General Rules. The rules which govern the interpretation of contracts are de scribed in Division II of this Title. Other obli gations are interpreted by the same rules bywhich statute s of a similar nature are interpret ed. SOURCE: CC § 1429.

nterpretation of contracts are de scribed in Division II of this Title. Other obli gations are interpreted by the same rules bywhich statute s of a similar nature are interpret ed. SOURCE: CC § 1429. NOTE: See 1 GCA Chapters 4 and 7 for the law on interpretation of statutes. ----------- ARTICLE 3 JOINT OR SEVERAL OBLIGA TIONS § 80301. Obligations; Joint or Several. § 80302. When Joint. § 80303. Contribution, Joint Parties. § 80301. Obligations; Joint or Several. An obliga tion imposed on several persons, or a right created in favor of several persons, may be: 1. Joint; 2. Several; or 3. Joint and several. SOURCE: CC § 1430. § 80302. W hen Joint. An obligation imposed upon several persons, or a right cre ated in favor of several per sons, is presumed to be joint, and not several, except in the special cases mentioned in Division II of this Title on the interpretation of contracts. This p resump tion, in the case of a right, can be overcome only by express words to the contrary . SOURCE: CC § 1431. COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 80 OBLIGA TIONS 3COURT CASES :The statement that the right of first refusal was a 'collective right' and not an individual right was

SOURCE: CC § 1431. COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 80 OBLIGA TIONS 3COURT CASES :The statement that the right of first refusal was a 'collective right' and not an individual right was insuffi cient to overcome t he presump tion created by § 80102 that the right of first refusal pos sessed by former sharehold ers was joint and not sever al. Ulloa v . GEDA, 580 F .2d 952, (CA9 1978). § 80303. Contribution, Joint Parties. A party to a joint, or joint and several obli gation, who satisfies more than his share of the claim against all, may require a proportionate contribution from all the parties joined with him. SOURCE: CC § 1432. NOTE: No 1970 Civil Code '1433 existed. CROSS -REFERENCES: See 7 GCA Chapter 24, Art. 6, Contribu tion Among Joint Tortfeasors. ---------- ARTICLE 4 CONDITIONAL OBLIGA TIONS § 80401. Obligations; when Conditional. § 80402. Kinds of Conditions. § 80403. Conditions Precedent. § 80404. Conditions Concurrent. § 80405. Conditions Subsequent. § 80406. When Performance is Essential. § 80407. When Performance Excused. § 80408. Impossible, Unlawful Conditions V oid. § 80409. Conditions, Forfeiture, how Construed. § 80401.

ditions Subsequent. § 80406. When Performance is Essential. § 80407. When Performance Excused. § 80408. Impossible, Unlawful Conditions V oid. § 80409. Conditions, Forfeiture, how Construed. § 80401. Obligations; when Conditional. An obligation is conditional, when the rights or duties of any party thereto depend upon the occurrence of an uncertain event. SOURCE :CC § 1434 . § 80402. Kinds of Conditions. Conditions may be precedent, concurrent, or subsequent. SOURCE :CC § 1435. COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 80 OBLIGA TIONS 4§ 80403. Conditions Precedent. A condit ion pr ecedentis one which is to be performed before some right dependent thereon accrues, or some act dependent thereon is per - formed. SOURCE: CC § 1436. § 80404. Conditions Concurrent. Conditions con -current are those which are mutually depen dent, a nd are to be performed at the same time. SOURCE: CC § 1437. § 80405. Conditions Subsequent. A condition sub -sequent is one referring to a future event, upon the happening of which the obligation becomes no longer binding upon the other party , if he choo ses to avail himself of the condition. SOURCE: CC § 1438. § 80406. When Performance is Essential.

pon the happening of which the obligation becomes no longer binding upon the other party , if he choo ses to avail himself of the condition. SOURCE: CC § 1438. § 80406. When Performance is Essential. Before any party to an obligation can require another party to perform any act under it, he must fulfill all conditions precedent thereto imposed upon himse lf, and must be able and offer to fulfill all conditions concurrent so im posed upon him on the like fulfillment by the other party , except as provided in the next section. SOURCE: CC § 1439. § 80407. When Performance Excused. If a party to an obligatio n gives notice to another, before the latter is in default, that he will not perform the same upon his part and does not retract such notice before the time at which perfor mance upon his part is due, such other party is entitled to enforce the obligation without previously performing or offering to perform any conditions upon his part in favor of the former party . SOURCE: CC § 1440. § 80408. Impossible, Unlawful Conditions V oid. A co ndition in a contract, the fulfillment of which is impos sible or unlaw ful, within the meaning of the Article on the Object of Contracts [in

440. § 80408. Impossible, Unlawful Conditions V oid. A co ndition in a contract, the fulfillment of which is impos sible or unlaw ful, within the meaning of the Article on the Object of Contracts [in Division II of this Title], or which is repug nant to the nature of the interest COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 80 OBLIGA TIONS 5created by the contract, is void. SOURCE: CC § 1441. § 80409. Conditions, Forfeiture, how Con strued. A condition involving a forfeiture must be strictly inter preted against the party for whose benefit it is created. SOURCE: CC § 1442. NOTE: No 1970 Civil Code '§ 1443 -1447 existed. ---------- ARTICLE 5 ALTERNA TIVE OBLIGA TIONS § 80501. Right of Select ion. § 80502. How Right is Lost. § 80503. Alternatives Indivisible. § 80504. When Alternative Obligations a Nullity . § 80501. Right of Selection. If an obligation requires the performance of one of two acts, in the alternative, the party required to perform has the right of selection, unless it is otherwise provided by the terms of the obligation. SOURCE: CC § 1448. § 80502. How Right is Lost. If a party having the right of selection between alternative acts does not give notice of his

s it is otherwise provided by the terms of the obligation. SOURCE: CC § 1448. § 80502. How Right is Lost. If a party having the right of selection between alternative acts does not give notice of his selection to the other party within the time, if any , fixed bythe obligation for that purpose, or, if none is so fixed, before the time at which the obligation ought to be per formed, the right of selection passes to the other party . SOURCE: CC § 1449. § 80503. Alte rnatives Indivisible. The party having the right of selection between alternative acts must select one of them in its entirety , and cannot select part of one and part of another without the consent of the other party . COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 80 OBLIGA TIONS 6SOURCE: CC § 1450. § 80504. When Al ternative Obligations a Nullity. If one of the alternative acts required by an obligation is such as the law will not enforce, or becomes unlawful, or impossi ble of performance, the obligation is to be inter preted as though the other stood alone. SOURC E: CC § 1451. NOTE: No 1970 Civil Code '§ 1452 -1456 existed. ----------COL12010618GCA BUSINESS STRUCTURE &FUNCTION CH. 80 OBLIGA TIONS