OBLICON DEFINITIONSPage 1 of 5

Terms DefinitionsAccesory Obligation One which is attached to a principal obligation and, therefore, cannot stand aloneAccessions The fruits of a thing or additions to or improvements upon a thing (the principal)Accessories Things joined to or included with the principal thing for the latter's embellishment, better

use or completion.Active Solidarity Solidarity on the part of the creditors, where any one of them can demand the fulfillment

of the entire obligation; essential feature is that of mutual representation among the solidary creditors with powers to exercise the rights of others in the same manner as their rights

Acts of God Events which are totally independent of the will of every human being, e.g. earthquake, flood, rain, shipwreck, lightning, volcanic eruption

Acts of man e.g. war, fire, robbery, nurder, insurrectionAlternative Obligation Several prestations are due but the performance of one is sufficient as determined by the

choice which, as a general rule, belongs to the debtorApplication of payments

The designation of debt to which should be applied the payment made by a debtor whi has various debts of the same kind in favor of one and the same creditor

Bilateral Obligation When both parties are mutually bound to each other; may be reciprocal or non-reciprocalCapacity to alienate The person is not incapacitated to enter into contracts and to make a disposition of the

thing due.Casual Condition The condition depends upon chance or upon the will of a third personCausal Fraud Fraud employed in the execution of a contract, which vitiates consentCivil fruits Those delivered by virtue of a juridical relationCivil Loss When a thing disappears in such a way that its existence is unknownCivil Negligence Negligence which by itself is the source of an obligation between the parties not so

related before any pre-existing contract; also tort or quasi-delictCompensatio Morae Delay of the obligors in reciprocal obligations i.e., delay of the obligor cancels the delay

of the obligee, v.v.Compensation The extinguishment to the concurrent amount of the debts of two persons who, in their

own right, are the debtors and creditors of each otherCompensatory Penal Clause

When the penalty takes place of damages

Complete Condonation Covers the entire obligationCompliance in good faith

Compliance or performance in accordance with the stipulations or terms of the contract or agreement.

Compound Obligation There are two or more prestationsCompulsory heirs Entitled to legitimeConclusive Presumption

One which cannot be contradicted, like the presumption that everyone is conclusively presumed to know the law

Condition A future and uncertain event, upon the happening of which, the effectivity or extinguishment of an obligation (or right) subject to it depends

Conditional Obligation One whose consequences are subject in one way or another to the fulfillment of a condition

Condonation inter vivos

It will take effect during the lifetime of the donor

Condonation mortis causa

It will become effective upon the death of the donor; must comply with the formalities of a will

Condonation or Remission

Gratuitous abandonment by the creditor of his right against the debtor; a form of donation

Confusion or merger The meeting in one person of the qualities of a creditor and debtor with respect to the same obligation

Conjuctive Condition There are several conditions and all must be fulfilledConjuctive Obligation There are several prestations and all of them are dueConsignation The act of depositing the thing or amount due with the proper court when the creditor

does not desire or cannot receive it, after complying with the formalities required by lawContract A juridical convention manifested in legal form, by virtue of which one or more persons

bind themselves in favor of another or others, or reciprocally, to the fulfillment of a prestation to give, to do or not to do.

Contractual Negligence

Negligence in contracts resulting in their breach

Contravention of terms

Violation of the terms and conditions stipulated in the obligation

Conventional Indivisibility

Where the will of the parties makes as indivisible, obligations which, by their nature, are divisible

Conventional Novation Takes place by agreement of the parties

OBLICON DEFINITIONSPage 2 of 5

Conventional or Voluntary Period

Period agreed to by the parties

Conventional Penal Clause

Provided for by the stipulation of the parties

Conventional Solidarity

Solidarity is agreed upon by the parties; if nothing is mentioned in the contract, the obligation is only joint

Conventional Subrogation

(Novation - Subrogation) when it takes place by express agreement of the original parties (the debtor and the original creditor) and the third person (the new creditor)

Criminal Negligence Negligence resulting in the commission of a crimeDation in payment Conveyance of ownership of a thing as an accepted equivalent of performanceDefinite Period Period fixed or it is known when it will comeDeflation The reduction in volume and circulation of the available money or credit,r esulting in a

decline of the general price level; opposite of inflationDelay or default Failure to perform an obligation on time which failure constitutes a breach of obligation.Delegacion (Novation - Substitution) which takes place when the creditor accepts a third person to

take place of the debtor at the instance of the latter. The creditor may withold approval. All parties must agree

Delivery or tradition Ownership and other real rights over property are acquired and transmitted in consequence of certain contracts by tradition or delivery.

Disjunctive Condition There are several conditions and only one must be fulfilledDisputable (or rebuttable) presumption

One which can be contradicted or rebutted by presenting proof to the contrary

Distributive Obligation One or two or more of the prestations is due (alternative or facultative)Divisible Condition The condition is susceptible of partial performanceDivisible Obligation One the object of which, in its delivery or performance, is capable of partial fulfillmentDomicile The place of a person's habitual residence; the place where he has true fixed permanent

home and to which place he, whenever he is absent, has the intention of returningExpress Condonation Made either verbally or in writingExpress Novation So declared in unequivocal termsExpromision (Novation - Substitution) which takes place when a third person of his own initiative and

without the knowledge or against the will of the original debtor assumes the latter's obligation with the consent of the creditor

Extra-ordinary fortuitous event

Those events which are uncommon and which the contracting parties could not have reasonably foreseen

Facultative Compensation

When it can be set up by only one of the parties

Facultative Obligation Only one prestation is due but the debtor may substitute anotherFortuitous Event Any event which cannot be foreseen, or which, though foreseen, is inevitableFraud Deliberate of intentional evasion of the normal fulfillment of an obligationFree disposal of thing due

The thing to be delivered must not be subject to any claim or lien or encumbrance of a third person

Generic or Indeterminate

A thing is generic or determinate when it refers only to a class or genus to which it pertains and cannot be pointed out with particularity. Identified by its specie.

Ideal or Intellectual Division

One which exists only in the minds of the parties

Implied Condonation Inferred from conductImplied Novation When the old and the new obligations are essentially incompatible with each otherIncidental Fraud Committed in the performance of an obligation already existing because of contractIndefinite Period Period not fixed or it is not known when it will comeIndivisible Condition The condition is not susceptible of partial performanceIndivisible Obligation One the object of which, in its delivery or performance, is not capable of partial

fulfillmentIndustrial fruits Produced by lands of any kind through cultivation or labor.Inflation A sharp sudden increase of money or credit or both without a corresponding increase in

business transactions; causes a drop in the value of money, resulting in the rise of the general price level

Joint Obligation One where the whole obligation is to be paid or fulfilled proportionately by the different debtors and/or is to be demanded proportionately by the different creditors

Joint or Cumulative Penal Clause

When both the principal obligation and the penal clause can be enforced

Judicial Compensation When it takes place by order from a court in litigation; merely a form of legal or voluntary compensation when declared by the courts by virtue of an action by one of the parties, who refuses to admit it, and by the defense of the other who invokes it

Judicial Costs Statutory amounts allowed to a party to an action for his expenses incurred in the action

OBLICON DEFINITIONSPage 3 of 5

Judicial Period Period fixed by the courtLegal Compensation When it takes place by operation of law even without the knowledge of the partiesLegal Impossibility Occurs when the obligation cannot be performed because it is rendered impossible by

provision of law, although physically it may be possible of performanceLegal Indivisibility Where a specific provision of law declares as indivisible, obligations which, by their

nature, are divisibleLegal Loss When a thing goes out of commerce (e.g. when it is expropriated) or when a thing

heretofore legal becomes illegal Legal Novation Takes place by operation of lawLegal Penal Clause Provided by the lawLegal Period Period provided for by lawsLegal Solidarity Where solidarity is imposed by the lawLegal Subrogation (Novation - Subrogation) when it takes place without agreement but by operation of lawLegal Tender That currency which a debtor can legally compel a creditor to accept in payment of a

debt in money when tendered by the debtor in the right amountLegitime Part of the testator's property which he cannot dispose of because the law has reserved it

for certain heirs, called compulsory heirsLoss A thing is lost when it perishes, or goes out of commerce, or disappears in such a way

that its existence is unknown or it cannot be recoveredMixed Condition The condition depends partly upon chance and partly upon the will of a third personMixed novation When the object and/or principal conditions of the obligation and the debtor or the

creditor, or both the parties, are changedMixed Solidarity Solidarity on the part of the debtors and creditors, where each one of the debtors is liable

to render, and each one of the creditors has a right to demand, entire compliance with the obligation

Mora Accipiendi Delay on the part of the creditor to accept the performance of the obligationMora Solvendi Delay on the part of the debtor to fulfill his obligationNatural fruits Spontaneous products of the soil, and the young and other products of animals.Natural Indivisibility Where the nature of the object or prestation does not admit of division, e.g. to give a

particular car, to sing a song, etc.Negligence Voluntary act or omission, there being no malice, which prevents the normal fulfillment of

an obligationNegotiorum Gestio The voluntary management of the property or affairs of another without the knowledge

or consent of the latter.Non-reciprocal Bilateral Obligation

Those which do not impose simultaneous and correlative performance on both parties

Novation Extinction of an obligation through the creation of a new one which substitutes it; never presumed

Obligation A juridical relation created by virtue of certain facts, between two or more persons, whereby one of them, known as the creditor, may demand of the other, known as the debtor or obligor, the observance of a determinate conduct, and, in case of breach, may obtain satisfaction from the assets of the latter.

Obligation with a penal clause

One which contains an accessory undertaking to pay a previously stipulated indemnity in case of breach

Ordinary fortuitous events

Those events which are common and which the contracting parties could reasonably foresee

Partial Compensation When two obligations are of different amounts and a balance remainsPartial Condonation Does not cover the entire obligationPartial or modificatory novation

When the old obligation is merely modified

Passive Solidarity Solidarity on the part of the debtors, where any one of them can be made liable for the fulfillment of the entire obligation; in the nature of mutual guaranty

Payment Consists of not only in the delivery of money but also the giving of a thing (other than money), the doing of an act, or not doing of an act; also, performance.

Payment by cession The assignment or abandonment of all the preoperties of the debtor for the benefit of his creditors in order that the latter may sell the same and apply the proceeds thereof to the satisfaction of their credits

Penal Clause An accessory undertaking attached to an obligation to assume greater liability in case of breach, i.e., the obligation is not fulfilled, or is partly or irregularly complied with

Period A future and certain event upon the arrival of which the obligation subject to it either arises or is extinguished

Personal Obligation The subject matter is an act to be done or not to be done.Personal or subjective novation

When the person of the debtor is substituted and/or when a third person is subrogated in the rights of the creditor

OBLICON DEFINITIONSPage 4 of 5

Personal Right Right or power of a person (creditor) to demand from another (debtor), as a definite passive subject, the fulfillment of the latter's obligation to give, to do or not to do. Enforceable only against a particular person.

Physical Loss When a thing perishes as when a house is burned and reduced to ashesPledge A contract by virtue of which the debtor delivers to the creditor or to a third person a

movable instrument evidencing incorporeal rights for the purpose of securing the fulfillment of a principal obligation with the understanding that when the obligation is fulfilled the thing delivered shall be returned with all its fruits and accessions

Potestative Condition The condition depends upon the will of one of the contracting partiesPrescription Acquisition of ownership and other rights through the lapse of time in the manner and

under the conditions laid down by lawPresumption The interference of fact not actually known arising from its usual connection with another

which is knownPrincipal Obligation One which can stand by itself and does not depend for its validity and existence upon

another obligationPunitive Penal Clause When the penalty is imposed merely as punishment for breachPure Obligation One which is not subject to any condition and no specific date is mentioned for its

fulfillment, and is, therefore, immediately demandableQualitative Division One based on quality, not on number or quantity of the things which are the object of the

obligationQuantitative Division One based on quantity rather than on qualityQuasi-Contract A juridical relation resulting from lawful, voluntary and unilateral acts by virtue of which

the aprties become bound to each other to the end that no one will be unjustly enriched or benefited at the expense of another.

Quasi-Delict An act or omission by a person (tort feasor) which causes damage to another giving rise to an obligation to pay for the damage done, there being fault or negligence but there is no pre-existing contractual relation between the parties.

Real Obligation The subject matter is a thing which the obligor must deliver to the obligee.Real or objective novation

When the object (or cause) or principal conditions of the obligation are changed

Real Right The right or interest of a person over a specific thing (like ownership, possession, mortgage), without a definite passive subject against whom the right may be personally enforced. Directed against the whole world.

Real Solidarity Where solidarity is imposed by the nature of the obligationReciprocal Bilateral Obligation

Those which arise from the same cause and in which each party is a debtor and a creditor of the other, such that the performance of one is designed to be the equivalent and the condition for the performance of the other.

Residence An element of domicile; requires bodily presence as an inhabitatnt in a given placeResolutory Condition (Condition subsequent)

One the fulfillment of which will extinguish an obligation (or right) already existing

Right The power which a person has under the law, to demand from another any prestation.Simple loan or mutuum

A contract whereby one of the parties delivers to another, money or other consumable thing, upon the condition that the same amount of the same kind and quality shall be paid

Simple Obligation There is only one prestationSolidary Obligation One where each one of the debtors is bound to render, and/or each one of the creditors

has a right to demand from any of the debtors, entire compliance with the prestationSolutio Indebiti The juridical relation which is created when something is received when there is no right

to demand it and it was unduly delivered through mistake.Specific or Determinate

A thing is said to be specific or determinate particularly designated or physically segregated others of the same class. Identified by its individuality.

Subrogation A kind of novation when a third person is subrogated in the rights of the creditorSubsidiary or Alternative Penal Clause

When only the penalty can be enforced

Substitution A kind of novation when the person of the debtor is substitutedSuspensive Condition (Condition precedent or condition antecedent)

One the fulfillment of which will give rise to an obligation (or right); the demandability of the obligation is suspended until the happening of the uncertain event which constitutes the condition

Tender of payment The act on the part of the debtor, of offering to the creditor the thing or amount due.Total Compensation When both obligations are of the same amount and are entirely extinguishedTotal or extinctive novation

When the old obligation is completely extinguished

OBLICON DEFINITIONSPage 5 of 5

Unilateral Obligation When only one party is obliged to comply with a prestationUsury Contracting for or receiving in excess of the amount allowed by law for the loan or use of

money, goods, chattels or creditsVenue The place where a court suit or action must be filed or institutedVoluntary Compensation

When it takes place by the agreement of the parties

Wrong An act or omission of one party in violation of the legal right or rights of another; also, injury.