Understanding Legal Obligations and Contracts
Formation of the Law of Obligations
Early Practices
Within social groups, members would lend tools, weapons, livestock, etc., with a promise of return. This created an obligation to deliver the goods. The word “obligation” had two meanings:
- Gratitude for the loan
- Fulfillment of the promise
Failure to fulfill obligations resulted in public sanctions, loss of credibility, and even corporal punishment or enslavement in some cases.
Evolution of Obligations
Initially, obligations were established between individuals within the same social group. Simple, interest-free loans were common among family members. However, usury was prevalent in loans between different groups or involving commoners and slaves.
Legal relationships involving obligations and contracts are essential. Land leases followed agricultural investments, house leases emerged with currency, and written records replaced oaths with notaries and registration tests.
Ensuring Fulfillment
Initially, the debtor’s family was responsible for fulfilling obligations. Later, pledges (Art. 1055 cc) were created to secure obligations, especially in purchase and sale contracts. Earnest money was introduced to prevent buyers and sellers from withdrawing from agreements and causing harm.
Law of Obligations
A legal obligation is an abstract right between two subjects:
- Debtor/Taxpayer: Obligated to perform an action (give, do, or not do) for the creditor’s benefit.
- Creditor/Active Individual: Holds the right to enforce the obligation.
Elements of the Obligational Relationship
- Legal Relationship: Justifies the debtor-creditor relationship.
- Purpose: The content of the obligation.
Contracts
A contract (Civil Code Article 1351) is an agreement between two or more parties to create, adjust, modify, or terminate a legal relationship involving assets.
Requirements for Contract Formation
- Subject’s Ability: Individuals must have full physical, mental, and legal capacity. Those over 18 can engage directly, while minors require legal representation.
- Joint Statement: Parties must issue a joint statement with the intention to create a legal relationship involving assets.
- Good Faith: Negotiations and implementation must adhere to good faith principles.
- Private Autonomy: Parties can freely determine contract content, as long as it’s not contrary to legal standards.
- Object of the Contract: The obligation, which must be lawful, is the subject of the contract.
State Bureaucracy
Bureaucracy, according to Max Weber, is essential for government. It represents the administrative cadre responsible for upholding institutional aims. While officials can be replaced, the bureaucratic structure remains and may even expand. The state’s authority relies on individuals’ obedience to designated mandates.