extinction of obligations Flashcards
(11 cards)
ways in which an obligation can be extinguished
Performance
Acceptilatio/acceptilation
Delegation
Novation/novation
Assignation
Frustration
Repudiation (for material breach of contract only)
Prescription
Confusion
Compensation
1) performance explain
once someone does what they promised (like paying money), the obligation is over — and the other person can’t ask for it again (e.g., you can’t ask for money that’s already been paid)
If you pay by credit card, the obligation is completely discharged immediately — even if issues happen later. (Example: Re: Charge Card Services Ltd and approved by Duncan v American Express 2009).
2) acceptation explain
This happens when the person who is owed something (the creditor) agrees to give up their right to demand full performance from the person who owes it (the debtor) — even though the debtor hasn’t fully done what they were supposed to.
delegation explain
This is when someone else (a third party) pays a debt for the person who owes it (the debtor).
Normally, courts don’t like assuming this happens — there must be clear proof that:
The debtor agreed to it, and
The creditor accepted it.
novation explain
Novation is when the old obligations in a contract are cancelled and replaced with new ones.
Replacing an impractical contract with a new one that fits the changed situation. (Example: Hawthorns v Whimster 1917
assignation explain
Assignation is just about transferring a personal right from one person to another.
frustration meaning
Frustration only ends future duties under a contract — it doesn’t wipe out everything.
For example, things like an arbitration clause in the contract can still survive even after a frustrating event.
repudiation meaning
Repudiation only applies to contracts, not promises.
That’s because contracts are two-sided — both parties have duties.
If one side seriously breaches the contract, the other can refuse to perform and walk away — no need for a court at that point.
In one-sided obligations (like promises, delict, or unjustified enrichment), repudiation doesn’t apply.
prescription meaning
Prescription is a legal rule that causes certain rights and obligations to end after a set period of time. Once a right has “prescribed,” it no longer exists and cannot be enforced.
Under the Prescription and Limitation (Scotland) Act 1973, obligations generally prescribe (i.e., end) after 5 years
rules for prescription
Damages for Breach of Obligation: The clock for prescription starts when the breach actually causes harm or loss, not when the breach itself happens (Section 11 of the Prescription and Limitation (Scotland) Act 1973).
Personal Injury Damages: There’s a 3-year period for claiming damages for personal injury, starting from the date the injury occurred or when the person becomes aware of it (Section 17 of the 1973 Act).
Exceptions: There are special rules for certain cases, like childhood sexual abuse, defamation, and harassment, which may have different time limits for prescription.
confusion meaning
This happens when the creditor and debtor become the same person, such as when someone inherits a debt or takes on the debt as their successor. In this case, the debt is cancelled because a person cannot owe a debt to themselves.