ObligationsArt 1756
Components of an obligation
subject
creditor / obligee
entitled to demand
debtor / obligor
owes the performance
active v passive
passive is always one or more identifiable persons, unlike with property
legal bond
vinculum juris
tripartite (State)
what makes it enforceable
distinguishes the obligation between natural and civil
object
the actual performance expected
to give, do or not
not just the thing
unlike in property law
contrast with consideration
to give
to transfer of ownership
a real right in a thing
gratuitous
onerous
to do
result
to render a specific result
to deliver
of means
to standard or effort
specific performance, monetary damages
to not do
forbearance
result in destruction or injunction
only one for passive under property law
categorization
Natural v Civil
Patrimonial
credit-right
transmissible
heritable
transferable
seizable
prescriptable
acquisitive perscription
Institutional
Lack Patrimonial
societal (family ties)
Joint, several, in solido
several
joint
in solido
Rights
Personal
specific to the person
Real
from or of the thing
usus
fructus
abusus
subject
active
holder
passive
everyone else
not to
real duty
coorelates to a real right
object involves a thing
credit-right
Sources
contractsart 1906
definition
agreement of two or more parties
obligation is:
created
modified, or
extinguished
source
multilateral
juridical act
effectivity
capacity & consent essential
prescription
10 yrs, unless
exceptions
LA CC 3499, 3494
remedies
Traditional contract damages
loss sustained
lost profits
quasi contracts
source
voluntary
licit
juridical act
effectivity
capacity and consent less important
prescription
10 yrs LA CC 3499
remedies
generally limited to loss sustained
delictsquasi-delicts
source
voluntary
illicit
juridical act
effectivity
capacity & consent less important
prescription
gen shortLA CC 3492
remedies
Traditional Tort damages
classification scheme
From LA CC
unilateral v bilateralLA CC 1907 & 1908
unilateral when accepting party does not assume a reciprocal duty
Donation inter vivos1468
mandate2989
loan2891
bilateral- synallagmaticrecipical and coorelated
to loan
lease2668
Sale2439
Exchange2662
significance
putting in default (1993)
Dissolution2013, 2704
ending the contract to end obligation to another
not relevant to unilateral, because no one own anyone
onerous v gratuitousLA CC 1909 & 1910
onerous
sale2439
lease2668
exchange 2660
gratuitousno patrimonial value
donation inter vivos1468
mandate2989, 2992
agency or POA
loan for use 2891
deposit2926, 2928
suretyship3044
promise to pay another's debt
co sign
gratuitous by default, can be onerous
remission1888
a release from liability
gratuitous by default, can be onerous
significance
consent1888, 1890
form1547, 2440
gratuitous needs more proof
authentic act
for donation1541
with notary & 2 witnesses
act under private signature
mirror signing of a document
standard of care2930
onerous care is more strict
significance of the party1950, cmt d
annulment
pure
purely gratuitous contracts
not all gratuitous contracts are donations
indirect liberality
charitable subscriptions
debt of a third person
3rd party beneficiary contracts1978
beneficiaries are entitled to a right
parties
stipulator
wants the bennefit to the 3rd party
promisee
promissor
responsible for benefit
beneficiary
can refuse the bennefit
must avail themselves of the benefit to have rights
rights1981
promisor has same defenses1982
promesse de prte-fort1977
binds the third party to perform
with their consent
Subtopic
stipulation pour autrui1978
exceptable reasons why
familiar relationship
beneficiary is creditor of stipulator
benificiary expects to be creditor of the stipulator
onerous v. gratuitous
revocation 1979
Subtopic
stipulator can revoke the benefit before tpb can avail themselves of the benefit
if the promisor has an interest in performing the benefit directly, making it irrevocable
revocation or refusal1980
performance to the stipulator
identifying TPB
look to the stipulator's ________ with the TPB
cause
subjective or other wise that would justify this exception
relationship
creditors
contractual
obligations
prexisting duties to relieve or prevent liability
how does the stipulator benefit by the promisor performing to the beneficiary
is there a future obligation
donation beneficiary
smith factor test
exsisting legal relationship
stip owes preexisiting duty to TPB
exsisitng factual relationship
stip may owe duty in the future
stip may derive bennefit or advantage from the benefit
desire to donate
additional prerequisites
not incidental
must clearly stipulate or illustrate a benefit to a specific party
one must determine
stipulation is "manifestly clear
certainty as to the benefit
not a "mere incident" of the contract
donations are subject special rules
heightened formalities
revocation for ingraditude 1556
potential annulment by forced heirs 1503
etc
2/3rds test1526
purely onerous
onerouse contracts follow the form of their appropriate nominate
inomminate has no form requirement
commutative v aleatoryLA CC 1911 & 1912
communitive, CC makes mistake, opposite of aleatory
sale, lease, exchange
aleatory, one parties performance is certain and the other is not
insurance, gambling, lottery, etc
sale of a hope(2451)
significance
failure of equivalence, not void if aleatory
sale2464, 2589
price must be fixed by the party
there is no sale if the parties did not fix a pricecommutative
Principle & AccessoryLA CC 1913
the contract the gives rise to the obligations
loan
all
accessory provide security for the performance
suretyship
mortgage
pledge
significance
one depends on the other to exsist
accessory depends on the principle
nominate v innominateLA CC 1914-15
nominate = special name; like sales or lease contracts
nominate can have special (additional) rules (LA CC 1916)
sale
exchange
giving in payment
lease
innominate are any others following normal code rule under the title
transfer of ownership in return for services rendered
doctrinal
consensual v. solemn v real
consensual are simply formed by party consent
sale of movables
contract for services
formal (solemn) require a certain form for enforceability
purpose
evidentiary function
solemnity function
failure to comply is absolute nullity
tradeoffs.
what is sacrificed
example given1577
notarial will
electronic transaction acts
RS Title 9
LUETA
parties must agree in advance
types
in writing or not parole evidence
authentic act1833-1835
notary + 2
full proof1835
under private signature
burden of proof on whoever contests
unless acknowledged
duly acknowledged
after the fact notary
important ones
compromise3072
settlement
transfer of immovable 1839, 2440
exception of testimony and delivery
donation inter vivos 1541, 1543
authentic act
notary +2 witnesses
manual gift
corporeal movable
on delivery
matrimonial agreement2331
duly acknowledged or
authentic act
certain debts 1847
parole evidence is not good enough to bind 3rd parties to pay the debt of another or prescribed
parole evidence = not in writing
surety to pay another
must be in writing
voluntary solemnity1947
form contemplated becomes the binding form (1947)
Breaux Brothers
agree to only be bond by writing
requires clear evidence
frequently litigated
will be on the bar exam
modification agreement works differently because its a separate contract
if they agree to only modify in writing, but insist on being bound at that time may override this
proof of obligation 1831
authentic act
full proof of agreement
burden to prove fraud
strong, clear, and positively convincing evidence
APSDA1836
prima facie
preponderance of the evidence
APS1838
signatures must be proven
parol evidence1848
wether a writing is required for a contract or not
once a writing is in place, verbal cannot be admitted to vary of negate it
in the interest of justice
may be admitted to prove circumstances like vice of consent or modification
proof of fraud is a good example
evidence of fraud is rarely in the writing
testimonial proof1846
< $500
competent evidence
> $500
1 witness & other corroborating circumstances
juridical confession
full proof
real are not enforceable until the thing is delivered
manual gift1543
corporeal movables on delivery
loan2891
deposit2926
freely negotiated v. adhesionary
some rules address:
fraud, error, duress, lesion, good faith, etc
LA Law does not have "unconscionably" or contracts of adhesion
Contracts
Forming
Capacity1918
enjoy
general legal capacity to have rights and duties
incapacity of enjoyment
Sale of litigious rights2447
litigious rights cannot be bought by officers of a court
of excersise
pervasive, affecting all types of juridical acts for persons with certain characteristics
majority29
support, education, business
lack of capacity
unemancipated minors
interdicts389-390
full389
consistent, infirm, court ordered loss of capacity
of person and property
limited
specific capacity removed
curators392
persons deprived of reason
rescission for incapacity1921
clear and convincingly and by the great weight of the evidence
Consent1927
more subjective standard in LA
established through offer and acceptance
offerdefined by doctrine
unilateral declaration of will (juridical act) to form a contract
prerequisites
declared
outward projection
to the person
express, implied, or tacit
indicative of intent to be legally bound
opposed to social or moral duty
serious
precise and complete
must contain the essential terms
nominate contracts have different standards for required terms
sale2439
the price and the thing
lease2668
the thing and the rent
firm
must be indicative of offeror's intent to conclude the contract with the offeree's assent
revocable v. irrevocable 1930, 1931
if its not irrevocable it is revocable
revocable offers expire after a reasonable time
irrevocable offers that expire no longer exist
death or incapacity cause expiration
rejection and counter offers kill offers
upon receipt not knowledge
options1933, 2620
not just an irevocable offer; a contract to contract
must have value exchanged
as a contract it is heritable
requirements
offer to sell or buy
a thing
stipulated time
the price
formal requirements of that type of sale
acceptance defined by doctrine
elements
declared
timely
made by proper party
conformity only when required by the offer
exception is formal requirements by law
types
express acceptance
revocable offers1935
when transmitted
irrevocable offers 1934
upon receipt
at possession1938
not knowledge
by performance1939
starting performance is acceptance
assumed completion will result from commencing the performance
creates a irrevocable offer
offeree is bound to complete
notice of commencement 1941
unless oferor should have know, when an offer is accepted through commencement the offeree must give notice of that commencement
by complete performance1940
only completion is acceptance
not certain if delivery is possible
based on the nature and usage of the contract
offeree is not bound to complete
acceptance through silence 1942
controlling rule when not expressed by law in other place
vocabulary issues in jurisprudence
tacit = silence or inaction
implied = behavior
offers of reward1944, 1946
binding even if the performer does not know
contractual value differs from the compensation for unjust enrichment
revocation must be made in the same way or an equally effective means 1945
content1943
mirror image rule
counter offer without mirror
some rules match the UCC exceptions2601-2
express v implied v tacit
tacit / silence
any reasonable alternative for silence will block consent
many situations are covered by the CC like auto renewal
tacit must be unequivocal outside of statutory
Cause1967 (1st .5)
the "reason" a person is binding themselves
the why sometimes the thing, sometimes the motive
function
determine which contract to enforce
determine which rules apply to the contract
significant factor in nominate, legality, and form
categories
objective cause
cause of the obligation
to exchange money or goods
to get ownership
absence or failure of cause
error and fraud
subjective cause
cause of the contract
to get bigger or more or closer
tax purposes
strategery
simulations
unlawful cause
effects
intent and reality is more important than declaration by instrument
does not have to be express1969
when expression is untrue, the obligation is still effective if another can be shown1970
other writing expressing = counter letter
simulation
relative 2027
difference between expressed type and actual
enforceable if in the form of the real nominate
if the true kind is unlawful, it is unlawful
absolute2026
pretending there is no contract when there is
against 3rd persons2028
movables
protected in good faith
money goes to the true owner, good goes to the buy, bad faither pays the parties
imovables
secret agreements have no effect
recorder provides normal affect to 3rd parties
3rd person can buy from the pretence person
common issues
price as an essential element of sale 2464
cause for donation, but disguising as sale
sale needs writing; donation needs authentic act
unlawful cause 1968
cause and object get intertwined her, but are still distinct
includes public policy
absolute nullity
retroactivly: never exsisted
detrimental alliance 1967 (2nd section)
reason for an obligation without the contract
requirements
representation by conduct or words
justifiable reliance
change in position to one's detriment because of such
remedies
damages
full contractual relief
specific performance
expenses actually incurred
purpose
justice
restore to position b4 reliance
limitation on the theory
no reliance on gratuitous promise w/out proper form
no reason to rely on this
no detrimental
commencement 1941
Recession for liability 1952
due to his own error
must pay damages
unless other party should have known too
Object 1756
Rights and cooresponding duties
giving
sometimes refers to a thing, not always
doing
not doing
freedom of parties1971
requirements
lawful
may be different than cause lawful
you cannot contract for the succession of a living person
possible
absolute nullity
at the onset?
for anyone to perform
not impractibility
future object1976
conditions of 2450
contract exsist, just not enforcable until condition is met
determined or determinable
specific enough
meeting of the minds
kind
weight the factors of product type, relationships, and other facts
quantity1973
certain or by method (math, percentage)
3rd person, named and willing
opens window for court
outputs or requirements1975
good faith emphasized
not unreasonable or disproportionate
vices of consent
types
error1949
must be related to the cause
the obligation would not have been accepted had the party known
party should have known
not if willing to correct the error 1951
effect
relative nullity
as if never happened
person liable does not get damages
fraud1953
intentional error
material
two prongs from code
a misstatement or omission of fact
intent to gain an unjust advantage OR cause a loss OR inconvenience
can result from in action or silence
only when there is an affirmative duty to speak
proof1957
preponderance of the evidence
circumstantial evidence
effect
relatively nullity
guilty party is liable for damages and attorney fees1958
duress1959
must be sufficiently severe
would a reasonable person been afraid
like them
age, health, disposition
other personal circumstances
by imprisonment
violence
violence
related to the actual contract
beating
actual injury
threats
of imprisonment
of violence
of lawful act or legal right
not sufficient
unless completely frivolous
economic
almost never
duress of goods in some cases
3rd persons
threat toward 3rd person 1960
family, yes
others, courts discretion
by 3rd party1961
vitiated regardless of knowledge
ransom rule1963
obligations occurred to prevent other threats are enforceable
good faith
no collusion
effect
absolute nullity
lesion
nullity2029
absolute
relative
right to confirmation 1920
must have been ignorant at the time of the contract
must be immediately
recognitive acts
cures relatively nullity
must have clear evidence of intent to do so
confirmation1842
declaration of intent to be bound
ratification 1843
basically a confirmation for agent authority issue
mandatory without proper authority
spouse without proper concurrence
effects
retroactive 1844
effects
general effects1983
effects of law on the party
must be good faith
dissolved through consent
rights are heritable and assignable1984
patrimonial
effects on third parties1985
non except where law provides
3rd party beneficiary
potential remedies
specific performance
history
one of the remedies that were never traditionally available under common law except through the monarch
no sp with a few exceptions
under civil law, it was the natural thing to do as it was the cause of the contract
only sp with lots of exceptions
still recognizes policy deterrence of
the right to 1986
SHALL impose sp for failures + damages
failure to deliver, to act, or execute an instrument
impracticable
some damages
test
impossible
greatly disproportionate $$$
no longer in creditor's interest
obligee
negaytive impact on 3rd parties
social costs
to do
discretionary
affirmative one time actions
not ongoing
non competes are statutorily regulated
generally against policy in LA, unless they follow 23:921
injunction
TRO
must show they are suffering from and injury
after word must prove they are entitled to a permanent injunction
procedural devices that intersect with this area of law
or
dissolutions 2013
alternative to specific performance
an unwinding of the contract
not the same as rescission
with notice to perform2015
reasonable time
putting in default2099
written notice
oral 2 witnesses
suit for performance
specific prevision in contract
without notice to perform2016
anticipatory breach
assurance rule; same as common law2023
may demand in writing security of performance
security = real or personal or simple assurances
time is of the essence
types
judicial dissolution 2013
court decreed
court order is still required for damages
contingently grant
more time ending in auto dissolution
factors to determine if they should grant additional time to perform Waseco Factors
extent and gravity of the failure to perform
nature of the obligor fault
faith of the parties
surrounding economic circumstances
usual method
extrajudicial dissolution
the obligee regards the contract as dissolved
express dissolution clauses2017
dissolved at the time provided
unspecified duration 2024
exceptional method
effects 2018
unwinding
entitled to full contractual damages
partial performance
substantial 2014
may prevent
contractual
non-substantial 2018
may entitle to damages
partial dissolution possible2019
phases of performance or other situation
quasi-contractual
of continuous or periodic performance
past performance is not affected by dissolution
ready to perform2022
bilateral, one does not perform if they know the other isnt
and
damages 1994
failure to perform
delayed performance 1989
damages that result from being late
moretory damages
default
puts the obligor on notice of liability being incurred by being late
starts incurring damages
must be satisfied to incur damages unless complete non performance
methods
written notice
oral notice/2 witnesses
suit for performance
contractual provisions
can make it automatic
time
fixed
clearly determinable from the circumstances
reasonable time
risk of delivery1992
bilateral performance1993
party must perform or be ready to b4 putting the other in default
defective performance
nonperformance
can occur when announced
anticipatory breech is just nonperformance
types
Moretory
compensatory
pecuniary
measured by loss sustained and profit deprived 1995
out of pocket
expectation of profit
non pecuniary1998
stipulated 2005
must be enforced, unless extremely unreasonable 2021
term is same as liquidated damages in common law
always available
obligations in general1756, Title 3
sources 1757
contractual
quasi contractual
judicial
effects of 1758(a)
1
enforce performance
2
enforce through another at their expense
3
recover damages
general effects 1758 (b)
1
proper discharge
2
contest actions
good faith1759
will govern the subjects in whatever pertains to the obligation
organization
general principles
natural obligations
source1760
not every moral duty
a particular moral duty
must rise to the level
special features
natural obligation
towards particular person
feel strong enough to have a feeling of indebtedness
relationship
promise
partcial performance
effect on partimony
pecuniary value
transfer to civil obligation
FREELY promise or performance
vices of consent except error
not a violation of public order
follow juris prudence
Thomas v. Bryant
promiissory note formedical bills for step son
Jones
natural obligation for a free caretaker
used as an alternative to gratuitous contract
Wortmann
promis to give to make up for fidelity
Stoll v. Goodnight Corp
employee promise to pay for a mistake
SF Co v. Daigle
discharged debt, partially performed on
cant get payments back but did not make additional promise to pay full amount
not just an acknowledgment
promise must be express and unequivocal
pay a debt must be in writing
examples1762
civil obligation has been extinguished
bankruptcy
discharged
had dicernment lacked capacity
kid makes second promis or partically performs
invalid donation due to form, then dies, creates natural obligation for those in the will
a promis to uphold, with create the civil obligation
kinds of obligations
real v. personal
real
examples
ownership
servitude
building restrictions
usufruct
mineral rights
mortgage
privilege
property obligations
effects 1764
successor, person who takes the place of another
universal successor
heir or legateee of all or a portion of the patrimony
legatee
universal legatee
parts of or entire patrimony
general legatee
particular rights and duties
particular successor
is not personally bound because they have not acquierd all
mortgage
loan
personal obligation to pay
mortgage
real right to judicial sale
follows the house
strictly personal vs heritable
heritable1765
obligations that can be transferred
includes between living persons
performance can be executed by a successor
strictly personal 1766
cannot be transferred
when?
is it a right, a duty, or what?
from which point of view? obligee or obligor
as default, all are deemed heritable except when exceptions arise:
exceptions
special skills required
all performances that required personal performance
when the obligation is intended for the benefit the obligee exlucively
conditions1767
pure & simple
comes into existence immediately
goes on indefinitely
performance is immediately
no implied terms
conditions
one that is dependant on an uncertain event
features
uncertainty
from the point of view of the parties
dependency
suspensive
unless and until
must wait; duty is suspended
resolutory
immediately enforceable but ends at the condition
already performing, condition to reverse
sources
express conditions
implied
intent of the parties
wedding gifts
nature of the contract
sale of a future thing
the law
reconduction of lease
fulfillment
positive v. negative
something will vs something wont
positive1773
fixed time
reasonable time
certain failure
negative 1774
that time has elapsed without the condition occurring
it is certain it cannot
fault of the party contrary to the interest of the party1772
considered fulfilled
example:
purchase agreement is a conditional contract
buyer cannot be the reason the conditions fail
exceptions
third party rights and acts of administration
prohibited1769
illegal
impossible
potestative 1770
power?
within the power of the party to perform
contrast with casual
only bad sometimes
pure v. simply
pure = on a whim
simply = on the will
focus is on the obligor
1770
suspensive
pure
null
resolutory
simply
in good faith
subject to a term
definition
a certain time period that makes performance suspensive
certain or uncertain
party specific
when paid not if paid
no term performance is due immediately
sources
expressed or implied
expressed by condition
conventional
implied
intentions of the party
the nature of the contract
by law
arise from agreement or the nature of the agreement
by law2680
by court 2013
types
suspensive
delay, when the obligation becomes due
resolutory
terminates on the obligation
continuous/periodic performance
duration 1778
certain time = fixed
fixed
we know the precise time
uncertain
variable terms
we know it will happen, just not the date
when this happens that will happen
time
the day after it takes effect
includes the last day of the term
renunciation of a term1780s
for the benefit of the obligor
presumption
right to do early
where both bennefit
cannot renounce without consent
with multiple persons1786
obligation classification
several
many obligation
joint
one obligation
divided by head
presumption of
remission of 1 changes nothing for the others
solidary
one obligation
undivided
caps the amount they have to perform
full performance by any 1
interruption of perception interrupts the others
default of one is default of all
defenses are still personal in nature1801
relative nullity only
rules of divisible v. indivisible must be applied453
intent of the parties
nature of the obligation
transmission
transmission
divisible
can create situations where succeors are jointly bound while the remaining are still solidary
protects sucessors
indivisible
does not fall under the above rule due to the impossibility of division
new solidary obligors
remission
forgiveness to one person
settlement for one, reduces but does not settle the obligation of another
proportionate Verial
insolvency
negative net worth makes them judgment proof
shares is split and added to the others
renunciation
pay to become joint liable not solidary
a party who is made jointly liable can still be brought back for contribution
horizontal specific(between the obligors)
contribution
b and c are jointly bound for the viral share to A
indemnity
co-signers
primary owes the full amount to the co signer that stepped in
performance
joint
one person performing does not change the obligation of another
solidary
one performance does affect the performance obligation of others
sources
juridical act
judicial decree
extinguished by full performance
with multiple objects
divisible & indivisible
transfer of obligations
subrogation
a pays the banks and becomes the obligee of B and C
proof of obligations
covered under consent
extinction of obligations
contribution
dependant on the relation of the party
passing obligations on
compensation 1893
legal
automatic when everything is clear and liquid
conventional 1901
in agreement
judicial1902
so ordered
no compensation1894
compensation happens no matter what
exceptions
things that were unjustly taken
the return of a deposit
bank accounts
things exempt from seizure
Juridical Relations
Patrimonial Relations
Real Relations
Principal Real Relations
Ownership
Dismemberments of Ownership
Predial Servitudes
Personal Servitudes
Usufruct
Habitation
Right of Use
Accessory Real Relations
Mortgage
Pledge
Privilege
Obligations
Contractual
Quasi- contractual
delictual
Quasi- delictual
Extra-Patrimonial Relations
Family
Spousal
sources
Juridical Acts
Multilateral
unilateral
Juridical Facts
Involuntary(Natural)
Birth
Death
Voluntary
Licit
Management of Affairs
Payment of Things Not due
Unjust Enrichment
Illicit
Delicts
Quasi- Delicts