obligations

Question 1

what is a tolling agreement

Answer 1

contract by which parties involved in a dispute consent to extend the relevant prescriptive period

Question 2

what are the limitations on a tolling agreement

Answer 2

1. can only be made after the prescriptive period has commenced but before the period has accrued
2. successive agreements are allowed, but any single agreement may not extend prescription for more than one year
3. Must be express and in writing

Question 3

conventional obligations

what are the basic elements of a contract

Answer 3

1. capacity
2. consent (offer + acceptance)
3. cause
4. object

Question 4

conventional obligations

what’s the general as to capacity

Answer 4

all persons have contractual capacity except (1) unemancipated minors; (2) interdicts; and (3) persons deprived of reason at the time of contracting

Question 5

conventional obligations

when are contracts made by unemancipated minors enforceable

Answer 5

1. the other person reasonably relied on the minor’s representation of majority (argument can be made here)
2. the contract is made for something related to the minor’s business or necessary for his support and education

have seen this asked twice

Question 6

conventional obligations

what’s the penalty of a contract entered into by a party that lacked contractual capacity

Answer 6

relative nullity and can be rescinded only by that party or their representative

Question 7

conventional obligations

how can offer and acceptance be made

Answer 7

orally, in writing, or by action/inaction manifesting consent

Question 8

conventional obligations

what formalities are the parties subject to for offer and acceptance

Answer 8

there are no formalities, unless the law or parties require
* if certain form imposed by law for contract, then same form is required for offer and acceptance
* if certain form imposed by the parties, presumed that the parties do not intend to be bound until the K is so executed

Question 9

conventional obligations

when can a revocable offer be revoked

Answer 9

before acceptance; revocation must be received before offer is accepted

Question 10

conventional obligations

when is an offer irrevocable

Answer 10

if the offeror specifies a period of time to accept; if the offeror does not specify a time, but intends to give offeree a period within which to accept, irrevocable for a reasonable amount of time

Question 11

conventional obligations

when is acceptance effective for a revocable offer

Answer 11

upon transmission, so long as it’s made in a manner and medium suggested by the offer or in a reasonable manner, which is one used customarily in similar transactions at a place and time the offer is received

Question 12

conventional obligations

when is acceptance effective for an irrevocable offer

Answer 12

upon receipt, which occurs when the acceptance comes into th eofferor’s possession

Question 13

conventional obligations

if acceptance is nonconforming (not in accord with the terms of the original offer), what is the acceptance deemed

Answer 13

counteroffer

Question 14

conventional obligations

what is required for cause

Answer 14

1. lawful cause or
2. detrimental reliance

Question 15

conventional obligations

what’s the definition of cause

Answer 15

why a party binds themselves

Question 16

conventional obligations

what are the requirements for object

Answer 16

parties are free to contract for any object that is lawful, possible, and determined or determinable

Question 17

conventional obligations

if an object is determinable, who can make that determination

Answer 17

third person

Question 18

conventional obligations

what’s a requirements contract

Answer 18

the quantity of a contractual object may be determined by the output of one party or the requirements of another; requirements must be measured in good faith –quantity cannot be unreasonably disproportionate to any estimate or prior requirement

Question 19

conventional obligations

what is the effect of error on consent

Answer 19

consent can be vitiated by a party’s error, but not every error vitiates consent

Question 20

conventional obligations

when will unilateral error vitiate consent

Answer 20

1. it concerns a cause without which the obligation would not have been incurred; and
2. that cause was known or should have been known to the other party

however, even if these requirements are met, if the error should have been discovered, the court may refuse to grant relief

Question 21

conventional obligations

what is the relief for unilateral error

Answer 21

party may generally obtain rescission; damages can be awarded instead in the instacne that the contract should be performed

Question 22

conventional obligations

when does a claim for rescission based on error prescribe

Answer 22

claim on account of relative nullity – thus, 5 years

Question 23

conventional obligations

how is fraud defined

Answer 23

misrepresentation or suppression of the truth used to gain an unjust advantage for one party or to cause inconvenience to the other

Question 24

conventional obligations

when does fraud not vitiate consent

Answer 24

when a party could have ascertained the truth without difficulty/special skill

Question 25

# conventional obligations what does error by fraud require

Answer 25

1. a circumstance that substantially influenced the consent of the party in error and 2. fraudulent intent

Question 26

# conventional obligations how can fraud result from silence or inaction

Answer 26

there must be a duty disclose (and thus failure to do so)

Question 27

# conventional obligations what does rescission on the basis of fraud result in

Answer 27

damages and attorneys fees

Question 28

# conventional obligations what is the effect of failure to perform a conventional obligation

Answer 28

obligor is generally liable for damages caused by his failure to perform a conventional obligation

Question 29

# conventional obligations what are the rights of the obligee if the obligor breaches their contract

Answer 29

1. damages 2. specific performance 3. dissolution

Question 30

# conventional obligations how are compensatory damages measured

Answer 30

1. loss sustained 2. profit deprived (must be proved to reasonable certainty) court maintains discretion

Question 31

# conventional obligations – compensatory damages what is a good faith obligor required to pay

Answer 31

liable for foreseeable expenses at the time the contract was made

Question 32

# conventional obligations – compensatory damages what is a bad faith obligor required to pay

Answer 32

bad faith is defined as the intentional and malicious failure to perform liable for all damages – foreseeable or not, that are a direct consequence of his failure to perform

Question 33

# conventional obligations when are pecuniary damages available (first scenario)

Answer 33

contract intended to gratify, through its nature, a pecuniary interest and because of the circumstances surrounding the formation or nonperformance of the contract, the obligor knew or should've known that his failure to perform would cause that kind of loss

Question 34

# conventional obligations second scenario when pecuniary damages are available

Answer 34

regardless of the nature of the contract, the obligor intended through his failure, to aggieve the feelings of the obligee

Question 35

# conventional obligations what's required for pecuniary damages

Answer 35

bad faith alone is not enough to subject an obligor to liability for nonpecuniary damages – it must be shown that the obligor intended to cause the obligee losses of a pecuniary nature, including embarrassment or humiliation

Question 36

# conventional obligations when are attorneys fees available

Answer 36

only when the contract or law provides

Question 37

# conventional obligations – special forms what is a loan for consumption

Answer 37

lender delivers fungible and consumable things to the borrower, who is permitted to consume the loaned things and replace them with things of the same kind and quality

Question 38

# conventional obligations – special forms for a loan for consumption, where must the borrower fulfill his obligation

Answer 38

must deliver things of same kind and quality at the time and place agreed upon, and upon failure to do so, is liable for interest from written demand

Question 39

# conventional obligations – special forms what is a compromise

Answer 39

one or more parties make concessions to settle a dispute or uncertainty concerning an obligation or another legal relationship; settles only those differences that the parties clearly intend to settle

Question 40

# conventional obligations – special forms what are the form requirements for a compromise

Answer 40

1. in writing; or 2. recited in open court and capable of being transcribed from the record of the proceeding

Question 41

# conventional obligations – special forms what is accord and satisfication in relation to a compromise

Answer 41

compromise is also made when claimant of a disputed or unliquidated claim accepts a payment tendered by the other with the clearly expressed written condition that acceptance of the payment will extinguish the obligation

Question 42

# conventional obligations – special forms what are the effects of compromise

Answer 42

1. can be rescinded for vices of consent, but not error or lesion 2. precludes the parties from bringing a subsequent action based on the matter that was compromised 3. doesn't effect a novation 4. if compromise was not performed, the other party may seek to enforce the compromise or dissolve it and enforce original claim