obligations Flashcards
what is a tolling agreement
contract by which parties involved in a dispute consent to extend the relevant prescriptive period
what are the limitations on a tolling agreement
- can only be made after the prescriptive period has commenced but before the period has accrued
- successive agreements are allowed, but any single agreement may not extend prescription for more than one year
- Must be express and in writing
conventional obligations
what are the basic elements of a contract
- capacity
- consent (offer + acceptance)
- cause
- object
conventional obligations
what’s the general as to capacity
all persons have contractual capacity except (1) unemancipated minors; (2) interdicts; and (3) persons deprived of reason at the time of contracting
conventional obligations
when are contracts made by unemancipated minors enforceable
- the other person reasonably relied on the minor’s representation of majority (argument can be made here)
- the contract is made for something related to the minor’s business or necessary for his support and education
have seen this asked twice
conventional obligations
what’s the penalty of a contract entered into by a party that lacked contractual capacity
relative nullity and can be rescinded only by that party or their representative
conventional obligations
how can offer and acceptance be made
orally, in writing, or by action/inaction manifesting consent
conventional obligations
what formalities are the parties subject to for offer and acceptance
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
conventional obligations
when can a revocable offer be revoked
before acceptance; revocation must be received before offer is accepted
conventional obligations
when is an offer irrevocable
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
conventional obligations
when is acceptance effective for a revocable offer
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
conventional obligations
when is acceptance effective for an irrevocable offer
upon receipt, which occurs when the acceptance comes into th eofferor’s possession
conventional obligations
if acceptance is nonconforming (not in accord with the terms of the original offer), what is the acceptance deemed
counteroffer
conventional obligations
what is required for cause
- lawful cause or
- detrimental reliance
conventional obligations
what’s the definition of cause
why a party binds themselves
conventional obligations
what are the requirements for object
parties are free to contract for any object that is lawful, possible, and determined or determinable
conventional obligations
if an object is determinable, who can make that determination
third person
conventional obligations
what’s a requirements contract
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
conventional obligations
what is the effect of error on consent
consent can be vitiated by a party’s error, but not every error vitiates consent
conventional obligations
when will unilateral error vitiate consent
- it concerns a cause without which the obligation would not have been incurred; and
- 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
conventional obligations
what is the relief for unilateral error
party may generally obtain rescission; damages can be awarded instead in the instacne that the contract should be performed
conventional obligations
when does a claim for rescission based on error prescribe
claim on account of relative nullity – thus, 5 years
conventional obligations
how is fraud defined
misrepresentation or suppression of the truth used to gain an unjust advantage for one party or to cause inconvenience to the other
conventional obligations
when does fraud not vitiate consent
when a party could have ascertained the truth without difficulty/special skill
conventional obligations
what does error by fraud require
- a circumstance that substantially influenced the consent of the party in error and
- fraudulent intent
conventional obligations
how can fraud result from silence or inaction
there must be a duty disclose (and thus failure to do so)
conventional obligations
what does rescission on the basis of fraud result in
damages and attorneys fees
conventional obligations
what is the effect of failure to perform a conventional obligation
obligor is generally liable for damages caused by his failure to perform a conventional obligation
conventional obligations
what are the rights of the obligee if the obligor breaches their contract
- damages
- specific performance
- dissolution
conventional obligations
how are compensatory damages measured
- loss sustained
- profit deprived (must be proved to reasonable certainty)
court maintains discretion
conventional obligations –compensatory damages
what is a good faith obligor required to pay
liable for foreseeable expenses at the time the contract was made
conventional obligations –compensatory damages
what is a bad faith obligor required to pay
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
conventional obligations
when are pecuniary damages available (first scenario)
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
conventional obligations
second scenario when pecuniary damages are available
regardless of the nature of the contract, the obligor intended through his failure, to aggieve the feelings of the obligee
conventional obligations
what’s required for pecuniary damages
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
conventional obligations
when are attorneys fees available
only when the contract or law provides
conventional obligations– special forms
what is a loan for consumption
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
conventional obligations –special forms
for a loan for consumption, where must the borrower fulfill his obligation
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
conventional obligations – special forms
what is a compromise
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
conventional obligations –special forms
what are the form requirements for a compromise
- in writing; or
- recited in open court and capable of being transcribed from the record of the proceeding
conventional obligations –special forms
what is accord and satisfication in relation to a compromise
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
conventional obligations – special forms
what are the effects of compromise
- can be rescinded for vices of consent, but not error or lesion
- precludes the parties from bringing a subsequent action based on the matter that was compromised
- doesn’t effect a novation
- if compromise was not performed, the other party may seek to enforce the compromise or dissolve it and enforce original claim
