obligations

Question 0

Which of the following is an example of circumstances under which a natural obligation arises?

a. a contract to sell immovable property is unenforceable bc it is not in writing
b. a borrower enters into an unenforceable agreement to pay interest at a usurious rate
c. a civil obligation has been extinguished by prescription
d. a contract unenforceable bc predicated on unlawful cause
e. all

Answer 0

c. a civil obligation extinguished by prescription

Question 1

what is an obligation

Answer 1

legal relationship between two or more parties where an obligor owes a performance in favor of an obligee and the performance is legally enforceable. duty of good faith on all parties

Question 2

what is a natural obligatioN?

Answer 2

exists only where the law implies a moral duty to render performance. Obligations extinguished by prescription are the most common examples of natural obligations. The law does not imply a moral duty to render performance on an unlawful cause. The illegality of the cause provides good reason for refusing to give agreement effect.

Question 3

A natural obligation:

a. arises from circumstances in which the law implies a particular moral duty to render a performance
b. is enforceable by judicial action
c. arises when a party agrees to a performance that is contra bonos mores
d. is not onerous cause for a promise to fulfill it
e. all of the above

Answer 3

a. arises from circumstances in which the law implies a particular moral duty to render a performance.

Question 4

what are the three primary effects of a natural obligation?

Answer 4

a. not enforceable by judicial action
b. performance freely rendered cannot be reclaimed
c. a new contract made for the performance of a natural obligation is onerous, not gratuitous. New promise to perform will elevate debt into a fully enforceable obligation, but it must be express in a language that shows “a clear, distinct, and unequivocal recognition and renewal of debt as a binding obligation” anything short of this is insufficient. Mere acknowledgement is not enough

Question 5

what are examples of natural obligations?

Answer 5

prescribed debt, bankruptcy debt, obligation by one who lacks capacity, dispositions in a will that is null for want of form. Step fathers duty to pay medical expenses of adult step son, employees duty to reimburse her employer for bad third party check she accepted against employment manual

Question 6

What are the types of obligations?

Answer 6

personal, heritable, conditional

Question 7

what is the difference between a real right and a real obligation?

Answer 7

a real right is a right in a thing that is good against the world, a real obligation is an obligation incurred as a result of a real right. The obligation follows the thing when it is a real obligation (a personal obligation does not)

Question 8

what is a personal obligation?

Answer 8

a strictly personal obligation is only enforceable by the original obligee or against the original obligor and is not heritable. It is presumed strictly personal for obligor if its performance requires special skill or qualification or if it is to perform personal services. It is strictly personal for obligee if performance is meant for that obligee’s exclusive benefit.

Question 9

What is a heritable obligation?

Answer 9

an obligation is heritable if it can be enforced by or against the successors of the original obligors and obligees and is transferrable

Question 10

what is a conditional obligation?

Answer 10

an obligation whose occurrence depends on an uncertain event. Uncertainty is key, if it is certain to occur it is not conditional but subject to a term. It may be suspensive or resolutory.

Question 11

A resolutory condition:

a. prevents enforcement of an obligation until an uncertain event occurs
b. causes an obligation to come ot an end when an uncertain event occurs
c. that depends solely on whim of obligor make obligation null
d. is implied in every synallagmatic contract
e. is satisfied when a corporate officer produces authentic evidence of a resolution authorizing his execution of a contract

Answer 11

b. causes an obligation to come ot an end when an uncertain event occurs.

Question 12

what is a resolutory condition?

Answer 12

obligation is immediately enforceable but ends if uncertain event occurs

Question 13

what is suspensive condition

Answer 13

obligation not enforceable unless and until the uncertain event occurs

Question 14

what is a potestative condition

Answer 14

one whose fulfillment is within a party’s power. the only null potestative conditions are suspensive potestative conditions whose fulfillment depends on obligors “whim”

Question 15

What is a suspensive potestative condition

Answer 15

an obligation with a suspensive condition that depends solely on the whim of the obligor (this is null)… but if it depends on obligors “will” it is valid. (Whim means dependant entirely on his unbridled discretion, Will is a considered weighing of interest or exercise of reasonable discretion)

Question 16

what is resolutory potestative condition

Answer 16

an obligation with resolutory conditions whose fulfillment is within a party’s power, not null but conditions must be exercised in good faith.

Question 17

what are the three types of obligations with multiple persons?

Answer 17

several (obligation when separate performances are owed)
joint (one performance owed, no obligor bound for the whole, no obligee entitled to the whole)
solidary (obligors- each owes whole performance, solidary for obligees when each is entitled to recieve whole performance)

Question 18

An obligation is solidary for the obligors:

a. when different obligors owe together just one performance to obligee but neither is bound for the whole
b. only when the obligation derives from same source for each obligor
c. when each obligor is liable for the whole performance
d. when an obligor is bound to render only one of two or more items of performance
e. when each of different obligors owes a separate performance to one obligee

Answer 18

c. when each obligor is liable for the whole performance

Question 19

when an obligation is alternative:

a. the obligor is bound to multiple items of performance that must be separately rendered or enforced, each item being regarded as the object of a separate obligation
b. the choice of the item of performance belongs to the obligee unless it has been expressly or impliedly granted to the obligor
c. the obligor is bound to render only one of two or more items of performance
d. the obligor may perform the obligation by rendering as performance a part of one item and part of another
e. the obligation is extinguished if one of several items contemplated in the alternative obligation becomes impossible or unlawful without obligors fault

Answer 19

c. the obligor is bound to render only one of two or more items of performance

Question 20

what is an alternative obligation

Answer 20

obligor is bound to render one of two or more items of performance (ex. may return thing or pay value)

Question 21

what is a conjunctive obligation

Answer 21

obligor must render multiple items of performance, each of which may be separately rendered

Question 22

what is a divisible obligation

Answer 22

object of performance may be divided

Question 23

what is indivisible obligation

Answer 23

object of performance, by its nature or agreement, is not susceptible to division

Question 24

In the case of an assumption agreed upon by an obligee and an assuming obligor:

a. the agreement effects a release of the original obligor
b. the assuming obligor may raise against the obligee any defense based on the relationship between the obligor and original obligee
c. the assuming obligor may invoke compensation based on an obligation owed by the obligee to the original obligor
d. the assuming obligor is subrogated by law to the rights of original obligor
e. the agreement between the assuming obligor and obligee must be made in writing

Answer 24

e. agreement between assuming obligor and obligee must be made in writing

Question 25

How does assumption arise?

Answer 25

conventional assumption of an obligation may arise by agreement between the obligor and a third person, or by agreement between the obligee and a third person.

An agreement between obligor and third person wher ethird person agrees to assume obligation is enforceable against the third person by the obligee IF MADE IN WRITING.

Agreement between obligee must also be IN WRITING.

Question 26

subrogation occurs when:

a. one person is substituted to the legal rights of another
b. an obligor and third person agree to an assumption by the latter of an obligation of the former
c. two persons owe each other money
d. by agreement of the parties, a new performance is substituted for that previously owned
e. a new obligor is substituted for a prior obligor who is discharged by obligee

Answer 26

a. one person is substituted to the legal rights of another

Question 27

subrogation is:

a. an assumption by a third person of an obligation of an obligor
b. the extinguishment of a new obligation by the substitution of a new one
c. an agreement under which a new obligor is substituted for a prior obligor who is dicharged by obligee
d. the substitution of one person to the rights of another
e. the extinguishment of obligations arising by operation of law

Answer 27

d. the substitution of one person to the rights of another

Question 28

Which of the following is not ground for extinction of obligation?

a. performance
b. novation
c. subrogation
d. remission
e. confusion

Answer 28

c. subrogation

Question 29

what are the effects of subrogation?

Answer 29

the obligation is extinguished only for the original obligee, however the obligation itself remains for the new obligee

Question 30

what are the two types of subrogation/ define them

Answer 30

Conventional and Legal
Conventional may arise by agreement with either the obligor or obligee. Subrogation by agreement with obligor is effective without obligee’s consent. Must be in writing and must state that the purpose of hte loan is to pay the debt. Governed by rules for assignment of right.
Legal takes place in 5 situations: when one obligee pays another with superior rights; when a purchaser of property uses the money to pay a creditor with a real right to the property; when an obligor who owes debt with others pays that debt and has recourse; when a successor pays an estate debt with his own funds; when the law provides for it to the extent he has performed.

Question 31

What is needed to show proof of obligations

Answer 31

party demanding performance must prove existence of the obligation. Some must be in writing, may be proved by testimony only when instrument destroyed, lost, stolen.

Question 32

what is an authentic act?

Answer 32

in front of notary and two witnesses, signed by all parties

Question 33

what is act under private signature duly acknowledged

Answer 33

originally executed without a notary present, but a party thereafter acknowledges the signature before a court or before a notary and two witnesses

Question 34

act under private signature

Answer 34

signed but not necessarily written by the parties

Question 35

when the law requires a contract to be in written form , the contract may not be proved by testimony or presumption unless:

a. the consent of one of the parties to the contract was vitiated by a vice of consent
b. the written instrument has been destroyed, lost, stolen
c. proof of the contract is established by at least one witness and other corroborating circumstances
d. both parties to the admit its existence when interrogated on oath
e. the proponent of has made valid tender of performance

Answer 35

b. the written instrument has been destroyed, lost, or stolen

Question 36

what transfers must be in writing to be effective?

Answer 36

immovable property
mandate authorizing transfer of immovable
promise to pay the debt of a third person
promise to pay debt extinguished by prescription
compromise
suretyship

Question 37

a transfer of immovable property:

a. must be made by authentic act
b. is never valid unless in writing
c. is valid even though agreement of transfer is oral, if the property has actually been delivered and the transferor recognizes the transfer when interrogated on oath
d. has effect agains tthird person only from time instrument is filed in parish of domicile
e. is effective between the parties only if passed before notary

Answer 37

c. is valid even though agreement of transfer is oral, if the property has actually been delivered and the transferor recognizes the transfer when interrogated on oath

Question 38

what extinguishes obligations?

Answer 38

Performance
Impossibility
Novation
Remission of Debt
Compensation
Confusion

Question 39

The extinction of the principal obligation:

a. extinguishes ordinary suretyship for the obligation but does not extinguish commercial suretyship
b. extinguishes suretyship for the obligation but not mortgage securing obligation
c. extenguishes all mortgages securing obligation, but not suretyship
d. extinguishes both suretyship and mortgages securing the obligation
e. has no effect on either suretyship or mortgages securing the obligation

Answer 39

d. extinguishes both suretyship and mortgages securing the obligation

Question 40

what is impossibility of performance (rule)

Answer 40

an obligor is not liable when failure to perform is caused by fortuitous event that makes performance impossible, unless he has assumed the risk of loss by fortuitous event or has been put in default before the event occurred. The exception is if the fortuitous event woudl have destroyed the object had it been in the hands of the obligee and timely rendered, the obligor is not liable except for delay damages. If entire performance is impossible contract is dissolved.

Question 41

an obligor in good faith who fails to perform a conventional obligation is liable:

a. only for damages foreseeable at time of
b. only for moratory damages
c. for all damages as a direct consequence of his failure to perform
d. for all damages including nonpecuniary losses
e. for damages that might have been avoided by reasonable efforst to mitigate

Answer 41

a. only for the damages foreseeable at time of k

Question 42

what is novation

Answer 42

extinguishment of an existing obligation by the substitution of a new one. This is never presumed, intent must be clear and unequivocal. Objective novation changes the object, subjective replaces the person.
rescission available based on error, fraud, duress (know when fraud vitiates consent), or for impossibility of performance.

Question 43

which of the following is correct:

a. novation is extinguishment of an existing obligation by the substitution of a new one
b. objective novation is when new obligor is substituted
c. novation made by obligee and one of obligors of solidary obligation does not effect a release of the other solidary obligors
d. execution of a new wirting and modification of obligation, made without intent to extinguish are examples of novation
e. all of above

Answer 43

a. novation is extinguishment of an existing obligation by the substitution of a new one

Question 44

what is remission of debt?

Answer 44

voluntary relinquishment by obligee of right to demand performance. Presumed when surrender of document that evidences obligation but not when obligee releases real security. Acceptance by obligor is required. Remission of debt in favor of principal obligor releases sureties, but remission in favor of sureties does not release obligor.

Question 45

a remission of debt:

a. may be express or tacit
b. is presumed to exist when obligee voluntarily surrenders to the obligor the instrument evidencing obligation
c. that is granted to principal obligor releases surety
d. is effective when the obligor receives communication of remission from obligee
e. all of above

Answer 45

e. all of above.

Question 46

Remission of debt:

a. is effective only when express
b. granted to surety releases principal obligor and all other sureties
c. granted to one surety, release other sureties only to extent of contribution they might have recovered from the surety to whom remission was granted
d. is not effective until the obligor expressly accepts remission
e. is presumed to arise from the release of a real security given for performance of debt.

Answer 46

c. granted to one surety, release other sureties only to extent of contribution they might have recovered from the surety to whom remission was granted

Question 47

what is compensation?

Answer 47

(offset) a method of extinguishing two obligations simultaneously. Occurs by operation of law when two requirements are met:
1. two persons owe each other money or fungible things identical in kind
and
2. those sums or quantities are liquidated and presently due

It extinguishes both obligations

Question 48

What is confusion?

Answer 48

civil law counterpart to merger. exists when obligee and obligor become same person. extinguishes obligation except when it is a surety.