Obligations in General - Kinds of Obligations Flashcards
In General
he Civil Code sets forth several classification schemes for obligations. Within each scheme, all obligations are characterized of a particular type, and certain consequences or effects flow from that characterization. These “kinds” of obligations include: (1) real vs. personal obligations; (2) heritable vs. strictly personal obligations; (3) conditional obligations; (4) obligation with a term; (5) obligations with multiple persons; (6) obligations with multiple objects; (7) divisible & indivisible obligations.
Real v. Personal Obligations
a. Personal Obligations—A personal obligation is simply an “obligation,” as defined in La. Civ. Code art. 1756: “An obligation is a legal relationship whereby a person, called the obligor, is bound to render a performance in favor of another, called the obligee. Performance may consist of giving, doing, or not doing something.”
b. Real Obligations
i. Definition—La. Civ. Code art. 1763 provides: “A real obligation is a duty correlative and incidental to a real right.”
Elements of a Real Relation
(a) Real Right—A real right is one that confers direct and immediate authority over a thing and is good against the world. See La. Civ. Code art. 476, cmt. (b) and La. Civ. Code art. 1763, cmt. (b).
(b) Real Duty—A real duty is correlative with a real right. Real duties apply to persons who are either owners or possessors of things which are burdened with real rights. In the Civil Code, the duties that are owed to the holders of these rights are called “real obligations.” A real duty is almost always a duty “not to do” (i.e., not to interfere with the correlative real right).
iii. Example of a “Real Obligation:” Mortgage—A mortgage confers a real right on the creditor (mortgagee) and a real duty on the person whose property is mortgaged (mortgagor). The mortgagee has the right to have the mortgaged property seized and sold at judicial sale and to be paid out of the proceeds of the sale. The mortgagor has the duty to suffer the foreclosure – i.e., lose the property to the judicial sale.
Effects of a Real Obligation
iv. Effects—La. Civ. Code art. 1764 provides: “A real obligation is transferred to the universal or particular successor who acquires the movable or immovable thing to which the obligation is attached, without a special provision to that effect. But a particular successor is not personally bound, unless he assumes the personal obligations of his transferor with respect to the thing, and he may liberate himself from the real obligation by abandoning the thing.”
(a) Universal or Particular Successors—For definitions of these terms, see La. Civ. Code art. 3506.
There are in law two sorts of successors: the universal successor such as the heir, the universal legateee, and the general legatee; and the successor by particular title, such as the buyer, donee, or legatee of particular things, the transferee.
(b) Explanation—A key element of real obligations is that they are transferred automatically with the property to which they are attached. Personal obligations are not transferred automatically as a general rule – instead, they must be transferred through “subrogation” or “assumption” – two concepts we will study later in the semester.
Strictly Personal v. Heritable Obligations
i. Heritable Obligations—La. Civ. Code art. 1765 provides: “An obligation is heritable when its performance may be enforced by a successor of the obligee or against a successor of the obligor. Every obligation is deemed heritable as to all parties, except when the contrary results from the terms or the nature of the contract. A heritable obligation is also transferrable between living persons.”
- Transferrable to particular successor or transmissible to heirs and legatees.
ii. Strictly Personal Obligations—La. Civ. Code art. 1766 provides: “An obligation is strictly personal when its performance can be enforced only by the obligee, or only against the obligor. When the performance requires the special skill or qualification of the obligor, the obligation is presumed to be strictly personal on the part of the obligor. All obligations to perform personal services are presumed to be strictly personal on the part of the obligor. When the performance is intended for the benefit of the obligee exclusively, the obligation is strictly personal on the part of that obligee.”
Effects - Strictly Personal or Heritable
i. Heritable Obligations—These obligations pass on to successors. For a definition of successors, see La. Civ. Code art. 3506.
(a) Bogart v. Caldwell—Fanny Mae seeks injunctive relief to prevent Mr. Caldwell from operating a motion picture theater in Farmerville. Fanny Mae is the widow of Harry, who died recently and who purchased the Strand Theater from Mr. Caldwell. The Act of Sale contained a noncompete agreement. Was the obligation not to compete strictly personal or heritable?
- Caldwell sold a movie theater to Harry Bogart - Caldwell had agreed not to open a competing theatere in the area - Bogart died, Can his wife, Fanny Mae, enforce the noncompete agreement? - Fanny Mae is trying to enforce a right to a duty not to do by Caldwell - Court rules that it is a heritable obligation the right to which is enforceable by the heirs of the obligee. Laroca v. Laroca - A case mostly about extrapatrimonial rights and duties, in particular the right to a divorce. - Isabelle Laroca sued her husband for divorce. She died while the divorce was pending. Her daughter from a previous marriage sought to certify the divorce proceedings. - Why did the daughter wish to prosecute the divorce? - So that she could revoke all of the donations from her mother to her husband. - •Did the right to divorce terminate at Isabelle’s death? - - Illustrates that there a circumstances in which something that may seemingly concern only extrapatrimonial rights and duties, may affect patrimonial rights and duties. (b) Note on offers—Remember, offers are not heritable; they expire at the death of either the offeror or the offeree. However, contracts are heritable unless they are strictly personal. ii. Strictly Personal Obligations—These obligations do not pass on to successors. There are several circumstances in which obligations are limited to the specific parties who incurred them. (a) Nature of the Contract (i) Special Skill or Qualification of Obligor—With respect to obligors, if the obligation is one that requires the special skill or qualification of the obligor, the obligation is presumed to be strictly personal on the part of the obligor. (ii) Intended for the Benefit of the Obligee Exclusively—With respect to obligees, if the obligation is one that is intended for the benefit of the obligee exclusively, the obligation is strictly personal for that obligee.
Pure and Simple v. Affected by Modalities
Pure and Simple: (1) the obligation must come into existence immediately upon the execution of the juridical act or the occurrence of the juridical fact from which it arises; (2) it must endure indefinitely until after performance is rendered; and (3) performance must be due and demandable immediately. In other words, an obligation that is pure and simple is affected by neither a condition nor a term.
b. Obligations Affected by Modalities—An obligation is affected by a modality when its existence or its performance is displaced by the occurrence of an event or time. There are two types of obligations affected by modalities: conditional obligations and obligations subject to terms.
Conditional Obligations - General
i) Definition—La. Civ. Code art. 1767 provides that a conditional obligation is one that depends on an uncertain event. There are two important ideas embedded in this definition: uncertainty and dependency.
a. Uncertainty—The obligation is dependent upon an event that is uncertain; i.e., the event may or may not occur. If the event on which the obligation depends is not uncertain, then the obligation is not subject to a condition, but may be subject to a term. Note that this uncertainty need merely be relative, not absolute. Thus, uncertainty can exist regarding past events, or events that are objectively certain, but which the parties do not regard as certain. See La. Civ. Code art. 1767 cmt. (e).
i. I agree to donate my house to Professor Carroll if my husband dies. Condition?
No, it is not an uncertain event. He will die, it is a certainty.
ii. I agree to donate my house to Professor Carroll if my husband dies before she dies. Condition?
Yes, this is conditional because we don’t know what the timing releative to the their deaths, it is uncertain.
iii. I agree to give you $50 if the Saints won the football game last night. At the time of our agreement, neither you nor I know whether the Saints won the football game. Condition?
This is conditional, even though the event is certain. However, in doing the analysis, certainty and uncertainty is assessed from the position of the parties. Because neither one knows who won, it is uncertain.
b. Dependency—The obligation is “dependent” upon the uncertain event; meaning its very existence depends upon the occurrence or nonoccurrence of the event.
Dependency - Types
Suspensive Conditions—“If the obligation may not be enforced until the uncertain event occurs, the condition is suspensive.” La. Civ. Code art. 1767. For example: I agree to give you $50 if it rains tonight. I am not bound to give you $50 unless and until it rains tonight.
b. Resolutory Conditions—“If the obligation may be enforced immediately but will come to an end when the uncertain event occurs, the condition is resolutory.” La. CC 1767. For example, I agree to give you my umbrella now but I want it back if it rains tomorrow. - This is somewhat of a legal retroactivity, where if rains tomorrow, it is as if I never gave you the umbrella at all.
Sources of Conditions
Sources—“Conditions may be either expressed in a stipulation or implied by the law, the nature of the contract, or the intent of the parties.” La. Civ. Code art. 1768.
a. Express Conditions—Express conditions are set forth by the parties. These are obviously the easiest to identify. b. Implied Condition—Conditions may be implied from the law, the nature of the contract, or the intent of the parties.
Fulfilment of Conditions
(i) General Rules—Generally, when suspensive conditions are fulfilled, the obligation comes into existence; when suspensive conditions fail, the obligation does not exist. When a resolutory condition is fulfilled, the obligation does not exist; when a resolutory condition fails, the obligation continues in its existence.
a. Positive Conditions—“If the condition is that an event shall occur within a fixed time and that time elapses without occurrence of the event, the condition is considered to have failed.
If no time is fixed for the occurrence of the event, the condition may be fulfilled within a reasonable time.
Whether or not a time has been fixed, the condition is considered to have failed once it is certain that the event will not occur.” La. Civ. Code art. 1773
- The failure of a condition has different effects depending on whether the Condition is Suspensive or Resolutory.
- Fixed Time: I will give you 50k if you get married by the end of the year. You are not married by December 31
- Reasonable time: I will give you 50k if you marry your girlfriend. You are not married by December 31.
- Certain failure: I will give you 50k if you marry your girlfriend. She dies.
b. Negative Conditions—“If the condition is that an event shall not occur within a fixed time, it is considered as fulfilled once that time has elapsed without the event having occurred. The condition is regarded as fulfilled whenever it is certain that the event will not occur, whether or not a time has been fixed.
Exceptions to Conditions
(d) Prohibited Conditions—There are three types of prohibited conditions: unlawful conditions, impossible conditions, and some types of “potestative” conditions.
(i) Unlawful Conditions—“A suspensive condition that is unlawful or impossible makes the obligation null.”
- I only want to buy this house if I can make meth in it. The illegal condition “infects” the cause, making it an unlawful cause.
- Illegal conditions are always unenforceable.
a. Suspensive Condition—A agrees to lease space to B if he can first purchase five video poker machines for the business he will run there. Assume it is unlawful for B to operate video poker machines at this location. Is this lease enforceable? Why or why not? - The lease is not enforceable. b. Resolutory Condition—A agrees to lease space to B but the lease will be undone if he cannot purchase five video poker machines for the business he will run there within 6 months of commencing operations. Same assumption as above. Is this lease enforceable? Why or why not? Is the condition valid? See CC 1769, cmt. (a). Can you explain this result using the “clean hands” doctrine announced in CC 2033? Can you explain this result using the doctrine of cause? - If you cannot purchase the video poker machines, yous till have a lease. The law simply strikes the condition from the contract. (ii) Impossible Conditions—La. Civ. Code art. 1769 states the same rule for “impossible” conditions. - Impossible for anyone to perform or flat out physically impossible. a. Suspensive Condition—I agree to sell you my house if it rains purple gumballs tomorrow. Is this obligation enforceable? Why or why not? b. Resolutory Condition—I agree to sell you my house subject to your right to return it if it rains purple gumballs. Is this obligation enforceable? (iii) Potestative Conditions—Potestative conditions are conditions whose fulfillment are within the “power” of a party to fulfill. These kinds of conditions are sometimes invalid, but not always. This area of the law has historically been very confusing. - Conditions that are fraught because they are within the power of a party to do or ntot.
