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General Obligations & Cause
Louisiana Bar Prep
46
Law
Professional
01/10/2011

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Term
A K is...
Definition
...an agreement by 2 or more parties whereby obligations are created, modified or extinguished
1906
Term
A K is unilateral when...
Definition
...the party who accepts the obligation of the other does not assume a reciprocal obligation
1907
Term
A contract is bilateral, or synallagmatic...
Definition
...when the parties obligate themselves reciprocally, so that the obligation of each party is correlative to the obligation of the other.
1908
Term
A contract is onerous when...
Definition
...each of the parties obtains an advantage in exchange for his obligation.
1909
Term
A contract is gratuitous when...
Definition
one party obligates himself towards the other for the benefit of the latter, without obtaining any advantage in return
1910
Term
A contract is commutative when...
Definition
the performance of the obligation of each party is correlative to the performance of the other.
Ex. Bilbe sell X to me and Bilbe is commited to deliver and I mus pay the purchase price. These acts are preformed contemporaneously and are thus commutative.
Term
Is a bilateral contract also onerous?
Definition
Yes
Term
A K is aleatory, when because of its nature or according to the parties' intent...
Definition
the performance of either party's obligation, or the extend of the performance depends on an uncertain event.
Ex. Life Insurance - parties can commit themselves despite the fact there is chance or uncertainty involved.
-1912
Term
An obligation is...
Definition
a legal relationship whereby a person called the obligor, is bound to render a perfromance in favor of another, called the obligee. Performance may cosist of giving, doing, or not doing something.
1756
Term
Obligations arise from...
Definition
contracts and other declaration of will. They also arise directly from the law, regardless of a declaration of will, in instances such as wrongful acts, the management of the affairs of another, unjust enrichment and other acts of facts.

1757
Term
The 3 things an obligations may give the obligee the right to do:
Definition
1. Enforce the performance that the obligor is bound to render
2. Enforce performance by causing it to be rendered b another at the obligor's expense.
3. Recover damages for the obligor's failure to preform , or his defective or delayed performance.
1758
Term
The two things an obligation may give the obligor the right to do:
Definition
1. Obtain the proper discharge when he has performed in full
2. Contest the obligee's actions when the obligation has been extinguished or modified by a legal cause.
1758
Term
Good faith shall govern the conduct of the obligor and the obligee...
Definition
in whatever pertains to the obligation.

-1759
Term
If Bilbe says you can have a book.
What kind of promise has he made?
Can Bilbe refuse to deliver the book?
Definition
The promise is gratuitous and the promise is not enough for enforcment bc the promisor did not recive anything in exchange and will generally be unenforceable.
Term
A K is an accessory when it is made to...
Definition
provide security for the performance of an obligation
Ex. Suretyship, mortgage, pledge
1913
Term
Nominate
v.
Innominate Contracts
Definition
Nominate contracts are those given a special designation such as sale, lease, loan, or insurance.

Innominate contracts are those with no special designation.
Term
Nominate contracts are subject to the special rules of the respective titles when those rules modify, complement or depart from the rule of (general) title. (1916)
What does this mean?
Definition
When the K is a sale, and applying a sales titles rule would conflict with a general contract rule the the ruels of sales prevail because its a special type of contracts.
Always apply the specific rules and then the general.
Term
The rules of this title are applicable also to obligations that arise from sources other than contract to the extend that those rules are compatible with the nature of those obligations. (1917)

What does this mane
Definition
There is a possibility of applying rules other than contracts...like donation rules.
Term
An obligation cannot exist without...
Definition
lawful cause.
1966
Term
Cause is the reason...
Definition
a party obligates himself.

A party may be obligated by a promise when he knew or should have known that the promise would induce the other party to rely on it to his detriment and the other party was reasonable in so relying. Recovery may be limited to the expenses incurred or the damages suffered as a result of the promisee's reliance on the promise. Reliance on a gratuitous promise made without required formalities is not reasonable.
Term
The cause of an obligation is unlawful when the enforcement of the obligation...
Definition
would produce a result prohibited by law or against public policy.

1968
Term
An obligation may be valid even though the cause...
Definition
is not expressed.

-1969
Term
When the expression of a cause is a contractual obligation is untrue...
Definition
the obligation is still effective if a valid cause can be shown.

1970
Term
What is Donative Intent?
Definition
The intention to benefit the donee by way of liberality
- Can act as the cause of the obligation
Term
How do you prove donative intent?
Definition
outward acts by the donor
evidence of relationship of the parties
Term
Onerous Donation
Definition
"Strings attached donation"
- burden imposed on the donee
Donation is invalid unless the value of the obligation is less than 2/3 of the property being transferred
Term
Resnumerative Donation
Definition
Previous Benefit

The rules peculiar to donations inter vivos do not apply to a donation that is made to recompense for services rendered that are susceptible of being measured in money unless at the time of the donation the value of the services is less than two-thirds of the value of the thing donated.
Term
What does a donation instrument need to contain?
Definition
The act of donation shall identify the donor and the donee and describe the thing donated.

These requirements are satisfied if the identities and description are contained in the act of donation or are reasonably ascertainable from information contained in it, as clarified by extrinsic evidence, if necessary.
Term
When can a donation be revoked or dissolved?
Definition
-ingratitude of the donee
-dissolved for the nonfulfillment of a suspensive condition or the occurrence of a resolutory condition.
- A donation may also be dissolved for the nonperformance of other conditions or charges.
Term
A charitable subscription is...
Definition
an onerous contract with valid cause( intent to confer a benefit)
Term
Promises to pay the debt of a 3rd party as long as there is...
Definition
some writing however informal

EXCEPTION: No writing required when the promisor had a material interest in making the promise and has received something in return
Term
Manual Gift Exception
Definition
The donation inter vivos of a corporeal movable may also be made by delivery of the thing to the donee without any other formality
Term
When is cause absent?
Definition
-The thing the party binds himself for, is already owed.
-K for sale is made then the object is destoryed
-is the ob contracted for is the result of violence, threats or duress
Term
Cause may exist at the beginning of the K...
Definition
and then it may fail,

Ex. Commuter who had to move for job and then the job fell thru but the job was the cause of the house purchase, therefore the cause failed too.
Term
Unlawful Cause
Definition
1. A Cause is illegal when its forbidden by law
2. It is immoral
3. It is against public policy or contrary to the values paramount in the community.
Term
Does the law grant an action for collection of gaming debts?
Definition
NO
The law grants no action for the payment of what has been won at gaming or by a bet, except for games tending to promote skill in the use of arms, such as the exercise of the gun and foot, horse and chariot racing.

And as to such games, the judge may reject the demand, when the sum appears to him excessive.
Term
Requirements for Detrimental Reliance
Definition
1. A party may be oglibated when he knew or should have known that the promise would cause the other party to rely on the promise to his detriment
2. The other party was reasonable in so relying
3. Recovery may be limited to the expenses incurred of the damages suffered as a result of the reliance
4. Required formalities must have been made in order for the reliance to have been reasonable.
Term
Examples of circumstances giving Rise to a natural obligation
Definition
1. When a obligation has been extinguished by prescription or discharged thru bankruptcy.
2. When an obligation was made by someone who lacks legal capacity
3. When Universal successor are not bound by a obligations to execute donations of the deceased.
Term
What is a natural obligation?
Definition
Arises form circumstnaces in which the law implies a particuar moral duty to render performance
-not enforceable by judical action but what has been performed in compliance cannot be reclaimed.
Term
What is remission of the debt?

Difference between tacit and expressed?
Definition
When an obligee extinguishes the obligation.

Tacit- the intsument is detroyed or given back to the obligor
Expressed - the agreement is written or oral
Term
What is novation?
Definition
The extinguishment of an existing obligation by substituting it with a new one.
Term
An obligor is laible for the damages caused by his failure to preform a conventional obligation. A failure to preform results from...
Definition
1. Non preformance
2. Defective preformance
3. Delay in performance
Term
Damges are measured by...
Definition
the loss sustained by the obligee and the profit of which he has been deprived.
Term
A obligor in good faith is liable for...
&
An obligor in bad faith is liable for...
Definition
only foreseeable damages
&
all damages foreseeable or not
Term
When does interest start accuring for damages?
Definition
From the debt was supposed to be paid.
Term
When damages are stipulated by agreement...
Definition
they may not be modified by the court unless public policy dictates they are unreasonable.
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