LA Bar Contracts and Sales 3

Question 1

When a Louisiana obligor fails to perform, the creditor may seek which of the following remedies?

Accepted Answer

Specific performance, damages, or dissolution of the contract

Answer

La. CC Art. 1986 and 2013 together authorize the creditor to demand specific performance, dissolution, or damages at their election.

Question 2

Under Louisiana Civil Code Article 1989, 'putting in default' (mise en demeure) is generally required before the creditor may:

Accepted Answer

Claim damages for delay in the obligor's performance

Answer

The obligor is liable for delay damages only after being put in default, which puts the obligor on notice that timely performance is demanded.

Question 3

Under La. CC Art. 2013, a party may dissolve a contract without judicial action when:

Accepted Answer

The contract expressly provides for dissolution upon a specified breach

Answer

A dissolution clause (pact commissoire) permits extrajudicial dissolution when the contract expressly grants that right for a particular breach.

Question 4

Under the fortuitous event (force majeure) doctrine in Louisiana, performance is excused only when:

Accepted Answer

An unforeseeable, irresistible event makes performance impossible

Answer

La. CC Art. 1873 requires that the event be unforeseeable and irresistible; increased cost or difficulty alone does not excuse performance.

Question 5

A Louisiana court may reduce a stipulated damages (penalty) clause when it finds the agreed penalty is:

Accepted Answer

Manifestly excessive in relation to the actual harm

Answer

La. CC Art. 2012 permits judicial reduction of a penalty clause that is manifestly unreasonable, though the clause is otherwise valid and binding.

(LA Bar) Louisiana Bar Exam Practice Test