Obligations and Contracts Flashcards

Which of the following is NOT recognized as a mode of extinguishing an obligation under the Louisiana Civil Code?

Answer: Frustration of purpose

Louisiana Civil Code Art. 1854 lists the modes of extinguishing obligations as payment, novation, remission, compensation, confusion, and impossibility of performance; 'frustration of purpose' is a common-law doctrine not recognized as a separate mode in Louisiana.

Under Louisiana Civil Code Art. 1879, 'novation' is defined as:

Answer: The substitution of a new obligation for an existing one, which is thereby extinguished

Louisiana Civil Code Art. 1879 defines novation as the extinguishment of an existing obligation by substitution of a new one — the old obligation must be extinguished for novation to occur.

For 'compensation' (offset) to extinguish two obligations by operation of law under Louisiana Civil Code Art. 1893, which requirements must be met?

Answer: Two persons must owe each other fungible things of the same kind, and both debts must be due and presently exigible

Louisiana Civil Code Art. 1893 provides that compensation extinguishes by operation of law when two persons owe each other fungible things of the same kind and both obligations are due and exigible — no agreement or court action is required.

Under Louisiana Civil Code Art. 1903, 'confusion' extinguishes an obligation when:

Answer: The qualities of creditor and debtor are united in the same person

Louisiana Civil Code Art. 1903 provides that an obligation is extinguished by confusion when the qualities of creditor and debtor are united in the same person, such as when an obligor inherits the obligee's estate.

Under Louisiana Civil Code Art. 1888, 'remission of debt' occurs when:

Answer: A creditor voluntarily releases the obligor from an obligation owed to him

Louisiana Civil Code Art. 1888 defines remission of debt as the creditor's voluntary release of an obligation — it is a gratuitous act by the creditor that extinguishes the obligation.

Under Louisiana law, to enforce a claim for damages for non-performance of an obligation, the creditor generally must first:

Answer: Put the debtor in default by demanding performance in writing or by filing suit

Louisiana Civil Code Art. 1989 requires that the obligee put the obligor in default (mise en demeure) before claiming damages for delay or non-performance, which can be accomplished by a written demand or by filing suit.

Under Louisiana Civil Code Art. 1873, an obligation is extinguished by 'impossibility of performance' when:

Answer: The performance, not the obligation, becomes impossible due to a fortuitous event for which the obligor is not responsible

Louisiana Civil Code Art. 1873 provides that an obligation is extinguished when performance becomes impossible due to a fortuitous event (force majeure) for which the obligor bears no responsibility — mere increased difficulty does not suffice.