LA Notary Obligations and Contracts 2

Question 1

Under Louisiana Civil Code Art. 1967, 'cause' in a contract is best described as:

Accepted Answer

The reason why a party obligates himself

Answer

The consideration exchanged between the parties

Answer

The motive that induced a party to enter the contract

Answer

The legal basis established by statute for enforcing the agreement

Question 2

Under Louisiana Civil Code, which type of error can vitiate consent and allow rescission of a contract?

Accepted Answer

Error that concerns a cause of the obligation and is excusable

Answer

Any error of law or fact, regardless of its importance

Answer

Error of motive only when the motive was expressed in the contract

Answer

Error only when the other party induced the error by fraud

Question 3

Under Louisiana Civil Code Arts. 2025–2026 (simulation), what is the general effect of a simulated contract between the parties?

Accepted Answer

Between the parties, the true agreement prevails; third parties in good faith may rely on the simulated contract

Answer

Both the simulated contract and the true agreement are absolutely null

Answer

The simulated contract is enforceable and the hidden agreement is void

Answer

Only the notarized version of the agreement is enforceable

Question 4

What is the general prescriptive period for personal actions (including most contract claims) under Louisiana Civil Code Art. 3499?

Accepted Answer

Ten years

Answer

One year

Answer

Three years

Answer

Five years

Question 5

'Legal subrogation' under Louisiana Civil Code Art. 1829 occurs when:

Accepted Answer

Subrogation takes place by operation of law without the creditor's agreement

Answer

The creditor expressly assigns his right to a third party who pays the debt

Answer

The debtor and creditor agree in writing to substitute a new creditor

Answer

A court orders the transfer of the creditor's rights to satisfy a judgment

Question 6

A 'resolutory condition' under Louisiana Civil Code Art. 1767 is one that:

Accepted Answer

Terminates an already existing obligation upon fulfillment of the condition

Answer

Suspends the creation of the obligation until the uncertain event occurs

Answer

Allows the obligor to resolve disputes through arbitration

Answer

Creates a new obligation when the prior obligation is extinguished

Question 7

Under Louisiana Civil Code, what is required for a contract's 'object' to be valid?

Accepted Answer

The object must be possible, determinable, and lawful

Answer

The object must be a corporeal movable or immovable thing

Answer

The object must exist at the time the contract is formed

Answer

The object must be of ascertainable monetary value