LA Notary Obligations and Contracts 3

Question 1

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

Accepted Answer

Frustration of purpose

Answer

Compensation

Answer

Novation

Answer

Confusion

Question 2

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

Accepted Answer

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

Answer

A creditor's voluntary release of all or part of an obligation

Answer

The transfer of a creditor's rights to a third person who paid the debt

Answer

An agreement to delay performance of an existing obligation

Question 3

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

Accepted Answer

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

Answer

Both debts must be in writing and notarized

Answer

The parties must agree in writing to set off the debts against each other

Answer

A court must determine the amounts owed before compensation operates

Question 4

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

Accepted Answer

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

Answer

The terms of the contract are too unclear to enforce

Answer

Both parties are mistaken about the terms of the obligation

Answer

A contract is rescinded due to mutual error

Question 5

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

Accepted Answer

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

Answer

A debtor's obligation prescribes due to the passage of time

Answer

A court reduces a debt because of the debtor's financial hardship

Answer

A third party pays the debt on behalf of the debtor

Question 6

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

Accepted Answer

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

Answer

File a lawsuit in district court within 90 days of the breach

Answer

Obtain a court order declaring the obligation enforceable

Answer

Give the debtor a 30-day cure period regardless of the contract terms

Question 7

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

Accepted Answer

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

Answer

Performance becomes more expensive or difficult due to changed circumstances

Answer

The obligor decides that performance would cause him financial hardship

Answer

A change in law makes the obligation unenforceable going forward