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

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.

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

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.

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

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.

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

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.

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

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.

LA Notary - Louisiana Notary Exam Practice Test

LA Notary - Louisiana Notary Exam Practice Test

LA Notary Obligations and Contracts 3