Obligations Outline

Mencer_Obligations_Spring2009
 
I. Chapter I – Theory of Obligation
 
A. C.C. Article 1756 – Obligations; definition
1)      An obligation is a legal relationship whereby a person, called the obligor, is bound to render a performance in favor of another, called the obligee. Performance may consist of giving, doing, or not doing something
a.      Obligations can arise voluntarily (i.e., a K)
b.      Obligations cans arise by operation of law (i.e., tort)
c.       Oblig. To give – usually means to transfer ownership
 
2)      There is in every obligation a:
Subject: an active subject, the creditor or oblige, to whom the right to                    demand performance belongs, and a passive subject, the debtor or obligor, who is under the duty to perform
 
Legal relationship: power and ability to enforce duty, exercise right
 
Object: a performance, act of giving, doing, or not doing
 
3)      Every obligation contains a duty, as a necessary element, BUT not every duty amounts to an obligation
 
4)      Classifications of Obligations
a.      obligation to give – obligor binds himself to transfer to the obligee the ownership of a thing
b.      obligation to do – obligor binds himself to carry out or execute an act
c.       obligation not to do – obligor binds himself to abstain from undertaking a certain course of action
 
à Patrimonial or credit right (right to another’s prop. if don’t perform, to satisfy creditor’s needs) vs. real right (right against all, has immediate power over direct thing)
 
           
GARNIER – In sale of property, when the size, location, and amount of land is certain, the stipulated right of the seller to the resurvey the land does not equate to lack of consideration and is not postative for the thing sold is still certain. Postative K – the thing sold is still certain. ( it is certain if it is the same thing)
 
B. Sources of Obligations – C.C. Article 1756-1758
1)      Obligations arise from contracts and other declarations of will. They also arise from the law, regardless of a declaration of will, in instances such as wrongful acts, the management of the affairs of another, unjust enrichment and other acts or facts.
2)      Four sources
i.      Contracts – willful and lawful acts where people agree to bind themselves by obligation
ii.    Quasi-contracts – without agreement of persons involved which is necessary for the formation of a contract
iii.   Delicts – intentional torts
iv.   Quasi-delicts – negligent acts (unintentional torts)
Nature of oblig. Determines kind of action
 
                        Harrison v Gore –
When a student is molested and sexually harassed by a former coach and the alleged act occurred 8 years before the institution of a suit, the nature of the duty breached determines whether the action is in tort or in contract. If in tort, a one year prescriptive period applies and 10 years if in contract.
 
Four elements required for a valid contract: (3 C’s…)
¶ Parties must have legal CAPACITY to contract
¶ Parties’ mutual CONSENT must be freely given
¶ There must be a lawful CAUSE or purpose
¶ The OBJECT of the contract must be lawful, possible, determined or determinable
 
 
II. Chapter Two: Capacity (La. C.C. art. 1918-1926)
(a)   Capacity is a requirement for every judicial act and is the first prerequisite to the formation of a contract.
·         Contractual capacity: the ability to exercise certain rights and duties
·         General Capacity: hallmark of legal personality
 
La. C.C. Art. 1918: General Statement of Capacity:
“All persons have capacity to contract, EXCEPT un-emancipated minors, interdicts, and persons deprived of reason at the time of contracting.”
 
Minors:
La. C.C. Art. 29: Age of Majority:
“Majority is attained upon reaching the age of 18 years.”
Do not have capacity until reach age of majority or until they are emancipated:
Emancipated “the act by which one who was unfree or under power of another is free”
La. C.C. Art 1922: Fully emancipated minor:
“A fully emancipated minor has full contractual capacity”
May become emancipated
By marriage
By notorial act after age 15
By judicial declaration at age 16
Interdicts:
“A person due to an infirmity is unable consistently to make reasoned decisions regarding the care of his person and property…or to communicate those decisions.”
To be classified as an interdict, court must declare such status and appt. a curator
Full interdiction: deprived of contractual capacity with respect to all juridical acts and thus all contracts
Limited interdiction:
 
Persons Deprived of Reason:
 
 
           
 
III. Chapter Three – Consent
A. Union of Parties Will
La. C.C. Art 1927: Consent:
“A contract is formed by the CONSENT of the parties established through offer and acceptance.
 
Unless the law prescribes a certain formality for the intended contract, offer and acceptance may be made ORALLY, in WRITING, or by ACTION or INACTION that under the circumstances is clearly indicative of consent. Is silence the same thing as inaction???????
 
**********Unless otherwise specified in the offer, there need not be conformity between the manner in which the offer is made and the manner in which the acceptance is made.”
 
        Belgard. v Collins –
When a store owner who has suffered damage to property due to a tornado, has a belief that a
contractor is merely submitting a bid on the job, however, the contractor believes he has, by his actions, been hired as a consultant, there is NO “meeting of the minds”, thus no valid contract has been formed.  
·         (There was no verbal manifestation that they were going to contract)
·         No oral contract because there was no meeting of the minds.
 
**Civil law looks at the will of the parties; Common law looks at the relationship of the parties.
 
B. Expressing Consent
a.      Express – words (verbal or written)
b.      Implied – conduct or performance
c.       Silence or inaction
 
                                North LA Milk Producers v The Southland Corp –
When a merchant, on request, sends a price list to a customer who orders goods in accordance
with the price list, th