LA Notary Obligations and Contracts 1 — Questions and Answers
Question 1: Under the Louisiana Civil Code, what are the three classifications of obligations based on their object?
- To give, to do, and not to do (Correct answer)
- To pay, to perform, and to refrain
- Express, implied, and constructive
- Natural, civil, and moral
Correct answer: To give, to do, and not to do
Louisiana Civil Code Art. 1756 classifies obligations by their object as: to give (transfer a thing), to do (perform an act), or not to do (refrain from an act).
Question 2: Which four elements are required for a valid contract under Louisiana Civil Code?
- Offer, acceptance, consideration, and writing
- Capacity, consent, cause, and a lawful object (Correct answer)
- Mutual assent, consideration, legality, and formality
- Consent, witnesses, notarization, and delivery
Correct answer: Capacity, consent, cause, and a lawful object
Under Louisiana Civil Code Art. 1927, a valid contract requires the capacity of the parties, their consent, a certain object, and a lawful cause.
Question 3: What distinguishes an 'onerous' contract from a 'gratuitous' contract under Louisiana Civil Code?
- An onerous contract must be notarized; a gratuitous contract requires two witnesses
- In an onerous contract each party obligates himself for the benefit of the other; in a gratuitous contract one party benefits the other without receiving a benefit in return (Correct answer)
- An onerous contract involves immovable property; a gratuitous contract involves movables only
- An onerous contract requires a specific form; a gratuitous contract may be oral
Correct answer: In an onerous contract each party obligates himself for the benefit of the other; in a gratuitous contract one party benefits the other without receiving a benefit in return
Louisiana Civil Code Art. 1909 defines an onerous contract as one in which each party obligates himself for the benefit of the other, while a gratuitous contract benefits one party without the other receiving anything in return.
Question 4: Under Louisiana Civil Code, a 'suspensive condition' attached to an obligation means that:
- The obligation is immediately enforceable but performance is delayed
- The obligation comes into existence only if and when the condition is fulfilled (Correct answer)
- The obligation terminates upon fulfillment of the condition
- The court suspends enforcement until the condition is reviewed
Correct answer: The obligation comes into existence only if and when the condition is fulfilled
Per Louisiana Civil Code Art. 1767, a suspensive condition is one that makes the existence of the obligation depend upon the uncertain event — the obligation arises only when the condition is fulfilled.
Question 5: Which of the following vices of consent can vitiate (invalidate) a contract under Louisiana Civil Code?
- Inadequacy of price, error, and duress
- Error, fraud, and duress (violence) (Correct answer)
- Fraud, lesion, and incapacity
- Duress, simulation, and confusion
Correct answer: Error, fraud, and duress (violence)
Louisiana Civil Code Art. 1948 provides that consent may be vitiated by error, fraud, or duress (violence); inadequacy of price alone does not vitiate consent except where lesion is specifically available.
Question 6: A 'stipulation pour autrui' under Louisiana Civil Code Art. 1978 grants a third-party beneficiary:
- A conditional right that expires after one year if not accepted
- A direct right to demand performance from the promisor once the stipulation is accepted (Correct answer)
- Only a derivative right channeled through the stipulator
- No enforceable right unless the third party is named as a party to the contract
Correct answer: A direct right to demand performance from the promisor once the stipulation is accepted
Louisiana Civil Code Art. 1978 provides that once a stipulation pour autrui is accepted by the third-party beneficiary, that party acquires a direct right to demand performance from the promisor.
Question 7: Under Louisiana law, 'lesion' as grounds to rescind a contract refers to:
- Physical damage to property that is the subject of the contract
- A disproportion between the obligations of the parties that may entitle the injured party to rescission in cases allowed by law (Correct answer)
- A fraudulent misrepresentation that induced one party to contract
- An error about the nature of the contract itself
Correct answer: A disproportion between the obligations of the parties that may entitle the injured party to rescission in cases allowed by law
Louisiana Civil Code Art. 1860 defines lesion as a disproportion between the parties' obligations; it is available only in specific cases such as sales of immovables and partitions, not as a general remedy.
LA Notary Obligations and Contracts 1
Under the Louisiana Civil Code, what are the three classifications of obligations based on their object?