La Barbri Mandate, Deposit, Sequestration & Loan, Compromise

Front 1

Mandate - Def

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Back 1

K b/w principal (P’pal) & mandatary (Man) conferring on Man authority 2 transact on behalf of P’pal

• Generally no form requirement, so may be oral BUT if act to be performed by Man must be in a certain form, then act creating mandate must also be in that form (equal dignities rule)

Front 2

Mand’s Authority

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Back 2

→ P’pal may confer general authority on Man to do whatever he thinks appropriate, but even if doesn’t give general authority, Man can do all acts incidental/necessary 4 performance of mandate.
• Exceptions→ Must have express authority 4 (1) acquiring/alienating/encumbering/leasing prop (2) making an inter vivos donation (3) accepting or renouncing a succession (4) K-ing a loan or acknowledging/remitting a debt (5) becoming a S (6) making/endorsing a promissory note or neg instrument (7) entering into a compromise or agreeing to arbitrate (8) making health care decisions

Front 3

Duties of Man

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Back 3

→fulfill mandate, act w/prudence, diligence, notify P’pal when done, & account 4 performance
• If exceeds authority, liable to P’pal for loss sustained
• If Man sustains loss b/c he exceeded authority, can’t recover from P’pal unless P’pal ratifies the acts
• Man doesn’t exceed his authority when he fulfills his duty in a manner more advantageous to P’pal

Front 4

Duties of P’pal

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Back 4

→ bound for all obls lawfully K-ed by Man & must reimburse Man 4 expenses, charges, & loss sustained by Man w/o fault. There’s no relief from reimbursement merely b/c Man was unsuccessful. Bound for acts of Mandatary until Mandatary knows that the mandate is terminated.

Front 5

Man’s Obligation to 3dP

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Back 5

• Disclosed mandate & disclosed P’pal→ only P’pal is personally bound
• Note→ if both are disclosed to 3dP & the Man’s acts are authorized, the P’pal is bound to 3dP. It’s no defense 4 P’pal to argue that he paid Man who failed to remit payment to 3dP. If Man fails to remit payment, the P’pal is the one who suffers from his Man’s breach, not the 3dP
• Undisclosed mandate→ Man personally bound
• Disclosed mandate, but undisclosed P’pal→ Man’s personally bound until ID of Ppal is disclosed to 3dP
• Acts Exceeding Authority→ Man is personally bound UNLESS (1) 3dP knew Man was exceeding his authority or (2) P’pal ratifies the conduct
• Apparent Authority – Principal can be liable to 3dP party if caused GF belief that person was his Man
• 3dP is always bound to principal even if undisclosed unless the obligation is strictly personal

Front 6

Termination of Mandate

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Back 6

→ (1) Death of either Ppal/Man (2) Interdiction of Man or qualification of a curator a/f interdiction of P’pal or (3) Notice of termination by either party
• Exceptions where it would continue: Needs to notify 3dP of the term or is still liable
• If Man ends due to Principal’s death – man still needs to fulfill if delay would injure principal’s interest
• If Mandate Recorded, Revocation needs to be recorded to affect 3dP
• Note→ not all incapacities of the P’pal terminate the mandate
• P’pal is bound for all Man’s GF acts performed a/f termination but b/4 Man knew of termination

Front 7

Management of Affairs of Another

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Back 7

→ basically sub to same rules as mandate, but manger acts w/o authority

Front 8

Deposit, Sequestration, & Loan - Deposit

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Back 8

→ K in which depositor (Dep’or) delivers a thing (movable) to a depositary (Dep’ry) for safekeeping. Dep’ry is bound to return the thing, and fruits to Dep’or upon demand.
• Not effective until delivery
• May be onerous/gratuitous- Onerous– diligence & prudence Grat- same care as their own prop
• BUT, neither onerous/gratuitous Dep’rys are responsible for loss caused by an irresistible force
• Generally, Dep’ry may not use it w/o express/implied permission from Dep’or
• Innkeeper- Onerous Depositary (Lim Liab of $500 so long as safe deposit facility and notice of its availab)

Front 9

Deposit, Sequestrian, & Loan -
Conventional Sequestration

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Back 9

→ parties agree to deliver a contested thing to a Dep’ry pending resolution of their dispute. This is governed by the rules of deposit

Front 10

Deposit, Sequestrian, & Loan - Judicial Sequestration

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Back 10

→ takes place pursuant to ct order & is governed by the rules of deposit to the extent that such rules are compatible w/the nature of the judicial sequestration

Front 11

Deposit, Sequestration & Loan - Loan

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Back 11

➢ Loan for Use→ gratuitous K where lender delivers a nonconsumable to borrower who must return it a/f done
➢ Loan for Consumption→ K whereby lender delivers fungible & consumable things to borrower who is permitted to consume the loaned things and to replace them w/things of the same kind and quality. (No Dep)

Front 12

Compromise - Def.

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Back 12

→ K whereby parties make concessions 2 settle dispute/uncertainty re: an obl or other legal relationship
• Settles only those differences the parties clearly intended to settle

Front 13

Compromise - Form

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Back 13

➢ Form→ either (1) in writing or (2) Recited in open ct & capable of being transcribed from the record
➢ Accord and Satisfaction→ compromise is made when claimant of a disputed/unliquidated claim accepts payment tendered by other w/clearly expressed written condition that acceptance of it will extinguish the obl
• No accord & satisfaction can occur if no dispute b/w the parties exists.

Front 14

Compromise - Effect

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Back 14

➢ Effect of Compromise→ precludes parties from bringing action based upon matter that was compromised
• May rescind for vice of consent, but not for error in law or lesion. It doesn’t affect a novation
• If not performed, other party may seek to (1) enforce or (2) dissolve and enforce original claim