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209 Cards in this Set
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Definition of obligations
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a legal relationship whereby a person called an obligor is bound to render performance in favor of another, the OEE. Performance may consist of giving, doing, or not doing something.
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what three things form an obligation
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subject
object legal bond |
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acitve subject
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the creditor, r OE, whom has the right the demand performance
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passive subject
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the OR, who is under duty to perform
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legal bond
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obligation is really a tripartitte relationship between the creditor, the debtor, and the state
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what can be the object
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to give
to do to not do |
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the legal relation is an obligation when it geives the OE a _
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credit (real right)
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In an obligation to give, the OR _
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binds himself to transfert to the OE the ownership of the thing or grant him some other real right ina thing
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In an obligation to do,
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the OR binds himself to carry out or execute an act
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In an obligation not to do, the OR
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binds himself to abstain from some action
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what are teh general effects of contracts for each party:
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OE ahs the right to:
1.specific performance 2.cause performance to be rendered by another 3. recover damages OR has the right to: 1.obtain discharge 2. contest if extinguished or modified |
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real right
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requires only one subject the holder, it is absolute and against the world
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credit rihgt
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jsut one end of an obligation; has a passive and an active subject; it is a personal right
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what are the consequences of being a patrimonial right>?
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1. has a pecuniary value
2.may assign 3.can protect from assignement in contract |
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natuarl obligations
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arise from circumstances in which the law implies a particular moral duty to render a performance; do not produce the OE's right to enforce the performance by the OR; but if the OR promises to perform his natural obligation, it can then turnn into a civil obligation and be enforced
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civil obligation
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produces all the ffects of a legal obligation, enforceable by legal action
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moral duty
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duty of the conscience; may rise to the level that one feels he owes a debt, and then it becomes a natural obligation
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to give rise to a natural obligation, moral duty must:
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1.be felt toward a particular person
2.that person truly feels that he owes a debt 3.the object must have pecuniary value 4.a recognition of the obligation by the person who regards himself as the OR 5. fulfillment of the duty does not impair public order |
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a natural obligation serves as the _ of an obligation
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cause
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a natural obligation is not enforceable, but whatever has been freely performed _
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may not be reclaimed
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IF the debtor in a natural obilagation only pays partof what he owes,
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the creditor mustbe satisfied with that, he has no action to demand the balance
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real obligation
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duty correleative and incidental to a real right; transfers to a universal or particular succesor; particular successor can renounce and abandon
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heritable obligation
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obligation is heritable when its performance may be enforced by a successor of the OE or against a succesort of the OR
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strictly personal
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obligations is strictyl personal when its performance can be enforced only by the OE or only against the OR; when teh performance requires special skill or personal services; or when the benefit was intended exlcusively for the OE, it is personal for that OE
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conditional obligation
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dependent upon a n uncertian event (susepnsive and resolutory)
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suspensive condition
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obligation may not be enforced until the uncertain event occurs
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resolutory
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the obligation may be immediately enforce, but will come to an end when the uncertain event ends
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poetestative conditions
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depends solely on the whim of the OR
if suspensive, it is null if resolutory, it must be performed in good faith |
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term
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period for the performance of the obligation is a period of time either certain or uncertain
certian when fixed uncertain when not determinale. in which case it is reasonable time |
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who may renounce a term?
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the party whose exclusive beneift it was established for.
If benefit both, cannot renounce |
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If the OR has performed before the end of the term
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he may not recover performace
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If a party is later found to be insolvent, (term)
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the term is regarded as nonexistent, unless it is an obligation ot render services
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several obligations
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each of different ORs (OEs) owe separate performance to one OE(OR); each has a different object; produces the same effects as a separate obligation to each
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joint obligations
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owe one performance, but noe bound for the whole; object must be divisible
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if the object is indivisible amongst several, it is
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solidary
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test for joint or several
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depends upons the intention of the parties as revealed by the language of teh contract and the subject matter to which it refers
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an obligation is divisible if _
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the object of performance is susceptible of division
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active solidarity
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each OE has the right to demand the whole performance fomr the common OR
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passive solidarity
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when each OR is liable for teh whole performance; performance by one relieves the others
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Can a solidary OR request division of the debt?
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no, but can seek indemnification or contribution
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soidarity is not presumed, it arises only from
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a clear expressionof the party's intent;
the law |
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renunciation of solidarity by the OE in faovr of one or more OR must be
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expressed
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remission of debt
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benefits all solidary OR in teh amount of the portion of that OR
surrender to one an instrument evidenicng the obligations gives rise to a presumption that the remission intended to benefit all |
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IF a solidary OR is found to be insolvent, _
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the others must bear the loss; and any OR in whose favor solidarity has been renounced must contribute to make up for loss
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renunciation of solidarity is
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basically splitting off one party and keeping the rest solidary
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soidarity is not presumed, it arises only from
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a clear expressionof the party's intent;
the law |
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renunciation of solidarity by the OE in faovr of one or more OR must be
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expressed
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remission of debt
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benefits all solidary OR in teh amount of the portion of that OR
surrender to one an instrument evidenicng the obligations gives rise to a presumption that the remission intended to benefit all |
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IF a solidary OR is found to be insolvent, _
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the others must bear the loss; and any OR in whose favor solidarity has been renounced must contribute to make up for loss
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renunciation of solidarity is
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basically splitting off one party and keeping the rest solidary
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Assumption b/w OR an third
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OR and 3rd cna agree to assumption in writing;
they are solidarily liable 3rd bound only to extent of his assumption |
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assunmption b/w OE and third
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may agree to assumption in writing
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subrogation
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substituion of pone person to the rights of another; cna be conventional or legal
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effects of subragation
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3rd party performs
obligation transferred and original Oe released (unless only paid in part; then his rights for the balance come before new OE) 3rd takes OE's place |
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conventional subrogation by the OE
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OE receives performance from 3rd, subrogates his rights w/o need for OR consent;
no matter the amount that the subrogee paid to the original OE, he is entitled to recover the full amount; does not have to be in writing |
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conventional subrogation by the OR
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OR pays debt with money borrowed for that purpose;
may subrogate the lender wihtout OE's consent; must be in writing expressing that the purpose of the loan is to pay the debt |
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subrogation by law happens when
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1. in favor of an OE who pays another OE whose right is preferred (chess game)
2. in favor of an OR who pays a debt he owes with or for others and who has recourse agaisnt those others as a result of payment |
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when subrogation happens by law, the new OE may revover from the OR
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only to the extent of the performance rendered to the original OE; he cannot invoke ocnventional subrogation
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Who ahs the burden of proof
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the movant
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when teh law requires a written form, it may not be proven by
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testimony or presumption
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authentic act
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executed before notary and two witnesses
signed by all parties if fails this, still good as act under private signature; constitutes full proof of the agreement it contains |
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when an act under private signature is produced, failure ot deny signature is
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acknowlegment of it;
must either accept or deny |
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confirmation
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declaration whereby a person cures the relative nullity of na obligation
must express substance of obligation and evidence of intent to cure tacit confirmation can occur from voluntary performance |
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ratification
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person gives consent ot an obligation incurred on his behalf without authority
tacit ratification can occur when party accepts benefit of obligation with knowledge of of an obligation incurred on his behalf by another |
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tranfer of immovable property must be made by _
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authentic act or by private signature
oral transfer is good between parties when property delivered good to world when filed for registry |
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if writing is not required by law for evidence what is requireed for proof
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if <500 dollars, may be proved by competent evidence
if >500 dollars, may be proved by at least one witness and other corroborating evidence Party can be their own witness, but not corrorborating evidence |
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testimonial evidence may not be admitted to neagate or vary _
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authentic act or act under private signature; unless ot prove:
1.vice of consent 2.simulation 3.written modified by later valid oral agreemt |
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judicial confession
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declaration made by a party at a judicial proceeding;
constitutes full proof agaisnt he who made it (can recognize obligation stupid) |
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performance by the OR _
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extinguishes the obligation
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performance can be rendered by a 3rd party...
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even against the will of the OE, unless the OR or the OE has an interest in performance only by the OR
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an obligation can be extinguished by the transfer of a thing is not extinguished unless that thing is _
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validly transferred
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performance rendered to the OE
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must be rendered to the OE or person authorized by him
but can be cured by ratification; or if the OE received benefit, valid for the amount of benefit (even if the OE does not have capacity) |
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partial perforance
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an OE may refuse partial performance
but if obligation to pay money is disputed in part, and OR willing to pay undisputed part, cannot reject, but has right ot claim disputed part |
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accord and satisfaction
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if the debtor pays part and says it is the whole, if it is accepted the obligation is extinguished
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place of performance
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shall be rendered in place stipulated or intended
if not there, to give rendered at place where obligation arose all other obligation sat domicile of OR |
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expenses required ot render performance must be paid by the
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OR
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an OR who owes several debts ot an OE
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has the right ot impute to debt he chooses if expressed or inferred
however, cannot impute to debt not yet due without OE's consent |
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payment is imputed as follows:
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1. on the basis of whether a particular debt is due
2. to the one that has interest 3. to the one that is secured 4. to the one that was due first 5.If all equal, then imputed proportionally |
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If the OE imputes payment to a debt other than the one intended by OR, the OE is
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in bad faiht
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tender and deposit
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if the OE refuses to accept delivery of a thing or sum of money, the tender of the performance, followed by deposit to the court, produces all the effects of performance when tender declared valid by court
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tender is valid _
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when teh requirements for a valid performance, such as capacity, amount, and kind of performance are fulfilled
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notice as tender
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if the OR knows or has reason to know that the OE will refuse performance, notice to OE that OR ready to perform has the same effect as tender
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If deposit is accepted by OE, or if the court orders the performance vaild,
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the expense of deposit paid by OE
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an OR is not liable for failure to perform when it is caused by a fortuitous event that makes performance impossible, unless:
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1. when the OR has assumed the risk of such an event
2.if the event occured after Or in default 3.if the event preceded by OR's fault, without which the failure would not have occured |
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fortuitous event=
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one that, at the time the contract was made, could not have reasonably been foreseen
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when the event ahs made a party's performance impoosible in part, the court can
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reduce the other party's couter performance proportionally or dissolve
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IF a contract is dissolved after OR has performed in part, the OE is bound _
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to the extent that he was enriched by the partial performance
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novation requires
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existence of a debt to be extinguished
creation of a new debt intent of the parties to make a novation |
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novation is
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the extinguishment of an existing obligation by the subsititutionof a new one;
novation is not presumed, it must be clear and unequivocal |
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objective novation
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new performance or cause subsituted or the parties expressly declare novation;
if any substantial part of original performance is still owed, no novation if mere modification w/o intent, no novation if modification w/ intent, novation occurs |
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subjective novation
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new OR substituted for prior OR who is discharged by OE, even without original OR's consnet
like assignment, but here the OR is assigning, and he is released |
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Novation has no effect when
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the origianl obligation does not exist, or is absolutely null
if only relatively null, the novation is valid, provided that the OR of the new one new of the defect of teh old one (good faith) |
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a novation by OE and a solidary obligors _
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releases the others, unless it stipulates that they are still liable (then must consent)
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delegation of performanece
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delegation by OR to 3rd is effective when 3rd binds,
it effects novation only when teh OE expressly discharges teh original |
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remission of debt
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forgivenss of creditor;
may be express or tacit Oe's voluntary submission of instrument gives rise to presumption effective when received |
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contract=
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agreement by two or more parties where obligations are created, modified, or extinguished
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unilateral contract
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one party obligated and teh other is not (donation)
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in a bilateral contract, the cause is _
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the other parties reciprocal performance
so if one does not perform, the obligation of the other lacks cause |
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onerous contract
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when each of teh parties obtains an advantage in exchange for obligation
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gratuitous contract
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one party obligates himself towards another for the beneift of teh latter, without gaining an advantage himself
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commutative contract
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when teh performance of the obligation of each party is correlative to the performance of teh other
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aleatory contract
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becasue of its nature or according to the partie's inent, the performance of either partie's obligation, or the extent of performacne, depends on an uncertain event
(insurance) |
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four requirments for a contract
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1. capacity
2. consent 3. cause 4. object |
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upon rescission of contract for incapacity, the court may
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restore or compensate
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consent =
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consent to terms and conditions, intending to have legal effects
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unless otherwise specified in the offer, there nee not be conformity
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betweent eh method of opffer and acceptance
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3 ways to express consent
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1. express
2. implied 3.if silent, circumstances must be clear and unequivocal to corroborate presumption of intent |
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it is not enough to say what you will do as an offer, you muat
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say what you will do it for
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a valid offer must
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1. be declared
2. be addressed to OFE 3. be sufficiently precise and complete 4. be accompanied by intent to bind himself |
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if an offer lacks precision it is an _
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invitation
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an offer of reward to the public is _
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binding even if the one who performs does not know of the offer
but it can be revoked any time before completion of the act |
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irrevocable offer
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if OFR has named time within which to be accepted, then bound by that time (unless past reasoanble)
if manifests intent ot leave open, then reasonable |
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things to consider for reasonable time
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mode of communication
nature of proposed contract nature of contractual object party's confession |
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acceptance of an irrevocable offer is effective when _
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received by OFR
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if an offer is no irrevocable, then
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it is revocable at any time before acceptance
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unless otherwise specified by the offer or law, an acceptance of a revocable offer made in manner and medium suggested by offer or in a resaonble manner and medium is effective when
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transmitted (mailbox rule)
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an acceptance is reasoanble if
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it it the one used in amking the offer or in customary in similar transactions
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an offer expires by death or incapaity of either party if
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before acceptance
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option contract
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contractual obligation to keep offer open
OFR must clearly indicate will to form, and the OFE must consent |
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differneces bewteen option and irrevocable
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1. option assignable
2.option contract gives rise to contractual obligation, whereas, irrevocable gives rise to legal obligation |
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option must be specified either in _
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the option contract or to the contract it is linked to
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if you pay consideration to keep irrevocable offer open,then
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it is an option
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an option must be _ (form)
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written
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_ rather than consideration is a requisite for a vaild option
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cause
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whetehr express or implied, an acceptance must be _
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capable of being known
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for an irrevocable, if both acceptance and rejection received at same time, then it is _
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the latest expression of intetn
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if revocable, and acceptance sent first, a rejection received after acceptance transmited is
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offer from OFe to dissolve
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if revocable, rejection sent before acceptance, but acceptance received first, then
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acceptance effective upon transmission, but rejection only unpon reception
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revocation is effective
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when received by OFE
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if revoable, rejection effective
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when received by OFR
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promissory acceptance
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express acceptance entailing OE's promise
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effective acceptance
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OFE does the act without making promissory aceptance
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If offer revocable, the contract is formed (performance)
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at beginning of performance
must be to complete performance |
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if the OFE beings performance and his intent is to complete, the offer
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is no longer revocbale, and teh OFE bound to complete
if he fails, liable for damages |
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IF the OFR only interested in completed performance, and the OFE is doubtful of accomplishing, then
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mere commencement does not implyu promise to complete
(good faith applies) |
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IF the parties are at a distance, teh OFE must notify of beginning of performance unless
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the OFR should know of begginnin gof performance
if OFE fails to notify, still bound, but may be liable for damages |
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a rejection
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is an expression of teh OFE's intention to not accept
puts an end to his ability ot accept |
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in a matter of sale, teh ontract is perfect upon the parties consent of _
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the thing and the price
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in a lease, the essential terms are _
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thing to be let out, and the rent to be paid
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that which does not conform to the offer is _
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a counter (generally)
might be request for modification or reconsideration |
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to make a binding contract, it is enouhgh that parties agree on _
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essential terms
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a statement by OFE that nonconforming goods are an accomodation may _
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release the OFE of contractual liablity
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if terms are different betweent eh offer and acceptance_
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will proceed with terms agreed upon and fill in with gap fillers or suppletive laws
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the presumption between parties is that they do not intend to be bound until _
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contract is executed in a certain from (intent to memorialize)
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cause=
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the reason why a part obligates himself
may obligate himself when he knew or should have known that the promise would induce the othre party to reasonably rely on it to his detriment |
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an obligation cannot exist without
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cause
can have it, then it fails |
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the cause of an oblgiation is unlawful when
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the enforcment of the obligation would produce a result prohibited by law or against public policy
if so, it is absolutely null |
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turpitude paralyzes restitution
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if both parties know of unlawfulness of contract, no restitution
the court leaves them to their own devices |
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three standards of detrimental reliance
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1. a clear and unequivocal promise was made
2. justifiable reliance on that promis 3. a change in one's position to one's detriment because of that reliance Edinburgh |
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detriment is not when they act on a promise, but
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when the promise is denied
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damnum emergens
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dmages for the loss actually sustained, the reliance interest
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lucrum cessans
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the profit which has been deprive, expectation interest
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in detrimental reliance, there are two types of recoverable damages
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damnum emergens
luicrul cessans |
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consent is vitiated by vice only when_
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it concerns a cause without wihich the obligation would not ahve been made and that cause was known or should have been known to the other party
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a party may not avial himself of his error if _
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the other party is willing to perform the contract as intended by the party in error
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a party who obtains rescission on the grounds of his own error is liable to the loss sustained by the other party unless_
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the latter knew or should have known of the error
rescission may be refuse, and then compensation is given |
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fraud in french
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dol malus
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fraud=
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a misrepresentation or suppression of the truth made with the intentiont o either obtain an unjst advantage or to casue a loss or inconvenience for the other
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standard for effects of fraud
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fraud does not vitiate conudct whent the party against whom the fraud was directed could have ascertained the truth without difficulty, inconvenience, or special skill
unless there was a relationship of confidence here |
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fraud commited by a thrid person _
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vitiates consent if the other party knew or should have known of fraud
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sale of an immovable can be rescinded for lesion when
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the price is less than one half the fair market value of the immovable
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a co-owner may claim lesion when_
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the value is less than 1/4
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court will accept lesion when
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it is linked to another vice
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object
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can be anything that is lawful, possible, and derermined or determinable
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possibility as to object is
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according to the nature of the object not the parties ability
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the object must be determined as to _
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kind
price can be filled in if determinable |
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if the determination of the quantity of an object has been left ot 3rd, it is
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deteminable
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future things can be the _of a contract
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object, but not the succession of a living person
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the object cna be that a 3rd will perform, if so
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the pormisor is liable if the 3rd does not perform
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if there is a third party beneficiary,
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the beneficiary or stipulator can demand performance
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promesse du porte fort
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third party, expressing consent, substitutes himself for a party to a contract and therefor binds himself
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stipulation pour autrui
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third party derives benefit from a contract made by others
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upon an obligors failure to deliver a thing, or not to do, or to execute and instrument, the court _
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shall grant specific performance plus damages for delay
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upon failure of obligors failure to do , the court_
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may grant specific performance
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damages for delay in the performance of an obligation are owed from time _
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the OR is put in default
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other damages are owed from the time _
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the OR has failed to perform;
allows compensation for the delay |
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the OR is put into default by
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1. the arrival of a fixed or clearly determinable term
2.by the OE, but not before performance due |
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an OE may put an OE into default by
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written request for performance, oral request in front of two witnesses, or by filing suit for performane, or specific provision of contract
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when put into default, the risk
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shifts to OR
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in the case of reciprocal obligations, the OR of one may not be put into default unless
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the obligor of the ohther has performed or is ready to perform
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3 reqs. for damages
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1. OE injured or loss
2. OR is at fault in on e of the three senses (delay, fuaulty, or non performance) 3. this fault caused damage |
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dames are measured by _
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loses sustained and deprived profit
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an obligor in good faith is liable only for
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the damages that were foreseeable at the tiem the contract was made
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an obligor in bad faith is liable for
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all damages
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nonpecuniary damages can be granted when
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1. the contract inteded to satisfy nonpecuniary interst
2. the OR knew, or should have known that his failure to perform would cause that kind of loss 3.regardless of the contract, if teh OR intendedt o cause, then damages recoverable |
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An OE must make reasonable efforts to _
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mitigate damages, or they will be lessened
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stipulated dmages clause
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can stipulate in contract, this stipul;ation gives rise to an accessory obligation
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moratory damages
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dmages from after default
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if a stipulated damages clause found, the OEE may demand
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performance or stipulated damages, but not both, unless damages stipulated are for delay only
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burden of proof on damages is on _
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OR
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stipulated damages may not be modified unless
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are are so unreasonable as to be against public policy,
there needs to be a reduction for partial performance |
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non-pecuniary interest
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one intendedt o satisfy an interest of sentimental, spiritual order
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dissolution
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when the OR fails to perform, the OE has the right ot dissolution and can seek damages
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a contract may not be dissolved if _
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the OR has rendered substantial part of perfromance nad the part not rendered does not substantially inpair the interest of the OE
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upon partys failure to perform, the other may serve him notice to _
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perform within certain time, and if it is not, the contract will be dissolved
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when a delayed performance is no longer of value to the OE, or it is evident that teh OR will not perform, _
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may treat as dissolved and don't have to give notice
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upond dissolution, the parties _
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restored to before.
If substantial partial performance, can recover. If insubstantial partial, cannot recover |
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either party to a commutative contract can refuse to perform if_
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the other has filed to perform or does not offer to perform his own at the smae time if due simultaneouls
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simulation
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my mutual agreeemnt, the contract does not represent the true intent of the parties
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absolute simulation
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parties intended no legal effects between them
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relkative simulation
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parties intend the contract ot have effects, but different from those int eh contract
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counterletter
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the parties true intent is in a separate writing
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absolute nullity of contract
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one that is agaisnt public order; may be invoked by any person or declared by court
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relative nullity
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may not be declared by court
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if a contract is declared null, the parties_
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are restored to pre contract situation
includes fruits and revenues |
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revocatory action
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OEE has right ot annul act or failure ot act of OR if would incresase OR;s insolvent
does not apply to OR's payment of a just and due debt can cancel grautitous and onerous actions; but not one in teh course of OR's regular business; must be brought within one year; nmust join both 3rd and OR |
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insolvency
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an OR is isolvent when the tola of liabilities exceeds teh totla of his assets
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onerous contract made by OR
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may be annulled by OE if the person knew it would increase his insolvency
if he didn;t know, entitled to whateever he gave OR. good faith presumed if 4/5 fair market value |
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oblique action
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OE may sue 3rd in teh name of OR if OR did not bring action, unless the rigth is strictly personal to the OR
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