contracts in form

what is an Act Under Private Signature (Art 1837)

Is simply a document signed et dated by both parties. If one party does not sign, it still valid, if he acts in a way the clearly indicates acceptance of the contract

what is an authentic act

• is a writing that is 'executed' (signed) in the presence of a notary public or other officer authorized to perform that function, as well as in the presence of two witnesses.

• Must have:

  • The party or parties, notary, and witnesses sign the instrument with the typed or hand-printed name must be placed in a legible form immediately beneath each signature.

what if an authentic act is not done in proper form

From a defect form(e.g. it was signed before the notary saw it), it may still be valid as an act under private signature or an act under private signature duly acknowledged.

what is an Act Under Private Signature Duly Acknowledged (Art. 1836)

• A signature can be elevated to 'duly acknowledged' status by taking it to a notary public and recognizing the signature as one's own. =  prima facie evidence

• regular act under private signature

  •  the party against whom it is asserted must acknowledge or deny his signature.

what is confirmation of a contract

is a declaration whereby a person cures the relative nullity of an obligation. either expressed or tacit(voluntary performance of the obligation)

what is ratification of an obligations

is a declaration whereby a person gives his consent to an obligation incurred on his behalf by another without authority

what is the Poral Evidence RULE:

Article 1848: "Testimonial or other evidence may not be admitted to negate or vary the contents [of a writing]. "Nevertheless, in the interest of justice, that evidence may be admitted to prove such circumstances as a vice of consent or to prove that the written act was modified by a subsequent and valid oral agreement.

when is a written contract not required in Louisiana

for a price or, in the absence of a price, for a value not in excess of five hundred dollars may be proved by competent evidence.

what happens where something in a contract is excessive of $500

the contract must be proved by at least one witness and other corroborating circumstances.

what is Judicial confession

is a declaration made by a party in a judicial proceeding. That confession constitutes full proof against the party who made it.

what are the four Parol Evidence Exceptions

1. subsequent modifications

2. written evidence

3. vice of consent/lack of capacity

4. contractual interpretation

what is contract

• is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty

•  A contract is a type of obligation - a conventional obligation.

Louisiana Civil Code, a valid contract requires 4 elements:

• Consent - which is manifested by offer and acceptance,

• Capacity,

• Cause, and

• Legal object.

what is unilateral contract

• when the party who accepts the obligation of the other does not assume a reciprocal obligation. (involves one party promising something in return for a specific action by another)

• ex: employment incentives, lost pet reward, public contest

what is bilateral contract

• The most commonly used type of contract

• when the parties obligate themselves reciprocally, so that the obligation of each party is correlative to the obligation of the other.

• Ex: a person offers their home for sale, and a buyer agrees to pay $150,000 to purchase the home.

what is onerous contract

• when each of the parties obtains an advantage in exchange for his obligation.

• ex: contractor work

what is Gratuitous contract

• when one party obligates himself towards another for the benefit of the latter, without obtaining any advantage in return.

• ex: think about doing something without expecting anything in return

what is a commutive contract

• when the performance of the obligation of each party is correlative to the performance of the other.( equivalence of exchange)

• ex: Sales Agreement: "A sales agreement specifies that the seller transfers ownership of an item to the buyer in exchange for payment."

what is an Aleatory contracts

• when, because of its nature or according to the parties' intent, the performance of either party's obligation, or the extent of the performance, depends on an uncertain event.

• ex: including life, health, and property insurance

what is principle contract

hen the secured obligation arises from a contract, either between the same or other parties,

what is an accessory contract

• when it is made to provide security for the performance of an obligation.

• Suretyship, mortgage, pledge, and other types of security agreements are examples of such a contract.

what is nominate contract

are those given a special designation such as sale, lease, loan, or insurance.

what is an innominate contract

• "flexible agreement"

• allows both parties to define their obligations and expectations in a way that works best for them.

what is capacity

all persons (natural and artificial) have capacity to contract, except unemancipated minors, interdicts, and persons deprived of reason at the time of contracting. Art. 1918.

what if a contract lacks capacity

A contract made by a person without legal capacity is relatively null and may be rescinded only at the request of that person or his legal representative.

what is an absolute null contract

when it violates a rule of public order, as when the object of a contract is illicit or immoral.

A contract that is absolutely. null may not be confirmed, Absolute nullity may be invoked by any person or may be declared by the court on its own intiative.

what is relative null contract

• when it violates a rule intended for the protection of private parties, as when a party lacked capacity or did not give free consent at thee time the contract was made.

• may be confirmed.

• may be invoked only by those persons for whose interest the ground for nullity was established

What happens if a contract is rescinded for incapacity?

• each party must be restored to his or her pre-contractual position, in other words each shall give back to the other what he received under the contract.

• If restoration is impossible or impracticable, the court may award compensation to one or the other party.

what if a minor who is unemancipated enters contract

• contracts entered into are rescinded

• unless it was made for the purpose of providing him or her with something necessary for her support, education, or for a purpose related to his business. Art 1923.

how can a person be deprived of reason could look like the following:

as maladies affecting intelligence, habitual drunkenness, drunkenness causing loss of reason, drug sedation, and senility. art. 1918

what happens with a deprived person in a contract

A non-interdiicted person, whoo was deprived of reason at the time of contracting, may obtain rescission of an onerous contract upon the ground of incapacity only by showing that the other party knew or should have known of the other person's incapacity.