Solidarity
What is solidarity?
the right to demand or liability for the whole performance of an obligation.
What is the non-law-student term for a conventional obligation?
A contract
What is the age of majority in Louisiana?
18
What two things are necessary to form consent and establish a contract?
Offer and Acceptance
Fill in the blank:
Acceptance must be _________ and _________.
Any combination of:
Declared and communicated
The offeree must manifest in some way outside of their subjective belief.
________ solidarity: solidarity among multiple obligors
________ solidarity: solidarity among multiple obligees
Passive solidarity - passive because the obligor has the duty to act
Active solidarity - active because the obligee has the right to act
According to La. Civ. Code art. 1906, what three things can a contract do to legal obligations?
(1) Create obligations
(2) Modify obligations
(3) Extinguish obligations
What are the two types of capacity discussed in class?
(1) Capacity of enjoyment: All natural persons enjoy general legal capacity to have rights and duties.
(2) Capacity of exercise: Capacity to exercise such rights; must be a non-interdicted major
Fill in the blank:
An offer must contain the _______ component parts of the contract
"essential"
Describe 3 manners a party may manifest acceptance
- orally
- in writing
- performance
- silence (under special circumstances)
Describe the difference between renunciation of solidarity and the remission of solidarity
(express in the instance passive solidarity)
Renunciation: An obligee isolates one of the obligors to make the obligation joint or several -- still on the hook!
Remission: An obligee isolates one of the obligors to extinguish a portion of the obligation as if it had been performed -- no longer on the hook!
Classify these two contracts:
(1) Alice promises to sell Bob her bike for $100. Bob agrees to buy it for that price.
(2) Alice promises to give her bike (valued at $100) to Bob. Bob only says "thanks!"
Word bank: unilateral, bilateral, onerous, and gratuitous
(1) Bilateral and onerous
(2) Unilateral and gratuitous
Categorize the type of nullity that occurs when a contract is made by a person without legal capacity.
Who can rescind this contract for the nullity?
It is a relative nullity.
The person that lacked capacity or their legal representative can rescind the contract.
Which party manifests the intent to make an offer irrevocable for a period of time?
The offeror -- it does not matter the offeree's intent (expressed through words and conduct)
When does acceptance become effective in a revocable offer situation?
Acceptance becomes effective when the offeree transmits acceptance.
A, B and C borrow $90,000 from Bank. They expressly agree to be bound in solido for the debt. Bank remits C. B then becomes insolvent. Bank demands payment from A. Which of the following is correct?
a. A is solidarily bound for $60,000, but Bank bears C's share of B's virile portion, or $30,000, and through compensation, A now owes Bank only $30,000.
b. A is solidarily bound for $90,000, but because B became insolvent after Bank remitted C, A may recover $45,000 from C in contribution.
c. A is solidarily bound for $60,000, but Bank bears C's share of B's virile portion, or $15,000, and through compensation A now owes Bank only $45,000.
d. A is solidarily bound for $60,000, but because B became insolvent after Bank remitted C, A may demand $15,000 from C in contribution.
a. A is solidarily bound for $60,000, but Bank bears C's share of B's virile portion, or $30,000, and through compensation, A now owes Bank only $30,000.
b. A is solidarily bound for $90,000, but because B became insolvent after Bank remitted C, A may recover $45,000 from C in contribution.
c. A is solidarily bound for $60,000, but Bank bears C's share of B's virile portion, or $15,000, and through compensation A now owes Bank only $45,000.
d. A is solidarily bound for $60,000, but because B became insolvent after Bank remitted C, A may demand $15,000 from C in contribution.
Acceptable answers: sale, lease, loan, or insurance.
Which two elements must be shown for a non-interdicted person, who was deprived of reason at the time of contracting, to obtain rescission of an onerous contract on the ground of incapacity?
(1) The person was deprived of reason at the time of contracting
(2) the other party knew or should have known of the incapacity by actual or constructive knowledge.
Are there technical obstacles in considering an offer as irrevocable in the common law?
What about the civil law?
Common Law: requires consideration
Civil Law: no technical obstacles because consideration is not required. The offer is binding as a unilateral "promise to promise."
When does acceptance become effective in an irrevocable offer situation?
Acceptance becomes effective when the offeror receives acceptance.
A, B and C borrow $90,000 from Bank. They expressly agree to be bound in solido for the debt. B becomes insolvent, then Bank renounces solidarity in favor of C. Bank demands payment from A. For how much is A solidarily bound?
a. $90,000
b. $45,000
c. $30,000
d. $60,000
a. $90,000
b. $45,000
c. $30,000
d. $60,000
Explain the difference between these contract categories:
Commutative contracts v. Synallagmatic contracts
Synallagmatic contracts are another (fancier, Greek) word for bilateral contracts! While a commutative contract is bilateral, the key distinction is that the parties exchange equal values.
Provide 2/4 things that a legal representative of a non-interdicted person who has recently died can show to rescind a contract on the grounds the late non-interdicted person lacked capacity.
Note: This list is EXCLUSIVE.
(1) the contract is gratuitous, or
(2) the contract evidences lack of understanding, or
(3) the contract was made within thirty days of his death, or
(4) the contract was made when application for interdiction was filed before his death
Describe the differences between an irrevocable offer and an option contract.
Irrevocable offer is simply an offer -- it extinguishes upon death or incapacity. It is not heritable. A clear stipulated time is not required --> can have irrevocable offers for a reasonable time.
An option contract is a contract, so it is usually heritable. Generally, it is related to a sale. A clear stipulated time is REQUIRED.
True or False: Once an offeree begins performing an offer that can only be accepted by complete performance, the offer becomes irrevocable.
True -- it's irrevocable for a reasonable time necessary to complete the performance.