Key Principles of Obligations and Contracts

Effects of Obligations in Law

This section outlines the fundamental aspects and consequences related to legal obligations.

Compliance with Obligations

• Effective implementation of the provision.
• The allowance is indivisible.
• The active subject of compliance is the debtor.
• Payment by a third party is possible.

Time and Place of Performance

Their determination is crucial for declaring default by either the debtor or the creditor.

• Creditor's Mora Provision: Deposit in court at the disposal of the creditor and debtor to give and receive the benefit.

Understanding Default

Default signifies a breach of obligation. It can be:

• Absolute Default: Inability to execute future benefit.
• Relative Default: Compliance outside or in part, which can be rejected by the creditor.
• Force Majeure: (e.g., a hurricane) may excuse default.

Debtor's Mora (Delay)

The debtor falls behind in payment arrears.

• Constitution: The creditor judicially demands performance.
• Effects of Mora: Compliance and compensation for damages.
• Effects of Non-Compliance: The creditor demands judicial compliance.

Guarantees for Creditors

Any means to ensure the debtor pays:

• Subrogatory Action: Allows the creditor to exercise the debtor's rights for their own benefit.
• Direct Action: The creditor becomes the debtor of the debtor's debtor.
• Revocation Action: Renders ineffective fraudulent acts made by the debtor.
• Lien: (e.g., a workshop lien)
• Penal Clause: Prevents the calculation of damages by setting a predetermined penalty.

The Contract: Principles and Elements

This section details the nature, formation, and termination of contracts.

Definition of a Contract

An agreement for the exchange of goods, services, or other benefits, which must be capable of economic assessment.

Contractual Agreement and Freedom

Contractors are free to establish the covenants, terms, and conditions of the contract. In contracts governed by private law, parties may modify terms. They are free to enter into covenants not contrary to law.

• Typical Contracts: Legally defined and regulated.
• Atypical Contracts: Not specifically defined by law.

Defects in Consent (Will)

Factors that can invalidate consent:

• Error: A mistaken belief about a material fact.
• Violence/Intimidation: Coercion or threats.
• Deceit (Fraud): Intentional misrepresentation.

Essential Elements of a Contract

For a contract to be valid, it must have:

• Consent: Agreement of the parties.
• Object: The subject matter of the contract.
• Cause: The reason or purpose of the contract.

Accidental Elements of a Contract

Elements that may be included by the parties:

• Condition: A future and uncertain event upon which the production or termination of rights depends.
  • Initial Condition: The contract's effect begins upon its fulfillment.
  • Resolutory Condition: The contract's effect ends upon its fulfillment.
• Term: A future and certain event that marks the beginning or end of a contract's effects.
  • Initial Term: The contract's effect begins at a specific time.
  • Final Term: The contract's effect ends at a specific time.
• Mode (Charge): A burden that can be imposed on the recipient of a gratuitous business (e.g., a donation).

Form of the Contract

Contracts can be verbal or written, depending on legal requirements.

Effects of the Contract

Contracts bind the parties involved.

• Unilateral Termination: Generally not permitted.
• Binding Effect: Only binds the parties and their heirs; generally not third parties.

Termination of Contracts

Contracts can be terminated by:

• Performance/Payment: Fulfillment of obligations.
• Invalidity: (Nullity or Annulment) Due to fundamental defects.
• Inefficiency: (Mutual Rescission, Mistake, or Termination for Default) When the contract ceases to produce effects for various reasons.