Louisiana Civil Code

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CHAPTER 6 - EXTINCTION OF OBLIGATIONS

 

SECTION 1 - PERFORMANCE

Art. 1854. Performance by the obligor extinguishes the obligation. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1855. Performance may be rendered by a third person, even against the will of the obligee, unless the obligor or the obligee has an interest in performance only by the obligor.

Performance rendered by a third person effects subrogation only when so provided by law or by agreement. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1856. An obligation that may be extinguished by the transfer of a thing is not extinguished unless the thing has been validly transferred to the obligee of performance. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1857. Performance must be rendered to the obligee or to a person authorized by him.

However, a performance rendered to an unauthorized person is valid if the obligee ratifies it.

In the absence of ratification, a performance rendered to an unauthorized person is valid if the obligee has derived a benefit from it, but only for the amount of the benefit. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1858. Performance rendered to an obligee without capacity to receive it is valid to the extent of the benefit he derived from it. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1859. A performance rendered to an obligee in violation of a seizure is not valid against the seizing creditor who, according to his right, may force the obligor to perform again.

In that case, the obligor may recover the first performance from the obligee. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1860. When the performance consists of giving a thing that is determined as to its kind only, the obligor need not give one of the best quality but he may not tender one of the worst. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1861. An obligee may refuse to accept a partial performance.

Nevertheless, if the amount of an obligation to pay money is disputed in part and the obligor is willing to pay the undisputed part, the obligee may not refuse to accept that part. If the obligee is willing to accept the undisputed part, the obligor must pay it. In either case, the obligee preserves his right to claim the disputed part. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1862. Performance shall be rendered in the place either stipulated in the agreement or intended by the parties according to usage, the nature of the performance, or other circumstances.

In the absence of agreement or other indication of the parties' intent, performance of an obligation to give an individually determined thing shall be rendered at the place the thing was when the obligation arose. If the obligation is of any other kind, the performance shall be rendered at the domicile of the obligor. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1863. Expenses that may be required to render performance shall be borne by the obligor. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SUBSECTION A - IMPUTATION OF PAYMENT

Art. 1864. An obligor who owes several debts to an obligee has the right to impute payment to the debt he intends to pay.

The obligor's intent to pay a certain debt may be expressed at the time of payment or may be inferred from circumstances known to the obligee. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1865. An obligor may not, without the obligee's consent, impute payment to a debt not yet due. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1866. An obligor of a debt that bears interest may not, without the obligee's consent, impute a payment to principal when interest is due.

A payment made on principal and interest must be imputed first to interest. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1867. An obligor who has accepted a receipt that imputes payment to one of his debts may no longer demand imputation to another debt, unless the obligee has acted in bad faith. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1868. When the parties have made no imputation, payment must be imputed to the debt that is already due.

If several debts are due, payment must be imputed to the debt that bears interest.

If all, or none, of the debts that are due bear interest, payment must be imputed to the debt that is secured.

If several unsecured debts bear interest, payment must be imputed to the debt that, because of the rate of interest, is most burdensome to the obligor.

If several secured debts bear no interest, payment must be imputed to the debt that, because of the nature of the security, is most burdensome to the obligor.

If the obligor had the same interest in paying all debts, payment must be imputed to the debt that became due first.

If all debts are of the same nature and became due at the same time, payment must be proportionally imputed to all. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SUBSECTION B - TENDER AND DEPOSIT

Art. 1869. When the object of the performance is the delivery of a thing or a sum of money and the obligee, without justification, fails to accept the performance tendered by the obligor, the tender, followed by deposit to the order of the court, produces all the effects of a performance from the time the tender was made if declared valid by the court.

A valid tender is an offer to perform according to the nature of the obligation. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1870. If the obligor knows or has reason to know that the obligee will refuse the performance, or when the object of the performance is the delivery of a thing or a sum of money at a place other than the obligee's domicile, a notice given to the obligee that the obligor is ready to perform has the same effect as a tender. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1871. After the tender has been refused, the obligor may deposit the thing or the sum of money to the order of the court in a place designated by the court for that purpose, and may demand judgment declaring the performance valid.

If the deposit is accepted by the obligee, or if the court declares the performance valid, all expenses of the deposit must be borne by the obligee. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1872. If performance consists of the delivery of a perishable thing, or of a thing whose deposit and custody are excessively costly in proportion to its value, the court may order the sale of the thing under the conditions that it may direct, and the deposit of the proceeds. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

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