Louisiana Civil Code

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SECTION 2 - IMPOSSIBILITY OF PERFORMANCE

Art. 1873. An obligor is not liable for his failure to perform when it is caused by a fortuitous event that makes performance impossible.

An obligor is, however, liable for his failure to perform when he has assumed the risk of such a fortuitous event.

An obligor is liable also when the fortuitous event occurred after he has been put in default.

An obligor is likewise liable when the fortuitous event that caused his failure to perform has been preceded by his fault, without which the failure would not have occurred. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1874. An obligor who had been put in default when a fortuitous event made his performance impossible is not liable for his failure to perform if the fortuitous event would have likewise destroyed the object of the performance in the hands of the obligee had performance been timely rendered.

That obligor is, however, liable for the damage caused by his delay. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1875. A fortuitous event is one that, at the time the contract was made, could not have been reasonably foreseen. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1876. When the entire performance owed by one party has become impossible because of a fortuitous event, the contract is dissolved.

The other party may then recover any performance he has already rendered. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1877. When a fortuitous event has made a party's performance impossible in part, the court may reduce the other party's counterperformance proportionally, or, according to the circumstances, may declare the contract dissolved. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1878. If a contract is dissolved because of a fortuitous event that occurred after an obligor has performed in part, the obligee is bound but only to the extent that he was enriched by the obligor's partial performance. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SECTION 3 - NOVATION

Art. 1879. Novation is the extinguishment of an existing obligation by the substitution of a new one. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1880. The intention to extinguish the original obligation must be clear and unequivocal. Novation may not be presumed. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1881. Novation takes place when, by agreement of the parties, a new performance is substituted for that previously owed, or a new cause is substituted for that of the original obligation. If any substantial part of the original performance is still owed, there is no novation.

Novation takes place also when the parties expressly declare their intention to novate an obligation.

Mere modification of an obligation, made without intention to extinguish it, does not effect a novation. The execution of a new writing, the issuance or renewal of a negotiable instrument, or the giving of new securities for the performance of an existing obligation are examples of such a modification. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1882. Novation takes place when a new obligor is substituted for a prior obligor who is discharged by the obligee. In that case, the novation is accomplished even without the consent of the prior obligor, unless he had an interest in performing the obligation himself. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1883. Novation has no effect when the obligation it purports to extinguish does not exist or is absolutely null.

If the obligation is only relatively null, the novation is valid, provided the obligor of the new one knew of the defect of the extinguished obligation. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1884. Security given for the performance of the extinguished obligation may not be transferred to the new obligation without agreement of the parties who gave the security. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1885. A novation made by the obligee and one of the obligors of a solidary obligation releases the other solidary obligors.

In that case, the security given for the performance of the extinguished obligation may be retained by the obligee only on property of that obligor with whom the novation has been made.

If the obligee requires that the other co-obligors remain solidarily bound, there is no novation unless the co-obligors consent to the new obligation. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1886. A delegation of performance by an obligor to a third person is effective when that person binds himself to perform.

A delegation effects a novation only when the obligee expressly discharges the original obligor. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1887. If the new obligor has assumed the obligation and acquired the thing given as security, the discharge of any prior obligor by the obligee does not affect the security or its rank. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]