Louisiana Civil Code

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CHAPTER 4 - VICES OF CONSENT

SECTION 1 - ERROR

Art. 1948. Consent may be vitiated by error, fraud, or duress. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1949. Error vitiates consent only when it concerns a cause without which the obligation would not have been incurred and that cause was known or should have been known to the other party. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1950. Error may concern a cause when it bears on the nature of the contract, or the thing that is the contractual object or a substantial quality of that thing, or the person or the qualities of the other party, or the law, or any other circumstance that the parties regarded, or should in good faith have regarded, as a cause of the obligation. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1951. A party may not avail himself of his error if the other party is willing to perform the contract as intended by the party in error. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1952. A party who obtains rescission on grounds of his own error is liable for the loss thereby sustained by the other party unless the latter knew or should have known of the error.

The court may refuse rescission when the effective protection of the other party's interest requires that the contract be upheld. In that case, a reasonable compensation for the loss he has sustained may be granted to the party to whom rescission is refused. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SECTION 2 - FRAUD

Art. 1953. Fraud is a misrepresentation or a suppression of the truth made with the intention either to obtain an unjust advantage for one party or to cause a loss or inconvenience to the other. Fraud may also result from silence or inaction. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1954. Fraud does not vitiate consent when the party against whom the fraud was directed could have ascertained the truth without difficulty, inconvenience, or special skill.

This exception does not apply when a relation of confidence has reasonably induced a party to rely on the other's assertions or representations. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1955. Error induced by fraud need not concern the cause of the obligation to vitiate consent, but it must concern a circumstance that has substantially influenced that consent. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1956. Fraud committed by a third person vitiates the consent of a contracting party if the other party knew or should have known of the fraud. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1957. Fraud need only be proved by a preponderance of the evidence and may be established by circumstantial evidence. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1958. The party against whom rescission is granted because of fraud is liable for damages and attorney fees. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SECTION 3 - DURESS

Art. 1959. Consent is vitiated when it has been obtained by duress of such a nature as to cause a reasonable fear of unjust and considerable injury to a party's person, property, or reputation.

Age, health, disposition, and other personal circumstances of a party must be taken into account in determining reasonableness of the fear. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1960. Duress vitiates consent also when the threatened injury is directed against the spouse, an ascendant, or descendant of the contracting party.

If the threatened injury is directed against other persons, the granting of relief is left to the discretion of the court. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1961. Consent is vitiated even when duress has been exerted by a third person. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1962. A threat of doing a lawful act or a threat of exercising a right does not constitute duress.

A threat of doing an act that is lawful in appearance only may constitute duress. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1963. A contract made with a third person to secure the means of preventing threatened injury may not be rescinded for duress if that person is in good faith and not in collusion with the party exerting duress. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1964. When rescission is granted because of duress exerted or known by a party to the contract, the other party may recover damages and attorney fees.

When rescission is granted because of duress exerted by a third person, the parties to the contract who are innocent of the duress may recover damages and attorney fees from the third person. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SECTION 4 - LESION

Art. 1965. A contract may be annulled on grounds of lesion only in those cases provided by law. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

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