Louisiana Civil Code

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CHAPTER 5 - CAUSE

Art. 1966. An obligation cannot exist without a lawful cause. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1967. Cause is the reason why a party obligates himself.

A party may be obligated by a promise when he knew or should have known that the promise would induce the other party to rely on it to his detriment and the other party was reasonable in so relying. Recovery may be limited to the expenses incurred or the damages suffered as a result of the promisee's reliance on the promise. Reliance on a gratuitous promise made without required formalities is not reasonable. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1968. The cause of an obligation is unlawful when the enforcement of the obligation would produce a result prohibited by law or against public policy. 

Examples of obligations with unlawful causes include those that arise from gaming, gambling, and wagering not authorized by law. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985; Acts 2019, No. 106, §1]

Art. 1969. An obligation may be valid even though its cause is not expressed. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1970. When the expression of a cause in a contractual obligation is untrue, the obligation is still effective if a valid cause can be shown. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

CHAPTER 6 - OBJECT AND MATTER OF CONTRACTS

Art. 1971. Parties are free to contract for any object that is lawful, possible, and determined or determinable. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1972. A contractual object is possible or impossible according to its own nature and not according to the parties' ability to perform. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1973. The object of a contract must be determined at least as to its kind.

The quantity of a contractual object may be undetermined, provided it is determinable. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1974. If the determination of the quantity of the object has been left to the discretion of a third person, the quantity of an object is determinable.

If the parties fail to name a person, or if the person named is unable or unwilling to make the determination, the quantity may be determined by the court. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1975. The quantity of a contractual object may be determined by the output of one party or the requirements of the other.

In such a case, output or requirements must be measured in good faith. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1976. Future things may be the object of a contract.

The succession of a living person may not be the object of a contract other than an antenuptial agreement. Such a succession may not be renounced. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1977. The object of a contract may be that a third person will incur an obligation or render a performance.

The party who promised that obligation or performance is liable for damages if the third person does not bind himself or does not perform. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

CHAPTER 7 - THIRD PARTY BENEFICIARY

Art. 1978. A contracting party may stipulate a benefit for a third person called a third party beneficiary.

Once the third party has manifested his intention to avail himself of the benefit, the parties may not dissolve the contract by mutual consent without the beneficiary's agreement. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1979. The stipulation may be revoked only by the stipulator and only before the third party has manifested his intention of availing himself of the benefit.

If the promisor has an interest in performing, however, the stipulation may not be revoked without his consent. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1980. In case of revocation or refusal of the stipulation, the promisor shall render performance to the stipulator. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1981. The stipulation gives the third party beneficiary the right to demand performance from the promisor.

Also the stipulator, for the benefit of the third party, may demand performance from the promisor. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1982. The promisor may raise against the beneficiary such defenses based on the contract as he may have raised against the stipulator. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]




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