Louisiana Civil Code

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SECTION 4 - DAMAGES

Art. 1994. An obligor is liable for the damages caused by his failure to perform a conventional obligation.

A failure to perform results from nonperformance, defective performance, or delay in performance. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1995. Damages are measured by the loss sustained by the obligee and the profit of which he has been deprived. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1996. An obligor in good faith is liable only for the damages that were foreseeable at the time the contract was made. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1997. An obligor in bad faith is liable for all the damages, foreseeable or not, that are a direct consequence of his failure to perform. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1998. Damages for nonpecuniary loss may be recovered when the contract, because of its nature, is intended to gratify a nonpecuniary interest and, because of the circumstances surrounding the formation or the nonperformance of the contract, the obligor knew, or should have known, that his failure to perform would cause that kind of loss.

Regardless of the nature of the contract, these damages may be recovered also when the obligor intended, through his failure, to aggrieve the feelings of the obligee. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 1999. When damages are insusceptible of precise measurement, much discretion shall be left to the court for the reasonable assessment of these damages. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2000. When the object of the performance is a sum of money, damages for delay in performance are measured by the interest on that sum from the time it is due, at the rate agreed by the parties or, in the absence of agreement, at the rate of legal interest as fixed by R.S. 9:3500. The obligee may recover these damages without having to prove any loss, and whatever loss he may have suffered he can recover no more. If the parties, by written contract, have expressly agreed that the obligor shall also be liable for the obligee's attorney fees in a fixed or determinable amount, the obligee is entitled to that amount as well. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985; Acts 1985, No. 137, §1, eff. July 3, 1985; Acts 1987, No. 883, §1; Acts 2004, No. 743, §3, eff. Jan. 1, 2005.] NOTE: SEE ACTS 1985, NO. 137, §2.

Art. 2001. Interest on accrued interest may be recovered as damages only when it is added to the principal by a new agreement of the parties made after the interest has accrued. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2002. An obligee must make reasonable efforts to mitigate the damage caused by the obligor's failure to perform. When an obligee fails to make these efforts, the obligor may demand that the damages be accordingly reduced. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2003. An obligee may not recover damages when his own bad faith has caused the obligor's failure to perform or when, at the time of the contract, he has concealed from the obligor facts that he knew or should have known would cause a failure.

If the obligee's negligence contributes to the obligor's failure to perform, the damages are reduced in proportion to that negligence. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2004. Any clause is null that, in advance, excludes or limits the liability of one party for intentional or gross fault that causes damage to the other party.

Any clause is null that, in advance, excludes or limits the liability of one party for causing physical injury to the other party. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

SECTION 5 - STIPULATED DAMAGES

Art. 2005. Parties may stipulate the damages to be recovered in case of nonperformance, defective performance, or delay in performance of an obligation.

That stipulation gives rise to a secondary obligation for the purpose of enforcing the principal one. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2006. Nullity of the principal obligation renders the stipulated damages clause null.

Nullity of the stipulated damages clause does not render the principal obligation null. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2007. An obligee may demand either the stipulated damages or performance of the principal obligation, but he may not demand both unless the damages have been stipulated for mere delay. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2008. An obligor whose failure to perform the principal obligation is justified by a valid excuse is also relieved of liability for stipulated damages. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2009. An obligee who avails himself of a stipulated damages clause need not prove the actual damage caused by the obligor's nonperformance, defective performance, or delay in performance. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2010. An obligee may not avail himself of a clause stipulating damages for delay unless the obligor has been put in default. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2011. Stipulated damages for nonperformance may be reduced in proportion to the benefit derived by the obligee from any partial performance rendered by the obligor. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

Art. 2012. Stipulated damages may not be modified by the court unless they are so manifestly unreasonable as to be contrary to public policy. [Acts 1984, No. 331, §1, eff. Jan. 1, 1985]

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