What is antichresis in business law?

What is antichresis in business law?

Antichresis, under civil law and Roman law, is a contract whereby a debtor pledges (i.e., conveys possession of but not title to) real property to a creditor, allowing the use and occupation of the pledged property, in lieu of interest on the loan.

What is antichresis and example?

In the civil law, an antichresis is a contract for security between the debtor and his creditor; a transfer of possession of the pledged real property from the debtor to the creditor, including the the fruits or rent income therefrom, in lieu of payments on the loan, including interest, for any such time period as is …

What is meant by antichresis?

Legal Definition of antichresis in the civil law of Louisiana : a written pledge and transfer from a debtor to a creditor of possession of immovable property giving the creditor the right to the fruits (as rents) of the property which are to be deducted from the interest or principal of the debt — compare pawn.

What is Pactum Commissorium?

Arrangements in violation of these are called “pactum commissorium,” which exists when there is a pledge or mortgage wherein property is encumbered by way of security for the payment of the principal obligation; and there is a stipulation for an automatic appropriation by the creditor of the thing in the event of …

What is Commodatum in law?

Legal Definition of commodatum : a gratuitous loan of movable property to be used and returned by the borrower : loan for use at loan — compare deposit, gratuitous bailment at bailment, loan for consumption at loan.

Is Mutuum a real contract?

Mutuum. A mutuum was a loan for consumption. It was the oldest contract in re, growing in importance after 326 BC when the lex Poetalia was passed. The mutuum obliged the borrower not to return the thing itself, because its use would involve consumption, but a similar thing in quantity, quality and size.

Is deposit a real contract?

Real contracts included loans of money, loans of goods, deposits, and pledges.

What is the meaning of Mutuum?

Mutuum is a Latin term which means a loan or a borrowing for the purpose of consumption by the borrower. The borrower can consume its use.

What is pactum Commissorium is it allowed by law?

An automatic appropriation by your wife’s friend of the thing pledged in the event of non-payment of the principal obligation within the stipulated period is contrary to our law. …

Why is pactum Commissorium not allowed?

From the facts that you gave, it seems that all the elements of a pactum commissorium are present: (1) there is a creditor-debtor relationship between you and your friend; (2) a property was mortgaged as a security for the obligation; and (3) there is an automatic appropriation by your friend in case you defaulted in …

What is commodatum and Mutuum?

By the contract of loan, one of the parties delivers to another, either something not consumable so that the latter may use the same for a certain time and return it, in which case the contract is called a commodatum; or money or other consumable thing, upon the condition that the same amount of the same kind and …

Is commodatum a contract?

It is a gratuitous contract, the obligation being to return the goods, fair wear and tear excepted. See MUTUUM. COMMODATUM. A contract, by which one of the parties binds himself to return to the other certain personal chattels which the latter delivers to him, to be used by him, without reward; loan -for use.

Which is the best definition of antichresis law?

Antichresis Law and Legal Definition. Antichresis is the pledge of real property as security for a debt. This term is used in the civil law to refer a contract by which a creditor acquires the right of taking the revenues of the immovable property given to him/her in pledge, on certain conditions.

When to apply the excess of antichresis to the principal?

The contracting parties may stipulate that the interest upon the debt be compensated with the fruits of the property which is the object of the antichresis, provided that if the value of the fruits should exceed the amount of interest allowed by the laws against usury, the excess shall be applied to the principal. (1885a) Art. 2139.

What are the Articles of antichresis 2132-2139?

Art. 2136. The debtor cannot reacquire the enjoyment of the immovable without first having totally paid what he owes the creditor. Art. 2137. The creditor does not acquire the ownership of the real estate for non-payment of the debt within the period agreed upon. Every stipulation to the contrary shall be void.

What’s the difference between an antichresis and a mortgage?

The proceeds of farming are considered the interest on the loan. Compare antichresis to a single payment lease of the same farmland where the income from farming is sufficient to pay interest and principal on a comparable loan and the property is returned to the owner at the end of the lease term.