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 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 …

Is contract of antichresis a real contract?

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 the meaning of 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 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 does pactum Commissorium declared null and void by law?

The first element is present, considering that the property of the debtor was mortgaged in favor of the creditor to secure the former’s indebtedness. The transfer of property that was made upon default by the debtor makes it in the nature of a pactum commissorium, hence, null and void.

What are the characteristics of Antichresis?

The main characteristics of antichresis are:

  • We are talking about a real guarantee: you agree to pay your obligations with a real estate.
  • The participants are: antichresist (gives up possession of the property) and antichretic (uses the property).

What is difference between mortgage and pledge?

Pledge is used to create a charge over movable properties whereas Mortgage is used in case of immovable properties. In case of pledge, the goods are kept with the lender, whereas mortgaged properties are retained with the borrower.

What is real contract in law?

A real contract was one requiring that something should be transferred from one party to the other and that the obligation arising should be for the return of that thing. Real contracts included loans of money, loans of goods, deposits, and pledges.

What are the characteristics of contract of Antichresis?

The main characteristics of antichresis are: We are talking about a real guarantee: you agree to pay your obligations with a real estate. The participants are: antichresist (gives up possession of the property) and antichretic (uses the property).

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.

Who is a pledgor and a pledgee?

a person who borrows money and offers a pledge for the loan: A pawnbroker can sell the pledgor’s goods when the loan is not repaid. Compare. pledgee.

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