Louisiana Civil Code 3140 – Nullity of agreement of forfeiture
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Terms Used In Louisiana Civil Code 3140
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Unless expressly permitted by law, a clause in a contract providing in advance that ownership of a thing given as security will transfer upon default in performance of the secured obligation is absolutely null.
A clause in a contract obligating the owner of a thing to give it to an obligee in payment of a debt upon a future default in performance of an obligation is absolutely null.
Acts 2014, No. 281, §1, eff. Jan. 1, 2015.