Article 3140

Nullity of agreement of forfeiture ACTIVE

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.

Actions

References

None.

Cited by

None.

History

  • enactment Acts 2014, No. 281, §1, eff. Jan. 1, 2015

Article navigation

Cite Article 3140

Bluebook
La. Civ. Code art. 3140 (2026).
Permalink
https://theusufruct.com/cc/3140
BibTeX
@misc{lacivcode-art-3140,
  title        = {La. Civ. Code art. 3140},
  howpublished = {Louisiana Civil Code},
  year         = {2026},
  url          = {https://theusufruct.com/cc/3140},
  note         = {Snapshot 2026-05-22}
}