ANTICHRESIS

Art. 2132. By the contract of antichresis the creditor acquires the right to receive the
fruits of an immovable of his debtor, with the obligation to apply them to the payment
of the interest, if owing, and thereafter to the principal of his credit. (1881)

Art. 2133. The actual market value of the fruits at the time of the application thereof to
the interest and principal shall be the measure of such application. (n)

Art. 2134. The amount of the principal and of the interest shall be specified in writing;
otherwise, the contract of antichresis shall be void. (n)

Art. 2135. The creditor, unless there is a stipulation to the contrary, is obliged to pay
the taxes and charges upon the estate.

He is also bound to bear the expenses necessary for its preservation and repair.

The sums spent for the purposes stated in this article shall be deducted from the fruits.
(1882)

Art. 2136. The debtor cannot reacquire the enjoyment of the immovable without first
having totally paid what he owes the creditor.

But the latter, in order to exempt himself from the obligations imposed upon him by the
preceding article, may always compel the debtor to enter again upon the enjoyment of
the property, except when there is a stipulation to the contrary. (1883)

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. But the creditor may petition the court
for the payment of the debt or the sale of the real property. In this case, the Rules of
Court on the foreclosure of mortgages shall apply. (1884a)

Art. 2138. 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. The last paragraph of Article 2085, and Articles 2089 to 2091 are applicable
to this contract. (1886a)

CHAPTER 5
CHATTEL MORTGAGE
Art. 2140. By a chattel mortgage, personal property is recorded in the Chattel Mortgage
Register as a security for the performance of an obligation. If the movable, instead of
being recorded, is delivered to the creditor or a third person, the contract is a pledge
and not a chattel mortgage. (n)

Art. 2141. The provisions of this Code on pledge, insofar as they are not in conflict with
the Chattel Mortgage Law shall be applicable to chattel mortgages. (n)
 

Title XVII. - EXTRA-CONTRACTUAL OBLIGATIONS

CHAPTER 1
QUASI-CONTRACTS

Art. 2142. Certain lawful, voluntary and unilateral acts give rise to the juridical relation
of quasi-contract to the end that no one shall be unjustly enriched or benefited at the
expense of another. (n)

Art. 2143. The provisions for quasi-contracts in this Chapter do not exclude other quasi-
contracts which may come within the purview of the preceding article. (n)

SECTION 1. - Negotiorum Gestio

Art. 2144. Whoever voluntarily takes charge of the agency or management of the
business or property of another, without any power from the latter, is obliged to
continue the same until the termination of the affair and its incidents, or to require the
person concerned to substitute him, if the owner is in a position to do so. This juridical
relation does not arise in either of these instances:

(1) When the property or business is not neglected or abandoned;

(2) If in fact the manager has been tacitly authorized by the owner.

In the first case, the provisions of Articles 1317, 1403, No. 1, and 1404 regarding
unauthorized contracts shall govern.

In the second case, the rules on agency in Title X of this Book shall be applicable.
(1888a)

Art. 2145. The officious manager shall perform his duties with all the diligence of a
good father of a family, and pay the damages which through his fault or negligence
may be suffered by the owner of the property or business under management.

The courts may, however, increase or moderate the indemnity according to the
circumstances of each case. (1889a)
Art. 2146. If the officious manager delegates to another person all or some of his
duties, he shall be liable for the acts of the delegate, without prejudice to the direct
obligation of the latter toward the owner of the business.

The responsibility of two or more officious managers shall be solidary, unless the
management was assumed to save the thing or business from imminent danger.
(1890a)

Art. 2147. The officious manager shall be liable for any fortuitous event:

(1) If he undertakes risky operations which the owner was not accustomed to
embark upon;

(2) If he has preferred his own interest to that of the owner;

(3) If he fails to return the property or business after demand by the owner;

(4) If he assumed the management in bad faith. (1891a)

Art. 2148. Except when the management was assumed to save property or business
from imminent danger, the officious manager shall be liable for fortuitous events:

(1) If he is manifestly unfit to carry on the management;

(2) If by his intervention he prevented a more competent person from taking up

the management. (n)

Art. 2149. The ratification of the management by the owner of the business produces
the effects of an express agency, even if the business may not have been successful.
(1892a)

Art. 2150. Although the officious management may not have been expressly ratified,
the owner of the property or business who enjoys the advantages of the same shall be
liable for obligations incurred in his interest, and shall reimburse the officious manager
for the necessary and useful expenses and for the damages which the latter may have
suffered in the performance of his duties.

The same obligation shall be incumbent upon him when the management had for its
purpose the prevention of an imminent and manifest loss, although no benefit may
have been derived. (1893)

Art. 2151. Even though the owner did not derive any benefit and there has been no
imminent and manifest danger to the property or business, the owner is liable as under
the first paragraph of the preceding article, provided:

(1) The officious manager has acted in good faith, and

(2) The property or business is intact, ready to be returned to the owner. (n)
Art. 2152. The officious manager is personally liable for contracts which he has entered
into with third persons, even though he acted in the name of the owner, and there shall
be no right of action between the owner and third persons. These provisions shall not
apply:

(1) If the owner has expressly or tacitly ratified the management, or

(2) When the contract refers to things pertaining to the owner of the business.
(n)

Art. 2153. The management is extinguished:

(1) When the owner repudiates it or puts an end thereto;

(2) When the officious manager withdraws from the management, subject to the
provisions of Article 2144;

(3) By the death, civil interdiction, insanity or insolvency of the owner or the
officious manager. (n)