Antichresis (1995)
Olivia owns a vast mango plantation which she can no longer properly manage due to a lingering illness. Since she is indebted to Peter in the amount of P500.000.00 she asks Peter to manage the plantation and apply the harvest to the payment of her obligation to him, principal and interest, until her indebtedness shall have been fully paid. Peter agrees.
1) What kind of contract is entered into between Olivia and Peter? Explain.
2) What specific obligations are imposed by law on Peter as a consequence of their contract?
3) Does the law require any specific form for the validity of their contract? Explain
4) May Olivia re-acquire the plantation before her entire indebtedness shall have been fully paid? Explain.
SUGGESTED ANSWER:
1. A contract of antichresis was entered into between Olivia and Peter. Under Article 2132 of the New Civil Code, by a 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, and thereafter to the principal of his credit.
SUGGESTED ANSWER:
2. Peter must pay taxes and charges upon the land and bear the necessary expenses for preservation and repair which he may deduct from the fruits. (Art, 2135, NCC)
SUGGESTED ANSWER:
3. The amount of the principal and interest must be specified in writing, otherwise the antichresis will be void. (Art. 2134, NCC)
SUGGESTED ANSWER:
4. No. Art. 2136 specifically provides that the debtor cannot re-acquire the enjoyment of the immovable without first having totally paid what he owes the creditor. However, it is potestative on the part of the creditor to do so in order to exempt him from his obligation under Art. 2135, NCC, The debtor cannot re-acquire the enjoyment unless Peter compels Olivia to enter again the enjoyment of the property.
From the ANSWERS TO BAR EXAMINATION QUESTIONS in CIVIL LAW by the UP LAW COMPLEX and PHILIPPINE ASSOCIATION OF LAW SCHOOLS.
