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1267

Article 1267

Du Prêt à intérêt

Contract Law
Titre XXIV: Du Prêt (On Loan)
Chapitre III: Du Prêt à intérêt (On Interest-Bearing Loans)

Si on stipule un intérêt pour un capital que le prêteur ne peut exiger, ce prêt est désigné sous le nom de constitution de rente.

Life lesson: When the lender can't demand the capital back but receives interest indefinitely, it's called a constitution of annuity — not a loan.
Notes: Constitution de rente: interest on non-recallable capital. Distinguished from ordinary loan by lender's inability to demand principal. Investment instrument.
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