Louisiana Civil Code

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CHAPTER 12 - RESCISSION FOR LESION BEYOND MOIETY

Art. 2589. The sale of an immovable may be rescinded for lesion when the price is less than one half of the fair market value of the immovable. Lesion can be claimed only by the seller and only in sales of corporeal immovables. It cannot be alleged in a sale made by order of the court.

The seller may invoke lesion even if he has renounced the right to claim it. [Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2590. To determine whether there is lesion, the immovable sold must be evaluated according to the state in which it was at the time of the sale. If the sale was preceded by an option contract, or by a contract to sell, the property must be evaluated in the state in which it was at the time of that contract. [Amended by Acts 1950, No. 154; Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2591. When a sale is subject to rescission for lesion the buyer may elect either to return the immovable to the seller, or to keep the immovable by giving to the seller a supplement equal to the difference between the price paid by the buyer and the fair market value of the immovable determined according to the preceding Article. [Amended by Acts 1871, No. 87; Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2592. If the buyer elects to return the immovable he must also return to the seller the fruits of the immovable from the time a demand for rescission was made. In such a case, the seller must return to the buyer the price with interest from the same time.

If the buyer elects to keep the immovable he must also pay to the seller interest on the supplement from the time a demand for rescission was made. [Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2593. [Reserved]

Art. 2594. When the buyer has sold the immovable, the seller may not bring an action for lesion against a third person who bought the immovable from the original buyer.

In such a case the seller may recover from the original buyer whatever profit the latter realized from the sale to the third person. That recovery may not exceed the supplement the seller would have recovered if the original buyer had chosen to keep the immovable. [Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2595. The action for lesion must be brought within a peremptive period of one year from the time of the sale. [Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2596. When the buyer has granted a right on the immovable to a third person, rescission may not impair the interest of that person. The seller who receives back the immovable so encumbered is entitled to recover from the buyer any diminution in value suffered by the immovable because of the right of the third person. That recovery may not exceed the supplement the seller would have recovered if the buyer had not encumbered the immovable and had decided to keep it. [Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2597. When rescission is granted for lesion the seller must take back the immovable in the state it is at that time. The buyer is not liable to the seller for any deterioration or loss sustained by the immovable before the demand for rescission was made, unless the deterioration or loss was turned into profit for the buyer.

The seller must reimburse the buyer for the expenses of the sale and for those incurred for the improvement of the immovable, even if the improvement was made solely for the convenience of the buyer. [Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2598. [Reserved]

Art. 2599. The buyer may retain possession of the immovable until the seller reimburses the buyer the price and the recoverable expenses. [Acts 1993, No. 841, §1, eff. Jan. 1, 1995]

Art. 2600. If more than one seller concurred in the sale of an immovable owned by them in indivision, or if each of them sold separately his share of the immovable, each seller may bring an action for lesion for his share.

Likewise, if a seller died leaving more than one successor, each successor may bring an action for lesion individually for that share of the immovable corresponding to his right. [Acts 1993, No. 841, §1, eff. Jan. 1, 1995]