La. Civ. Code § Art. 2674
Ownership of the thing
Operative Text
Art. 2674. Ownership of the thing A lease of a thing that does not belong to the lessor may nevertheless be binding on the parties. A lease of a corporeal movable that does not belong to the lessor has effect against the owner if the lessor has possession of the thing with the consent of the owner, is a merchant customarily selling or leasing similar things, and leases the thing for fair value in the regular course of the lessor's business to a lessee in good faith.
Louisiana Civil Code Art. 2674 addresses what happens when someone leases property they do not actually own. Under this provision, such a lease can still be legally binding between the parties who signed it. Additionally, when a merchant leases a movable item they possess with the true owner's consent, at fair value, in the ordinary course of business, and to a good-faith lessee, the lease can even be enforceable against the actual owner of the item.
Plain English — not legal advice.
Under La. Civ. Code art. § Art. 2674, operators who lease movable property should be aware that their authority to lease—and the source of that authority—can affect the enforceability of the agreement against third-party owners. Compliant lessors who are merchants typically ensure they have the owner's consent to possess the item, lease it at fair market value, and conduct the transaction within their regular course of business. Maintaining clear documentation of ownership consent and pricing practices helps demonstrate that a lease meets the conditions recognized by this article.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
La. Civ. Code art. § Art. 2674 provides tenants and lessees with some protection when the person who leased them a movable item turns out not to be its true owner. A lessee who enters into such an agreement in good faith, without knowledge of the ownership issue, may still have a binding lease. Tenants or lessees who encounter ownership disputes related to a leased item may wish to consult a tenant-rights organization or legal aid service to understand how this provision applies to their circumstances.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 17, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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