Conveyance and Mortgage of Immovables – Counterletters
C.C. art. 2025. Definition; simulation and counterletter. A contract is a simulation when, by mutual agreement, it does not express the true intent of the parties. If the true intent of the parties is expressed in a separate writing, that writing is a counterletter.
Art. 2026. Absolute simulation. A simulation is absolute when the parties intend that their contract shall produce no effects between them. That simulation, therefore, can have no effects between the parties.
Art. 2027. Relative simulation. A simulation is relative when the parties intend that their contract shall produce effects between them though different from those recited in their contract. A relative simulation produces between the parties the effects they intended if all requirements for those effects have been met.
Art. 2028. Effects as to third persons. Any simulation, either absolute or relative, may have effects as to third persons. Counterletters can have no effects against third persons in good faith. Nevertheless, if the counterletter involves immovable property, the principles of recordation apply with respect to third persons.
