Explanation of Article 676

Explanation of Article 676

It was previously explained in Article (674) that possession alone does not grant the possessor ownership of the possessed item. This article comes to establish the effect of possession in acquiring the fruits of the possessed item; particularly in cases where the owner demands the possessor to return the item in their possession through a claim of entitlement, or to return what was paid without right, or due to the invalidity of the contract, its annulment, or its suspension on a resolutory condition, or any other reason that would necessitate the return of the item to its owner. It also addresses the impact of the possessor's good or bad faith in acquiring the fruits, and the possessor's right to recover what they spent in producing those fruits.

The first paragraph clarifies that if the possessor is in good faith, they own the fruits they received during their possession with the intention of owning them. For example, if a building with income is allocated to a person as part of their share in an inheritance, and it turns out after three years that they are not an heir, in this case, the possessor does not own the item but is required to return it. However, they own the income received from the building due to their good faith and are not required to return it.

Good faith must be present at the time the possessor receives the fruits. If the possessor received the item from their predecessor, and the predecessor was in bad faith while the heir is in good faith, the predecessor's bad faith does not affect the heir's good faith. The heir owns the fruits they possessed after the predecessor's death as long as they were in good faith at the time of possession. However, the fruits possessed by the predecessor in bad faith must be returned to the owner, and if they were not returned during the predecessor's lifetime, they become a debt on the estate.

It is understood from this paragraph that a possessor in bad faith does not own the fruits they received during their possession.

The second paragraph explains that a possessor in bad faith, such as someone who possesses an inheritance knowing they are not entitled to it, or who seizes property, and so on, is required to return all the fruits they received, as well as the fruits they failed to receive, meaning the fruits the owner would have harvested if the item had been in their possession. The possessor in bad faith can recover what they spent on producing the fruits, including labor costs, seed value, expenses for activities carried out by the possessor to obtain the fruits, maintenance costs, and other expenses such as taxes and other fees. The possessor only returns the net value of the fruits to the owner after deducting expenses, otherwise, the owner would unjustly enrich themselves at the possessor's expense.

The third paragraph clarifies that the fruits resulting from the possessed item periodically and continuously are of three types:

The first type is natural fruits, which are those that occur without human intervention, such as grass and herbs that grow on the land without human work.

The second type is manufactured or industrial fruits, which are produced by human work, such as crops and honey.

The third type is civil fruits, which are the periodic and renewable income received by the investor of the item from others, such as rent from property and stock dividends.

This paragraph explains how the possessor acquires these fruits if possession is established and good faith is achieved as follows:

Natural and manufactured fruits are acquired by the possessor upon their separation and possession while in good faith at the time of separation and possession. It is not required that they have consumed or moved them to their place; ownership occurs merely by harvesting the crops.

As for civil fruits, the possessor acquires them day by day even if they have not been actually received, as long as the possessor remains in good faith. If possession ends and they have been advanced more than the periodic renewable income due on the day possession ends, they retain what was due until that day and return the rest to the owner.

This paragraph also clarifies that obtaining the benefit is treated like civil fruits, meaning it is the right of the possessor in good faith and is calculated day by day. If the possessor lived in a house that turned out to belong to someone else, the owner cannot demand the possessor pay rent for the time they stayed in the house as long as they were in good faith. However, anything beyond the day possession ends is the possessor's responsibility towards the owner and is calculated day by day.

Related To

Article 676

1. A bona fide possessor shall acquire the fruits that he received during the period of his possession of the thing for the purpose of acquisition thereof.

2. A mala fide possessor shall be liable for all the fruits he received or failed to receive due to negligence as of the date he acted in bad faith, and he may recover any expenses he incurred in generating such fruits.

3. Natural or industrial fruits shall be deemed received as of the date of separation thereof; civil fruits, however, shall be deemed received day by day. Obtaining benefits shall be deemed tantamount to collecting civil fruits.