Montz v. Theard, 2001-0768 (La. App. 1 Cir. 2/27/02), 818 So. 2d 181
Legal information, not legal advice. Verify against the cited opinion.
- Citation: Montz v. Theard, 2001-0768 (La. App. 1 Cir. 2/27/02), 818 So. 2d 181, 187.
- Court / Year: Louisiana Court of Appeal, First Circuit, 2002.
- Topic tags: characterization | substance_over_form | refund | public_policy | bond_for_deed
- Facts: The parties’ installment agreement did not comply with every formality the bond-for-deed statutes contemplate. One party argued the instrument therefore was not a bond for deed (and that the buyer-protective rules did not apply), while a payments-retention clause purported to deny the buyer any refund on default.
- Holding: An installment agreement can be a bond for deed governed by R.S. 9:2941 et seq. even though it does not strictly comply with the statutory protections — substance controls over form. Consistent with the bond-for-deed regime, a waiver of the buyer’s right to a return of payments is unenforceable as against public policy.
- Reasoning: The court looked to the economic substance — installment payments toward a price, with title delivered on completion — to classify the instrument as a bond for deed, rather than letting a seller escape the protective statute by omitting required terms. It reinforced that the buyer’s restitution right on cancellation is a public-policy floor that contract drafting cannot waive away.
- Practical impact for CFD operators/buyers: Operators cannot dodge Louisiana’s bond-for-deed rules by leaving formalities out of the document; courts will recharacterize the deal by its substance. And the no-forfeiture / refund protection travels with that recharacterization. Conversely, a buyer is protected even under a sloppily drafted contract.
- Good-law status: Good law; frequently cited on bond-for-deed characterization and the unenforceability of refund waivers.
- Source (retrieved): https://probonodeskmanual.loyno.edu/book/export/html/892 · Verified: 2026-06-08
Jurisdictions that follow / cite: louisiana
Disclaimer. Legal information, not legal advice. Confirm the opinion is still good law before relying on it.