Loan for use, also known as commodatum, is a legal term used to describe a specific category of loan agreement. In this arrangement, the lender (often referred to as the bailor) temporarily transfers the possession of a specific item or property to the borrower (also known as the bailee) for a predetermined period. However, the ownership of the item remains with the lender.
The fundamental characteristic of a loan for use is that the borrower is obligated to return the exact item borrowed to the lender once the agreed-upon term has ended. Unlike other types of loans, such as loans for consumption or loans for money, the borrower is expected to return the borrowed item in the same condition as it was received.
A loan for use typically involves personal items such as books, tools, vehicles, or other belongings. However, it can also involve real estate, machinery, or other types of property. The agreement may outline specific terms, including any restrictions on use, maintenance responsibilities, and potential liabilities incurred while in possession of the borrowed item.
This type of loan is primarily based on mutual trust between the lender and the borrower. It does not involve any financial interest or compensation, as the transaction focuses solely on the temporary transfer of possession of the item. Loan for use agreements are commonly used in various settings, including among friends, family members, or institutions lending items for special purposes such as research, exhibitions, or temporary needs.
