The loan is a type of contract that establishes the loan of an asset.
The etymology of comodato refers us to the Latin word commodātum , which can be translated as “loan” . A type of contract is called bailment through which an object is granted or received on loan , which can be used without being damaged and must then be returned.
The loan is also known as a loan of use . One of the parties to the contract delivers a good to the other party so that it can be used until a certain moment, when it must return it.
Characteristics of the bailment
In this type of contract, the bailor is the one who transfers an item to the bailor so that he can use it for a certain period and then return it. It is important to keep in mind that, while the bailment is being developed, the bailor maintains ownership of the loaned object. This means that ownership and ownership are not transferred, regardless of whether the asset in question is being used by the bailor.
Another relevant fact to consider is that the loan is a free contract: whoever receives the object does not pay for it. It is not, therefore, a rental . The bailor, in any case, has the obligation to return what was lent in the same conditions in which he received it, otherwise he may be forced to pay a certain amount.
Take the case of a man who contracts an Internet access service. The company charges you a certain monthly amount to provide the service, but gives you a modem on loan (free of charge). The user can use the modem as long as they are a customer of the company: if they choose to stop contracting the service, they must return the modem.
It is common for companies that offer Internet connection service to provide the modem on loan.
Specific obligations of the person receiving the good
The party that becomes the owner of the thing loaned throughout the duration of the bailment contract has a series of obligations well defined by law, which may be slightly different in each country. Taking the Spanish Code as a reference, they are:
* return the product once the loan period has ended, as agreed in the loan contract. It is important to note that in exceptional cases, the bailor can claim it before this point and the bailor must agree without opposition;
* take charge of the expenses that become necessary to use and preserve the loaned thing;
* not give the loaned thing a use that exceeds the limits of the contract. At this point, the goodwill of the bailor plays a primary role, since generally the other party cannot supervise the situation;
* take care of the product from any type of deterioration or breakage, and also avoid lending it to a third party outside the contract, since at the time of return it must be in very good condition.
The role of the bailor in the bailment
As in any contract, the bailment contract specifies obligations for each of the parties. However, given that this is unilateral, those of the bailor arise from principles of justice, since they are accidental or contingent in nature:
* If the bailor needs to invest an extraordinary sum of money to preserve or repair the loaned thing, the bailor must deliver it to him. The condition, in a possible case like this, is that the first person let you know before making the expense, although if it is an emergency it is possible to ignore the notice without losing the right to a refund;
* take responsibility for any damages that the bailor may suffer due to any problem caused by the thing lent, provided that the reasons lie in defects or risks that were previously known to him and that he had not expressed at the time of signing. of the contract.