Loan for use

Published byDocMuse

For when you lend out a thing free of charge — a tool, a piece of equipment, a car, a room. It differs from a lease in that nothing is paid, and from a money loan in that the same thing comes back rather than its value. So the description of the item and its condition at handover carry the whole weight of the contract: without them there is no way to show that what came back is not what went out.

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Common questions

How does it differ from a lease?

In that nothing is paid. A lease is for consideration; a loan for use is gratuitous. If you take any sum at all, the relationship is no longer this one and is governed as a lease.

And from a money loan?

Here the same thing comes back, not its value. So the description of the item and its condition carry the whole weight of the contract — with money the sum is what matters, here it is exactly which object was handed over.

Who pays if the item is damaged?

Ordinary wear is on the lender; damage beyond it is on the borrower. That is why the handover record matters so much: without a description of the starting condition, the line between the two cannot be seen.

Can I ask for the item back early?

If a period was agreed, it binds you too. If you want to be able to ask for it at any time, write that in expressly — otherwise asking early is a breach on your side.