Commodatum: Understanding Loan Agreements in CCQR
Commodatum
Bailment.
What is Commodatum According to CCQR?
Section 2662.- Loan, also called loan for use, is the contract by which the lender grants temporary and free use of certain non-expendable property to the borrower, who is obliged to restore it individually.
- Provides a doctrinaire definition of Commodatum.
It is when a person, named the lender, agrees to grant free use of a non-expendable thing to another person, named the borrower, who agrees to return it in its own individuality.
Features of the Loan Agreement
- Name at least 3 features of the loan agreement and explain briefly.
Translational use.
Free.
Principal (usually).
Commercial Nature of Loan Agreements
- In which case is the loan agreement commercial in nature?
When it becomes accessory. Example: Coca-Cola that provides products but gives the coolers.
Difference Between Commodatum and Mutuum
- What is the difference between Commodatum and Mutuum?
In mutual bailment: The essential difference is in the class of things and the respective destination. In the mutuum, it is consumption, and its obligation is to repay the same amount of things of the same kind and quality. In bailment, it is the use, returning exactly the same as provided under the same conditions.
THE DIFFERENCE IS THAT IT IS a conveyance of title.
Difference Between Loan and Deposit
- What is the difference between a Free Loan and Deposit?
In transmitting the possession of the property, but it is not allowed to use it.
The fundamental difference is that the borrower has the right to use the thing, while the depositary does not. Consequently, a loan is in the interests of the person receiving the thing, while the deposit is usually held in the interest of those who surrender it. Otherwise, the deposit is not always free as bailment.
Similarities and Differences with Use, Habitation, and Usufruct
- Explain 2 similarities and two differences between Use, Habitation & Usufruct with Commodatum.
Similarities.
- Granted temporary use of the thing.
- They are usually free.
Differences
- The borrower has the right to require an act of conduct from the lender. Instead, the user has immediate legal power to use part of the thing.
- Usufruct is transferable; loan is not (unless otherwise agreed).
Assets Subject to Commodatum
What assets are subject to Commodatum?
Both movable and non-expendable property and consumer goods, provided they are given as non-expendable property and then returned identically.
Consumables on Loan
According to Article 2663 of CCQR, can consumables be on loan? Explain.
Yes, they can, and yet will have to be restored identically.
Section 2663.- When the loan is for consumer goods, it will only be a free loan if they were provided as non-expendable, that is, to be restored identically.
Duties of the Lender
Name at least 3 duties of the lender.
- Grant the use of the thing (for free).
- Deliver the thing.
- Reimburse the borrower for extraordinary expenses.
Obligations of the Borrower
Name at least 3 of the borrower’s obligations.
- Keep the thing with the utmost care.
- Cover expenses necessary to preserve the thing.
- Use the thing in the agreed manner/natural use.
Termination Cases
Name at least 3 cases of termination according to CCQR.
- For general causes (end of the term, the loss of the thing, to be met in order to finish completion of the conditions precedent, etc.).
- By the death of the borrower, and
- For the sale of the convenience, in which case the borrower shall return the property to the lender, even though the deadline had not been completed or agreed use.