The loan agreement is an agreement based onwhich one person transfers the thing for free for a certain period to the other party, and the latter undertakes to return it in the condition in which it was received in view of depreciation. This transaction belongs to the category of contracts for the transfer of property for use. Its provisions can be regulated by the same items as the lease, but at the same time there are differences between these agreements. This agreement is often referred to as the "temporary use agreement".
The parties under this agreement are:
The law does not specify which specific objectstransferred under a loan agreement. The main thing is that these things are clearly established and specified in the contract. For example, if some equipment is transferred, it is important to prescribe in the document all of its characteristics (name, quantity, year of production, cost, etc.).
The form of the transaction must be written in such cases:
A very important condition for the transaction is itsgratuitousness (that is, free). If, however, a fee is levied for the use of the loan, it will already be a lease. The loan agreement can be either urgent or unlimited. But if one of the parties decides to terminate the agreement, it must warn the other one within a month.
The lender is obliged:
- transfer a thing that does not have any defects (if there are shortcomings, specify it);
- to warn the recipient about the rights of third parties to this subject;
- if things go to the thing, pass them along with it;
- to transfer the property, which corresponds to the terms of the contract.
The borrower must:
- use the facility according to its purpose and in accordance with the provisions of the contract;
- to keep things in good condition, and also to carry out capital or current repairs, if necessary;
- do not transfer the item without the owner's consent to other persons;
- after the expiration of the term to return the thing to the lender.
The loan agreement terminates on the following grounds:
The transaction can be terminated early in such circumstances:
- the use of the item by the recipient is not in accordance with its purpose;
- deterioration of the state of the object;
- transfer of property by the borrower to other entities;
- transfer by the lender of a defective item, a warning about the rights of others to it, as well as failure to provide accessories or documents to it.