Loan For Consumption

A contract By which the owner of a personal chattel, called the "lender," delivers it to the bailee, called the "borrower," to be returned in kind. For example, if a person borrows a bushel of wheat, and at the end of a month returns to the lender a bushel of equal value. This class of loans is commonly considered under the head of "bailments," but it lacks the one essential element of bailment —that of a return of the property. It is more strictly a barter or an exchapge; the property passes to the borrower.

4 N. Y. 76; 8 N. Y. 433; 1 Ohio St. 98; 3 Mason (U. S.) 478; 1 Blackf. (Ind.) 353; Story, Bailm. § 439.

Those cases sometimes called to be ground into wheat, are either cases of hiring of labor and service, as where the miller grinds and returns the identical wheat ground into flour, retaining a portion for his services, or constitute a mere exchange, as where he mixes the wheat with his own, undertaking to furnish an equivalent in com. It amounts to a contract of sale; payment being stipulated for in a specified article instead of money.