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.

A contract by which the owndf 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 exchange: the property passes to the borrower; Foster v. Pettlbone, 7 N. Y. 4.3.3, 57 Am. Dec. 530; Story, Bailm. § 439. Those cases, sometimes called mutuum, such as where corn is delivered to a miller 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, ment being stipulated for in a specified article Instead of money. See In Qenebe; In Kind; Mutuum. ' LOAN FOR EXCHANGE. A contract by which one delivers personal property.to another, and the latter agrees to return to the lender a similar thing, without reward for its use. Cal. Civ. Code § 1902. LOAN FOR USE (called, also, commodatum). A bailment of an article to be used by the borrower without paying for the use. 2 Kent 573. An agreement by which a person delivers a thing to another, to use it according to its natural destination, or according to the agreement, under the obligation on the part of the borrower, to return it after he.shall have done using it La. Civ. Code (1889) Art 2893. Loan for use (called commodatum in the civil law) differs from a loan for consumption (called mutuum in the civil law) in this, that the commodatum must be specifically returned, the mutuum is to be returned in kind. In the case of a commodatum, the property in the thing remains in the lender; in a mutuum, the property passes to the borrower. The loan, like other bailments, must be of some thing of a personal nature; Story, Bailm. § 223; it must be gratuitous; 2 Ld. Raym. 913; for the use of the borrower, and this as the principal object of the bailment; Story, Bailm. § 225; Carpenter v. Brand, 13 Vt. 161, 37 Am. Dec. 587; and must be lent to be specihcallv returned at the determlpatiou of the bailment; Story, Bailm. § 228. The general law of contracts governs as to the capacities of the parties and the character of the use; Story, Bailm. §§ 50, 162, 302, 380. He who has a special property may loan the thing, afd this even to the general owner, and the possession of the general owner still be that of a borrower; 8 Term 199. 2 Taunt. 268. The borrower may use the thing himself, but may not, in general, allow others to use it; 1 Mod. 210; Scranton v. Baxter, 4 Sandf. (N. Y.) 8; during the time and for the purposes and to the extent contemplated by the parties; Wheelock v. Wheelright, 5 Mass. 104; 3 Bingh. N. O. 468. He is bound to use extraordinary diligence; Phillips v. Coudon, 14 Hi. 84; Scranton v. Baxter, 4 Sandf. (N. Y.) 8; Story, Bailm. ( 237; is responsible for accidents, though inevltalile, which injure the property during any excess of use; Booth v. Terrell, 16 Ga. 25; must bear the ordinary expenses of the thing; Jones, Bailm. 67; and restore it at the time and place and in the manner contemplated by the contract; Booth V. Terrell, 16 Ga. 25; Clapp v. Nelson, y. Terrell, 16 Ga. 25; 2 Kent 666. As to the place of delivery, see Esmay v. Fanning, 9 Barb. (N. Y.) 189; Aldrich v. Albee, 1 Greenl. (Me.) 120, 10 Am. Dec. 45; Mason V. Briggs, 16 Mass. 453. He must, as a general rule, return it to the lender; Edson v. Weston, 7 Cow. (N. Y.) 278; 1 B. & Ad. 450. The lender may terminate the loan at his pleasure; 9 East 49; Putnam v. Wyley, 8 Johns. (N. Y.) 432, 5 Am. Dec. 346; Booth V. Terrell, 16 Ga. 25; is perhaps liable for expenses adding a permanent benefit; Story, Bailm. § 274. The lender still retains his property as against third persons, and, for some purposes, his possession; Gelston v. Hoyt, 13 Johns. (N. Y.) 561; 1 B. & Aid. 59. As to whether the property is transferred by a recovery of judgment for its value, see 26 E. L. & Eq. 328; White v. Philbrick, 5 Greenl. (Me.) 147, 17 Am. Dec. 214; Campbell v. Phelps, 1 Pick. (Mass.) 62, 11 Am. Dec. 139. See, generally, Edwards; Jones; Story, Bailments; Kent, LecL 46; Bailment.

the Loan for consumption is an agreement by which one person delivers to another a certain quantity of things which are consumed by the use, under the obligation, by the borrower, to return to him as much of the same kind and quality. Civ. Co.de La, art. 2910. Loans are of two kinds,
—for consumption or for use. A loan for consumption is where the article is not to be returned specie, but in kind. This is a sale, and not a bailment. Code Ga. 1882, § 2125.

Defined under Loan in Black's Law Dictionary.

The loan for consumption is an agreement by which one person delivers to another a certain quantity of things which are consumed by the use, under the obligation, by the borrower, to return to him as much of the same kind and quality. Civil Code La. art. 2910. Loans are of two kinds,—for consumption or for use. A loan for consumption is where the article is not to be returned ti specie, but in kind. This is asale, and nota vailment. Code Ga, 1882, § 2125.