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Civil Law

Explanation of Article 384

Explanation of Article 384

The first paragraph clarified that for a loan to be valid, the lender must be fully competent; because a loan contract is a donation contract, the lender must have the capacity to donate, which is only the case if they are fully competent. Article (12) defines full competence as: "1- Any person who has reached the age of majority, is of sound mind, and has not been interdicted. 2- The age of majority is the completion of eighteen years." Therefore, a loan from someone with incomplete competence, such as a discerning minor, an insane person, or someone interdicted due to foolishness or negligence, is absolutely void. The paragraph did not address borrowing by someone with incomplete competence on their own liability, relying on general rules; borrowing on their liability is an act that fluctuates between benefit and harm, as they may own the borrowed money but are obligated to return it. Thus, their borrowing is valid but voidable for their benefit; their guardian or the person with incomplete competence, after completing their competence, can request the annulment of the contract. The second paragraph clarified that a guardian or custodian is not allowed to lend or borrow the money of those under their guardianship except in accordance with the provisions of the system, referring to systems related to the actions of guardians and custodians, such as the Personal Status Law, the Litigation Law, the General Authority for Guardianship over Minors' Funds and their equivalents, and others. The restriction of the actions of guardians and custodians in this regard is to ensure the benefit of this action for the interest of those under their guardianship; because although this action involves the meaning of donation, it may be in the interest of those under their guardianship by preserving their money.

Related To

Article 384

  1. The lender in a loan contract must be a fully competent person.

  2. A guardian or trustee may not lend or borrow the property of any person under his custody, except in accordance with legal provisions.