Explanation of Article 388
The article addresses what constitutes fulfillment in a loan contract; it clarifies that the borrower is obligated to return the equivalent of the borrowed item that he received in terms of quantity, type, and quality upon the expiration of the loan period, without considering any change in its value at the time of fulfillment compared to its value at the time of borrowing. For instance, if one borrowed a kilogram of gold of a certain grade, he must return a kilogram of the same grade, regardless of whether the value of the gold at the time of return has increased or decreased compared to its value at the time of borrowing. The article also clarifies that if it is impossible to return the equivalent, the borrower must return the value as of the day of borrowing, as that is the time when the debt was established in the borrower's liability, and he is required to pay the lender the equivalent of that value.
Related To
Article 388
The borrower shall return to the lender a property similar to the borrowed property in amount, type, and condition upon the lapse of the loan term. If the borrower fails to return a similar property, he shall refund its value as of the day of concluding the loan.