Explanation of Article 452
The article clarified the condition for the conclusion of a loan, which is the possession of the loaned item. There is no effect of the loan before possession, so the lender may retract the loan before possession. Once the borrower takes possession of the loaned item, the contract becomes binding on both parties, and all its effects and provisions, which will be mentioned in the following articles, apply. The ruling of this article is an exception to paragraph (2) of Article (94) of the system, which stated that the rights created by the contract are established immediately upon its conclusion without being contingent on possession or otherwise, unless a statutory text dictates otherwise. Thus, the text of this article specifies that paragraph, as is the case with gifts, loans, and deposits without charge. Possession is determined by the nature of each item, whether possession is by the borrower himself, his deputy, an agent for possession, or an intermediary. The article did not require delivery and receipt for possession; if the loaned item was already in the borrower's possession before the contract due to a lease, deposit, or otherwise, and the loan was concluded with the item remaining in the borrower's possession, this suffices for possession. The requirement of possession for the conclusion of the loan does not negate the need for the contract's pillars and substantive conditions, as outlined in the general rules.
Related To
Article 452
A loan for use contract shall only be deemed concluded upon receipt of the lent thing.