Explanation of Article 453

Explanation of Article 453

In the definition of the loan contract in Article (451), it is stated that it can be for a specific period or for a specific purpose, meaning that the loan period may be explicitly determined by mentioning the duration or implicitly by specifying the purpose for which the loan was made. The first paragraph clarifies that if the loan contract specifies the loan period or the purpose for which the borrower borrowed the loaned item, the borrower is obliged to return the loaned item after the specified period ends or after the customary period for benefiting from the loaned item for that mentioned purpose ends, and is not obliged to return the loaned item before that.

For example, if a person borrows a car from another and a specific period is set for the loan, the borrower is obliged to return the car within that period. If a person borrows a book from another to benefit from it for researching a specific topic and the parties did not agree on a period for the loan to end, the period is determined by the customary duration for benefiting from the book for researching that topic according to the norms, in accordance with the general rule (custom is authoritative), and this is subject to the court's assessment.

The second paragraph of the article clarifies that if no period or purpose is specified for the loan, the borrower is obliged to return the loaned item upon the lender's request, considering that the contract is intended as a favor and benevolence from the lender's side, unless returning the loaned item upon the lender's request causes harm to the borrower. In such a case, the borrower may retain the loaned item until the customary period for borrowing that item ends. For instance, if a person lends a computer to another without agreeing on the period or purpose of the loan, and the borrower contracts with an entity to complete some research or designs using this computer for a reasonable period according to the customary borrowing of such a device, and then the lender requests the borrower to return the device, and returning the device would harm the borrower and prevent them from fulfilling their obligation towards that entity, the borrower may retain the device until the customary period for borrowing such a device ends.

The article also states that if the borrower exceeds the customary period for benefiting from the loaned item, they are liable for the equivalent rent for the period exceeding the customary benefit. The assessment of damage, its cessation, and the equivalent rent is left to the court, which is guided by customary norms, in accordance with the general rule: what is known by custom is like a stipulated condition.

Related To

Article 453

1. If the term or purpose of the loan for use is specified, the borrower shall not be obligated to return the lent thing prior to the expiration of the term or the lapse of the reasonable period for the utilization of the thing for similar purposes.

2. If the term or purpose of the loan for use is not specified, the borrower shall return the lent thing upon the lender’s request, unless such return causes harm to the borrower; in such case, he shall be entitled to retain said thing until the cause of harm ceases to exist. If said term exceeds the reasonable period for the utilization of a similar thing, the borrower shall pay the rent of a similar thing for the extra period.