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Explanation of Article 459

Explanation of Article 459

The article clarifies a situation in which a loan contract is terminated by the system, which is the death of one of the contracting parties, whether the lender or the borrower, because it is a contract based on personal consideration. In this case, the term expires and the loan contract ends. If the deceased is the borrower, the right to use the borrowed item does not transfer to his heirs, because his personality is considered by the lender. In this case, the heirs are required to return the borrowed item to the lender, and the obligations related to compensation, return, or expenses of the borrowed item are established in the estate of the deceased.

Article 459

A loan for use contract shall terminate upon the death of the lender or the borrower, and shall not be transferred to their heirs, unless agreed otherwise.