CHAPTER 2. LOAN FOR CONSUMPTION (MUTUUM) Art. 2904. Loan for consumption; definition The loan for consumption is a contract by which a person, the lender, delivers consumable things to another, the borrower, who binds himself to return to the lender an equal amount of things of the same kind and quality. Acts 2004, No. 743, […]
Art. 2905. Ownership and risk of loss of the thing lent The borrower in a loan for consumption becomes owner of the thing lent and bears the risk of loss of the thing. Acts 2004, No. 743, §1, eff. Jan. 1, 2005.
Art. 2906. Loan of nonfungible things A loan of a nonfungible thing, in the absence of contrary agreement, is not a loan for consumption, but is a loan for use. Acts 2004, No. 743, §1, eff. Jan. 1, 2005.
Art. 2907. Loan of money or commodities When the loan is of money, the borrower is bound to repay the same numerical amount in legal tender of the country whose money was lent regardless of fluctuation in the value of the currency. When commodities are lent, the borrower is bound to return the same quantity […]
Art. 2908. Lender’s liability for damage caused by defects in the thing The lender is liable to the borrower when defects in the thing lent for consumption cause damage or loss sustained by the borrower, if the lender knew or should have known of the defects and failed to inform the borrower. Acts 2004, No. […]
Art. 2909. Inability to demand performance until expiration of term The lender may not demand from the borrower the performance of his obligation to return an equal amount of things of the same kind and quality before expiration of the term. In the absence of a certain term or of an agreement that performance will […]
Art. 2910. Substance and place of performance The borrower is bound to render performance at the place agreed upon. When the place for performance is not fixed in the contract, performance shall be rendered at the place where the loan is contracted. Acts 2004, No. 743, §1, eff. Jan. 1, 2005.
Art. 2911. Payment of value when restitution is impossible When it is impossible for the borrower to return to the lender things of the same quantity and quality as those lent, the borrower is bound to pay the value of the things lent, taking into account the time and place they should have been returned […]
Art. 2912. Payment of interest in case of default When the borrower does not return the things lent or their value at the time when due, he is bound to pay legal interest from the date of written demand. Acts 2004, No. 743, §1, eff. Jan. 1, 2005.
