What are the Kinds of Loan?
1. commodatum: where the bailor delivers to the bailee a non-consumable thing so that the latter may use it for a certain time and return the identical thing.
- It may either be:
i. Ordinary commodatum; or
ii. Precarium (whereby the bailor may demand the thing loaned at will)
2. mutuum or simple loan: where the lender delivers to the borrower money or other consumable thing (when it is consumed in a manner appropriate to its purpose) upon the condition that the latter shall pay the same amount of the same kind and quality.
LOAN
What are the Characteristics of Loan?
1. real –delivery is essential for perfection of the loan (BUT a promise to lend, being consensual, is binding upon the parties but it is only after delivery that the real contract of loan arises)
2. unilateral – only the borrower has obligation
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