Commodatum: Definition, Example and Related Terms
What is Commodatum ?
The distinction of commodatum lies in its nature of being a purely temporary loan, with the exact property needing to be returned. Unlike other forms of loan agreements where equivalent value is repaid, commodatum requires the individual items originally lent to be returned.
An important aspect of commodatum is that the borrower is responsible for any loss or damage to the property unless it can be proven that such loss or damage occurred without the borrower's fault or negligence. This contractual relationship is purely gratuitous and cannot legally include any profit to the lender, differentiating it significantly from rental or leasing agreements.
It's often used in situations involving personal items or specific goods that one party loans to another for the purpose of use, such as lending a car, equipment, or machinery for a specified period.
Example(s)
Scenario Description John lends his lawnmower to his neighbor for a weekend. In this situation, John has entered into a commodatum contract with his neighbor. The neighbor is expected to return the same lawnmower after the weekend, and since the loan is gratuitous, no fee is expected for its use. An artist loans a sculpture to a gallery for exhibition. The gallery enters into a commodatum contract with the artist. The gallery must ensure the sculpture is returned in the same condition after the exhibition ends, as the loan is for display purposes only without any rental fees. A university borrows a rare book from another institution for research. This is a commodatum contract whereby the exact book must be returned after the research is complete. The borrowing university might be responsible for ensuring the book's safety during the loan period.