The seller sends to the lender the delivery of the material
You can share your knowledge by improving it (how.) according to the recommendations of the corresponding projectsThe loan is"a convention generic - of which the loan for use and loan for consumption are the two species - in virtue of which the lender shall deliver a thing to the borrower, in order that it shall be used, subject to restitution". The civil Code, in its article, distinguishes the ready-to-use and loan for consumption (not to be confused with the consumer loan that allows you to borrow a sum of money that is used exclusively for consumption). The ready-to-use, that can be found in section of the civil Code, allows to use a thing without destruction thereafter and the borrower will be required to return the thing loaned. The loan for consumption, established by article of the civil Code, in contrast, focuses on one thing that will be destroyed (also referred to as 'expendable'). In the civil Code, the loan is a free service that actually looks like a simple service of friend, except in the case of a loan for consumption (since this is on a property-expendable, this will be expensive most of the time). Theoretically, the loan contract is a unilateral contract: the lender is free, it may decide to postpone the thing or not. According to Duraton, 'these two contracts have this in common that, in addition to the consent required in all contracts, the surrender of a thing is necessary for their existence'. Also the'appelle-t-on for this actual contracts, in the doctrine. But a part of the doctrine disputes this actual contracts and sees it as a consensual contract of indenture. We also speak of payment, when each receives a benefit against its commitment. This chapter is related to the judgment of the First Civil Chamber of the Cour de cassation, twenty eight march. In this case, thanks to a loan granted by a professional, an individual has acquired farm equipment. The loan contract provided that the lender should be paid directly to the seller the amount of the loan after having been informed by him of the provision of the equipment and if the borrower had taken out a life insurance. The borrower has fulfilled all conditions necessary for granting the loan, and, in particular, the purchase of life insurance, but died three months after. The heirs of the borrower assign the professional, that has granted the credit, the payment of the loan amount.
The Court of Appeal of Grenoble is entitled to their request.
The professional lender will then form an appeal and alleges that the judgment of the Court of Appeal held that the loan contract was formed, then the lack of delivery of funds, the latter because of its real character, was not formed. The supreme Court must answer the following question: The loan of a sum of money, provided by a professional of the credit is-it's real nature, or consensual.
The plan contracts translatifs property will be applicable
The High Court dismissed the appeal on the ground that the loan was made by a professional of the credit is not a real contract.
She performs here a turnaround compared to its established case-law in which she claimed that a loan for consumption, contract, and real, can only be achieved by the delivery of the thing lent to the borrower itself or a third party that receives for the account of the borrower. The first inflection of this principle has affected a certain type of loan:"loans governed by articles L- and following of the consumer code does not have the nature of a real contract". And in the judgment commented, the principle is again deflected to the contracts of loan of money entered into with credit professionals. As in any good legal development, there are requirements of funds and the conditions of form to be able to qualify a contract of loan contract.
Concerning the loan use, it is necessary that the property (they can be buildings or furniture) are non-consumable and are found in the trade.
This type of loan does not require that the property be the property of the lender. No consideration is imposed Concerning the loan of consumption, it requires this time of consumable goods (things securities as of the real property to which disparaitraient from the first use would be hardly possible). The contract shall be determined, in particular concerning a possible consideration if interest is in the game. The loan for use is a real contract In case of defective performance, damages and interest will be possible. The loan consumer is generally consensual (it will be solemn if it is realized between a trader and credit a consumer). The report of the evidence of the contract of loan does not differ from the usual rules of evidence that govern the law of contracts.
The only possible exception is the impossibility of morality.
It is the responsibility of the one who avails himself of the ready to provide evidence, particularly in relating the existence of an obligation by the conclusion of the contract and the quality of the borrower for the one who actually borrowed. A writing will be required, accompanied by the delivery of the funds. The ready-to-use has a particularity to the level of its implementation since it is a unilateral contract (this weight only on the borrower). However, the lender is not debtor of an obligation to the borrower, the delivery of the thing is not an obligation. However, there are certain cases where the lender may be debtor of an obligation to the borrower, for example, during an action to recover damages suffered for failure to mention on the thing. Theoretically, there are no obligations to the lender in the contract. But the rules relating to its liability may be raised This is the case, for example, when harm is suffered by the one who uses the thing, so that the lender acted in bad faith. Note that the warranties against hidden defects have very low chances to be applied in the field of ready-to-use, while lending for consumption, the commitment of al responsibility will still be possible.
