The loan agreement 🤝📄

1. Loan for use (commodatum)

It is a contract for free use whereby one party (the bailee) hands over movable or immovable property to the other party (the borrower) for the use of the property, with the obligation on the borrower to return it after a certain period of time.

A free transfer of the use of a good (e.g. a building, a car), without transfer of ownership, with the obligation to return the identical good in the condition in which it was received.

Free of charge is essential and no price or interest can be charged.

2. Consumer loan

This is the contract whereby the lender gives the borrower a sum of money or other fungible and consumable goods and the borrower undertakes to return, after a certain period of time, the same sum of money or quantity of goods of the same kind and quality.

Under this contract, the borrower acquires ownership of the goods received and is obliged to return goods of the same kind, quantity and quality at a later date.

It may be free of charge or with charge and may include interest or even penalties.

Form of the loan contract

The form of the loan contract is not required by law, but it is recommended that it be concluded in writing under private signature or in an authenticated form.

In particular, it is important to include aspects such as: the amount borrowed, the repayment period, the method of repayment, interest and late payment penalties, if applicable.

In practice, especially between private individuals, the importance of drawing up a proper written document is crucial for protecting the rights of the parties and avoiding disputes.

What solutions are there if you have borrowed a sum of money but the borrower refuses to pay it back?

In this situation, the borrower has several options, namely:

• Sending a formal notice requesting repayment of the amount owed within a clearly specified time limit;
• Filing a claim to recover the amount borrowed, interest (if stipulated) and court costs. If the amount is certain, liquidated and due, the creditor may also have recourse to the special procedure of the payment order, a faster and more efficient procedure.
• Enforcement - when there is an enforceable title (final judgment or payment order), the creditor can apply for forced execution on the debtor's assets through a bailiff.

It is essential that the borrower has solid written evidence to prove the loan (loan contract, proof of bank transfer, receipts, relevant correspondence) because without written documents it can be difficult to recover the money.

Our team offers you specialized services in drafting and reviewing loan agreements, advising on the applicable legal conditions or providing representation in court to recover the loan amounts.