Last Updated on June 27, 2021 by LawEuro
German Civil Code (BGB) German law
Title 6
Gratuitous loan
Section 598
Typical contractual duties in the case of a gratuitous loan
By a gratuitous loan agreement, the lender of a thing is obliged to permit the borrower to use the item at no charge.
Section 599
Liability of the lender
The lender is only responsible for intent and gross negligence.
Section 600
Liability for defects
If the lender fraudulently conceals a legal defect or a defect in the thing lent, then he is liable to compensate the borrower for any damage arising from this.
Section 601
Reimbursement of outlays
(1) The borrower must bear the customary costs of maintaining the thing lent; in the case of the gratuitous loan of an animal, in particular, without limitation, the costs of feeding it.
(2) The duty of the lender to reimburse other outlays is governed by the provisions on agency without specific authorisation. The borrower is entitled to remove an installation which he attached to the thing.
Section 602
Wear and tear on the thing
The borrower is not responsible for changes to or deterioration of the thing lent that are caused by use in conformity with the contract.
Section 603
Use in conformity with the contract
The borrower may not make any other use of the thing lent than use in conformity with the contract. He is not entitled without permission from the lender to transfer the use of the thing to a third party.
Section 604
Duty to return
(1) The borrower is obliged to return the thing lent at the end of the period of time specified for the gratuitous loan.
(2) If no period of time is specified, then the thing must be returned after the borrower has made use of it as corresponds to the purpose of the loan. The lender may demand the thing back even earlier if so much time has passed that the borrower could have made use of it.
(3) If the duration of the loan neither has been specified nor is to be inferred from the purpose of the loan, then the lender may demand the thing back at any time.
(4) If the borrower transfers the use of the thing to a third party, the lender may demand it back from that third party as well, upon termination of the loan.
(5) Limitation of the claim to return of the thing commences upon termination of the loan.
Section 605
Right of termination
The lender may terminate a gratuitous loan:
1. if he requires the thing lent due to an unforeseen circumstance,
2. if the borrower makes use of the thing in breach of contract, in particular, without limitation, by transferring its use to a third party without authorisation, or jeopardises the thing by neglecting the care he owes,
3. if the borrower dies.
Section 606
Short limitation period
(1) The compensation claims of the lender for changes to or deterioration of the thing lent as well as the claims of the borrower for reimbursement of outlays or for permission to remove an installation are subject to a six-month limitation period. The provisions of section 548 (1) sentences 2 and 3 and (2) apply with the necessary modifications.
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