Thailand Law Library

by Thailand Lawyer

Chapter 1: Loan for Use

A loan for use is a contract whereby a person, called the lender, lets another person, called the borrower, have gratuitously the use of a property, and the borrower agrees to return it after having made use thereof.

A loan for use is complete only on delivery of the property lent.

Costs of the contract, costs of delivery of the property lent and costs of return are born by the borrower.

If the borrower uses the property lent for purposes other than ordinary purposes or purposes appearing from the contract, or lets a third person have the use of it, or keeps it longer than ought to, he is liable for any loss or damage to the property caused by force majeure unless he proves that the loss or damage would have happened in any case.

The borrower is bound to take as much care of the property lent as a person of ordinary prudence would take of his own property.

In any cases provided in Section 643, or if the borrower acts according to Section 644, the lender may terminate the contract.

If no time is fixed, the property shall be returned after the borrower has made the use of it for the purpose appearing from the contract. The lender may claim the return of the property earlier, if so much time has elapsed that the borrower might have made the use of it.

If no time is fixed and no purpose appears from the contract, the lender may claim the return at any time.

Expenses for ordinary maintenance of the property lent must be borne by the borrower.

A loan for use is extinguished by the death of the borrower.

No action for compensation in connection with a loan for use can be entered later than six months after the extinction of the contract.