Lending for Use Agreement – what is it (plus the template).
Under this agreement, the provider, usually the owner of the thing, but this is not necessary hands it over to another person for its use (exploitation), without the necessity of payment.
The parties to this agreement are: the person who allows a particular thing to be used free of charge and the person who accepts that thing to be used free of charge.
In the agreement, the thing that is the subject of the lending should be precisely indicated. It may be a movable item, e.g. a car, but also a property, e.g. a flat. It is advisable to state in the agreement what is the condition of the used item (and e.g. take photos of it, especially if it has any defects/flaws/signs of previous use), so that there is no misunderstanding when it is returned.
It is worth remembering that under a lending for use agreement, the burden of the cost of maintaining the property lies with the borrower.
This agreement may be concluded for a fixed or indefinite period.
In certain cases the lender shall be entitled to demand the return of the lent object, irrespective of the duration of the lending agreement:
● if the recipient uses the goods contrary to the agreement or to their nature or purpose,
● if the recipient entrusts the object to another person without being empowered by agreement or forced by circumstances to do so,
● if the goods become necessary to the lender for reasons unforeseen at the conclusion of the agreement
For the lending agreement to be valid, it is necessary for the goods to be delivered to the