Commentary

23 Introduction to gratuitous loans

BAILMENT vol 3(1)
| Commentary

23 Introduction to gratuitous loans

| Commentary

4: GRATUITOUS LOAN

(a) Gratuitous loan—general

23 Introduction to gratuitous loans

This form of bailment arises where goods are bailed to a person who is allowed to use them for his exclusive benefit, no reward accruing to the lender. In common with gratuitous bailments generally, loans were formerly treated as contracts1, despite the fact that the borrower is the sole party to benefit. It seems inevitable that English courts will follow those of New Zealand in rejecting the contractual analysis of gratuitous loans for want of consideration2.

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