Characteristics of the contract.

The contract of loan is:

(1) a real contract because the delivery of the thing loaned is

necessary for the perfection of the contract (Art. 1934; see also

Art. 1316.); and

(2) a unilateral contract because once the subject matter has

been delivered, it creates obligations on the part of only one of

the parties, i.e., the borrower.

Cause or consideration in a contract

of loan.

In a contract of loan, the cause is:

(1) as to the borrower, the acquisition of the thing; and

(2) as to the lender, the right to demand its return or its

equivalent.

Kinds of loan.

There are two kinds of loan, namely:

(1) Commodatum. — where the bailor (lender) delivers to the

bailee (borrower) a non-consumable thing so that the latter may

use it for a certain time and return the identical thing; and

(2) Simple loan or mutuum. — where the lender delivers to the

borrower money or other consumable thing upon the condition

that the latter shall pay the same amount of the same kind and

quality.

A thing is consumable when it is consumed when used in a

manner appropriate to its purpose or nature, like rice, gasoline,

money, fruit, fi rewood, etc. (see Art. 418.)

Art. 1933

Commodatum and mutuum are Roman term