THE LAW

OF OBLIGATION
M. Haikal Molina 2206044425
Vytto Romero 2206044570
Fransisko Saverio S. A. 2206044305
 List of Question
01 1. Explain the difference in concepts
between borrowing (pinjam pakai),
loan (pinjam meminjam), and lease
02 2. Is borrowing money part of the
loan agreement according to article
1754 of the civil code? Explain!
agreement (sewa-menyewa)!
Task Name

03
3. Does the borrowing agreement
end with the death of the lenders?

04 05
4. What are the obligations of On Monday, Haris lent Tono a bike for 3
Task Name
lenders and borrowers in loan days, but the next day (Tuesday), Haris
agreements? needed the bike to buy school supplies.
Can Haris ask Tono to return his bike
even though the agreement period has
not ended?
 QUESTION 1
Explain the difference in concepts between borrowing (pinjam pakai),
loan (pinjam meminjam), and lease agreement (sewa-menyewa)!
Borrowing
Definition: Borrowing can be referred
as to temporarily using or having
temporary possession of something
that belongs to someone else with a
formal or non-formal agreement
Nature: It is based on goodwill basis
and the borrower has the obligation
to return it
It doesn’t require any interest,
depend on the agreement of both
parties
Loan
Definition: A loan can be defined as a
formal transaction where one of the
parties provides money and one of
the parties receives money where
sometimes the borrower is required
to pay interest.
The borrower is obligated to repay
the borrowed amount and pay the
interest if there is depends on the
contract that they agreed on.
It requires an agreement that will
state the amount borrowed, the
period of time and other agreements
 lease Conclusion
Definition: A lease agreement
involves renting or leasing an asset,
property, or equipment for a
To conclude, borrowing involves temporary use
specified duration and for a set
without a formal financial contract, on the
payment, without transferring
other hand, loans must have a formal financial
ownership.
transaction with repayment terms and interest.
The lessee (the person renting) pays
However, while lease agreements involve
periodic rent to the lessor (the
renting an asset or property for a specific
owner) for the use of the asset,
duration without transfer of ownership.
property, or equipment for a defined
time.
Unlike borrowing or loans, the lessee
doesn't acquire ownership rights but
has the right to use the asset as per
the terms of the lease agreement.
 QUESTION 2
Is borrowing money part of the loan agreement according to article 1754
of the civil code? Explain!
 Question 2
Article 1754 stated that
“A loan for consumption is an agreement, in which
one party provides another with a specific amount of
consumable items, subject to the condition that the
latter mentioned shall return similar types of items of
the same amount and quality”
According to our opinion:
Yes, it had been stated in article 1754, defines a loan as a
contract where there is a party that lent the item and there is
the party who borrows it.
it also states that the borrower is obligated to return into the
same amount and condition or maybe in some cases the lender
is also obligated to pay interest.
QUESTION 3
Does the borrowing agreement end with the death of the lenders?
 Question 3
If the lenders passed away, the loan agreement

NO!
will still continue;
The loan agreement would be inherited to
his/her heir;
The heir is obligated to make an addendum or
additional agreement regarding the loan
agreement;
According to Article 833 paragraph 1, The heirs
automatically, by law, have ownership rights to
all goods, all rights, debt and all receivables of
the person who died.
Hence, it will also apply to the borrower
QUESTION 4
What are the obligations of lenders and borrowers in loan agreements?
 Borrower’s Obligation Lender’s Obligation
According to article 1744 - 1749 Civil
code the obligations of the borrower According to article 1750 - 1743 Civil
are: code the obligations of the Lender’s
Article 1744 are:
Must be responsible of the item
Article 1745 Article 1750
Responsibility for Accidental lost. Restriction on Reclaiming Assets
Priority of Use
Article 1746 Article 1751
Attribution of loss Exceptional Return on Lent Assets
Article 1747
prepare to pay a penalty if they are Article 1752
late Depreciatioin of Assets Values Compensation for Urgent Expenses
Article 1748
Incurred Costs Atricle 1753
Article 1749 Responsibility for Damage Assets
Joint Borrower responsibilty:
QUESTION 5
On Monday, Haris lent Tono a bike for 3 days, but the next day
(Tuesday), Haris needed the bike to buy school supplies. Can Haris ask
Tono to return his bike even though the agreement period has not
ended?
 Question no.5
Answer
First of all, we have to know the form of agreement they used, whether the agreement was an
informal/oral agreement or a formal agreement that was written on paper. If it is indeed an
informal agreement, in our opinion, since Haris is the owner of the bike, he has the right to ask to
return the bike, even though it is not in accordance with ethics because it violates the informal
agreement that they have agreed to. However, in our opinion, Haris is advised to provide
compensation for Tono.

On the other hand, if they enter into a formal agreement where they make the agreement on
paper, they must follow all the terms & and conditions that have been written in the agreement. If
there is a clause that states "Haris has the right to ask for the bike back, if Haris has a need that
requires the bike to be used" then Haris is legal to ask for the bicycle back. However, if there is no
clause stating that Haris can ask for it back under any circumstances before the period of use
expires, then it could be concluded that Haris is in default/wanprestasi if he took the bike back.
THANK YOUU
What are the obligations of lenders and borrowers in loan agreements?