Law Applicable to Lending for Use Agreement

Development summary

A lending for use agreement is described as a contract under which the lender undertakes to transfer the use or enjoyment of a thing to the borrower, free of charge, for a definite or indefinite period, while the borrower undertakes to return the thing at the end of the contract. The piece states that, in disputes with a foreign element, the applicable law is determined under Article 24 of Turkish Code No. 5718 on Private International Law and Procedural Law; it also identifies the lender as the party bearing the characteristic performance and treats the borrower’s duty to return the item as secondary.