MUTUUM

Contract Name	MUTUUM
Object	Loan of consumption
Definition	There will be mutuum or consumption loan, when a party is obliged to deliver a number of things to another party that the latter is allowed to consume or exchange. The receiving party must return in the agreed time, as many things of the same kind and quality. The thing under this contract must be consumable or fungible when not consumable
Parties	Lender Borrower: he is the beneficiary of this contract UNLESS the parties agree on interests
Type of contract	Gratuit (Onerous onlyif there are interests agreed), real –perfected by the traditio-, stricti iuris
Obligation	Borrower: To return equivalent + agreed interest
Features	Compound interest (to charge interest over interests owed): Prohibited Usury limit: 1/12 per year in XII tables – reduce to 1/24 per year. Justinian: 4 to 12% depending on the person
Essential Elements	Traditio Object: Mobile, fungible or consumable. Determined: Quantity, quality and type
Standard of care	Borrower was the owner of the thing after it had been handed over.
Remedies	Condictio