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loan agreement

A loan agreement is defined in the Dutch Civil Code as the agreement that one party allows a third party to use an item without financial consideration under the condition that that party will return the item.

Lend and borrow

In everyday language we refer to this as to lend or loan something. Dutch law prescribes some rules for the loan agreement. The borrower is required to use the item with proper care. The lender remains owner of the item.

Period of loan

In the Netherlands, a lender is not allowed to claim back the item before the agreed term of the loan has ended. If no term has been agreed, the thing can be claimed back after the borrower has been able to use it, unless the lender urgently needs the item.


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