Legal Definitions - loan for consumption

A loan for consumption is an agreement between a lender and a borrower where the lender provides goods to the borrower for consumption. The borrower is obligated to return goods of the same quantity, type, and quality to the lender.

Example 1: John borrows a bag of rice from his neighbor. He consumes the rice and is obligated to return the same quantity, type, and quality of rice to his neighbor.

Example 2: Sarah borrows a dress from her friend for a party. She wears the dress and returns the same dress to her friend after the party.

These examples illustrate the concept of a loan for consumption. In both cases, the borrower receives goods from the lender for consumption and is obligated to return the same goods to the lender. This type of loan is different from a loan for use, where the borrower is allowed to use the goods but not consume them.