Legal Definitions - loan for exchange

A loan for exchange is a type of contract where a lender gives personal property to a borrower. The borrower agrees to return similar property without any compensation for its use.

John borrows a lawnmower from his neighbor, Tom. In exchange, John agrees to return a similar lawnmower to Tom after a week. John does not have to pay Tom for using the lawnmower.

Another example is when a friend borrows a dress from another friend for a special occasion. The borrower agrees to return a similar dress to the lender after the event without any payment.

These examples illustrate the concept of loan for exchange. The lender gives personal property to the borrower, and the borrower agrees to return similar property without any compensation. It is a simple way of borrowing and lending items without any monetary transaction.