Introduction to Obligation to Return in Credit Transactions

A comprehensive set of vocabulary flashcards covering essential terms related to the obligation to return in credit transactions, including definitions of key concepts.

Credit

Any loan, mortgage, contract or arrangement to borrow money that enables a person to purchase goods and services with a promise to pay later.

Bailment

The delivery of property of one person to another in trust for a specific purpose, requiring that the property be returned or accounted for.

Commodatum

A type of loan where a non-consumable item is borrowed for use, with the obligation to return the identical item.

Mutuum

A simple loan contract where money or other consumable goods are lent under the condition of repayment of the same amount or quantity.

Bailor

The person who delivers the property for custody or use as part of a bailment agreement.

Bailee

The person who receives and holds property in a bailment agreement.

Precarium

A type of contract in which the bailor may demand the return of the property at any time.

Pledge

A security for a debt where a borrower provides collateral to a lender.

Mutual-benefit bailment

A bailment that benefits both the bailor and the bailee, typically involving compensation.

Obligation to Return

The requirement for a borrower (bailee) to return the borrowed item (or pay its equivalent) after the agreed period or purpose is fulfilled.

Liability for Loss

Responsibility of the bailee for loss or damage of the property under certain conditions, even due to fortuitous events.

Secured transaction

A credit transaction backed by collateral which provides security for payment.

Unsecured transaction

A type of credit transaction that is not backed by collateral, relying solely on the creditworthiness of the borrower.

Gratuitous bailment

A bailment made without compensation where the bailor provides a benefit to the bailee.

Extraordinary Expenses

Unusual expenses incurred during the use of the bailor's property that may require reimbursement under certain conditions.