Free Loan for Use Agreement Template

LOAN FOR USE AGREEMENT This Loan for Use Agreement (the “Agreement”) is entered into as of [Effective Date] (the “Effective Date”), BETWEEN: [Lender Name], with an address at [Lender Address] (the “Lender”); AND [Borrower Name], with an address at [Borrower Address] (the “Borrower”). The Lender and the Borrower may be referred to individually as a “Party” and collectively as the “Parties.” 1. ITEM OR PROPERTY LOANED The Lender lends to the Borrower, for use only, the following item or property: [Description of the Item or Property], located at [Location of the Item or Property] (the “Item”), together with any accessories, keys or documents listed in an attached inventory. The Lender states that it owns the Item or is otherwise entitled to lend it. Ownership of the Item remains with the Lender at all times. 2. FREE OF CHARGE This loan is gratuitous. The Borrower pays no rent, fee or other consideration for the use of the Item. The Parties acknowledge that if any payment for the use were agreed, this arrangement could be treated as a lease or rental subject to different rules. 3. PERMITTED USE The Borrower may use the Item only for the following purpose: [Permitted Use]. The Borrower will use the Item with reasonable care, in line with its nature and any instructions from the Lender, and in compliance with applicable laws. Any other use requires the Lender’s prior written consent. 4. DELIVERY AND CONDITION The Lender will deliver the Item on [Delivery Date]. At delivery the Item is in the following condition: [Condition at Delivery]. The Borrower confirms that it has inspected the Item and accepts it in that condition. The Parties may attach dated photographs to this Agreement. 5. DURATION AND RETURN The Borrower will return the Item on [Return Date or Event]. If no date or event is stated, the Lender may request the return of the Item at any time by giving reasonable notice. The Item will be returned at [Return Location], or at another place agreed in writing. 6. ORDINARY MAINTENANCE AND COSTS The Borrower will pay the ordinary costs of using and maintaining the Item during the loan, including [Ordinary Costs Paid by Borrower], and is not entitled to reimbursement of those costs. Extraordinary, necessary and urgent repairs are the Lender’s responsibility; the Borrower will notify the Lender promptly of any such need and will not carry out major work without the Lender’s written consent. 7. NO SUB-LENDING OR TRANSFER This loan is personal to the Borrower. The Borrower may not lend, rent, sublet, assign or otherwise allow any third party to use the Item without the Lender’s prior written consent. 8. LIABILITY FOR DAMAGE OR LOSS The Borrower is responsible for loss of or damage to the Item caused by the Borrower’s fault, by use outside the permitted purpose or period, or by persons the Borrower allows to use it. The Borrower is not responsible for normal wear and tear resulting from permitted use. Insurance: [Insurance Requirements]. 9. EARLY RETURN The Borrower may return the Item early at any time. The Lender may request early return by giving [Early Return Notice Period] notice if the Lender has an urgent and unforeseen need for the Item, or immediately if the Borrower breaches this Agreement, to the extent permitted by law. 10. RETURN CONDITION At the end of the loan the Borrower will return the Item in the same condition as at delivery, except for normal wear and tear, clean and with all accessories, keys and documents. The Parties will inspect the Item together on return. The Borrower will pay the reasonable cost of repairing any damage for which it is responsible under Section 8. 11. NO TENANCY OR OWNERSHIP RIGHTS This Agreement grants the Borrower only a personal right to use the Item. It does not create a lease, tenancy, ownership right or any other interest in the Item. Where local law requires registration, notarization or a specific form for this type of agreement, the Parties will comply with it. 12. GOVERNING LAW This Agreement is governed by the laws of [Governing Law / Jurisdiction], without regard to conflict-of-law principles. The courts located in [Governing Law / Jurisdiction] will have jurisdiction over disputes arising out of or relating to this Agreement, unless the Parties agree in writing to mediation first. 13. GENERAL PROVISIONS (a) Entire Agreement. This Agreement constitutes the entire agreement between the Parties concerning its subject matter and supersedes prior or contemporaneous agreements on that subject. (b) Amendments. Modifications must be in writing and signed by both Parties. (c) Severability. If any provision is held unenforceable, the remaining provisions remain in effect. (d) Notices. Notices under this Agreement must be in writing and sent to the addresses above or to an updated address provided in writing. (e) Counterparts and Electronic Signatures. This Agreement may be executed in counterparts, including by electronic signature, each of which will be deemed an original. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. LENDER Name: [Lender Name] Signature: _______________________________ Date: ____________________________________ BORROWER Name: [Borrower Name] Signature: _______________________________ Date: ____________________________________