LOAN, contracts. The act by which a person lets another have a thing
to be used by him gratuitously, and which is to be returned, either in specie or
in kind, agreeably to the terms of the contract. The thing which is thus
transferred is also called a loan. 1 Bouv. Inst. n. 1077.
2. A loan in general implies that a thing is lent without reward; but, in
some cases, a loan may be for a reward; as, the loan of money. 7 Pet. R.
3. In order to make a contract usurious, there must be a loan; Cowp. 112,
770; 1 Ves. jr. 527; 2 Bl. R. 859; 3 Wils. 390 and the borrower must be bound to
return the money at all events. 2 Scho. & Lef. 470. The purchase of a bond
or note is not a loan ; 3 Scho. & Lef. 469; 9 Pet. R 103; but if such a
purchase be merely colorable, it will be considered as a loan. 2 John. Cas. 60;
Id. 66; 12 S. & R. 46; 15 John. R. 44.
LOAN FOR CONSUMPTION, or, MUTUTUM. (q. v.) A contract by which the
owner of a personal chattel, called the lender, delivers it to another, known as
the borrower, by which it is agreed that the borrower shall consume the chattel
loaned, and return at the time agreed upon, another chattel, of the same
quality, kind, and number, to the lender, either gratuitously or for a con-
sideration; as, if Peter lends to Paul one bushel of wheat, to be used by the
latter, so that it shall not be returned to Peter, but instead of which Paul
will return to Peter another bushel of wheat of the same kind and quality, at a
time agreed upon.
2. It is evident that this contract differs essentially from a loan for use.
In the latter, the property of the thing lent remains with the lender, and, if
it be destroyed without the fault or negligence of the borrower, it is his loss,
and the thing to be returned is the identical thing lent; but in the loan for
consumption, the property passes to the borrower, and in case of its
destruction, he must bear the loss, and the identical property is never to be
returned, but other property of the like kind, quality, and number. This
contract bears a nearer resemblance to a barter or exchange; in a loan for
consumption the borrower agrees to exchange with the lender a bushel of wheat,
which he has not, but expects to obtain, for another bushel of wheat which the
lender now has, and with which he is willing to part; or a more familiar example
may be given: Debtor borrows from Creditor, one hundred dollars to use as he
shall deem best, and he promises to return to Creditor another hundred dollars
at a future time.
3. In cases of loan for consumption, the lender may charge for the use of the
thing loaned or not; as, if I lend one thousand dollars to a friend for a month,
I may charge interest or not but a loan for use is always gratuitous when
anything is charged for the use, it becomes a hiring. See Hire; and also
LOAN FOR USE, or COMMODATUM, contracts. A bailment, or loan of an
article for a certain time, to be used by the borrower, without paying for it. 2
Kent's Com. 446, 447. Sir William Jones defines it to be a bailment of a thing
for a certain time, to be used by the borrower, without paying for it. Jones'
Bailm. 118. According to the Louisiana Code, art. 2864, it is an agreement by
which a person delivers a thing to another, to use it according to its natural
destination, or according to the agreement, under an obligation on the part of
the borrower, to return it after he shall have done using it. This loan is
essentially gratuitous. The Code Civil, art. 1875, defines it in nearly the same
words. Lord Holt has defined this bailment to be, when goods or chattels, that
are useful, are lent to a friend gratis, to be used by him: and it is called
commodatum, he adds, because the thing is to be restored in specie. 2 Ld. Ray.
2. The loan for use resembles somewhat a gift, for the lender, as in a gift,
gives something to the borrower; but it differs from the latter, because there
the property of the thing given is transferred to the donee; instead of which,
in the loan for use, the thing given is only the use, and the property in the
thing lent remains in the lender. This contract has also some analogy to the
mutuum, or loan for consumption; but they differ in this, that in the loan for
use the lender retains the property in the thing lent, and it must be returned
in individuo; in the loan for consumption, on the contrary, the things lent are
to be consumed, such as money, corn, oats, grain, cider, &c., and the
property in them is transferred to the borrower, who becomes a debtor to the
lender for the same quantity of like articles. Poth. Pret a. Usage, n. 9,
3. Several things are essential to constitute this contract; first, there
must be a thing which is lent; and this, according to the civil law, may be
either a thing movable, as a horse, or an immovable, as a house or land, or
goods, or even a thing incorporeal. But in our law, the contract seems confined
entirely to goods and chattels, or personal property, and not to extend to real
estate. It must be a thing lent, in contradistinction to a thing deposited or
sold, or entrusted to another for the purpose of the owner. Story on Bailm. §
4. Secondly. It must be lent gratuitously, for if any compensation is to be
paid in, any manner whatsoever, it falls under Another denomination, that of
hire. Ayliffe's Pand. B. 4, tit. 16, n. 516; Louis. Code, art. 2865; Pothier,
Pret a Usage, c. 1, art. 1, n. 1, c. 2, art., 3, n. 11.
5. Thirdly. It must be lent for use, and for the use of the borrower. It is
not material whether the use be exactly that which is peculiarly appropriate to
the thing lent, as a loan of a bed to lie on, or a loan of a horse to ride; it
is equally a loan, if the thing is lent to the borrower for any other purpose;
as, to pledge as a security on his own account. Story on Bailm. §225. But the
rights of the borrower are strictly confined to the use actually or impliedly
agreed to by the lender, and cannot be lawfully exceeded. Poth. Pret a Usage, c.
1, §1, art. l, n. 5. The use may be for a limited time, or for an indefinite
6. Fourthly. The property must be lent to be specifically returned to the
lender at the determination of the bailment; and, in this respect it differs
from a mutuum, or loan for consumption, where the thing borrowed, such as corn,
wine, and money, is to be returned in kind and quantity. See Mutuum. It follows,
that a loan for use can never be of a thing which is to be consumed by use; as,
if wine is lent to be drunk at a feast, even if no return in kind is intended,
unless, perhaps, so far as it is not drunk; for, as to, all the rest, it is
strictly a gift.
7. In general, it may be said that the borrower has the right to use the
thing during the time and for the purpose which was intended between the
parties. But this right is strictly confined to the use, expressed or implied in
the particular transaction; and the borrower, by any excess, will make himself
responsible. Jones' Bailm. 68; Cro. Jac. 244; 2 Ld. Raym. 909,916; 1 Const. Rep.
So. Car. 121; Louis. Code: art. 2869; Code Civil, art. 1881; 2 Bulst. 306.
8. The obligations of the borrower are to take proper care of the thing
borrowed, to use it according to the intention of the lender, to restore it in
proper time, and to restore it in proper condition. Story on Bailm. §236; Louis.
Code, art. 2869; Code Civ. 1880.
9. By the common law, this bailment may always be terminated at the pleasure
of the lender. (q. v.) Vin. Abr. Bailment, D; Bac. Abr. Bailment, D.
10. The property in the thing lent in a loan for use, remains in the lender,
Story on Bailment, §283; Code Civil, art. 1877; Louis. Code, art. 2866.
11. It is proper to remark that the loan for use must be lawful; a loan by
Peter to Paul of a ladder to enable him to commit a larceny, or of a gun, to
commit a murder, is not a loan for use, but Peter by this act becomes an
accomplice of Paul. 17 Duv. n. 503; 6 Duverg. n. 32.
LOCAL. Pertaining to a place; something annexed to the freehold or
tied to a certain place; as, local courts, or courts whose jurisdiction is
limited to a particular place; local allegiance, or allegiance due while you are
in a particular place or country; local taxes, or those which are collected for
LOCAL ACTION, practice, pleadings. An action is local when the venue
must be laid in the county where the cause of action arose. 1 Chit. PI'. 271; 21
Vin. Ab. 79; 3 Bl. Com. 294; Bac. Ab. Actions, Local, &c.; Dane's Ab. Index,
h. t.; 15 Mass. 284; 1 Brock. 203; 1 Greenl. 246. Vide Action; Venue.
LOCALITY, Scotch law. This name is given to a life rent created in
marriage contracts in favor of the wife, instead of leaving her to her legal
life rent of terce. 1 Bell's Com. 55. See Jointure.
LOCATIO. Hire; a letting out.
LOCATIO CONDUCTIO, Civil law. Location conduction is a consensual
contract, by which a person becomes bound to deliver to another the use of a
thing for a certain time, or to do work at. a certain price. 1 Bouv. Inst. n.
LOCATIO MERCIUM VEHENDARUM, contracts. A term used in the civil law to
signify the carriage of goods for hire.
2. In respect to contracts of this sort entered into by private persons, not
exercising the business of common carriers, there does not seem to be any
material distinction varying the rights, obligations and duties of the parties
from those of other bailees for hire. Every such private person is bound to
ordinary diligence, and a reasonable exercise of skill; and of course he is not
responsible for any losses not occasioned by ordinary negligence unless he has
expressly, by the terms of his contract, taken upon himself such risk. 2 Ld.
Raym. 909, 917, 918; 4 Taunt. 787; 6 Taunt. 577; 2 Marsh. 293,; Jones' Bailm.
103, 106, 121; 2 Bos. & Pull. 1l7; 1 Bouv. Inst. n. 1020. See Common
LOCATIO OPERIS, contracts. A term used in the civil law, to signify
the hiring of labor and services. It is a contract by which one of the parties
gives a certain work to be performed by the other, who binds himself to do it
for the price agreed between them, which he who gives the work to be done
promises to pay to the other for doing it. Poth. Louage, n. 392. This is divided
into two branches, first, Locatio operis faciendi; and, secondly, Locatio
mercium vehendarum. See these words.
LOCATIO OPERIS FACIENDI, contracts. A term used in the civil law.
There are two kinds, first, the location operis faciendi, strictly so called, or
the hire of labor and services; such as the hire of tailors to make clothes, and
of jewelers to set gems, and of watchmakers to repair watches. Jones' Bailm. 90,
96, 97. Secondly, Locatio custodiae, or the receiving of goods on deposit for a
reward, which is properly the hire of care and attention about the goods. Story
on Bailm. 422, 442; 1 Bouv. Inst. n. 994.
2. In contracts for work, it is of the essence of the contract, first, that
there should be work to be done; secondly, for a price or reward; and, thirdly,
a lawful contract between parties capable and intending to contract. Pothier,
Louage, n. 395 to 403.
LOCATIO REI, contracts. A term used in the civil law, which signifies
the hiring of a thing. It is a contract by which one of the parties obligates
himself to, give to the other the use and enjoyment, of a certain thing for a
period of time agreed upon between them, and in consideration of a price which
the latter binds himself to pay in return. Poth. Contr. de Louage, n. l. See
Bailment; Hire; Hirer; Letter.
LOCATION, contracts. A contract by which the temporary use of a
subject, or the work or service of a person, is given for an ascertained hire. 1
Bell's Com. B. 2, pt. 3, c. 2, s. 4, art. 2, §1, page 255. Vide Bailment;
LOCATION, estates. Among surveyors, who are authorized by public
authority to lay out lands by a particular warrant, the act of selecting the
land designated in the warrant and surveying it, is called its location. In
Pennsylvania, it is an application made by any person for land, in the office of
the secretary of the late land office of Pennsylvania, and entered in the books
of said office, numbered and sent to the surveyor general's office. Act June 25,
1781, §2, 2 Sm. Laws, 7.
LOCATOR, civil law. He who leases or lets a thing to hire to another.
His duties are, 1st. To deliver to the hirer the thing hired, that he may use
it. 2d. To guaranty to the hirer the free enjoyment of it. 3d. To keep the thing
hired in good order in such manner that the hirer may enjoy it. 4th. To warrant
that the thing hired has not such defects as to destroy its use. Poth. Du.
Contr. de Louage, n. 53.
LOCK-UP HOUSE. A place used, temporarily as a prison.
LOCO PARENTIS. In the place of a parent.
2. It is frequently important in cases of devises and bequests, to ascertain
whether the testator did or did not stand towards the devisee or legatee, in
loco parentis. In general, those who assume the parental character may be
considered as standing in that relation but this character must clearly
3. The fact of his so standing may be shown by positive proof, or the express
declarations of the testator in his will, or by circumstances; as, when a
grandfather; 2 Atk. 518; a brother; 1 B. & Beat. 298; or an uncle; 2 A. 492;
takes an orphan child under his care, or supports him, he assumes the office of
a parent. The law places a master in loco parentis in relation to bis
apprentice. See 2 Ashm. R. 178, 207; 2 Bouv. Inst. n. 2216.
LOCUM TENENS. He who holds the place of another, a deputy; as A B,
locum tenens of C D, mayor of the city of Philadelphia.
LOCUS. The place where a thing is done.
LOCUS CONTRACTUS. The place of the contract. In general, the law of
the place where the contract is made, governs in everything which relates to the
mode of construing it. Vide Lex loci contractus.
LOCUS DELICTI. The place where the tort, offence, or injury bas been
LOCUS POENITENTIAE. contracts, crim. law. Literally this signifies a
place of repentance; in law, it is the opportunity of withdrawing from a
projected contract, before the parties are finally bound; or of abandoning the
intention of committing a crime, before it has been completed, 2 Bro. C. R. 569;
Ersk. Laws of Scotl. 290. Vide article Attempt.
LOCUS IN QUO. The place in which. In pleadings it is the place where
any- thing is alleged to have been done. 1 Salk. 94.
LOCUS REI SITAE. The place where a thing is situated. In proceedings
in rem, in real actions in the civil law, or: those which have for their object
the recovery of a thing; and in real actions in the common law, or those for the
recovery of land, the proper forum is the locus rei sitae. 2 Gall. R. 191.
LOCUS SIGILLI. The place of the seal. 2. In many of the states,
instead of sealing deeds, writs, and other papers or documents requiring it, a
scroll is made in which the letters L. S. are printed or written, which is an
abbreviation of Locus Sigilli. This in some of the states has all the efficacy
of a seal, but in others it has no such effect. See Scroll.
LODGER. One who has a right to inhabit another man's house. He has not
the same right as a tenant; and is not entitled to the same notice to quit.
Woodf. L. &_T. 177. See 7 Mann. & Gr. 87; S. C. 49 E. C. L. R. 85, 151,
and article Inmate.
LODGINGS. Habitation in another's house, in which the owner dwells; the oc-
cupier being termed a lodger.
LOG BOOK. A ship's journal. It contains a minute account of the ship's
course, with a short history of every occurrence during the vovage. 1 Marsh.
Ins. 408. When a log books required by law to be kept, it is an official
register so far as regards the transactions required by law to be entered in it,
but no further. Abbott on Shipp. by Story, 468, n. 1; 1 Summ. R. 373 2 Summ. 19,
78; 4 Mason, R. 544; 1 Esp. R. 427.
LOQUELA, practice. An imparlance. Loquela sine die, a respite in law
to an indefinite time. Formerly by loquela was meant the allegations of fact
mutually made on either side, now denominated the pleadings. Steph. PI. 29.
LORD. In England, this is a title of honor. Fortunately in the U. S.
no such titles are allowed.
LORD'S DAY. The same as Sunday. (q. v.) Dies Dominicus non est
juridicus. Co. Litt. 135; Noy's Max. 2.