Chapter 36. Gratuitous use.

Article 689. Contract of gratuitous use.
1. Under the contract of gratuitous use (loan contract), one party (lender) undertakes to transfer or transfer the thing to the temporary party for the gratuitous use to the other party (loan recipient), and the latter is obliged to return the same thing in the condition in which it received it, taking into account the normal wear or condition stipulated by the contract. 2. The rules provided for by Article 607, clause 1 and the first paragraph of clause 2 of clause 610, clauses 1 and 3 of clause 615, clause 2 of clause 621, clauses 1 and 3 of clause 623 of this Code are applicable to the contract of gratuitous use.

Article 690. Lender.
1. The right to transfer things for free use belongs to its owner and other persons authorized by law or the owner. 2. A commercial organization shall not have the right to transfer property for free use to a person who is its founder, participant, manager, member of its management or control bodies.

Article 691. Granting of a thing for free use.
1. The lender is obliged to provide the thing in a condition that complies with the terms of the contract of gratuitous use and its purpose. 2. A thing shall be provided for free use with all its accessories and documents relating to it (instructions for use, technical passport, etc.), unless otherwise provided by the contract. If such supplies and documents were not transferred, but without them the thing cannot be used for its intended purpose or its use largely loses value for the loan recipient, the latter has the right to demand the provision of such supplies and documents to him or the termination of the contract and compensation for the actual damage suffered by him.

Article 692. Consequences of failure to provide things for free use.
If the lender does not transfer the thing to the beneficiary, the latter has the right to demand termination of the contract of gratuitous use and compensation for the actual damage suffered by it.

Article 693. Responsibility for the shortcomings of the thing transferred for free use.
1. The lender is responsible for the shortcomings of things that he intentionally or through gross negligence did not stipulate when concluding a contract of gratuitous use. When such deficiencies are discovered, the loan recipient is entitled to request from the lender gratuitous elimination of the deficiencies of the thing or reimbursement of its expenses for eliminating the deficiencies of the thing or early termination of the contract and compensation for the actual damage suffered by it. 2. The lender who has been informed about the requirements of the loan recipient or about his intention to eliminate the shortcomings of the thing at the expense of the lender may, without delay, replace the defective thing with another similar thing that is in proper condition. 3. The lender is not responsible for the shortcomings of the things that were agreed upon when concluding the contract, or were known in advance to the loan recipient, or had to be discovered by the loan recipient during the inspection of the thing or checking its serviceability when signing the contract or when transferring the thing.

Article 694. The rights of third parties to the thing transferred for free use.
The transfer of things for free use is not a reason for changing or terminating the rights of third parties to this thing. When concluding a contract of gratuitous use, the lender is obliged to warn the loan recipient of all the rights of third parties to this thing (servitude, pledge right, etc.). Failure to fulfill this obligation gives the borrower the right to demand termination of the contract and compensation for the actual damage suffered by it.

Article 695. The obligations of the borrower on the content of the thing.
The borrower is obliged to maintain the thing received for free use in good condition, including the implementation of current and capital repairs, and to bear all the costs of its maintenance, unless otherwise provided by the contract of gratuitous use.

Article 696. The risk of accidental death or accidental damage to a thing.
The borrower bears the risk of accidental death or accidental damage of the item received for free use if the thing died or was damaged due to the fact that he did not use it in accordance with the contract of gratuitous use or assignment of the thing or transferred it to a third party without the lender’s consent. The borrower also bears the risk of accidental death or accidental damage to the thing, if, taking into account the actual circumstances, it could prevent its death or damage by sacrificing his thing, but chose to keep his thing.

Article 697. Responsibility for damage caused to a third party as a result of using the thing.
The lender is responsible for the harm caused to a third party as a result of using the thing, if he does not prove that the harm was caused due to the intent or gross negligence of the loan recipient or the person in whom this item was with the lender’s consent.

Article 698. Early termination of the contract of gratuitous use.
1. The lender shall have the right to demand early termination of the contract of gratuitous use in cases when the loan recipient: uses a thing not in accordance with the contract or purpose of the thing; does not perform the duties of keeping things in good condition or its contents; significantly worsens the condition of a thing; without the consent of the lender passed the thing to a third party. 2. The borrower shall have the right to demand early termination of the contract of gratuitous use: when you find flaws that make normal use of the thing impossible or burdensome, the presence of which he did not know and could not know at the time of the conclusion of the contract; if the thing due to circumstances for which it is not responsible, will be in a state unfit for use; if, at the conclusion of the contract, the lender did not warn him about the rights of third parties to the thing being transferred; if the lender fails to fulfill the obligation to transfer the thing or its accessories and related documents.

Article 699. Refusal of a contract of gratuitous use.
1. Each of the parties shall have the right to refuse at any time from a contract of gratuitous use concluded without specifying a term, informing the other party about this one month in advance, unless the contract provides for a different period of notice. 2. Unless otherwise provided by the contract, the borrower shall have the right at any time to withdraw from the contract concluded with an indication of the term in the manner provided for by paragraph 1 of this article.

Article 700. Change of parties in a contract of gratuitous use.
1. The lender shall have the right to alienate the thing or transfer it to the third party for onerous use. At the same time, the rights to the previously concluded gratuitous use contract are transferred to the new owner or user, and his rights in relation to the thing are encumbered with the rights of the loan recipient. 2. In the event of the death of a citizen-lender or the reorganization or liquidation of a legal entity - the lender, the rights and obligations of the lender under the grant agreement shall be transferred to the heir (assignee) or to another person who has transferred the ownership of the thing or other right on the basis of which the thing was transferred for free use. In the case of the reorganization of a legal entity - the loan recipient, its rights and obligations under the contract shall be transferred to the legal entity, which is its legal successor, unless otherwise provided by the contract.

Article 701. Termination of a contract of gratuitous use.
The contract of gratuitous use shall be terminated in the event of the death of the citizen-borrower or the liquidation of the legal entity - the loan recipient, unless otherwise provided by the contract.

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