Lending contract. What the law says

In 2020, because of the Covid-19 crisis, I went to live in the house of a relative who was free, without having to pay rent. He has now told me that I have to leave the house, but he hasn't given any reason. Do I have to leave?

The issue here is a lending contract, which consists of a free contract whereby one person gives something to another, in this case a property, so that they can use it, while remaining under the obligation to return it.

The lending contract may or may not have a term, as is the case here.

In a contract of this type, the parties can freely agree on the time limits of the contract. However, there is nothing to prevent them from agreeing on the duration of the contract, which would result in an open-ended lending contract.

Similarly, although the parties do not agree on a specific term, they can make the contract conditional on a future event, specifically associated with the use of the item. For example, in this case it could have been defined that the loan would be for the lessee's residence for the duration of the State of Emergency. By reference to the example presented, the end of the State of Emergency would have to be considered as the term of the loan, as well as the fact that the property could not be used for any purpose other than housing.

It is now important to clarify whether, in an open-ended contract, the lessee (who is enjoying the property) will have to return the property by simply giving notice to that effect. The answer is, indeed, yes.

Our law stipulates that if the contracting parties do not agree on the deadline for the return, the use of the property or the temporal need it is intended to fulfil, the lessee will be obliged to return the property as soon as it is demanded.

It is also important to emphasise that the property must be returned in the exact state in which it was received, with the exception of deterioration resulting from prudent use, otherwise the lessee may be held liable.

What happens, then, if the lessee, summoned to do so, fails to hand over the property? The commander will be able to demand restitution in court, plus compensation if necessary, specifically through an action for damages.