Loan in Quebec civil law

Published on September 25, 2025

The loan in Quebec law is a common contract that may concern both material goods and money. It governs the relationship between lender and borrower by setting out clear rights and obligations for each. Depending on the type of loan, trust, gratuity, or even the obligation to pay interest may vary. This mechanism aims to protect both parties and to ensure fair and equitable restitution.

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The Civil Code of Quebec distinguishes two types of loans: the loan for use and the simple loan (s. 2312 C.C.Q.). Although both are based on the idea of making property or a sum of money available, they differ in their purpose, whether they are gratuitous or not, and the obligations that result. Understanding these differences is essential to anticipate the rights and responsibilities of the parties in a loan contract.

1. Loan for use

The loan for use is a gratuitous contract by which the lender hands over property to the borrower so that they may use it, with the obligation to return it after a certain period (s. 2313 C.C.Q.). This type of loan is often used for personal property, such as tools, books, or a vehicle.

The borrower has several specific obligations :

  • They must act with prudence and diligence in the care and preservation of the borrowed property (s. 2317 C.C.Q.);
  • They may only use the property for the purpose for which it is intended and may not lend it to a third party without the lender’s authorization (s. 2318 C.C.Q.);
  • They are not liable for the loss of the property that results from its normal and proper use (s. 2322 C.C.Q.);
  • When several people borrow property together, they are jointly and severally liable to the lender (s. 2326 C.C.Q.). The lender may therefore require one of them to perform the entire restitution obligation.
Thus, the loan for use is based on trust between the parties and the borrower’s good faith. It protects the lender by ensuring that the property will be preserved and returned, while limiting the borrower’s liability to damages caused by abusive use.

2. Simple loan

The simple loan is the contract by which the lender hands over to the borrower a certain quantity of money or goods that are consumed through use. The borrower undertakes to return as much, of the same kind and quality, after a certain period (s. 2314 C.C.Q.). This type of loan is common for sums of money, foodstuffs, or any other consumable property.

The main applicable rules are as follows :

  • The borrower must return exactly the same quantity and quality of property as received, regardless of variations in their market value;
  • For a money loan, only the nominal sum must be repaid, even if the value of the currency has changed since the loan (s. 2329 C.C.Q.);
  • Finally, every loan of money bears interest from the delivery of the sum, unless otherwise stipulated (s. 2330 C.C.Q.).
The simple loan is therefore less dependent on personal trust and more governed by law, since the exact value must be returned. The borrower bears the risk of consuming or losing the property without the creditor being able to claim more than what was agreed.

Obligations of the lender

It should not be forgotten that the lender also has obligations. Indeed, they must deliver the property or sum promised in good condition. Moreover, they must guarantee the borrower peaceful use of the property. In the case of a money loan, they must also deliver the agreed sum at the specified time.

Common loan disputes

Disputes related to loans often arise in two situations :

  • The borrowed property is damaged or not returned on time.
  • In a money loan, repayment is partial or nonexistent.
In these cases, the courts carefully analyze the contract, the parties’ respective obligations, and their good faith. Case law therefore emphasizes that written agreements with precision greatly reduce conflicts.

Conclusion

In summary, the loan for use and the simple loan illustrate two different approaches. The former is based on gratuity and trust. The latter involves strict restitution, accompanied by interest when it concerns money.

Thus, understanding these distinctions allows not only to prevent disputes but also to clarify each party’s obligations. Whether for a loan of property or a loan of money, compliance with the Civil Code rules secures contractual relations and protects both parties.

However, despite these rules, disputes sometimes arise. In such cases, it is strongly recommended to consult a lawyer to defend your rights and consider possible remedies. To learn more, visit our page on disputes and discover how our firm can effectively assist you.

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