Mgr. ANNA VEJMELKOVÁ, advokát

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Free use of property – when it’s a loan and when it’s a gift

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“I only lent it to you!”
“No, you gave it to me!”
Two simple sentences – yet they decide who owns the thing and who must return it.
Many people believe that if they give someone something “just to use,” it’s clearly a loan.
But the Czech Civil Code distinguishes between a loan for use, a loan, and a gift, and the difference isn’t just semantic – it’s about ownership and legal consequences.
One word can decide whether you lose the item forever.

💭 You might be thinking…

  • “If I let someone use something for free, is it a gift?”

  • “If I say I want it back, do they have to return it?”

  • “Does a gift always require a written contract?”


🔍 Clients often ask me…

  • “I lent my neighbour a lawn mower, but he says I gave it to him. What now?”

  • “I gave my daughter some furniture, but I’d like it back – can I?”

  • “I handed over my tools to a friend without a contract. Do I have a chance to win if he keeps them?”


⚖️ Legal explanation

The difference between a loan for use, a loan, and a gift lies in the nature of the transfer and the intention of the parties.

Type of contractWhat is transferredIs the thing returned?For payment?Legal effect
Loan for use(§2193–2199)Non-consumable thing (e.g., car, tools, house)✅ Yes❌ NoTemporary free use
Loan (§2390–2395)Consumable thing (e.g., money, materials, fuel)✅ Same kind/amount returned✅/❌ Optional interestOwnership passes to borrower
Gift (§2055–2078)Any thing❌ No❌ NoOwnership permanently transferred

📚 How to tell the difference: intent is key

What matters isn’t what you call the agreement, but what you intended to create.
When disputes arise, courts look at:

  • whether the thing was meant for temporary use → loan for use,

  • or for permanent transfer of ownership → gift.

If it wasn’t made clear that the thing should be returned, the court may treat it as a gift.


⚠️ Common risks and mistakes

  • Unclear oral agreement – “I lent it” and “you gave it” sound similar, but mean very different things.

  • No written proof – without e-mails or a signed document, it’s hard to prove the intention to return.

  • Conditional gifts – “I’ll give it to you, but only for a while” makes the contract ambiguous.

  • No handover record – the borrower can easily claim the thing was gifted.


🧭 Step-by-step: what to do

  1. Decide your intent – are you lending or giving?

  2. Use clear wording:

    • “I hand over the thing for temporary use” → loan for use

    • “I give” → gift

  3. Write it down, even between friends.

  4. Specify duration and purpose – e.g., “until the end of the season” or “for renovation.”

  5. Record handover – e-mail, message, or photo proof.


💡 Example from practice

Mr. Novák lent his neighbour a chainsaw.
Six months later, he asked for it back – the neighbour refused, claiming it was a gift.
With no written contract and no witnesses certain of the conversation,
the court ruled that the intent to return wasn’t proven, and treated it as a gift.
Loss: 18,000 CZK.


⚖️ Why it matters to put it in writing

For movable property, a written form isn’t mandatory, but it’s a key piece of evidence.
For real estate, written form is required – without it, the contract is invalid.


✅ Lawyer’s recommendation

If you want to lend something, not give it away, you must say so explicitly – ideally in writing.
One simple clause (“The item is transferred for temporary free use and remains the property of the lender”) can save you from a lawsuit.

Checklist:

  • Is it clearly stated that the item must be returned?

  • Is there a written record?

  • Are the circumstances of handover documented?

  • Is the wording consistent (no mix of gift/loan language)?


❓ FAQ

Can I revoke a gift if I change my mind?
No, except in rare cases (e.g., gross ingratitude or distress).

Does a gift contract need to be in writing?
Yes, for real estate or promises of future gifts. Oral gifts of movable property are valid only if the thing is handed over immediately.

Can I just say “I want it back” and turn it into a loan?
No. The nature of the contract is determined at the moment of transfer, not later.

how I can help

Before you “just lend something,” make sure it legally stays yours.
I’ll prepare a short but legally sound loan-for-use agreement so there’s no confusion with a gift.

👉 Contact me – you’ll keep both your property and your peace of mind.

Contact a legal professional – I specialize in contract law (learn more here) and loan for use agreement (learn more here). 

Do you want to know more?

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