You might be wondering…

“Do I really need a written contract if I only lend something for a few days?”
“What happens if the borrower doesn’t return it?”
“And what’s the difference between a loan-for-use and a loan?”

These are the most common questions I get from clients.
This article offers a clear and practical explanation of what a loan-for-use agreement actually means under Czech law.

1️⃣ What is a Loan-for-Use Agreement (Výpůjčka)

A loan-for-use agreement is a free-of-charge contract in which the lender (půjčitel) allows the borrower (vypůjčitel) to use an item temporarily, and the borrower agrees to return it after use.
It is regulated by Sections 2193–2200 of the Czech Civil Code.

Typical features:

• the use of the item is free of charge,

• ownership does not transfer,

• the purpose is temporary use,

• the item must be returned in a condition reflecting normal wear and tear.

2️⃣ When to Use (and Not Use) a Loan-for-Use Agreement

It’s suitable for:

• lending a car, tool, appliance, or electronic equipment,

• short-term lending of real estate (e.g. a cottage, office, or flat),

• company property lent to employees,

• family or friendly arrangements where no rent is charged.

It’s not suitable for:

• cases where payment is required (that’s a lease),

• loans involving money (that’s a loan or zápůjčka),

• permanent transfers (that’s a gift).

3️⃣ Why It Should Always Be in Writing

The law does not require written form — but from experience, verbal agreements are the ones that cause the most problems.
Without a written contract, it’s hard to prove:

• what exactly was lent,

• for how long,

• in what condition,

• and under what return conditions.

🧠 Lawyer’s tip: even a short-term or friendly loan should be written down.
Two copies, signatures, a date, and a short description of the item — that’s all it takes.
That simple document can save you thousands of crowns and a lot of frustration.

4️⃣ Common Risks People Overlook

• The item gets damaged, and no one wants to pay.
  – The borrower is liable for damage caused by failure to take proper care (§ 2200 CC).

• No return date is set.
  – If no term is agreed, the lender can demand the item back at any time.

• No handover protocol.
  – Without it, it’s impossible to prove whether the item was already damaged when handed over.

• The item is lent to someone else.
  – This is only allowed with the lender’s consent (§ 2199 CC).

5️⃣ Example from Practice

A client lent a construction machine to a friend “just for the weekend.”
No contract, no handover note. The machine came back three months later — with engine damage.
The borrower claimed it was defective from the start.
With no proof, it was one person’s word against another’s.
Result: the client paid CZK 35 000 for repairs.

➡️ With a simple written contract and photos, the case could have been settled in hours.

6️⃣ Common Client Questions

“So even if I lend it for free, I can still get in trouble?”
Yes. A loan-for-use agreement is free, but still legally binding.
The fact that you’re not charging money doesn’t mean you have no responsibilities.

7️⃣ Lawyer’s Recommendations + Checklist

✅ always put the agreement in writing,
✅ specify what exactly is lent and its condition,
✅ determine how long the item may be used,
✅ agree on who covers damage or maintenance,
✅ attach a handover protocol (photos from your phone are fine).

❓FAQ

Does a loan-for-use have to be free of charge?
Yes. Once money is involved, it becomes a lease.

Can the lender terminate the agreement early?
Yes, if it’s for an indefinite period or if the borrower breaches the terms.

What if the borrower damages or doesn’t return the item?
You can claim damages or seek return through court proceedings.