O.C.G.A. § 44-12-110 (2019)
Kinds of loans; nature of loan for consumption
Loans may be either for consumption or for use. A loan for consumption is a loan of an article which is not to be returned in specie, but in kind; this is a sale and not a bailment.
History
Orig. Code 1863, § 2103; Code 1868, § 2098; Code 1873, § 2125; Code 1882,
§ 2125; Civil Code 1895, § 2944; Civil Code 1910, § 3516; Code 1933, § 12-501.
Annotations
JUDICIAL DECISIONS Purpose of O.C.G.A. § 44-12-110. - O.C.G.A. § 44-12-110 is specially designed for the protection of lenders as to the enforcement of their rights. Skinner v. State, 97 Ga. 690, 25 S.E. 364, 1895 Ga. LEXIS 554 (1895). Loan of demonstrator automobile by dealer to prospective purchaser creates bailment. - Where an automobile dealer lends a demonstrator automobile to a prospective purchaser for the purpose of allowing such purchaser to test and operate it, under an oral agreement that the purchaser is to return the automobile at the end of two days in the same condition, less reasonable wear and tear, as the automobile was when delivered to the potential purchaser, this constitutes the purchaser being a bailee. Warren v. Mitchell Motors, Inc., 52 Ga. App. 58, 182 S.E. 205, 1935 Ga. App. LEXIS 32 (1935).
Loan of whiskey on promise of similar return is sale. - The loan of a specified quantity of whiskey obtained by the borrower for the borrower’s own consumption, on a promise to return to the lender a similar quantity of the same kind of liquor, is a “sale” rather than a mere bailment. Skinner v. State, 97 Ga. 690, 25 S.E. 364, 1895 Ga. LEXIS 554 (1895); Huby v. State, 111 Ga. 842, 36 S.E. 301, 1900 Ga. LEXIS 803 (1900). Failure to define terms in jury charge not error. - Failure to explain in a charge to the jury the meanings of the terms “for consumption,” “specie,” and “in kind” as used in O.C.G.A. § 44-12-110 is not an error. Foote v. Kelley, 126 Ga. 799, 55 S.E. 1045, 1906 Ga. LEXIS 546 (1906).
RESEARCH REFERENCES Am. Jur. 2d. 8 Am. Jur. 2d, Bailments, § 33 et seq.
C.J.S. 8 C.J.S., Bailments, §§ 18, 86 et seq.