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O.C.G.A. § 44-12-110 — Kinds of loans; nature of loan for consumption | Georgia Code
O.C.G.A. § 44-12-110 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 44 PROPERTY

Section 12. Rights in Personalty, 44-12-1 through 44-12-322.

ARTICLE 3 BAILMENTS

44-12-110. 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.

(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.)

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 (1896).

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).

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 (1896); Huby v. State, 111 Ga. 842, 36 S.E. 301 (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).

Cited in Spiegel v. Hays, 103 Ga. App. 293, 119 S.E.2d 123 (1961).

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.

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This Georgia Code resource is curated by Georgia Bar member Graham W. Syfert, a personal injury and workers' compensation attorney admitted in Georgia (State Bar of Georgia No. 881027, since 2006) and Florida. For legal consultation, call 904-383-7448.