A mutuary is an individual who obtains property through a mutuum, which is a loan requiring the borrower to repay the exact amount of property or goods borrowed. It is crucial to distinguish a mutuary from a mutuant, who is the borrower in a mutuum.
A mutuary is an individual who receives property through a mutuum, which is a loan requiring the borrower to return the exact amount of property borrowed, rather than just its equivalent value. For instance, if John borrows 10 apples from Mary in a mutuum, Mary becomes the mutuant while John becomes the mutuary. In this scenario, John is obligated to return the exact 10 apples borrowed, rather than just their value. This example effectively demonstrates the concept of a mutuum and clarifies the role of the mutuary in the transaction.
A mutuary is a person who takes out a loan and is responsible for repaying it.
A mutuary has the right to receive the loan amount and is responsible for repaying the loan according to the terms and conditions agreed upon with the lender.
In most cases, a mutuary cannot transfer their loan to someone else without the lender’s approval.
If a mutuary fails to repay the loan, the lender may take legal action to recover the outstanding amount, which could result in the mutuary’s assets being seized or their credit being negatively affected.
Any changes to the terms of the loan agreement must be agreed upon by both the mutuary and the lender in writing.
It is possible for a mutuary to have multiple loans at the same time, but it is important to consider the impact on their financial situation and ability to repay the loans.
Defaulting on a loan can result in legal action, damage to the mutuary’s credit score, and potential seizure of assets to repay the outstanding amount.
It is possible for a mutuary to negotiate the terms of the loan with the lender, but the lender is not obligated to agree to any changes.
A mutuary has the right to seek legal advice and take action against the lender if they believe unfair practices are being used.
In most cases, a mutuary cannot cancel a loan agreement after signing it, unless there is a specific provision in the agreement that allows for cancellation under certain circumstances.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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