Comparative law notes
A "loan agreement" refers to any type of loan, whereas a "contrato de mútuo" refers specifically to the agreement for the loan of fungible goods. Under a "contrato de mútuo", the borrower is obligated to return to the lender goods of the same type, quality, and quantity (section 586 of the Brazilian Civil Code). When translating "contrato de mútuo" into English, we recommend using the term "loan agreement", unless one wishes to highlight the fact that the loan is of fungible goods that will be used by the borrower and returned in the form of similar goods. In this case, "contrato de mútuo" can be translated as "loan for consumption".
