Title 18, Business Structure and Function

The borrower of a thing for use must bear all its expenses during the loan, except such as are necessarily incurred by him to preserve it from unexpected and unusual injury. For such expenses he is entitled to compensation from the lender, who may, however, exonerate himself by s…

The lender of a thing for use must indemnify the borrower for damage caused by defects or vices in it, which he knew at the time of lending, and concealed from the borrower. SOURCE: CC § 1893.

The lender of a thing for use may at any time require its return, even though he lent it for a specified time or purpose. But if, on the faith of such agreement, the borrower has made such arrangements that a return of the thing before the period agreed upon would cause him loss,…

If a thing is lent for use for a specified time or purpose, it must be returned to the lender without demand, as soon as the time has expired, or the purpose has been accomplished. In other cases it need not be returned until demanded. SOURCE: CC § 1895.

The borrower of a thing for use must return it to the lender, at the place contemplated by the parties at the time of lending; or if no particular place was so contemplated by them, then at the place where it was at that time. SOURCE: CC § 1896. NOTE: No 1970 Civil Code '§ 1897-1…

A loan for exchange is a contract by which one delivers personal property to another, and the latter agrees to return to the lender a similar thing at a future time, without reward for its use. SOURCE: CC § 1902.

A loan, which the borrower is allowed by the lender to treat as a loan for use, or for exchange, at his option, is subject to all the provisions of this Chapter. SOURCE: CC § 1903.

By a loan for exchange the title to the thing lent is transferred to the borrower, and he must bear all its expenses, and is entitled to all its increase. SOURCE: CC § 1904.

A lender for exchange cannot require the borrower to fulfill his obligations, at a time, or in a manner, different from that which was origi- nally agreed upon. SOURCE: CC § 1905.

Sections 45110, 45112 and 45113 apply to a loan for exchange. SOURCE: CC § 1906. NOTE: No 1970 Civil Code '§ 1907-1911 existed. COL120106 COL120106

A loan of money is a contract by which one delivers a sum of money to another, and the latter agrees to return at a future time a sum equivalent to that which he borrowed. A loan for mere use is governed by Chapter 45, Loan for Use. SOURCE: CC § 1912.

A borrower of money, unless there is an express contract to the contrary, must pay the amount due in such money as is current at the time when the loan becomes due, whether such money is worth more or less than the actual money lent. SOURCE: CC § 1913.

Whenever a loan of money is made, it is presumed to be made upon interest, unless it is otherwise expressly stipulated at the time in writing. SOURCE: CC § 1914.

Interest is the compensation allowed by law or fixed by the parties for the use, or forbearance, or detention of money. SOURCE: CC § 1915.

COL120106 When a rate of interest is prescribed by a law or contract, without specifying the period of time by which such rate is to be calculated, it is to be deemed an annual rate. SOURCE: CC § 1916.

The rate of interest upon the loan or forbearance of any money, goods or things in action, or on accounts after demand or judgment rendered in any court of the territory, shall be six percent (6%) per annum but it shall be competent for the parties to any loan or forbearance of a…

Lender. (a) A license to lend money may be granted only to a bona fide resident of the Territory of Guam. Written applications for licenses must be submit- ted to the Director of Revenue & Taxation, stating name, nationality, place of residence and of proposed business, age, prev…

The provisions of this Chapter shall not apply to licensed pawnbrokers, as provided for in Title L of the Government Code commencing with '50001, as amended. SOURCE: CC § 1924a. With the repeal of the Penal Code, regulation of Pawnbrokers was placed in the Government Code by P.L.…

Hiring is a contract by which one gives to another the temporary use possession and use of property, other than money, for reward, and the latter agrees to return the same to the former at a future time. SOURCE: CC § 1925.

The products of a thing hired, during the hiring, belong to the hirer. SOURCE: CC § 1926.

An agreement to let upon hire binds the latter to secure to the hirer the quiet possession of the thing hired during the term of the hiring, against all persons lawfully claiming the same. SOURCE: CC § 1927. COL120106

The hirer of a thing must use ordinary care for its preservation in safety and in good condition. SOURCE: CC § 1928.

The hirer of a thing must repair all deteriorations or injuries thereto occasioned by his want of ordinary care. SOURCE: CC § 1929.

When a thing is let for a particular purpose the hirer must not use it for any other purpose, and if he does, he is liable to the letter for all damages resulting from such use, or the letter may treat the contract as thereby rescinded. SOURCE: CC § 1930.

The letter of a thing may terminate the hiring and reclaim the thing before the end of the term agreed upon: 1. When the hirer uses or permits a use of the thing hired in a manner contrary to the agreement of the parties; or 2. When the hirer does not, within a reasonable time af…

The hirer of a thing may terminate the hiring before the end of the term agreed upon: 1. When the letter does not, within a reasonable time after request, fulfill his obligations, if any, as to placing and securing the hirer in the quiet possession of the thing hired, or putting …

The hiring of a thing terminates: 1. At the end of the term agreed upon; 2. By the mutual consent of the parties; 3. By the hirer acquiring a title to the thing hired superior to that of the letter; or 4. By the destruction of the thing hired. SOURCE: CC § 1934.

If the hiring of a thing is terminable at the pleasure of one of the parties, it is terminated by notice to the other of his death or incapacity to contract. In other cases it is not terminated thereby. SOURCE: CC § 1934.

When the hiring of a thing is terminated before the time originally agreed upon, the hirer must pay the due proportion of the hire for such use as he has actually made of the thing, unless such use is merely nominal, and of no benefit to him. SOURCE: CC § 1935. NOTE: No 1970 Civi…

The lessor of a building intended for the occupation of human beings must, in the absence of an agreement to the contrary, put it into a condition fit for such occupation, and repair all subsequent dilapidations thereof, which render it untenantable, except such as are mentioned …

If within a reasonable time after notice to the lessor, of dilapidations which he ought to repair, he neglects to do so, the lessee may repair the same himself, where the cost of such repairs does not require an expenditure greater than one month's rent of the premises, and deduc…

COL292017 (LANDLORD & TENANT) A hiring of real property, other than lodgings and dwelling houses, in places where there is no usage on the subject, is presumed to be for one year from its commencement, unless otherwise expressed in the hiring. SOURCE: CC § 1943.

A hiring of lodgings or a dwelling house for an unspecified term is presumed to have been made for such length of time as the parties adopt for the estimation of rent. Thus a hiring at a monthly rate of rent is presumed to be for one month. In the absence of any agreement respect…

If a lessee of real property remains in possession thereof after the expiration of the hiring, and the lessor accepts rent from him, the parties are presumed to have renewed the hiring on the same terms and for the same time, not exceeding one month when the rent is payable month…

A hiring of real property, for a term not specified by the parties, is deemed to be renewed as stated in the last section, at the end of the term implied by law, unless one of the parties gives notice to the other of his intention to terminate the same, at least as long before th…

When there is no usage or contract to the contrary, rents are payable at the termination of the holding, when it does not exceed one year. If the holding is by the day, week, month, quarter, or year, rent is payable at the termination of the respective periods, as it successively…

COL292017 (LANDLORD & TENANT) The attornment of a tenant to a stranger is void, unless it is made with the consent of the landlord, or in consequence of a judgment in a court of competent jurisdiction. SOURCE: CC § 1948.

Every tenant who receives notice of any proceeding to recover the real property occupied by him, or the possession thereof, must immediately inform his landlord of the same, and also deliver to the landlord the notice, if in writing, and is responsible to the landlord for all dam…

One who hires part of a room for a dwelling is entitled to the whole of the room, notwithstanding any agreement to the contrary; and if a landlord lets a room as a dwelling for more than one family, the person to whom he first lets any part of it is entitled to possession of the …

Notwithstanding and other provision of law, no landlord may raise the monthly rental of any tenant who occupies a residential unit used as a primary residence which is held pursuant to a verbal or oral lease or oral or verbal rental agreement by more than five percent (5%) per an…

(a) The Department of Revenue and Taxation shall monitor, control, and regulate the process of investigating and collecting fees from any facility verbally expressing or advertising the lease or the use of property as a lodging facility accommodating transient visitors that is be…

One who lets personal property must deliver it to the hirer, secure his quiet enjoyment thereof against all lawful claimants, put it into condition fit for the purpose for which he lets it, and repair all deteriorations thereof not occasioned by the fault of the hirer and not the…

A hirer of personal property must bear all such expenses concerning it as might naturally be foreseen to attend it during its use by him. All other expenses must be borne by the letter. SOURCE: CC § 1956.

If a letter fails to fulfill his obligations, as prescribed by § 52101, the hirer, after giving him notice to do so, if such notice can conveniently be given, may expend any reasonable amount necessary to make good the letter's default, and may recover such amount from him. SOURC…

The contract of employment is a contract by which one, who is called the employer, engages another, who is called the employee, to do something for the benefit of the employer, or of a third person. SOURCE: CC § 1965. NOTE: No 1970 Civil Code '§ 1966-1968 existed. ---------- ARTI…