Potential Issue of Loaning Personal Property

You many have had a situation of loaning your personal items to someone close to you, and he/she got hurt by that. You feel like sorry but at the same time you are under the impression of getting responsibility for that. For example, if your neighbor wants to borrow your lawn mower or other gardening tools and equipment’s for long term, you will need to get some kind of agreement in writing. By doing this, your potential liability regarding this act and accompanying outcomes of loaning property will be waived.

When you are loaning something important to someone else, you will need to make sure that you get it back to you as well as not being liable for the use of it. Otherwise you might get in trouble by misuse of the item even if it was the other party's fault. To prevent this, you must have a written document named receipt for personal property. When you use this form, carefully write down detailed description of Loan on Property of your own, therefore avoiding any possibility of mixing with other properties from someone else.

Accident can happen at any time and any place. Even if you have loaned your personal tools to someone else, that you think is not dangerous, it could become such as you might not know how and where they will use it. Simple shovel could be very dangerous to small children if misused. Of course you won't need to pull the legal document every time somebody borrows something from your garage, but keep in mind that there could be a potential issue along with the situation and your protection is utmost interest to you in such case.

Rather than not loaning any type of dangerous tools or equipment’s, you can simply warn your borrower that you will not take any responsibility for the use of it once it leaves your house. Although it is true that such a verbal agreement won't be as effective as a written document when it comes to proving all the evidence, it can still work at the court if the situation comes to that at the end. Moreover, if you have any other 3rd party who has heard of the agreement, the situation will be much better for you.

Use personal property rental agreement form if you're borrowing equipment from, or renting or lending equipment to, a friend or neighbor.

[Source: http://ezinearticles.com/?Potential-Issue-of-Loaning-Personal-Property&id=4959118]