Article Sixth. On Location

607. Notion. Location is a contract by which the use or usufruct of some thing, or the work of a person, is conceded to another for a certain price.

a. He who furnishes the use or usufruct of the thing is called the locator; he who pays the price, the tenant or lessee; he who hires out his work, the servant or worker; he who pays the price, the master. The price owed from the pact must be paid in money; if another thing is paid in return for money, there is not a contract of location, but another innominate contract.

b. Location by its nature is an onerous contract: for if someone gratuitously concedes to another the use or usufruct of some thing, there is commodatum; and it is a consensual contract, which is already perfected as to essence by consent alone before the handing over of the thing leased. Wherefore once a contract of location has been entered by mutual consent, neither the locator nor the tenant is permitted to recede from the contract.

c. The object of this contract can be twofold: the use or usufruct of a material thing, whether movable, as of a horse or sheep, or immovable, as of a house, field, or farm; or services to be furnished by a man. Therefore a twofold location is distinguished: alpha. location of things and beta. location of work. The former is usually called simply location (Mietvertrag - Pachtvertrag), the latter hiring (Arbeitsvertrag - Lohnvertrag). To these can be added hiring of a work (Werkvertrag), because some work, such as the building of a house, is undertaken to be completed.