Deposit deposit

Deposit Define a contract of deposit. ⇒ A deposit is constituted from the moment a person receives a thing belonging to another, with the obligationof safely keeping it and of returning the same. If the safekeeping of the thing delivered is not the principal purpose of the contract, there is no deposit but some other contract. It may be judicial or extrajudicial; incase of the latter, voluntary or necessary. What is a voluntary deposit? ⇒ A voluntary deposit is that wherein delivery is made by the will of the depositor. When is there a necessary deposit? ⇒ A deposit is necessary -(a)When it is made in compliance with a legal obligation; (b)When it takes place on the occasion of any calamity, such as fire, storm, flood, pillage, shipwreck, or other similar events (c)Deposit of effects made by travellers in hotels or inns under Art. 1998 How may a deposit be validly constituted? ⇒ Perfection by delivery ⇒ Contract may be made orally or in writing Note, however, that an agreement to constitute a deposit is binding. Who are the parties to a contract of deposit? ⇒ Depositor and Depositary Note, however, this does not mean that the depositor is or must be the owner of the thing What is scope of deposit? ⇒ Covers only movables ⇒ Note, however, that movable as well as immovable may be the object of sequestration Are fixed, savings and current deposits of money in banks and similar institutions considered contracts of voluntary deposit? ⇒ Fixed, savings and current deposits of money in banks and similar institutions shall be governed by the provisions concerning loan. What is the purpose of deposit? ⇒ Safekeeping ⇒ When the depositary has the permission to use the thing deposited, the contract loses the concept of adeposit and becomes a loan or commodatum, except where safekeeping remains the principal purpose of thecontract Rights and obligations of the depositary (a)Keep thing safely and return it, when re quired(b)Cannot deposit thing with third person, unless otherwise stipulated(c)May change way of typhoon, if it may be reasonably presumed depositor would consent, with notice(d)Collect interest when holding certificates, bonds, securities or instruments which earn interest(e)Cannot commingle, unless otherwise stipulated (f)Cannot use without express permission of depositor (unless necessary for preservation)(g)May retain thing IN PLEDGE until the full payment of what may be due him by reason of the deposit The depositary is liable for the loss of the thing through a fortuitous event: (a)If it is so stipulated;(b)If he uses the thing without the depositor’s permission;(c)If he delays its return;(d)If he allows others to use it, even though he himself may have been authorized to use the same Obligations of Depositor ⇒ Where gratuitous, reimburse the depositary for expenses incurred for preservation of the thing ⇒ Reimburse for loss arising from character of the thing deposited (exceptions in Art. 1993) Conditions of return

⇒ As a general rule, thing must be returned to the depositor upon demand, even though a specified period or time for return has been fixed ⇒ The thing deposited shall be returned with all its products, accessories and accessioins ⇒ Where delivered closed and sealed, return must be in same condition ⇒ If place was designated for return at the time the deposit was made, return must be made at such place, withdepositor shouldering cost of transportation Let us say the depositor has made a demand for the return of the thing. May the depositary refuse toreturn on the ground that he doubts the depositor’s legal title to the thing? ⇒ No. He may not refuse. The depositary cannot demand that the depositor prove his ownership of the thingdeposited. ⇒ If depositary discovers thing has been stolen and knows true owner - advise latter of deposit ⇒ If owner, so informed, does not claim within one month, depositary relieved of responsibility by returningthing to the depositor ⇒ If depositary has reasonable grounds to believe that the thing has not been lawfully acquired by thedepositor - he may return the same Specific modes of extinguishing a deposit (a)Loss or destruction of thing(b)Where gratuitous, upon death of either party Necessary Deposit (specifically Articles 1998-2003) ⇒ Conditions of application of 1998 include notice to hotel-keeper or employees and traveller takes advice asto care and vigilance ⇒ Extends to vehicles, animals, and articles introduced or placed in annexes of hotel ⇒ Excludes loss or injury arising from( a ) a c t s o f g u e s t ; (b)character of thing;(c)force majeure; act of thief or robber who enters hotel, without use of arms or irresistible force NOT force majeure ⇒ Hotelkeeper with right of retention, as security for credits and supplies ⇒ Note that the hotel-keeper cannot free himself from liability by posting notices to the effect that he is notliable; any stipulation whereby responsibility under Articles 1998-2001 suppressed or diminished shall bevoid.