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DEPOSIT
MAY
EXTRAJUDICIAL
BE
CONSTITUTED
DEPOSIT
IS
EITHER
JUDICIALLY
OR
NECESSARY
OR
1. KINDS OF DEPOSIT
(A) EXTRAJUDICIAL DEPOSIT- Deposit that is perfected without any court intervention
(a) Voluntary- Deposit out of a voluntary agreement
(b) Necessary- Deposit made out of compliance of an obligation.
(B) JUDICIAL DEPOSIT- Deposit that results when the court orders the attachment or
seizure of a property.
ARTICLE 1966- ONLY MOVABLE THINGS MAY BE SUBJECT OF DEPOSIT.
(a) The rule is different on judicial deposit wherein Article 2006 and 2006 expressly
recognize the deposit of real property.
(b) What is contemplated in Article 1966 are corporeal things. Example: Shares of
stocks are intangible property, which cannot be deposited. However, certificate of
stocks (corporeal) may be the subject of deposit because they represent the
shares of stocks.
(c) Foreign currency can be the subject of deposit.
ARTICLE 1965- A DEPOSIT IS A GRATUITOUS CONTRACT, EXCEPT WHEN THERE
IS AN AGREEMENT TO THE CONTRARY, OR UNLESS THE DEPOSITARY IS
ENGAGED IN THE BUSINESS OF STORING GOODS.
1. GENERALLY GRATUITOUSGR: A DEPOSIT IS GRATUITOUS.
XPN: (1) When there is an agreement to the contrary; (2) Depositary is engaged in the
business of storing goods.
ARTICLE 1974- THE DEPOSITARY MAY CHANGE THE WAY OF DEPOSIT IF UNER
THE CIRCUMSTANCE HE MAY REASONABLY PRESUME THAT THE DEPOSITOR
WOULD CONSENT TO THE CHANGE IF HE KNEW THE FACTS OF THE SITUATION.
HOWEVER, BEFORE THE DEPOSITARY MAY MAKE SUCH CHANGE, HE SHALL
NOTIFY THE DEPOSITOR AND WAIT FOR HIS DECISION, UNLESS DELAY WOULD
CAUSE DANGER.
ARTICLE 1975- THE DEPOSITARY HOLDING CERTIFICATES, BONDS, SECURITIES
OR INSTRUMENTS WHICH EARN INTEREST SHALL BE BOUND TO COLLECT THE
LATTER WHEN IT BECOMES DUE, AND TAKE SUCH STEPS NECESSARY TO
PRESERVE THE VALUE AND THE RIGHTS CORRESPONDING TO THEM ACCORDING
TO LAW.
THE ABOVE PROVISION SHALL NOT APPLY TO CONTRACTS FOR THE RENT
OF SAFETY DEPOSIT BOXES.M
ARTILE 1976- UNLESS THERE IS A STIPULATION TO THE CONTRARY, THE
DEPOSITARY MAY COMMINGLE GRAIN OR OTHER ARTICLES OF THE SAME KIND
AND QUALITY IN WHICH CASE THE DEPOSITORS SHALL OWN OR HAVE A
PROPORTIONATE INTEREST IN THE MASS.
- In such case, the various depositors of the commingled goods shall own
the entire mass in common and each depositor shall be entitled to such
portion thereof as the amount deposited by him bears to the whole. The
warehouseman shall be severally liable to each depositor for the care and
redelivery of his share of such mass to the same extent and under the
same circumstances as of the goods had been kept separate.
ARTICLE 1977- THE DEPOSITARY CANNOT MAKE USE OF THE THING DEPOSITED
WITHOUT THE EXPRESS PERMISSION OF THE DEPOSITOR.
OTHERWISE HE SHALL BE LIABLE FOR DAMAGES
HOWVEVER WHEN THE PRESERVATION OF THE THING DEPOSITED
REQUIRES USE IT MUST BE USED BUT ONLY FOR THAT PURPOSE.
ARTICLE 1978- WHEN THE DEPOSITARY HAS PERMISSION TO USE THE THING
DEPOSITED, THE CONTRACT LOSES THE CONCEPT OF A DEPOSIT AND BECOMES
A LOAN OR COMMODATUM EXCEPT WHERE THE SAFEKEEPING IS STILL THE
PRINCIPAL PURPOSE OF THE CONTRACT.
THE PERMISSION SHALL NOT BE PRESUMED AND ITS EXISTENCE MUST BE
PROVED.
1. IRREGULAR DEPOSIT- The depositary has the permission to use the thing but
safekeeping is still the principal purpose of the deposit.
SIMPLE LOAN
IRREGULAR DEPOSIT
ARTICLE 1979- THE DEPOSITARY IS LIABLE FOR THE LOSS OF THE THING
THROUGH A FORTUITOUS EVENT:
(1)IF IT IS SO STIPULATED
(2)USES THE THING WITHOUT DEPOSITORS PERMISSION
(3)HE DELAYS RETURN
(4)IF HE ALLOWS OTHER TO USE IT, EVEN IF USE WAS ALLOWED BY THE
DEPOSITOR.
1. FORTUITOUS EVENT:
-For the defense of fortuitous event to be accepted for the non-performance of the
obligation, the ff shall be present: (1) The fortuitous event shall be INDEPENDENT of the
human will; (2) The occurrence of the event should not be foreseen or if can be foreseen
should be inevitable to avoid; (3) The occurrence of the event must be to render the
debtor impossible to fulfill his obligation in a normal manner; (4) The debtor must free
from any participation in the aggravation of the injury resulting to the creditor.
ARTICLE 1980- FIXED SAVINGS, AND CURRENT DEPOSITS OF MONEY IN BANKS
AND SIMILAR INSTITUTIONS HALL BE GOVERNED BY THE PROVISIONS ON
SIMPLE LOAN
ARTICLE 1981- WHEN THE THING DEPOSITED IS DELIVERED CLOSED AND
SELED, THE DEPOSITARY MUST RETURN IT IN THE SAME CONDITION, AND HE
SAHLL BE LIABLE FOR DAMAGES SHOULD THE SEAL OR LOCK BE BROKEN
THROUGH HIS FAULT
FAULT ON THE PART OF THE DEPOSITARY IS PRESUMED, UNLESS THERE IS
PROOF TO THE CONTRARY.
AS REGARDS TO THE VALUE OF THE THING DEPOSITED, THE STATEMENT
OF THE DEPOSITOR SHALL BE ACCEPTED, WHEN THE FORCIBLE OPENING IS
IMPUTABLE TO THE DEPOSITARY, SHOULD THERE BE NO PROOF TO THE
CONTRARY. HOWEVER THE COURTS MAY PASS UPON THE CREDIBILITY OF THE
DEPOSITOR WITH RESPECT TO THE VALUE CLAIMED BY HIM.
WHEN THE SEAL OR LOCK IS BROKEN WITHOUT THE DEPOSITARYS FAULT,
HE SHALL KEEP THE SECRET OF THE DEPOSIT.
1. LIABILITY AND PROOF OF DAMAGE. The depositary is liable for damages if he fails
to prove that there is no fault on his part. The extent of liability is actual damages
constituting the value of the thing.
Determination of value: (1) Rules on Evidence; (2) Statement of the depositor regarding
the value of the thing subject to the statement of the courts regarding the credibility of
the statement of the depositor.
ARTICLE 1982- WHEN IT BECOMESS NECESSARY TO OPEN A LOCKED BOX OR
RECEPTACLE, THE DEPOSITARY IS PRESUMED TO BE AUTHORIZED TO DO SO, IF
THE KEY HAS BEEN DELIVERED TO HIML OR WHEN THE INSTRUCTIONS OF THE
DEPOSITOR AS REGARDS TO THE DEPOSIT CANNOT BE EXECUTED WITHOUT
OPENING OF THE BOX OR RECEPTACLE.
1. CASES WHEN DEPOSITARY CAN OPEN
(1) If the key has been delivered to him; (2) Instructions of the depositor regarding the
deposit cannot be executed without opening the same.
anything which may be prejudicial to others; (2) The depositaries may return the
thing to any one of the solidary depositors; but if any demand, judicial or
extrajudicial, has been made by one of the depositors, delivery should be made to
him.
ARTICLE 1987. PLACE OF RETURN- (1) In the place designated in the contract; (2) If
no place is designated, the place where the thing deposited is presently located.
-In the second situation, the law requires that there is no malice on the part of the
depositary.
ARTICLE 1988- RETURN AT WILL.
-GR: The thing must be returned at the demand of the depositor even there may be a fix
date or time for such return.
-XPN: (1) When the thing is judicially attached while in the depositarys possession; (2)
Should the depositary be notified of a third party opposition to the return or removal of
the thing deposited (in this case, the appropriate remedy is to file a case for
INTERPLEADER)
ARTICLE 1991- THE DEPOSITARYS HEIR WHO IS IN GOOD FAITH MAY HAVE
SOLD THE THING WHICH HE DID NOT KNOW WAS DEPOSITED, SHALL ONLY BE
BOUND TO RETURN THE PRICE HE MAY HAVE RECEIVED OR TO ASSIGN HIS
RIGHT OF ACTION AGAINST THE BUYER IN CASE THE PRICE HAS NOT BEEN PAID
HIM.
1. SALE OF THE THING- A depositary shall not sell the thing deposited because he
is not the owner of the thing.
2. DEPOSITORS RIGHT TO SELL- With respect to the depositor, it depends
whether he is the owner of the thing deposited. If he is not the owner, a SPA is
needed.
3. DEPOSITARYs HEIR- In case of the death of the depositary, his heirs may acquire
possession of the thing deposited by way of mistake in thing that it is part of their
inheritance. In that case, the heir shall only be bound to the price he had received
for the thing or his may assign his right of action against the buyer in case the
price is still not paid to him.
-If the third person is a buyer in good faith, only the unpaid balance is recoverable
against him. On the other hand if the third person is buyer in bad faith, the thing can be
recovered from him.
-The depositarys heir is not liable if he destroy the thing thinking it is of no use or
if he uses it.