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DEPOSIT
b.
Definition of Deposit (“depositum” Roman law)
ART. 1962. A deposit is constituted from the moment a person receives a thing belonging to another,
with the obligation of 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.
Characteristics of Deposit
The contract of deposit is:
(1) It is a real contract like commodatum and mutuum because it is perfected by the delivery of the
subject matter.
(2) It is generally a unilateral contract. It gives rise to the principal obligation, on the part of the
depositary, to safely keep the thing and to return it. It is only when the depositor has agreed to pay
remuneration to the depositary that the contract will become bilateral and onerous, as the depositor
assumes a primary obligation.
(3) It is a nominate contract, because it has been given a specific name by the Civil Code.
(4) It is a principal contract, because its existence is not dependent on another contract.
(5) It is informal contract, because no particular form is required for the contract.
(6) It is generally gratuitous contract (where the depositor does not pay compensation to the
depositary) but it can be an onerous contract. Under Roman Law, a deposit is a gratuitous contract;
if remuneration is paid by the depositor, the contract becomes a contract of work or service. Under
the Civil Code, 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) Where there is contrary stipulation. — The first exception is recognized in the general rule in
contracts that the parties may establish any stipulation they may deem convenient provided it is not
contrary to law, morals, good customs, public order, or public policy. (Art. 1306.)
(2) Where depositary engaged in business of storing goods. — The second exception is based on the
fact that the depositary is engaged in the business of storing goods (as in the case of a warehouseman) for
compensation and not out of pure generosity.
(3) Where property saved from destruction without knowledge of the owner. — In involuntary
deposit, where property is saved from destruction during a calamity by another person without the
knowledge of the owner, the latter is bound to pay the former just compensation. (see Arts. 1996[2], 1997,
par. 2.)
Purpose
(1) Effect where safekeeping only an accessory obligation. — The principal purpose of the contract of
deposit is the safekeeping of the thing delivered so that if safekeeping is only an accessory or
secondary obligation of the recipient of the thing, deposit is not constituted but some other contract like
lease, commodatum, or agency. (Art. 1868.) Thus, the delivery of money to a person so that he may make
payment or invest the money for the account of the giver, or of documents or records to a lawyer hired to
represent a party to a suit, cannot be regarded as constituting a deposit, but only as an agency. Here, the
principal end of the contract is representation of one by another and not the custody
and preservation of the thing delivered.
(2) Balance of commission account in agent’s possession at principal’s disposal appropriated by
agent. — Where the balance of a commission account remains in the possession of the agent at
the principal’s disposal, the same acquires at once the character of a deposit which the former must return
or restore to the latter at any time it is demanded. The agent undoubtedly commits the
crime of estafa if he appropriates or diverts it to his own use. It could only become his as a loan, if so
expressly agreed by its owner who would then be obligated not to demand it until the expiration of the
legal or stipulated period. (U.S. vs. Igpuara, 27 Phil. 619 [1913].)
(3) Dollars deposited with bank sold by bank which credited peso proceeds to depositor’s current
account. — Where the document which embodies the contract states that U.S. dollars in cash
were received by the bank for safekeeping, and the subsequent acts of the parties also show that the intent
was really for the bank to safely keep the dollars and return it to the plaintiff who
demanded the return of the money about five months later, the above arrangement is the contract of
deposit defined under Article 1962. The bank violates its obligation if it sells the dollars
and it cannot defeat the plaintiff’s claim by asserting that the peso proceeds of the sale were properly
credited to the latter’s current account. (Bank of the Phil. Islands vs. Intermediate Appellate Court, 164
SCRA 630 [1988].) The depositary cannot make use of the thing deposited except only in the two instances
mentioned in Article 1977.
d.
Distinctions between Deposit and Mutuum (Simple Loan)
Deposit Mutuum (Simple Loan)
the principal purpose is the consumption of the subject
safekeeping or mere custody matter
the depositor can demand the the lender must wait until the
return of the subject matter at expiration of the period
will granted to the debtor
both movable and immovable only money and any other
property may be the object fungible thing
A voluntary deposit is one wherein the delivery is made by the will of the depositor. Ordinarily, there are
only two persons involved. Sometimes, however, the depositary may be a third person.
The chief difference between a voluntary deposit and a necessary deposit is that in the former, the
depositor has complete freedom in choosing the depositary, whereas in the latter, there is lack of free
choice in the depositor.
2. GR: Pay losses incurred by depositary due to the character of the thing deposited.
XPNs:
a. When at the time of deposit, the depositor was not aware of the dangerous character of the thing or
was not expected to know it;
b. When the depositor notified the depositary; or
c. When the depositary was aware of it without advice from the depositor.
3. In case of an onerous deposit, to pay the compensation agreed upon as consideration for the deposit.