LAW ON CREDIT TRANSACTIONS- DEPOSIT

__________________________________1. It is constituted from the moment a person receives a thing

belonging to another, with the obligation of safety keeping it and of returning the same.

__________________________________2. It is a real contract and is, therefore, perfected only upon

the delivery of the object of the contract.

__________________________________3. One which takes place when an attachment or seizure of

property in litigation is ordered.

__________________________________4. One wherein the delivery is made by the will of the

depositor or by two or more persons each of whom believes himself entitled to the thing deposited.

__________________________________5. One made in compliance with a legal obligation, or on the

occasion of any calamity or by travelers with common carriers.

__________________________________6. It is that wherein the delivery Is made by the will of the

depositor.

__________________________________7. He/ she must be the owner of the thing deposited.

__________________________________8. The depositary must exercise over the thing deposited the
same diligence as he would exercise over his property for two.

__________________________________9. It is not an ordinary contract of lease things but a special

kind of deposit; hence it is not to be strictly governed by the provisions on deposit.

__________________________________10. It is for safekeeping of the subject matter ad not for its use.

__________________________________11. The death of either the depositor or depositary

extinguishes the deposit.

__________________________________12. It is not extinguished by the death of either party because

it is an onerous deposit where it is not personal in nature.

__________________________________13. It takes place when an attachment or seizure of property in

litigation is ordered.

__________________________________14.

TRUE OF FALSE

1. If the safekeeping of the thing delivered is not the principal purpose of the contract, there is no
deposit but some other contract.
2. When the deposit is gratuitous it is a bilateral contract.
3. When the deposit is for compensation, it gives rise to a unilateral contract.
4. In a deposit, it is essential that the depositary is the owner of the property deposited.
5. Contract of future deposit is consensual.
6. Only movable things may be the object of deposit.
7. A carrier, commission agent, lessee, etc., may deposit gods temporarily in his possession
considering that the contract does not involve the transfer of ownership.
8. A contract of deposit may be entered into orally or in writing.
9. If the depositary is capacitated, he is subject to all the obligations of a depositary whether or not
the depositor is capacitated.
10. The depositary must return the property of the legal representative of the incapacitated or to
the depositor himself if he should acquire capacity.
11. Persons who are capable cannot allege the incapacity of those with whom they contact.
12. The incapacitated depositary does not incur the obligations of a depositary.
13. Incapacitated depositary is liable to return the thing deposited while still in his possession
 14. Incapacitated depositary is liable to pay the depositor amount by which he may have benefited
himself with the thing or its price subject to the right of any third person who acquired the thing
in good faith.
15. If deposit with a third person is allowed, the depositary is liable for the loss if he deposited the
thing with a person who is manifestly careless or unfit.
16. The depositary is not responsible for the negligence of his employees.
17. The depositary is not allowed to deposit the thing with third person.
18. The depositary may change the way or manner of the deposit if there are circumstances
indicating that the depositor would consent the change.
19. Before the depositary make change, he may not notify the depositor.
20. The depositary cannot commingle goods if so stipulated.
21. The depositary can make use of the thing deposited without the express permission of the
depositor.
22. When the preservation the thing deposited requires its use, it must be used but only for that
purpose.
23. In a deposit, the permission to use is not presumed except when such use is necessary for the
preservation of the thing deposited.
24. The depositary can demand that the depositor prove his ownership of the thing deposited.
25. If the depositary has reasonable grounds to believe that the thing has not been lawfully
acquired by the depositor, the former may return the same.
26. When there are two or more depositors, if they are not solidary, and the thing admits of
division, each one can demand more than his share.
27. If the depositor should lose his capacity to contract after having made the deposit, the thing
cannot be returned except to the persons who may have the administration of his property and
rights
28. If at the time the deposit was made a place was designated for the return of the thing, the
depositary must take the thing deposited to such place, but the expenses for transportation
shall be borne by the depositor.
29. If no place has been designated for the return, it shall be made where the thing deposited may
be, even if it should not be the same place where the deposit was made, provided that there
was no malice on the part of the depositary.
30. The depositor can demand the return of the thing deposited at will and this is true whether a
period has been stipulated or not.
31. The depositary has the obligation to return the thing deposited. But he is not liable for loss of
the thing by force majeure or by government order.
32. If in place of the thing he receives money or another thing, he has the duty to deliver to the
depositor what he has received; otherwise he would enrich himself at the expense of the
depositor.
33. The depositor shall reimburse the depositary for any loss arising from the character of the thing
deposited.
34. The depositary may not retain the thing in pledge until the full payment of what may due him by
reason of the deposit.
35. The hotel- keeper can free himself from responsibility by posting notices to the effect that he is
not liable for the articles brought by the guest.
36. The hotel- keeper has a right to retain the things brought into the hotel by the guest, as a
security for credits on account of lodging, and supplies usually furnished to hotel guests.
37. As to matters not provided for in this Code, judicial sequestration shall be governed by the Rules
of Court.

Multiple Choice

1. The contract of deposit is generally gratuitous; except

 a. Where there is contrary stipulation
b. Where depositary engaged in business of merchandising
c. Where depositary engaged in business of storing goods
d. Where property saved from destruction without knowledge of owner
2. The deposit is generally voluntary. It becomes necessary when made in the following cases;
except
a. On the occasion of any calamity
b. By travelers in hotels and inns
c. By travelers with common carriers
d. In compliance with a legal obligation
e. None of the above
3. R deposited a watch with Y, a minor, who sold it to C. If C acted in bad faith, what should R’s
action?
a. He’s only recourse is against Y to compel him to return the price received from the watch
b. He’s resort is against both Y and C to return the amount which they may have benefited
themselves.
c. He may recover the watch from C.
d. None of the above.
4. If deposit with a third person is allowed, the depositor is liable for the loss if; exempt
a. He transfers the deposit with a third person without authority although there is no
negligence on his part and the third person
b. He deposits the thing with a third person who is manifestly careless or unfit although
authorized, even in the absence of negligence.
c. The thing is lost through the negligence of his employees whether the latter are manifestly
careless or not
d. The depositor is not responsible in case the thing is lost without negligence of the third
person with whom he was allowed to deposit the thing if such third person is not
“manifestly careless or unfit”
5. The following rules are applicable to keep thing deposited and return it
a. The depositary is liable if the loss occurs through his fault or negligence
b. The loss of the thing while in his possession ordinarily raises a presumption of fault on his
part
c. The required degree care is smaller if the deposit is for compensation than when it is
gratuitous.
d. The liability of the depositary for the care and delivery of the thing is governed by rules on
obligation.
6. Y received from R for deposit 12 cavans of rice, from S, eight (8) cavans, and from T, four (4)
cavans, the rice being the same kind and quality.
a. Y can commingle S and T cavans in order to have 12 cavans equivalent to R.
b. Y can commingle the 24 cavans and R,S, and T would become the co-owners of the entire 24
cavans in the proportion of 3/6. 2/6 and 1/6 respectively
c. Y cannot commingle goods if so stipulated.
d. Y need to keep them separated at least identifiable he must return to each depositor the
indentical delivered.
7. Y received from R for deposit 12 cavans of rice, from S, eight (8) cavans, and from T, four (4)
cavans, the rice not of the same kind and quality.
a. Y can commingle S and T cavans in order to have 12 cavans equivalent to R.
b. Y can commingle the 24 cavans and R,S, and T would become the co-owners of the entire 24
cavans in the proportion of 3/6. 2/6 and 1/6 respectively
c. Y cannot commingle goods if so stipulated.
d. Y need to keep them separated at least identifiable he must return to each depositor the
indentical delivered.
8. If the thing deposited is non- consumable and the depositary has permission to use the thing
 a. the contract loses the character of a deposit and acquires that of a commodatum despite
the fact that the parties may have denominated it as a deposit
b. the permission to use will result in its consumption and converts into a simple loan or
mutuum
c. it is still a deposit but an irregular one called an irregular deposit
d. it should be governed by the law on loans
9. In safekeeping, If the thing deposited is money or other consumable thing the permission to use
1. the contract loses the character of a deposit and acquires that of a commodatum despite
the fact that the parties may have denominated it as a deposit
2. the permission to use will result in its consumption and converts into a simple loan or
mutuum
3. it is still a deposit but an irregular one called an irregular deposit
4. it should be governed by the law on loan
10. What is/ are the instances when the depositary is liable for loss of the thing loaned even if it
should be through fortuitous event?
1. If it so stipulated
2. If he uses the thing without the depositor’s permission
3. If he delays its return
4. If he allows other to use it, even though he himself, may have been authorized to use the
same
1. 1 and 2 c. 2, 3, and 4
2. 1, 2, and 3 d. 1, 2, 3, and 4
11. Where the thing deposited delivered closed and sealed, the depositary has the obligation to
1. Return the thing deposited when delivered closed and sealed, in the same condition
2. Pay for damages should the seal or lock be broken through his fault which is presumed
unless proved otherwise
3. Keep the secret of the deposit when the seal or lock is broken with or without his fault
1. 1 only c. 2 only
2. 1 and 2 d. 1, 2, and 3
12. If the owner, in spite of such information, does not claim it within the period of one month
1. The depositor of the thing may still recover it through other legal process.
2. The depositor after one month may not recover the thing through any process.
3. The depositary shall be relieved of all responsibility by returning the thing deposited to
the depositor
4. The depositary shall return the thing to the depositor of the thing.
13. R and S deposit 150 and 300 cavans of rice, respectively if the thing deposited is divisible and
there are two or more depositors who are not solidary
1. R and S can demand more than their proportionate share
2. R and S can only demand their proportionate share
3. S can demand more than his share
4. S can commingle his share to R
14. If R and S are solidary depositors of the thing deposited is a car which does not admit of division,
if by stipulation the thing should be returned
1. The depositary can return to either R and S
2. The depositary is bound to return it only the person designated
3. The depositary should be returned to S
4. The depositary should be return to R for the demand for its return has already been by
R.
15. If the right of depositary to return the thing deposited is clear enough that the depositary has no
right to return the thing deposited before the expiration of the time designated even he is
inconvenienced in the process.
1. Deposit gratuitous c. Deposit for compensation
2. Deposit for valuable consideration d. Deposit for reimbursement
 16. Believing in good faith that the thing deposited by R with Y worth 10,000 belonged to Y, C, heir
of Y, sold the thing to D who paid him 8,000.00.
1. C may assign to R the right to collect from D the 8,000.00 if it has not been paid
2. C is bound to return to R 8,000.00 the price he received and not 10,000.00
3. C should pay R 10,000.00 plus damages which R may have suffered.
4. C is criminally liable for estafa.
a. 1 and 2 only c. 3 and 4 only
b. 1, 2 and 3 d. All of the above
17. Believing in good faith that the thing deposited by R with Y worth 10,000 belonged to Y, C, heir
of Y, sold the thing to D who paid him 8,000.00. If C acted in bad faith
1. C may assign to R the right to collect from D the 8,000.00 if it has not been paid
2. C is bound to return to R 8,000.00 the price he received and not 10,000.00
3. C should pay R 10,000.00 plus damages which R may have suffered.
4. C is criminally liable for estafa.
a. 1 and 2 c. 3 and 4
b. 4 only d. All of the above
18. 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. Both a and b
d. None of the above
19. When hotel- keeper is liable
1. The loss or injury is caused by his servants or employees as well as by strangers
2. The loss is caused by the act of a thief or robber done without the use of arms and irresistible
force
3. The loss or injury is cause by force majeure like flood fire, robbery committed by a stranger
by force or intimidation
4. The loss is due to the acts of the guest, his family, servants or visitors
5. The loss arises from the character of the things brought into the hotel
a. 1 and 2 only c. 3, 4 and 5
b. 1, 2 and 3 d. All of the above
20. When hotel- keeper is not liable
1. The loss or injury is caused by his servants or employees as well as by strangers
2. The loss is caused by the act of a thief or robber done without the use of arms and irresistible
force
3. The loss or injury is cause by force majeure like flood fire, robbery committed by a stranger
by force or intimidation
4. The loss is due to the acts of the guest, his family, servants or visitors
5. The loss arises from the character of the things brought into the hotel
a. 1 and 2 only c. 3, 4 and 5
b. 1, 2 and 3 d. All of the above

DETERMINE WHETHER JUDICIAL OR EXTRAJUDICIAL DEPOSITS

__________________________________1. By the will of the court

__________________________________2. As security and to secure the right of a party to recover in

case of a favorable judgment

__________________________________3. By the will of the parties hence, there is contract

__________________________________4. Custody and safekeeping of the thing

__________________________________5. The subject matter is only movable property

__________________________________6. The subject matter is either movable or immovable property
but generally immovable property

__________________________________7. Always renumerated or enormous

__________________________________8. It may be compensated or not, but generally gratuitous

__________________________________9. In behalf of the depositor or third person is designated

__________________________________10. In behalf of the person who, by the judgment has a right

ENUMERATIONS

A. The two primary obligations of the depositary

1.
2.
3.
B. Two condition must exist where third person appears to be owner
4.
5.
C. Extinguishment of the deposit
6.
7.