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Law On Necessary Deposit Law On Guaranty
Law On Necessary Deposit Law On Guaranty
LAW ON GUARANTY
NECESSARY DEPOSIT Under Art. 1996.
A deposit is necessary:
• 1. When it is made in compliance with a legal
obligation
• 2. When it takes place on the occasion of any
calamity, such as fire, storm, flood, pillage,
shipwreck, or other similar events
Article 1997. The deposit referred to in No. 1 of
the preceding articles shall be governed by the
provisions of the law establishing it, and in case
of deficiency, by the rules on voluntary deposit.
The deposit mentioned in No. 2 of the preceding
article shall be regulated by the provisions
concerning voluntary deposit and by Article
2186.
Necessary deposit in compliance with a legal
obligation:
a. Judicial deposit of a thing the possession of
which is being disputed in a litigation by two or
more persons
b. Deposit with a bank or public institution of
public bonds or instruments of credit payable
to order or bearer given in usufruct when the
usufructuary does not give proper security for
their conservation
c. Deposit of a thing pledged when the creditor
uses the same without the authority of the
owner or misuses it in any other way
d. Those required in suits are provided in Rules
of Court
e. Those constituted to guarantee contracts with
the government; the deposit arises from an
obligation of public or administrative character
Necessary deposit made on the occasion of any
calamity:
1. Deposit created by accident or fortuitous event
2. Possession of movable property passes from
one person to another by accident or fortuitously
through force of circumstances and which the law
imposes on the recipient the obligations of a
bailee
3. More immediate object is to save the property
rather than its safekeeping
4. There must be a causal relation between the
calamity and the constitution of the deposit—
deposito miserable
Article 1998.
The deposit of effects made by travelers in
hotels or inns shall also be regarded as
necessary. The keepers of hotels or inns shall
be responsible for them as depositaries,
provided that notice was given to them, or
their employees, of the effects brought by the
guests and that, on the part of the latter, they
take the precautions which said hotel-keepers
or their substitutes advised relative to the care
and vigilance of their effects.
Article 1999. The hotel-keeper is liable for the
vehicles, animals and articles which have been
introduced or placed in the annexes of the
hotel.
Before keepers of hotels or inns may be held
responsible, the following elements must
concur:
a. They have been previously informed about
the effects brought by the guests
b. Latter have taken the precautions prescribed
regarding their safekeeping.
The responsibility imposed extends to all those
who offer lodging for a compensation
• “Travelers” and “guests”—refers to
transients and not to boarders; non-
transients are governed by the rules on lease
• “Inn”—a public house for the lodging of
travelers for compensation and until capacity
is reached; a place of public entertainment
that does not provide lodging
• “Motel”—an establishment which provides
lodging and parking and in which the rooms
are usually accessible from an outdoor
parking area
Article 2000. The responsibility referred to in the
two preceding articles shall include the loss of,
or injury to the personal property of the guests
caused by the servants or employees of the
keepers of hotels or inns as well as by strangers;
but not that which may proceed from any force
majeure.
As to Manner of Creation:
Conventional - created by agreement of the
parties.
Legal - created by provision of law.
Judicial - created by decree of court.
Kinds of Guaranty
As to consideration:
Gratuitous - guarantor receives no consideration
for the guaranty.
• Onerous - the guarantor receives a valuable
consideration for the guaranty.
As to person guaranteed
Single – one constituted solely to guarantee or
secure performance of the principal obligation
Double or sub-guaranty – one constituted to
secure the fulfillment of a prior guaranty
Kinds of Guaranty
Example
Example
Suppose in the foregoing example D is the sub-
guarantor of Y. In case of insolvency of Y, D is liable
to the co-guarantors X and Z in the same manner as
Y. So X can seek reimbursement from D the
proportionate share of Y, which is P10,000.
EXTINGUISHMENT OF GUARANTY