Deposit

Constituted from the moment a person receives a thing belonging to another, with the obligation of
safely keep-it it and returning the same. If Safekeeping of the thing delivered is not the principal
purpose of the contract there is no deposit but some other contract

Depositary may use the thing:

1. If express permission of depositor

2. When preservation requires its use and only for that purpose

Kinds of deposit:

1. Judicial
2. Extra Judicial – either voluntary(mutual consent) or necessary(deposit due to calamity)

Can be unilateral or bilateral when it is gratuitous or onerous

Perfected on delivery

Gr: Gratuitous except when there is agreement to contrary or engaging in the business of storing
goods

Gr. Only movable things can be the object of deposit

 Voluntary Deposit

1. Delivery made by will of depositor

2. May also be made by two or more persons each believes that they are entitled to the thing
deposited with a third person, who shall deliver the thing to whom it belongs

Depositor need not be the owner

Entered into orally or written

Deposit made by incapacitated person

 The person who receives Subject to all the obligations of depositary

 Maybe compelled to return the thing by guardian or administrator or by the latter if he acquire
capacity

If Depositary is incapacitated

1. May only recover if thing is still in possession of depositary

2. Or compel to pay the value of the thing to which he may be enriched or the price of the thing
3. If third person is in bad faith he may bring action to recover

Obligation of Depositary

Safekeeping

1. If not stipulated diligence of a good father of a family

2. Gr: liable if loss due to fault except fortuitous events

Deposit cannot be deposited to a third person unless there is a stipulation

If allowed depositary liable if person is manifestly careless or unfit, responsible for negligence of
employee

Depositary may change the way of deposit if reasonably presume that the depositor would consent
given the situation before change must notify depositor and wait for decision unless delay causes
danger

Depositary may collect interest of the thing but not apply to rent of safetydeposit boxes

Depositary may commingle grain to which depositors shall own in proportion to the mass unless
stipulation to contrary

Cannot make use of the thing deposited without express consent , liable for damages, unless
preservation requires its use
If permission to use deposit becomes loan or commudatum except where safekeeping is principal
purpose. Permission must be proved not presumed.

No prescription for demand of return

Liable for fortuitous events if: (SUDA)

1. It is stipulated
2. Uses the thing without depositor’s permission
3. Delays its return
4. Allows other to use even though he himself may be authorized to use the same

Fixed, savings, and current deposits in banks governed by simple loan

If deposit is sealed

1. Return it in the same condition and liable if broken through fault

2. Fault is presumed unless proof to contrarty
3. Value shall be statement of depositor if fault imputable to depositary
4. Depositary shall keepn the secret of the deposit

Lock box presumed authorized to open when:

1. Key is delivered
2. Or instructions cannot be done without opening

Thing deposited returned with all its products, accessories and accessions

Depositary cannot:

1. Depositor prove ownership- if discovered thing is stolen must advise true owner of the deposit
2. If true owner does not claim within one month shall return deposit to depositor.
3. If has reasonable grounds that deposit not acquired lawfully may return deposit.

Depositor losses capacity to contract cannot be returned except to person with administration rights

If returned discharged of liability if depositor kept or such return is beneficial to him

If stipulation to return at a specified place must return in said place and expenses for transportation
shall be paid by depositor if no location may return where deposit is located provided no malice

GR- return deposit upon demand except when judicially attached or notification of opposition of third
persons but must notify depositor of opposition

Depositary may return thing deposited before time for justifiable reason except if it is for valuable
consideration
If deposited thing through force majeure or by government is exchanged for money shall be delivered
to depositor

If heir sells deposit gives depositor the value receive or action against buyer if he does not pay

Obligation of depositor

Reimburse expenses for preservation of thing

Extingusihed (LDEDTFW)

1. If Loss
2. If gratuitous upon Death of either parties’
3. Expiration of Term
4. Demand by will
5. Termination of purpose
6. Fulfillment of resolutory condition
7. Mutual withdrawal of contracct