CHAPTER III – DEPOSIT (Articles 1962-2009)

Chapter 1

DEPOSIT IN GENERAL AND ITS DIFFERENT KINDS

Article 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.
(1758a)

Characteristics of the contract

 It is a real contract like commodatum and mutuum because it is perfected by the

delivery of the subject matter.
 (2) When the deposit is gratuitous, it is a unilateral contract because only the depositary
(depositorio) has an obligation. But when the deposit is for compensation, the juridical
relation created becomes bilateral because it gives rise to obligations on the part of
both the depositary and depositor (depositante).

Safekeeping, principal purpose of the contract.

 Safe keeping of the thing delivered

o If safe keeping is secondary purpose, the deposit is not constituted but some
other contract like lease, commodatum, or agency.
 If the agent used the thing or disposed of it, the agent committed a crime of stafa

Deposit vs Mutuum

 (1) In deposit, the principal purpose is safekeeping or mere custody, while in

mutuum, the consumption of the subject matter;
 (2) In deposit, the depositor can demand the return of the subject matter at will,
while in mutuum, the lender must wait until the expiration of the period granted to
the debtor; and
 (3) In deposit, both movable and immovable property may be the object, while in
mutuum, only money and any other fungible thing

Deposit vs Commudatum

 Deposit (Safekeeping) – Commodatum (transfer of use)

 Deposit (may be Gratuitous) – Commodatum (essentially and always gratuitous)
 Extrajudicial Deposite (Only movavble (Corporeal things) – Commodatum (both movable
and immovable things)

Judicial Deposit vs Extrajudicial Deposit

Extrajudicial – voluntary

Judicial – for necessity. E.i check-in sa hotel, before check in, deposit muna sa lobby
Article 1963 - An agreement to constitute a deposit is binding, but the deposit itself is not perfected
until the delivery of the thing. (n)

Binding effect – perfected only upon delivery of object

ART. 1964. A deposit may be constituted judicially or extrajudicially. (1759)

VOLUNTARY DEPOSIT

SECTION 1. — General Provisions

ART. 1968. A voluntary deposit is that wherein the delivery is made by the will of the depositor. A
deposit may also be made by two or more persons each of whom believes himself entitled to the thing
deposited with a third person, who shall deliver it in a proper case to the one to whom it belongs. (1763

ART. 1975. The depositary holding certificates, bonds, securities or instruments which earn interest shall
be bound to collect the latter when it becomes due, and to take such steps as may be necessary in order
that the securities may preserve their 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. (n)

Contract for rent of safety deposit boxes

 (1) to collect the interest as it becomes due

 (2) to take such steps as may be necessary to preserve its value and the rights corresponding to
it.

Contract for rent of safety deposit boxes.

A contract for the rent of safety deposit boxes (second paragraph) is not an ordinary contract of lease of
things but a special kind of deposit; hence, it is not to be strictly governed by the provisions on deposit.