DEPOSIT

BAYAN | BEATRIZ | ENCINARES | MIRANDO | SEDAN

DEFINITION.

There is deposit when one person delivers and the

other person receives a thing belonging to another, with
the obligation of safely keeping it and of returning the
same.

A. When Not Deposit.

B. Agreement to constitute.
EXTRAJUDICIAL DEPOSIT
A. VOLUNTARY
- result of voluntary agreement.
B. NECESSARY
- made in compliance with legal
obligation.

JUDICIAL DEPOSIT
-when the court orders the
attachment/seizure of property.
KINDS OF
DEPOSIT
 VOLUNTARY DEPOSIT
-the delivery is made by the will of the depositor.

SAFETY DEPOSIT BOX FREE VALET PARKING

-contract for the Rent of -the customer entrusts

Safety Deposit
-it is not lease if the full
and absolute possession
and control is not given
to the renter
his/her car to the
restaurant with the
expectation to return it.
- holding the restaurant
not liable for damages.
 CAPACITY

STATUS OF PARTIES RIGHTS AND OBLIGATIONS

DEPOSITOR - INCAPACITATED Depositary's duties remain but the legal

representative may ask for the return of the
DEPOSITARY - CAPACITATED
thing. (Article 1970, NCC)

Depositor has the right: (1) demand the return

DEPOSITOR - CAPACITATED
of the thing.

While still in depositary's possession; (2) to

demand from the depositary the amount by
DEPOSITARY - INCAPACITATED which he was benefitted enriched; (3)recoveR
the thing from a third person who acquired
the same. (Article 1971, NCC)
OBLIGATIONS OF DEPOSITARY
(1) To hold the thing and keep it safe
through the exercise of due diligence.
(2) To return the thing when required
to the depositor or the latter's heirs
or successors.
(i) The thing deposited shall be
returned with all its products,
accessories and accessions.
(3) To be liable for the loss of the
thing through the fault or negligence.
(4) Not to deposit the thing with a thrid
person - unless allowed through
stipulation.
(i) Ever if allowed - the depositary
should not deposit it with a
person who is manifestly careless
or unfot otherwise he or she is
still liable.
(5) Not to change the way of the
deposit. Exception: If under
circumstances he may reasonably
presume that the depositor would
consent to the change if he knew of the
facts of the situation.
 (7) To be liable for the loss of the
(6) Not make use of the thing deposited thing through a fortuitous event in the
without the express permission of the following cases:
depositor. Otherwise, he shall be liable
(i) If it is so stipulated;
for damages. Exception: When the
preservation of the thing deposited
(ii) If he uses the thing without
requires its use, it must be used but
the depositor's permission;
only for that purpose.
(iii) If he dekays its return;
(i) Effect of Permission to Use.
When the depositary has permission
(iv) If he allows others to use it
to use the thing deposited, the
even though he himself may have
contract loses the concept of a
been authorized to use the same.
deposit and becomes a loan or
commodatum, except where
safekeeping is still the principal
purpose of the contract. The
permission shall not be presumed,
and its existence must be proved.
(8) The depositary cannot demand that the
depositor prove his ownership of the thing
deposited.
(i) Nevertheless, should he discover that the
thing has been stolen and who its true owner
is, he must advise the latter of the deposit. If
the owner, in spite of such information, does
not claim it within the period of one month,
the depositary shall be relieved of all
responsibility by returning the thing deposited
to the depositor.
(9) For a depositary holding certificates,
bonds, securities or instruments which
earn interest, the depositary is obliged:
(i) to collect the latter when it becomes
due, and
(ii) 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."

(ii) 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.
(10) If the depositary by force majeure or
government order loses the thing and receives
money or another thing in its place, he shall
deliver the substitute (sum or other thing) to
the depositor (1987 and 1992 Bar).
a) If Sold by Mistake. The depositor's heir who
in good faith may have sold the thing which he
did not know was deposited, shall only
bebound to return the price he may have
received or to assign his right of action against
the buyer in case the price has not been paid
him."
Obligations of the Depositor.
(1) To pay the consideration if the
deposit is not gratuitous;
(2) If the deposit is gratuitous, to
reimburse the depositary for the
expenses he may have incurred for the
preservation of the thing deposited.
3.) To reimburse the depositary for any
loss arising from the character of the
thing deposited, unless at the time of
the constitution of the deposit the
former was not aware of, or was not
expected to know the dangerous
character of the thing, or unless he
notified the depositary of the same, or
the latter was aware of it without advice
from the depositor.
a.) Right of Retention. The depositary
may retain the thing in pledge until the
full payment of what may be due him by
reason of the deposit.
EXTINGUISHMENT
1.) Upon the loss or destruction of the
thing deposited;
2.) In case of gratuitous deposit, upon
the death of either the depositor or
the depositary.
NECESSARY DEPOSIT
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;
3.) The deposit of effects made by the
travellers in hotels or inns shall also be
regarded as necessary;
4.) Deposit to the hotelkeeper for the
vehicles, animals and articles which
have been introduced or placed in the
annexes of the hotel;
5.) The rules on necessary deposit
applies to hand-carried baggage of
passengers in contract of common
carriage. However, it is believed that
although the rule on necessary deposit
applies, the contract remains to be
common carriage and not necessary
deposit.
HOTELS AND INNS
The deposit of effects made by the
travellers in hotels or inns shall also
be regarded as necessary. The
keepers of hotels or inns shall be
responsible for them as depositaries,
provided:
1.) The notice was given to them, or to
their employees, of the effects
brought by the guests; and
2.) That, on the part of the guests,
they take precautions which said
hotel-keepers or their substitutes
advised relative to the care and
vigilance of their effects.
a.) Liability for Acts of Servants and
Employees. The hotel or inn-keepers
shall be liable for 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
strangers but not that which may
proceed from force majeure.
b.) Thief and Robber. The act of a thief
or robber who has entered the hotel is
not deemed force majeure.
(1) Exception: The act of a thief or robber is
a defense if it is done with the use of arms
or through an irresistible force. Hence, the
depositary is not liable under this
exception.
c.) Not liable for acts of guests. The
hotelkeeper is not liable for compen-
sation if the loss is:
(1) due to the acts of the guest, his
family, servants or visitors; or
(2) if the loss arises from the character
of the things brought into the hotel.
d.) Prohibited Acts. The hotelkeeper
cannot free himself from responsibility
by posting notices to the effect that he
is not liable for the articles brought by
the guest.
(1) Any stipulation between the
hotelkeeper and the guest whereby the
responsibility of the former is
suppressed or diminished shall be void.
The reason for this is that the hotel
business is imbued with public interest.
"Catering to the public, hotelkeepers
are bound to provide not only lodgings
for hotel guests and security to their
persons and belongings. The twin duty
constitutes the essence of the
business. The law in turn does not allow
such duty to the public to be negated
or diluted by any contrary stipulation.
(2) Thus, the hotelkeeper is liable even
if it made its guest sign an
"Undertaking" to release and hold free
and blameless the hotelkeeper from
any liability from any loss of the
deposit box where the properties of
the guest was kept (the contents of
which were taken by unauthorized
persons).
e.) Security: Right to Retain. The
hotelkeeper has a right to retain the QUESTIONS
things brought into the hotel by the
guest, as a security for credits on a) What contract, if any, was perfected
account of lodging, and supplies usually between Cris and the Hotel when Cris
fumished to hotel guests. surrendered the key of his car to the
Hotel's parking attendant?
PROBLEM: b) What is the liability, if any, of the Hotel
Due to the continuous heavy rainfall, the for the loss of Cris car? (2014 Bar)
major streets in Manila became flooded.
This compelled Cris to check-in at Square
One Hotel. As soon as Crisgot off from his
Toyota Altis, the Hotel's parking attendant
got the key of his car and gave him a valet
parking customer's claim stub. The
attendant parked his car at the basement
of the hotel. Early in the morning, Cris was
informed by the hotel manager that his car
was carnapped.
ANSWERS:
A.) The contract of necessary deposit was
perfected between Cris and Square One Hotel.
Article 1999 of the New Civil Code provides for
rules on necessary deposit of vehicles. Article
1999 provides that the hotelkeeper is liable for
the vehicles, animals and articles which have
been introduced or placed in the annexes of the
hotel.

b) Square One Hotel is liable for the loss of the

vehicle. The contract is one of necessary
deposit and as such, the purpose is safekeeping
of the vehicle. Hence, the said hotel should have
exercised due diligence in performing its
obligation of safekeeping the vehicle. The loss of
the vehicle through carnapping shows that the
hotel did not exercise due diligence in keeping
the vehicle safe (Durban Apartments v. Pioneer
Insurance, G.R. No. 179419, January 12, 2011).
THANK YOU
BAYAN, BEATRIZ,
ENCINARES, MIRANDO,
SEDAN
(BSA-2)