DEPOSIT

(ARTICLE 1962-1967)

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. (Contract of Deposit)

Principal Purpose:
SAFEKEEPING and returning of the same

Take note!!
If “safekeeping is not the
principal purpose it may be:

1. Commodatum;
2. Lease; or
3. Agency.
6 CHARACTERISTICS OF DEPOSIT
 CHARACTERISTICS OF DEPOSIT
1. Real Contract- perfected by the delivery of the subject matter
Article 1963- An agreement to constitute a deposit is binding,
but the deposit itself is not perfected until the delivery of the thing.
2. Unilateral- when deposit is gratuitous, because only the depository has an obligation
Note: It becomes bilateral if COMPENSATION IS PAID because it gives rise to obligations on
the part of both the depositary and depositor.

3. Nominate- it has been given specific name by the Civil Code.

4. Principal- its existence is not dependent on another contract.

5. Informal- no particular form is required for the contract.

6. Gratuitous- the bailee does not pay the bailor for the use of the thing.
 Deposit vs. Mutuum
As to purpose
• For safekeeping or custody. • For consumption.
As to subject matter
• Movable/corporeal things only
in case of extrajudicial deposit.
• Money or fungible things.
Any property in case of
judicial deposit.
As to relationship
• Depositor and depositary. • Creditor and borrower.
As to compensation
• Generally gratuitous, except by
mutual agreement or
depository is engaged in • May be gratuitous or with
storing goods. stipulation to pay interest.
As to time of return
• Depositor can demand the • The lender must wait until the
return of the subject matterl at expiration of the period
will. granted to the debtor.
 Deposit vs. Commodatum
As to purpose
• For safekeeping. • For transfer of the use.
As to time of return

• The borrower can use the thing for

the period stipulated, and can be
required to return only in case of
• The depositary must as a rule, return
urgent need or when the bailee has
the thing deposited upon demand.
committed any of the acts of
ingratitude under Article 765 of the
Civil Code.

As to subject matter
• Movable/corporeal things only in
case of extrajudicial deposit. Any • Both movable and immovable may
property in case of judicial deposit. be the object.
As to compensation
• May be gratuitous. • Essentially and always gratuitous.
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 of agreement to deposit

- A deposit is real contract and is, therefore, perfected only upon delivery of
the object of the contract. Where there has been no delivery, there is merely an
agreement to deposit which, however, is binding and enforceable upon the
parties.

Hence, a contract of future deposit is CONSENSUAL.

Real Contract- perfected by the delivery of the subject matter.

 
 CREATION OF
DEPOSIT
Article 1964. A deposit may be constituted judicially or extrajudicially

Note: A deposit may be created by virtue of a court order or by law and not by the will of the parties.
This is the reason why the Code employs the word “constituted” in defining and classifying deposit.
In deposit, it is essential that the depositary is not the owner of the property deposited.
Kinds of deposit.
1. Judicial
2. Extrajudicial (Art. 1967)
a. voluntary
b. necessary
 Judicial vs. Extra-judicial
Deposit
As to creation
• Will of the court • Will of the parties or contract.
As to purpose
• Insures the right of a party to • Custody and safekeeping of the
property or to recover in case of thing deposited.
favorable judgment.
As to subject matter
• May cover movable and immovable
• Movables only.
property.
As to cause
• Always onerous • Generally gratuitous
As to time of return
• Upon order of the court or when
litigation is ended. • Upon demand of depositor
As to in whose behalf if it is held
• Person has a right. • Depositor
Article 1965. A deposit is a gratuitous contract, except when
there is an agreement to the contrary, or unless the
depositary is engaged in the business of storing goods.

General rule: A deposit is a gratuitous

contract.
Exceptions:
1. When there is a stipulation;
2. Depositary is engaged in business of storing goods; and
3. Property is saved from destruction without knowledge of
the owner.
Article 1966. Only movable things may be the object of
deposit.

Note: Article 1966 does not embrace incorporeal or intangible

property, such as rights and actions, for it follows the person of
the owner, wherever he goes, and is not by reason of its
incorporeality, susceptible of custody in the tangible sense that
deposit is juridically understood.
 Article 1967. An extrajudicial deposit is either
voluntary or necessary

Kinds of extrajudicial deposit

1. Voluntary- 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.
The depositor has complete freedom in choosing the depositary.
2. Necessary- made in compliance with:
a. A legal obligation;
b. On occasion of ant calamity;
c. By travelers in hotels and inns; or
d. By travelers with common carriers.
Note: There is a lack of free choice in the depositor.