Deposit Group 2 De Guzman. Halili. Macaraig. Patupat. Saringan. Villarias.

DepositGroup 2De Guzman. Halili. Macaraig. Patupat. Saringan. Villarias.

DEPOSIT•constituted from the moment a person receives a thing belonging to another, with the obligation of safely keeping it and of returning the same.(Art. 1962)

Characteristics2•real contract(Art.1963)•unilateral, if gratuitous; bilateral, if for compensation

Purpose•Safekeeping of the thing delivered(Art.1962)

Deposit MutuumSafekeeping Consumption of

Subject Matter Demand the return of the subject matter at will

Wait until the expiration of the period

Movable and immovable property as subject

Only money and any other fungible thing

Deposit CommodatumSafekeeping Transfer of useMay be gratuitous Essentially and always

gratuitous

Kinds of Deposit

1. Judicial

2. Extrajudicial(Art.1967)

• voluntary

• necessary

Deposit -generally gratuitous except, through established stipulation or engaged in the business of storing goods

Deposit 1. Judicial 2. Extrajudicial -Voluntary -Necessary

EXTRAJUDICIAL DEPOSIT

I. VOLUNTARY DEPOSIT– delivery is made by the will of the depositor (Art.

1968)

Depositors need not be the owner of the thing deposited.

Art. 1984 - The depositary cannot demand proof of ownership from the depositor.


Where There Are Several DepositorsTwo or more persons each claiming to be entitled to the thing deposited may deposit the same with a third person who assumes the obligation to deliver to the one to whom it belongs. (Art. 1968)

The action to compel the depositors to settle their conflicting claims among themselves is covered in Sec. 1 of Rule 63 in the Rules of Court.


Form of Contract of DepositA contract of deposit may be entered into orally or in writing. (Art. 1969)


Where Depositary Capacitated and the Depositor IncapacitatedThe depositary is subject to all the obligations of a depositary, whether or not the depositor is capacitated.Depositary must return the property to the legal representative of the depositor or the depositor himself if he should acquire capacity.


Where Depositary Incapacitated and the Depositor CapacitatedThe depositary doesn’t incur the obligation of a depositary. However, he is liable:• To return the thing deposited while still in

his possession• To the pay the depositor the amount by which

he may have benefited himself with the thing or its price subject to the right of a third person who acquired the thing in good faith


When Depositor Lost Capacity During the DepositThe thing can be returned only to his guardian or administrator

OBLIGATIONS OF THE DEPOSITARY

1. Take care of the thing with the proper diligence of a good father of a family unless the stipulation of the parties requires another standard of care (1163)

2. Be liable for damages if the thing is lost through his fault or negligence (1170)

3. Return the thing when required (1972)



Transfer of deposit to third person (Art. 1973)GR: The depositary may not transfer the deposit to third person (1973)EXC:

When there is stipulation authorizing the depositary Exception to exception: When the third person is manifestly careless or unfit


Change the way of deposit (Art. 1974)GR: The depositary may not change the way of depositEXC:

1. Under circumstances when he could reasonably presume that the depositor would consent to the change

2. When there is notice to the depositor and the depositor gives his consent

3. When delay of decision would cause danger



Obligation of the depository when he is holding instruments which earn interest (Art. 1975)(certificates, bonds, securities)

1. Collect the interest as it becomes due2. Take such steps necessary to preserve its value

and rights corresponding to itArticle 1975 does not apply to contracts for rent of safety deposit boxes



The depositary may commingle grain or other articles of same kind and quality. Various depositors shall own proportionate interest in the mass.(Art. 1976)



Use of the thing deposited (Art. 1977)GR: The depositary may not use the thing depositedEXC:

1. When he is expressly authorized by the depositor

2. When usage is for preservation of the thingWhen the depositary has permission to use the thing, the contract becomes a loan or commodatum, except when safekeeping is still the purpose



Loss of the thing deposited through a fortuitous eventGR: The depositary is not liable

EXC: (Art. 1979)When there is stipulation to the contrary1. If he uses the thing without the depositor’s

permission2. If he delays its return3. If he allow others to use it even if he himself is

given the authority to use the thing deposited

Fixed, saving, and current deposits of money in banks shall be governed by the provisions concerning simple loan (Art. 1980)



When the thing deposited is delivered closed and sealedGR:

1. The depositary must return it in the same condition

2. Be liable for damages when the seal is broken through his fault

3. Keep the secret of the deposit once the seal or lock is broken

EXC:4. When it becomes necessary to open a locked

box or receptacle, the depository is presumed authorized to do so if the key has been given to him

5. When opening is necessary to execute the instructions of the depositor



Obligation of depositary to return products, accessories, and accessions (Art. 1983) The depositary should return to the depositor [who is the owner or at least represents the owner]1. The thing deposited2. Its products, accessories, and accessions The depositary shall be liable for interest 3. If the what is deposited is money, 4. Depositary is in delay or he has used the money

without permission



Depositor need not prove his ownership (Art. 1984)GR: The depositary cannot require the depositor to prove ownership over the thing. To constitute a deposit, the depositor need not be the owner of the thing. The depositary has an obligation to notify the real owner of the thing deposited if..1) The thing deposited is stolen2) The depositary knows who its true owner is.



If the owner does not claim it within one month the depositary shall be relieved of all responsibility by returning the thing deposited to the depositor. 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.



Right of two or more depositors to demand return of their respective shares1. Thing deposited divisible and depositors not

solidary- each depositor can demand only his

proportionate share

2. Obligation is solidary or thing deposited not divisible- the rules on active solidarity shall apply (Art. 1212 and 1214), thus the depositary can return the thing to anyone of the solidary depositors unless a demand, judicial or extrajudicial has been made



3. Return to one of depositors stipulated- the depositary is bound to return it to the person designated although he has not made any demand for its return



Person to whom return must be made1. The depositary is obliged to return the thing

deposited when required toa. Depositorb. His heirs and successorsc. Person designated in the contract

2. If the depositor, at time of making the deposit, was incapacitated, the property must be returned to his d. Guardian or administratore. Person who made the depositf. To the depositor himself if he subsequently

acquire capacity3. If depositor subsequently loses capacity during

depositg. Thing must be returned to legal representative



Art. 1986 Depositor lost capacity to contract after deposit

Place of Return (Art. 1987)Thing must be returned at1. At the place stipulated [expenses borne by

depositor]2. In absence of stipulation, location of thing (even

if it is not the same location where the original deposit was made provided no malice on part of depositary in making the transfer)



Time of ReturnGR: Upon demand, even if there is stipulation as to the fixed time for return, thing deposited must be returned to the depositorEXC:1. When the thing is judicially attached while in the

depositary's possession, or 2. Depositary notified of the opposition of a 3rd

person to the return



Right of depositary to return thing deposited (Art. 1989)GR: The depositary may return the thing deposited even if there is a time stipulated for the return provided that1. The deposit is gratuitous2. Justifiable reasons exist for its returnIf the depositor refuses to receive the thing, the thing may be deposited at the disposal of judicial authority.

If the deposit is for a valuable consideration, depositary has no right to return the thing before expiration of term



Liability for loss by force majeure or government order (Art. 1990)

GR: Depositary is not liable for loss of thing by force majeure or by government order. If he receives money, he must give to the depositor.



Alienation in good faith by depositary’s heir (Art. 1991)

Where the depositary’s heir, who is in good faith, have sold the thing which he did not know was deposited, he shall be bound to

1. Return the Price2. Assign his right of action against buyer in

case price has not been paid by him




OBLIGATIONS OF THE DEPOSITOR

Obligation To Pay Expenses of Preservation (Art. 1992)1. Deposit gratuitous

–Depositor is obliged to reimburse the expenses for preservation

2. Deposit for compensation–The expenses of preservation are deemed included in the compensation. There can however be a contrary stipulation.



Obligation To Pay Losses Due To Character of the Thing (Art. 1993)The depositor shall reimburse the depositary EXCEPT when1. at the time of the constitution of the

deposit, depositor was not aware of, or was not expected to know the dangerous character of the thing, or

2. he notified the depositary of the same, or3. the latter was aware of it without advice from

the depositor



Depositary’s Right of Retention (Art. 1994)The depositary may retain the thing in pledge until the full payment of what may be due him by reason of the deposit. (1780)



Extinguishment of Deposit (Art. 1995)1. Upon the loss or destruction of the thing

deposited;2. In case of a gratuitous deposit, upon the death of

either the depositor or the depositary.

There could also be other causes such as return of the thing, novation, merger, expiration of term, fulfillment of resolutory condition (Art. 1231)



Effect of Death of Depositor or Depositary1. Deposit gratuitous —the death of either the

depositor or depositary extinguishes the deposit.2. Deposit for compensation —deposit is not

extinguished. The rights and obligations arising therefrom are transmissible to their respective heirs. But the heirs of either party have a right to terminate the deposit even before the expiration of the term.


EXTRAJUDICIAL DEPOSIT

II. NECESSARY DEPOSIT 1. Made in compliance with a legal obligation

(Art. 1996)GR: (Art. 1997)

a. Provisions of the law establishing the necessary deposit and,

b. In case of deficiency, rules of voluntary deposit


2. On the occasion of any calamity (Art. 1996)GR: (Art. 1997)

Provisions concerning voluntary depositArticle 2168 – A person is bound to pay just compensation to another who saved his property during a calamity


3. Deposit made by travelers in hotels or inns Hotel-keepers are held responsible if: (Art. 1998)

previously informed about the effects brought by the guestsGuests took the precautions prescribed by the hotel-keeper


In case of loss/damage to the personal property of guests,

Hotel-keeper LIABLE if: Hotel-keeper NOT LIABLE if:Caused by his employees or strangers (Art. 2000)

Force majeure (Art. 2000, 2001)

Caused by act of thief done without the use of arms and irresistible force (Art. 2001)

Due to the acts of guests, his family, servants or visitors (Art. 2002)

**not limited to effects lost/damaged in hotel rooms but also include those lost in hotel annexes (Art. 1999)

Loss arises from the character of the things (Art. 2002)

*Any stipulation suppressing or diminishing the responsibility of hotel-keepers as set forth in the provisions shall be VOID. (Art. 2003)*Hotel-keepers have the right to retain the things as a security for the guest’s credits. (Art. 2004)


SEQUESTRATION OR JUDICIAL DEPOSIT

–takes place when an attachment or seizure of property in litigation is ordered (Art. 2005)–auxiliary to a case pending in court


Obligation of depositary of sequestrated property1. He may not be relieved of his responsibility until

the litigation is ended or the court so orders. (Art. 2007)

2. He has to take care of the property with the diligence of a good father of a family. (Art. 2008)


Judicial Deposit Extrajudicial deposit

Cause or origin

By the will of the court

By the will of the parties

Purpose As security and to secure the right of a party to recover in case of a favorable judgment

Custody and safekeeping of the thing


Judicial Deposit Extrajudicial deposit

Subject matter

Movable or immovable property (Art. 2006)

Movable property

Remuneration

Always remunerated

Generally gratuitous

In whose behalf it is held

Person who, by the judgment, has a right

Depositor or third person designated


As to the matters not provided for in this Code, judicial sequestration shall be governed by the Rules of Court. (Art. 2009)

Deposit Group 2 De Guzman. Halili. Macaraig. Patupat. Saringan. Villarias.

Documents

Transcript of Deposit Group 2 De Guzman. Halili. Macaraig. Patupat. Saringan. Villarias.