TITLE XII

DEPOSIT
 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)
Article 1963. An agreement to constitute a deposit is
binding, but the deposit itself is not perfected until the
delivery of the thing. (n)
Article 1964. A deposit may be constituted judicially or
extrajudicially. (1759)
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.
(1760a)
Article 1966. Only movable things may be the object of
a deposit. (1761)
Article 1967. An extrajudicial deposit is either
voluntary or necessary. (1762)
 CHAPTER 2
Voluntary Deposit
 SECTION 1
General Provisions
Article 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)
Article 1969. A contract of deposit may be entered into
orally or in writing. (n)
Article 1970. If a person having capacity to contract
accepts a deposit made by one who is incapacitated, the
former shall be subject to all the obligations of a
depositary, and may be compelled to return the thing by
the guardian, or administrator, of the person who made
the deposit, or by the latter himself if he should acquire
capacity. (1764)
Article 1971. If the deposit has been made by a
capacitated person with another who is not, the
depositor shall only have an action to recover the thing
deposited while it is still in the possession of the
depositary, or to compel the latter to pay him the
amount by which he may have enriched or benefited
himself with the thing or its price. However, if a third
person who acquired the thing acted in bad faith, the
depositor may bring an action against him for its
recovery. (1765a)
 SECTION 2
Obligations of the
Depositary
Article 1972. The depositary is obliged to keep the
thing safely and to return it, when required, to the
depositor, or to his heirs and successors, or to the person
who may have been designated in the contract. His
responsibility, with regard to the safekeeping and the
loss of the thing, shall be governed by the provisions of
Title I of this Book.
If the deposit is gratuitous, this fact shall be taken into
account in determining the degree of care that the
depositary must observe. (1766a)
Article 1973. Unless there is a stipulation to the
contrary, the depositary cannot deposit the thing with a
third person. If deposit with a third person is allowed,
the depositary is liable for the loss if he deposited the
thing with a person who is manifestly careless or unfit.
The depositary is responsible for the negligence of his
employees. (n)
Article 1974. The depositary may change the way of
the deposit if under the circumstances he may
reasonably presume that the depositor would consent to
the change if he knew of the facts of the situation.
However, before the depositary may make such change,
he shall notify the depositor thereof and wait for his
decision, unless delay would cause danger. (n)
Article 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)
Article 1976. Unless there is a stipulation to the
contrary, the depositary may commingle grain or other
articles of the same kind and quality, in which case the
various depositors shall own or have a proportionate
interest in the mass. (n)
Article 1977. The depositary cannot make use of the
thing deposited without the express permission of the
depositor.
Otherwise, he shall be liable for damages.
However, when the preservation of the thing deposited
requires its use, it must be used but only for that
purpose. (1767a)
Article 1978. When the depositary has permission to
use the thing deposited, the contract loses the concept of
a 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. (1768a)
Article 1979. The depositary is liable for the loss of the
thing through a fortuitous event:
(1) If it is so stipulated;
(2) If he uses the thing without the depositor's
permission;
(3) If he delays its return;
(4) If he allows others to use it, even though he himself
may have been authorized to use the same. (n)
Article 1980. Fixed, savings, and current deposits of
money in banks and similar institutions shall be
governed by the provisions concerning simple loan. (n)
Article 1981. When the thing deposited is delivered
closed and sealed, the depositary must return it in the
same condition, and he shall be liable for damages
should the seal or lock be broken through his fault.
Fault on the part of the depositary is presumed, unless
there is proof to the contrary.
As regards the value of the thing deposited, the
statement of the depositor shall be accepted, when the
forcible opening is imputable to the depositary, should
there be no proof to the contrary. However, the courts
may pass upon the credibility of the depositor with
respect to the value claimed by him.
When the seal or lock is broken, with or without the
depositary's fault, he shall keep the secret of the deposit.
(1769a)
Article 1982. When it becomes necessary to open a
locked box or receptacle, the depositary is presumed
authorized to do so, if the key has been delivered to
him; or when the instructions of the depositor as regards
the deposit cannot be executed without opening the box
or receptacle. (n)
Article 1983. The thing deposited shall be returned with
all its products, accessories and accessions.
Should the deposit consist of money, the provisions
relative to agents in article 1896 shall be applied to the
depositary. (1770)
Article 1984. The depositary cannot demand that the
depositor prove his ownership of the thing deposited.
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.
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. (1771a)
Article 1985. When there are two or more depositors, if
they are not solidary, and the thing admits of division,
each one cannot demand more than his share.
When there is solidarity or the thing does not admit of
division, the provisions of articles 1212 and 1214 shall
govern. However, if there is a stipulation that the thing
should be returned to one of the depositors, the
depositary shall return it only to the person designated.
(1772a)
Article 1986. If the depositor should lose his capacity
to contract after having made the deposit, the thing
cannot be returned except to the persons who may have
the administration of his property and rights. (1773)
Article 1987. If at the time the deposit was made a
place was designated for the return of the thing, the
depositary must take the thing deposited to such place;
but the expenses for transportation shall be borne by the
depositor.
If no place has been designated for the return, it shall be
made where the thing deposited may be, even if it
should not be the same place where the deposit was
made, provided that there was no malice on the part of
the depositary. (1774)
Article 1988. The thing deposited must be returned to
the depositor upon demand, even though a specified
period or time for such return may have been fixed.
This provision shall not apply when the thing is
judicially attached while in the depositary's possession,
or should he have been notified of the opposition of a
third person to the return or the removal of the thing
deposited. In these cases, the depositary must
immediately inform the depositor of the attachment or
opposition. (1775)
Article 1989. Unless the deposit is for a valuable
consideration, the depositary who may have justifiable
reasons for not keeping the thing deposited may, even
before the time designated, return it to the depositor;
and if the latter should refuse to receive it, the
depositary may secure its consignation from the court.
(1776a)
Article 1990. 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 sum or
other thing to the depositor. (1777a)
Article 1991. The depositor's heir who in good faith
may have sold the thing which he did not know was
deposited, shall only be bound 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. (1778)
 SECTION 3
Obligations of the
Depositor
Article 1992. If the deposit is gratuitous, the depositor
is obliged to reimburse the depositary for the expenses
he may have incurred for the preservation of the thing
deposited. (1779a)
Article 1993. The depositor shall 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.
(n)
Article 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)
Article 1995. A deposit its extinguished:
(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. (n)
 CHAPTER 3
Necessary Deposit
Article 1996. 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. (1781a)
Article 1997. The deposit referred to in No. 1 of the
preceding article shall be governed by the provisions of
the law establishing it, and in case of its deficiency, by
the rules on voluntary deposit.
The deposit mentioned in No. 2 of the preceding article
shall be regulated by the provisions concerning
voluntary deposit and by article 2168. (1782)
Article 1998. The deposit of effects made by 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 that notice was given to them,
or to their employees, of the effects brought by the
guests and that, on the part of the latter, they take the
precautions which said hotel-keepers or their substitutes
advised relative to the care and vigilance of their
effects. (1783)
Article 1999. The hotel-keeper is liable for the vehicles,
animals and articles which have been introduced or
placed in the annexes of the hotel. (n)
Article 2000. The responsibility referred to in the two
preceding articles shall include 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
any force majeure. The fact that travellers are
constrained to rely on the vigilance of the keeper of the
hotels or inns shall be considered in determining the
degree of care required of him. (1784a)
Article 2001. The act of a thief or robber, who has
entered the hotel is not deemed force majeure, unless it
is done with the use of arms or through an irresistible
force. (n)
Article 2002. The hotel-keeper is not liable for
compensation if the loss is due to the acts of the guest,
his family, servants or visitors, or if the loss arises from
the character of the things brought into the hotel. (n)
Article 2003. The hotel-keeper cannot free himself
from responsibility by posting notices to the effect that
he is not liable for the articles brought by the guest. Any
stipulation between the hotel-keeper and the guest
whereby the responsibility of the former as set forth in
articles 1998 to 2001 is suppressed or diminished shall
be void. (n)
Article 2004. The hotel-keeper has a right to retain the
things brought into the hotel by the guest, as a security
for credits on account of lodging, and supplies usually
furnished to hotel guests. (n)
 CHAPTER 4
Sequestration or
Judicial Deposit
Article 2005. A judicial deposit or sequestration takes
place when an attachment or seizure of property in
litigation is ordered. (1785)
Article 2006. Movable as well as immovable property
may be the object of sequestration. (1786)
Article 2007. The depositary of property or objects
sequestrated cannot be relieved of his responsibility
until the controversy which gave rise thereto has come
to an end, unless the court so orders. (1787a)
Article 2008. The depositary of property sequestrated is
bound to comply, with respect to the same, with all the
obligations of a good father of a family. (1788)
Article 2009. As to matters not provided for in this
Code, judicial sequestration shall be governed by the
Rules of Court. (1789a)