DEPOSIT Essential requisites of the contract Parties to the contract
Article 1962 1. Consent of the contracting parties 1. Depositor
- It is manifested by the meeting of - One or more depositor
A deposit is constituted from the moment the offer and acceptance upon the - Depositor need not to be the owner
a person receives a thing belonging to thing and the cause which are to because this contract does not
another, with the obligation of safely constitute the contract transfer ownership of the thing
keeping it and of returning the same. If deposited
the safekeeping of the thing delivered is 2. Object certain which is the subject 2. Depositary
not the principal purpose of the contract, matter of the contract
there is no deposit but some other - Only movable things capable of Extinguishment of deposit
contract. (1758a) being delivered
- Must be within commerce of men 1. Loss or destruction of the thing
What is Deposit?
- Must be determinate deposited or, in case of a
It is constituted from the moment a person - Must not be impossible gratuitous deposit
receives a thing belonging to another, with 2. Death of either the depositor or
the obligation of safely keeping it and 3. Cause of the obligation which is depositary
returning the same. established 3. Return of the thing by the
- Gratuitous: cause is mere liberality depositary
Characteristics of the contract of depositary
- Onerous: depositary is paid fees or Deposit distinguished from mutuum
1. Real – perfected by delivery of the when the depository is engaged in
subject matter the business of storing goods
2. Unilateral –it creates principal DEPOSIT MUTUUM
obligation on the part of depositary, to Deposit as a credit transaction Principal purpose The consumption
safely keep the thing and return it is safekeeping or of the subject
3. Nominate – it has specific name A deposit is a contract of confidence. The mere custody matter
4. Principal – its existence is not depositor places full faith and confidence in Depositor can The lender must
dependent on another contract the depositary’s probity and zeal. Before demand the return wait until the
the deposit is constituted, the depositor of the subject expiration of the
5. Informal – no particular form is
takes into account the personal qualities of matter at will period granted to
required
the debtor
6. Gratuitous – depositor does not pay the depositary.
Both movable and Only money or
compensation to the depositary immovable other consumable
property may be thing
the object
Kinds of Deposit contrary to law, morals, good customs,
public order, or public policy.
Article 1963 2. Where depositary engaged in business
1. Judicial – one which takes place when
An agreement to constitute a deposit is an attachment or seizure of property in of storing goods – based on the fact that
binding, but the deposit itself is not litigation is ordered the depositary is engaged in the
perfected until the delivery of the thing. business of storing goods for
2. Extrajudicial compensation and not out of pure
Binding effect of agreement to a. Voluntary – one wherein the generosity (like in a case of
deposit delivery is made by the will of the warehouseman)
depositor or by two or more 3. Where property saved from destruction
A deposit is a real contract and perfected
persons each of whom believes without knowledge of the owner – in
only upon delivery of the object of the
himself entitled to the thing voluntary deposit, where property is
contract. Where there has been no delivery,
deposited saved from destruction by another
there is merely an agreement to deposit,
b. Necessary – one made in person without the knowledge of the
which, however, is binding and enforceable
compliance with a legal obligation, owner, the latter is bound to pay the
upon the parties.
or on the occasion of any calamity, former.
Hence, a contract of future deposit is or by travelers in hotels and inns, or
Article 1966
consensual. by travelers with common carriers.
Only movable things may be the object
Article 1964 Article 1965
of a deposit
A deposit may be constituted judicially or A deposit is gratuitous contract, except
when there is an agreement to the Subject matter of deposit
extrajudicially.
contrary, or unless the depositary is
Creation of deposit engaged in the business of storing 1. Only movable or personal propery may
goods (1760a). be the object of extrajudicial deposit,
- By virtue of a court order whether voluntary or necessary.
- By law and not by will of the parties Contract of deposit generally 2. In judicial deposit, it may cover
gratuitous movable and immovable property its
In a deposit, it is essential that the purpose being to protect the rights of
depositary is not the owner of the property 1. When there is contrary stipulation – the parties to a suit.
deposited. first exception is recognized in the
general rule in contracts that the parties Only corporeal things contemplated
may establish any stipulation they may
deem convenient provided it is not This article does not embrace incorporeal
or intangible property, such as rights and
actions.
Article 1967
An extrajudicial deposit is either
voluntary or necessary.
Kinds of extrajudicial deposit
Deposit is generally voluntary. It becomes
necessary in the three cases mentioned in
Articles 1996 and 1998, i.e., when made
in compliance with a legal obligation, on
the occasion of any calamity, or by
travelers in hotels and inns.
