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IV. Deposit - Coggle Diagram

- - - - AS DISTINGUISHED FROM MUTUUM
        
        CAUSE - Safekeeping & Custody | Consumption
        
        RETURN - Depositor can demand return at any time | Period to return is enforced
        
        COMPENSATION - Essentially gratuitous unless by mutual agreement | may be gratuitous or with stipulation to pay interest
        
        OBJECT - Any property | Fungible Things
        
        RELATIONSHIP - Depositor and depositary | Lender and borrower relationship
      - OWNERSHIP (1984) - Depositor need not be the owner. No transfer of ownership involved; The purpose of the deposit is safekeeping and custody.
  - - - A. How Constituted (1968) -
        
        GR - Generally when the delivery is made by the will of the depositor.
        
        XCPN - However, may also be constituted by two or more persons who believe themselves entitled to a thing. here, deposit to a third person who delivers the thing to one whom it belongs.
        
        B. Form (1969) - May be orally or in writing.
        
        C. Object (1966) - Only movable things may be the object of a deposit
        
        D. Consideration (1965) - Gratuitous
        
        XCPN
        
        AGREEMENT - to the contrary
        
        BUSINESS - depository engaged in the business of storing goods.
        
        E. Parties to a Deposit (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)
        
        Depositary -
        
        Depositor
        
        F. Obligation to Safekeep (1962)
        
        Way of the Deposit (1974-1982) - Delivery in the specific manner to the depositary of the depositor of the object of the deposit for safekeeping.
        
        CHANGE (1974) - Depositary may change the way of the deposit if circumstances allow for reasonable presumption that depositor would consent to the change if they knew of facts. Here, NOTICE prior to change unless delay = danger.
        
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        Liability for Loss and Damages
        
        Liability of Depositary
        
        LOSS/DAMAGE (1972) - If deposit is gratuitous, shall be considered in determining the degree of care of the depositary.
        
        THIRD PERSON (1973) - Depositary deposits the object with a third person without authorization.
        
        AUTHORIZED THIRD PERSON(1973) - Being authorized, depositary deposits with a person who is manifestly careless or unfit.
        
        EMPLOYEES (2180) - of the depositary are negligent
        
        USE - depositary uses the object UNLESS permitted OR necessary for preservation
        
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        Liability of Depositor (1993) -
        
        GR The depositor shall reimburse the depositary for any loss arising from the character of the thing deposited
        
        XCPN:
        
        UNKNOWN - the depositor was not aware or did not expect the dangerous character of the thing at the time the deposit was constituted
        
        NOTIFICATION - Depositor notified the depositary or latter was in any case aware of the danger.
        
        Liability for Expenses (1992)
        
        Depositary - If Onerous
        
        Depositor - If Gratuitous
        
        Obligation to Return (1962)
        
        TO WHOM(1972)
        
        Depositor
        
        Heirs and Successors
        
        Persons designated in the contract.
        
        EFFECT OF INCAPACITY (1970-1971)
        
        DEPOSITOR - Only has an action to recover while thing is in possession of the depositary OR compel depositary to pay the amount by which they may have been enriched/benefited. IF third person acquires in bad faith, may file for recovery
        
        DEPOSITARY - Subject to regular obligations but may be compelled to return the thing by the guardian/administrator or depositor who regains capacity
        
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        TWO OR MORE SOLIDARY DEPOSITORS OR THING NOT DIVISIBLE (1985) -
        
        GR: Stipulation of parties is controlling.
        
        XCPN - No stipulation. Then:
        
        DEMAND - Payment should be made to demand
        
        NO DEMAND - Depositary may pay any of the solidary depositors.
        
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        WHAT TO RETURN (1983 & 1986)
        
        THING - Object of the deposit
        
        PRODUCTS - Accessories and accessions
        
        INTEREST (In money Deposits) - on sums applied to the depositary's own use, from the day on which they did so and those which they owe after the extinguishment of the agency.
        
        WHERE TO RETURN (1987)
        
        GR: At the place designated.
        
        XCPN: In the absence of designation, where the thing deposited may be even if it is not where the deposit was made.
        
        WHEN TO RETURN (1988-1989)
        
        GR: Return upon demand, even if a specific period or time has been fixed.
        
        XCPN:
        
        ATTACHMENT - Thing is judicially attached while in the depositary's possession
        
        OPPOSITION - Depositary was notified of the opposition of a third person to the return or removal of the thing deposited.
        
        EFFECT OF XCPN - Depository must inform depositor of attachment/opposition and may take measures to protect itself via going to court. This is only XCPN to return upon demand, obligation to return is still there.
        
        RETURN BY DEPOSITARY (1989) -
        
        GR - Depositary can return if 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
        
        XCPN - The deposit is for valuable consideration
        
        Extinguishment (1995)
        
        LOSS/DESTRUCTION - of the thing deposited
        
        DEATH - Only in gratuitous deposit, upon death of either party.
        
        RETURN;DOUBTFUL OWNERSHIP BETWEEN TWO PEOPLE (1968) - Depositary must file an interpleader case. Asking the two parties to litigate to determine ownership.
        
        OWNERSHIP (1984) -
        
        GR - Depositary cannot demand that the depositor prove his ownership of the thing deposited.
        
        XCPN - If depositary discovers that: (a) thing stolen and; (b) identity of true owner, je must advise the latter of the deposit.
        
        Duty of Owner - Owner has 1 month period to claim within knowledge,
        
        Otherwise depositary shall be relieved of all responsibility by returning the thing deposited to the depositor.
        
        Stolen - 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.
      - PERFECTION (1963) - A real contract, perfected upon delivery. However, an agreement to deposit may be a valid consensual contract.
        
        CONTRACT TO DEPOSIT - Same as to loan.
    - - A. General Concepts (1966-1967, 1996)
        
        B. Examples of Necessary Deposit
        
        1. Compliance with a Legal Obligation (1996-1997) - Governed by the provisions of the law establishing it and supplementarily by the rules on voluntary deposit.
        
        2. On the Occasion of a Calamity (1996-1997, 2168) - Governed by 2168 and voluntary deposit provisions. Applies when there is a fire, flood, storm or other calamity.
        
        3. Passenger Baggage with Common Carriers (1754) - Considered as necessary deposit. The CC being the depositary.
        
        Check In - The provisions of articles 1733 to 1753 shall apply to the passenger's baggage which is not in his personal custody or in that of his employee.
        
        Handcarry - ALL other baggage covered by 1998, 2000 & 2003
        
        4. Hotels or Inns (1998-2004) - Different from boarding houses/dorms as hotels or inns are imbued with public interest. Differentiated from lodging houses, hotels are transient i.e. short term duration.
        
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        WHO ARE COMMON CARRIERS - persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public
        
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        WHO IS THE DEPOSITARY - The person who saves the movable property from destruction WITHOUT knowledge of the owner. Thus, the owner is bound to pay just compensation, being considered the depositor.
        
        EFFECT OF KNOWLEDGE - Considered as voluntary deposit?
        
        LITIGATION - The judicial deposit of a thing the possession of which is being disputed in a litigation by two or more persons
        
        BANK DEPOSITS;USUFRUCT - The deposit with a bank or public institution of public bonds or instruments of credit payable to order or bearer given in usufruct when the usufructuary doesn’t give proper security for their conservation
        
        MISUSE OF PLEDGE - The deposit of a thing pledged when the creditor uses the same without the authority of the owner or misuses it in any other way
        
        COURT ORDER - Those required in suits as provided for in the Rules of Court
        
        CONTRACTS WITH GOVERNMENT - Those constituted to guarantee contracts with the government. In this last case, the deposit arises from an obligation of a public or administrative character.
    - - OBJECT (2006) - XCPN, may have as its object immovable property.
      - WHEN DEPOSITED (2005) - When an attachment or seizure of property in litigation is ordered.
        
        DURATION OF DEPOSIT (2007) - Depositary cannot be relieved of responsibility UNTIL the
        
        controversy which gave rise to deposit has come to an end OR
        
        court orders.
        
        DEGREE OF DILIGENCE (2008) - Bound to comply with all the obligations of a good father of the family.
      - Rules of Court (2009) - Suppletorily applies to Judicial Deposits.
    - - A. General Concepts (Warehouse Receipts Law, Sec. 1) - Warehouse receipts may be issued by any WAREHOUSEMAN, person engaged in storing goods for profit.
        
        B. Form of Warehouse Receipts (Secs. 2-7, 15) - Must be in written form and contain specific terms. However, no particular written form.
        
        C. Obligations and Rights of a Warehouseman
        
        D. Negotiation and Transfer of Warehouse Receipts
        
        E. Criminal Liability (50-55)
        
        Sec. 50. Issue of receipt for goods not received. — A warehouseman, or an officer, agent, or servant of a warehouseman who issues or aids in issuing a receipt knowing that the goods for which such receipt is issued have not been actually received by such warehouseman, or are not under his actual control at the time of issuing such receipt, shall be guilty of a crime, and, upon conviction, shall be punished for each offense by imprisonment not exceeding five years, or by a fine not exceeding ten thousand pesos, or both.
        
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        D1. Negotiation (Secs. 37-38, 40-49) -
        
        D2. Transfer (Sec. 39, 42-44)
        
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        Negotiable Receipt of Delivery (S.37) - Negotiable receipt may be negotiated by delivery if where by the terms of the receipt, the warehouseman undertakes to deliver the goods to
        
        THE BEARER
        
        TO THE ORDER - of a specified person, and such person or a susbequent indorsee of the receipt has indorsed it IN BLANK or TO BEARER. In such cases, any holder may indorse the same to himself or to a specificed person and thereafter the receipt shall be negotiated only by the indorsement of the indorsee
        
        Negotiable Receipt by Indorsement (S.38) - A negotiable receipt may be negotiated by the indorsement of the person to whose order the goods are, by the terms of the receipt, deliverable. Such indorsement may be in blank, to bearer or to a specified person. If indorsed to a specified person, it may be again negotiated by the indorsement of such person in blank, to bearer or to another specified person. Subsequent negotiation may be made in like manner.
        
        Who may Negotiate a Receipt (S.40) - May be negotiated by:
        
        OWNER - by the owner thereof, or
        
        POSSESSOR/CUSTODY - By any person to whom the possession or custody of the receipt has been entrusted by the owner, if, by the terms of the receipt, the warehouseman undertakes to deliver the goods to the order of the person to whom the possession or custody of the receipt has been entrusted, or if, at the time of such entrusting, the receipt is in such form that it may be negotiated by delivery.
        
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        Negotiable Instrument/Negotiation - Being able to be transferred from one person to the other. Useful because can be used as collateral or can be sold. Facilitates transaction because no need for the goods to be transferred, only the receipt/negotiable instrument. Like a check.
        
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        C1. Liability for Goods (20-26) - Similar to liability of a depositary for the safekeeping of the property deposited.
        
        C2. Obligation to Deliver (Secs. 16-19, 8-14) - Similar to obligation to return of deposit.
        
        C3. Warehouseman's Lien (27-36) - the legal right of the warehousman in the depositor's property. Similar to depository's right of retention under the NCC, in the sense that it is a means by which depositary/WHman is able to obtain payment of what may be due because of the deposit.
        
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        Obligation to Deliver (S.8) - if no lawful excuse, WHman is bound to deliver the goods upon demand, made by the holder of a receipt of the goods or by the depositor provided that the demand is accompanied by:
        
        OFFER TO SATISFY - the warehouseman's lien
        
        OFFER TO SURRENDER - the receipt, if negotiable with such indorsements necessary for the negotiation of the receipts
        
        READINESS - and willingness to sign when the goods are delivered, an acknowledgment that they have been delivered if such signature is requested by the warehouseman.
        
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        Non-Existence/Misdescription (S.20) - WHman liable to holder of a receipt for damages caused by the NON-EXISTENCE of the goods OR by the FAILURE of the goods to CORRESPOND with the description thereof in the receipt at the time of its issue.
        XCPN - Goods are described in a receipt by
        
        a statement of marks or labels upon them or
        
        upon packages containing them or
        
        by a statement that the goods are said to be goods of a certain kind or that the packages containing the goods are said to contain goods of a certain kind or by words of like purport,
        
        Such statements, if true, shall not make liable the warehouseman issuing the receipt, although the goods are not of the kind which the marks or labels upon them indicate or of the kind they were said to be by the depositor.
        
        Liability for Care of Goods (S.21) - WHman shall be liable for any loss or injury to the goods caused by his failure to exercise such care in regard to them as reasonably careful owner of similar goods would exercise,
        But he shall not be liable, for any loss or injury to the goods which could not have been avoided by the exercise of such care. UNLESS prior stipulation.
        
        Separation (S.22) - WHman shall keep the goods separate, even from other goods of the same depositor if separate receipt has been issued. This is to permit the identification and redelivery of the goods deposited. UNLESS commingling under S.23.
        
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        Essential Terms (S. 2) - Must contain the following:
        
        LOCATION - of the warehouse where the goods are stored.
        
        DATE - of issue of the receipt.
        
        CONSECUTIVE NUMBER - of the receipt.
        
        STATEMENT OF DELIVERY - Whether the goods received will be delivered to bearer, to specified person, or his order.
        
        RATE - of storage charges
        
        DESCRIPTION - of the goods or of the packages containing them
        
        SIGNATURE - of the warehouseman which may be made by his authorized agent
        
        AMOUNT OF ADVANCES - statement of the amount of advances made and of liabilities incurred for which the warehouseman claims a lien. IF precise amount at the time of issue to warehouseman/agent a statement of the fact that advances have been made and liabilities incurred is sufficient.
        
        9. Statement on Ownership - If the receipt is issued for goods of which the warehouseman is owner, either solely or jointly or in common with others, the fact of such ownership.
        
        Liability (S. 2) - Warehouseman liable to any person injured thereby for all damages caused by the omission from a negotiable receipt of of the terms required under S.2
        
        Additional Terms and Conditions (S.3) - Warehouseman may insert in receipts issued any other terms and conditions. Provided that they are not either:
        
        CONTRARY - to the provisions of the warehouse law
        
        IMPAIR - the terms and conditions in impairs warehouseman's obligation to exercise hat degree of care in the safe-keeping of the goods entrusted to him. This degree is reasonably careful man in same situation.
        
        Duplicate Receipts (S.6-7) - When more than one negotiable receipt is issued for the same goods, receipts must be marked with duplicate upon the face of every receipt EXCEPT the first one issued.
        
        Effect of Failure to Mark as Duplicate - Warehouseman liable for damages caused by failure to mark to anyone who purchased the subsequent receipt for value, supposing that it was an original. Even if the purchase was after the delivery of the goods by the warehouseman to the holder of the original receipt.
        
        Effect of Duplicate Receipts (S.15) - acts as a representation and warranty by the warehouseman that the duplicate is an accurate copy of the original receipt, properly issued and uncancelled at the date of the issue of the duplicate.
        
        Definitions (S.4-5) - Covers negotiable and non-negotiable receipts.
        
        Non-Negotiable (S.4) - A receipt which states that the goods received will be delivered to the depositor or any other specified person.
        
        Negotiable (S.5) - A receipt which states that the goods will be delivered to the bearer or to the order of any person named in such a receipt.
        
        Void Stipulation (S.5) - A provision inserted into negotiable reciept making it non-negotiable shall be void.
        
        Failure to Mark (S.7) - Non-negotiable receipts must be marked on the face as such. Failure to do so means that purchaser in good faith may treat the receipt as imposing upon the warehouseman the same liabilities the WHman would have incurred if the receipt was negotiable.
        
        Applicability - This does not apply to letters, memoranda, written acknowledgment of an informal character.
      - Quedans. Can be used as collateral, safekeeping, payment.