Extrajudicial

Extrajudicial | Kinds of Deposit | Deposit | CREDIT TRANSACTIONS

CIVIL LAW > VIII. CREDIT TRANSACTIONS > B. Deposit > 2. Kinds of Deposit > b. Extrajudicial Deposit

Definition and General Principles

An extrajudicial deposit is a contract whereby a person (the depositor) delivers a thing to another (the depositary) with the obligation of the latter to keep it and return it when demanded by the depositor. It is one of the two kinds of deposit under Philippine law, distinguished from a judicial deposit which arises in litigation or under compulsion of law.

Extrajudicial deposits are governed by Articles 1966 to 1995 of the Civil Code of the Philippines.

Characteristics

  1. Real Contract: The deposit is perfected upon the delivery of the thing to the depositary.
  2. Principal Contract: It exists independently and is not accessory to any other obligation.
  3. Unilateral or Bilateral:
    • Unilateral: When the obligation to return the thing rests solely on the depositary.
    • Bilateral: When both parties have reciprocal obligations, such as in a remunerated deposit.

Essential Elements

  1. Subject Matter: Movable or immovable property.
    • Primarily pertains to movable objects unless otherwise specified.
  2. Purpose: Safekeeping or custody of the property.
  3. Delivery: Actual or constructive delivery of the thing to the depositary.

Kinds of Extrajudicial Deposits

  1. Voluntary Deposit:

    • Made by the depositor’s own free will.
    • Governed by Articles 1966 to 1980 of the Civil Code.
    • Requisites:
      1. Capacity of the depositor: The depositor must have legal capacity to contract.
      2. Acceptance by the depositary: The depositary must consent to the deposit.

  2. Necessary Deposit:

    • Made due to some urgent or unavoidable circumstance.
    • Governed by Articles 1996 to 2004 of the Civil Code.
    • Examples:
      • Deposit during a fire, storm, or similar emergencies.
      • Deposit by travelers in inns, hotels, or lodging houses.
    • Requisites:
      1. The deposit arises from an urgent need.
      2. The depositary may not refuse acceptance if such refusal would cause damage to the depositor.
    • Innkeepers’ Liability:
      • Includes responsibility for the personal effects of guests.
      • Liability is presumed unless: a. Loss is due to force majeure. b. The depositor acted with negligence. c. The loss occurred due to the nature of the thing.

Obligations of the Depositary

  1. Principal Obligations:

    • Safekeeping: Exercise diligence in the care of the thing deposited (ordinary diligence unless otherwise agreed).
    • Return: Deliver the thing when demanded, even if a period has been stipulated unless the depositary has a right to retain it (e.g., for unpaid expenses).

  2. Accessory Obligations:

    • Non-use: The depositary must not use the thing without the depositor’s consent.
    • Return of accessories or increments: The depositary must return all fruits or accessories of the deposit unless otherwise agreed.

  3. Liabilities:

    • The depositary is liable for loss or deterioration unless:
      • It is due to a fortuitous event.
      • The depositor failed to disclose the dangerous character of the thing deposited.

Rights of the Depositary

  1. Retention: The depositary may retain the deposit until full payment of expenses incurred in preserving it.
  2. Reimbursement: The depositary has the right to reimbursement for necessary expenses.

Termination of the Deposit

  1. Demand for Return: The depositor may demand the return of the thing at any time unless a period has been fixed and the depositary has not committed a breach.
  2. Loss or Destruction: The contract is extinguished if the thing is lost or destroyed without fault of the depositary.
  3. Death: If the depositary dies, his heirs are bound to return the thing unless the contract stipulates otherwise.

Special Rules on Necessary Deposits

  1. Deposits with Innkeepers:

    • Guests are presumed to deposit their belongings with the innkeeper.
    • Innkeepers are liable for loss unless the loss arises from: a. Force majeure. b. Fault of the guest. c. Nature of the thing deposited.

  2. Deposits by Travelers:

    • Travelers may deposit valuables in the innkeeper’s safe or equivalent facility.
    • Failure to use such facilities may relieve the innkeeper of liability.

Special Cases

  1. Commodatum vs. Deposit:

    • Commodatum involves the loan for use; deposit entails safekeeping.
    • In deposit, ownership remains with the depositor.

  2. Bank Deposits:

    • Bank deposits are considered irregular deposits (Article 1980).
    • Ownership of the money passes to the bank, which is obligated to return the same amount.

  3. Irregular Deposits:

    • Occurs when the thing deposited is consumable (e.g., money).
    • The depositary becomes the owner but is obliged to return an equivalent amount or quality.

Relevant Jurisprudence

  1. Liability of Depositaries:
    • The depositary’s liability extends to ensuring due diligence is observed in safekeeping, as ruled in relevant Supreme Court decisions.
  2. Innkeeper Deposits:
    • Jurisprudence has clarified the extent of innkeepers' liability for losses within their premises.

This overview provides a meticulous explanation of extrajudicial deposits under Philippine Civil Law, focusing on their kinds, elements, obligations, and related nuances.

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