CONTRACT OF DEPOSIT

DEPOSIT - A deposit is constituted from the moment a person receives a thing belong 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.
NOTE: it is essential that the depository is not the owner of the thing deposited

CHARACTERISTICS
1. real - because it is perfected only by the delivery of the subject matter BUT an agreement to constitute a deposit is binding and enforceable, since it is merely consensual
2. unilateral - if gratuitous
3. bilateral - if with compensation

CREATION OF DEPOSIT (Art. 1964)
1. By virtue of a court order; or
2. By law
3. Not by the will of the parties
4. It is essential that the depositary is not the owner of the property deposited (Art. 1962)

KINDS OF DEPOSIT
1. judicial - when an attachment or seizure of property in litigation is ordered
2. extrajudicial (Art. 1967)
a. voluntary- delivery is made by the will of the depositor or by two or more persons
each of whom believes himself entitled to the thing deposited;
b. necessary- made in compliance with a legal obligation, or on the occasion of any calamity, or by travelers in hotels and inns or by travelers with common carriers

DEPOSIT IS GENERALLY GRATUITOUS: (Art. 1965)

GR: A deposit is generally gratuitous.
Exceptions:
a. when there is a contrary stipulation
b. where depositary is engaged in the business of storing goods
c. where property is saved without knowledge of the owner

SUBJECT MATTER OF DEPOSIT (Art. 1966)
GR: only movable or personal property may be the object of deposit, whether voluntary or necessary. Exception: In judicial deposit, it may cover both
movable and immovable property.

DEPOSITOR NEED NOT BE THE OWNER OF THE THING:
GR: The depositor must be the owner of the thing deposited.

Exceptions: It may belong to another person than the depositor.
a. when two or more persons claiming to be entitled to a thing may deposit the same with a third person. In such case, the third person assumes the obligation to deliver to the one to whom it belongs.
b. Interpleader – the action to compel the depositors to settle their conflicting claims. Here one of the depositors is not the owner.