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 property and rights.
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.
Place where the thing deposited should be returned
At the place agreed upon by the parties.
Here, the expenses shall be borne by the depositor.
If no place has been designated, at the place where the thing deposited
might be even if it should not be the same place where the original deposit
was made, provided there is no malice on the part of the depositary.
Example
Suppose the deposit is made in the residence of Beatrice in Manila and Beatrice
transfers her residence to Baliuag, Bulacan and she has to bring the thing deposited
to her new place of residence.
In the absence of a contrary stipulation, the place of return is the residence of
Beatrice in Baliuag, Bulacan, provided there was no malice on the part of
Beatrice.
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
depositarys 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.
1. When thing deposited shall be returned

Generally, the depositor can demand the return of the thing deposited at will
and this is true whether a period of return has been stipulated or not.
2. When the thing deposited cannot be returned to the depositor
a. When the thing is judicially attached while in the depositarys possession
b. When the depositary has been notified of the opposition of a third person
to the return or the removal of the thing.
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.
Right of depositary to return the thing deposited
Deposit gratuitous. the depositary may return the thing deposited even
before the time fixed for its return if:
the deposit is gratuitous
justifiable reasons exist for its return.
Deposit for a valuable consideration. the depositary has no right to
return the thing deposited even before the expiration of the time designated.
Effect if the depositor refuses to receive the thing
The depositary may secure the consignation of the thing from the court.
Example
Gea deposited her goods with Bea for a period of one month. The deposit is
without any compensation. Three days after the deposit was made, Bea obtained
knowledge from reliable sources that the goods deposited by Gea were smuggled
goods. In this case, Bea may return the goods to Gea even before the due date for
their return.
Article 1990
Example
Kate deposited with Micah a gold bar. Later, the government expropriated the
gold bar in order to increase its gold reserves. Here, Micah must deliver the sum
received in the expropriation to Kate.
If the gold bar was lost in a fire without her fault, Micah shall be relieved from
liability.

Article 1991
The depositarys 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 by him.
Sale of the thing deposited by the depositarys heir
If the depositarys heir was in good faith in making the sale:
He shall return to the depositor the price he received from the sale.
In case the price has not been paid, he shall assign the right of action
against the buyer.
If he was in bad faith, he shall be liable for damages to the depositor.
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.
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 the he notified the depositary of the same, or the
latter was aware of it without advice from the depositor.
Loss arising from character of thing deposited
The depositor shall reimburse the depositary for any loss arising from the
character of the thing deposited, except in the following cases:
If at the time of the deposit, the depositor was not aware, or was not
expected to know the dangerous character of the thing.
If the depositor notified the depositary of the dangerous character of
the thing.
When the depositary was aware of the dangerous character of the
thing, without advice from the depositor.
Example
James deposited with Carl a one-gallon container which James knew
contained a combustible liquid. The container caused fire thereby damaging a part
of Carls premises. James shall be liable to Carl for the loss that the latter sustained.