Obligations of the Depositor (21) Obligation to pay losses incurred due to character of thing

deposited. General rule: the depositary must be reimbursed for loss

Art. 1992. If the deposit is gratuitous, the depositor is obliged to suffered by him because of the character of the thing deposited.
reimburse the depositary for the expenses he may have incurred
Exceptions: The depositor is freed from the responsibility of paying
for the preservation of the thing deposited.
the depositary when:
(20) Obligation to pay expenses of preservation. This article applies
1. At the time of the constitution of the deposit the depositor
only if the deposit is gratuitous. If the deposit is for compensation,
was not aware of the dangerous character of the thing
the expenses of preservation are borne by the depositary because
2. At the time of the constitution of the deposit, the depositor
they are deemed included in the compensation. There can,
was not expected to know the dangerous character of the
however, be a contrary stipulation.
thing
3. The depositor notified the depositary of the dangerous
This provision rests on equity. Without the duty of
character of the thing
reimbursement, the depositor would be enriching himself at the
4. The depositary was aware of it without advise from the
expense of the depositary. The depositor would have incurred these
depositor.
expenses anyway had the thing remained with him.
Art. 1994. The depositary may retain the thing in pledge until the full
The law makes no distinction, so the right to reimbursement
payment of what may be due him by reason of the deposit.
covers all expenses for preservation whether ordinary or
extraordinary (22) Depositarys right of retention. This is an example of a pledge
created by operation of law. The thing retained serves as security
But these expenses are necessary expenses. Useful expenses
for the payment of what may be due to the depositary by reason of
or those for pure luxury or mere pleasure are not covered.
the deposit.
Art. 1993. The depositor shall reimburse the depositary for any loss
This rule is different in commodatum (see Arts. 1944, 1951).
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 Art. 1995. A deposit is extinguished:
was not expected to know the dangerous character of the thing, or
unless he notified the depositary of the same, or the latter was (1) Upon the loss or destruction of the thing deposited;
aware of it without advice from the depositor.
(2) In case of a gratuitous deposit, upon the death of either the
depositor or the depositary.
(23) Causes of extinguishment of deposit.

1. Loss or destruction of the thing deposited

2. Death of either the depositor or the depositary in case of

gratuitous deposit.

A deposit for compensation is not extinguished by the death of

either party because, unlike a gratuitous deposit, an onerous
deposit is not personal in nature.

The causes mentioned here are not exclusive. There are other
causes such as:

3. Return of the thing

4. Novation, merger, expiration of the term, fulfillment of the

resolutory condition (remember Oblicon, Art. 1231)