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Legal Guide: Deposits & Guarantees

1. A deposit is constituted when a person receives something belonging to another and is obligated to safely keep it and return it. If safekeeping is not the principal purpose, it is not a deposit. 2. An agreement to constitute a deposit is binding, but the deposit is not perfected until delivery of the thing. 3. A voluntary deposit is made when the depositor delivers the thing themselves. A deposit can also be made when multiple people each believe they are entitled to a thing deposited with a third party.

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0% found this document useful (0 votes)
125 views2 pages

Legal Guide: Deposits & Guarantees

1. A deposit is constituted when a person receives something belonging to another and is obligated to safely keep it and return it. If safekeeping is not the principal purpose, it is not a deposit. 2. An agreement to constitute a deposit is binding, but the deposit is not perfected until delivery of the thing. 3. A voluntary deposit is made when the depositor delivers the thing themselves. A deposit can also be made when multiple people each believe they are entitled to a thing deposited with a third party.

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Emilie Dean
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© © All Rights Reserved
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Title XII.

- DEPOSIT
Art. 1962. A deposit is constituted from the moment a person receives a thing belonging to another, with the obligation of safely 1. ____________ 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)
Art. 1963. An agreement to constitute a deposit is binding, but the deposit itself is not perfected until the 2. ______________of the thing. (n)
Art. 1968. A voluntary deposit is that wherein the delivery is made by the 3. ____________ of the depositor. A deposit may also be made by two or
more persons each of whom believes himself entitled to the thing deposited with a third person, who shall deliver it in a proper case to the one to
whom it belongs. (1763)
Art. 1971. If the deposit has been made by a 4. ____________ person with another who is not, the depositor shall only have an action to recover the
thing deposited while it is still in the possession of the depositary, or to compel the latter to pay him the amount by which he may have enriched or
benefited himself with the thing or its price. However, if a third person who acquired the thing acted in bad faith, the depositor may bring an action
against him for its recovery. (1765a) 
Art. 1977. The depositary cannot make use of the thing deposited without the express 5. ____________ of the depositor.
Art. 1978. When the depositary has permission to use the thing deposited, the contract loses the concept of a deposit and becomes a loan or 6.
____________, except where safekeeping is still the principal purpose of the contract.
Art. 1979. The depositary is liable for the7. ____________ of the thing through a fortuitous event:
(1) If it is so stipulated;
(2) If he uses the thing without the depositor's permission;
(3) If he delays its return;
(4) If he allows others to use it, even though he himself may have been authorized to use the same. (n)
Art. 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 8.
____________ rom the court. (1776a)
Art. 1996. A deposit is necessary:
(1) When it is made in 9. ____________ with a legal obligation;
GUARANTY
Art. 2047. By guaranty a person, called the guarantor, binds himself to the creditor to fulfill the obligation of the principal debtor in case the latter
should fail to do so.
If a person binds himself 10. ____________ with the principal debtor, the provisions of Section 4, Art. 2048. A guaranty is 11. ____________,
unless there is a stipulation to the contrary. (n)
Art. 2049. A married woman may guarantee an obligation without the husband's consent, but shall not thereby bind the conjugal partnership, except
in cases provided by law. (n)
Art. 2050. If a guaranty is entered into without the knowledge or 12. ____________, or against the will of the principal debtor, the provisions of
Articles 1236 and 1237 shall apply. (n)
Art. 2051. A guaranty may be conventional, legal or judicial, gratuitous, or by onerous title.
It may also be constituted, not only in favor of the principal debtor, but also in favor of the other 13. ____________, with the latter's consent, or
without his knowledge, or even over his objection. (1823)
Art. 2052. A guaranty cannot exist without a 14. ____________ obligation.
Nevertheless, a guaranty may be constituted to guarantee the performance of a voidable or an 15. ____________ contract. It may also guarantee a
natural obligation. (1824a)
Art. 2055. A guaranty is not 16. ____________; it must be express and cannot extend to more than what is stipulated therein.
If it be 17. ____________ or indefinite, it shall compromise not only the principal obligation, but also all its accessories, including the judicial
costs, provided with respect to the latter, that the guarantor shall only be liable for those costs incurred after he has been judicially required to pay.
(1827a)
Art. 2058. The guarantor cannot be compelled to pay the creditor unless the latter has 18. ____________ all the property of the debtor, and has
resorted to all the legal remedies against the debtor. (1830a)
Art. 2060. In order that the guarantor may make use of the benefit of exclusion, he must set it up against the creditor upon the latter's demand for
payment from him, and point out to the creditor available property of the debtor within 19. ____________ territory, sufficient to cover the amount
of the debt. (1832)
Art. 2061. The guarantor having fulfilled all the conditions required in the preceding article, the creditor who is 20. ____________ in exhausting the
property pointed out shall suffer the loss, to the extent of said property, for the insolvency of the debtor resulting from such negligence. (1833a)
Art. 2066. The guarantor who pays for a debtor must be indemnified by the latter.
The 21. ____________ comprises:
(1) The total amount of the debt;
(2) The legal interests thereon from the time the payment was made known to the debtor, even though it did not earn interest for the creditor;
(3) The expenses incurred by the guarantor after having notified the debtor that payment had been demanded of him;
(4) Damages, if they are due. (1838a)
-guarantors in the same terms as the guarantor. (1846) 
Art. 2076. The obligation of the guarantor is extinguished at the same time as that of the debtor, and for the same 22. ____________ as all other
obligations. (1847)
Art. 2077. If the creditor voluntarily accepts immovable or other property in payment of the debt, even if he should afterwards lose the same through
eviction, the guarantor is released. (1849)
Art. 2078. A 23. ____________ made by the creditor in favor of one of the guarantors, without the consent of the others, benefits all to the extent of
the share of the guarantor to whom it has been granted. (1850)
PROVISIONS COMMON TO PLEDGE AND MORTGAGE
Art. 2085. The following requisites are essential to the contracts of pledge and mortgage:
(1) That they be constituted to 24. ____________ the fulfillment of a principal obligation;
(2) That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged;
Art. 2087. It is also of the essence of these contracts that when the principal obligation becomes due, the things in which the pledge or mortgage
consists may be 25. ____________ for the payment to the creditor. (1858)
Art. 2089. A pledge or mortgage is 26. ____________, even though the debt may be divided among the successors in interest of the debtor or of the
creditor.
PLEDGE
Art. 2094. All movables which are within 27. ____________ may be pledged, provided they are susceptible of possession.
Art. 2095 28. ____________ rights, evidenced by negotiable instruments, bills of lading, shares of stock, bonds, warehouse receipts and similar
documents may also be pledged. The instrument proving the right pledged shall be delivered to the creditor, and if negotiable, must be indorsed. (n)
Art. 2098. The contract of pledge gives a right to the creditor to 29. ____________ the thing in his possession or in that of a third person to whom it
has been delivered, until the debt is paid. (1866a)
Art. 2108. If, without the fault of the 30. ____________, there is danger of destruction, impairment, or diminution in value of the thing pledged, he
may cause the same to be sold at a public sale. The proceeds of the 31. ____________ shall be a security for the principal obligation in the same
manner as the thing originally pledged. (n)
Art. 2117. Any third person who has any right in or to the thing pledged may satisfy the 32____________ obligation as soon as the latter becomes
due and demandable.(n)
Art. 2119. If two or more things are pledged, the pledgee may choose which he will cause to be sold, unless there is a stipulation to the contrary. He
may demand the 33 ____________ of only as many of the things as are necessary for the payment of the debt. (n)
Art. 2121. Pledges created by operation of law, such as those referred to in Articles 546, 1731, and 1994, are governed by the foregoing articles on
the 34. ____________, care and sale of the thing as well as on the termination of the pledge. However, after payment of the debt and expenses, the
remainder of the price of the sale shall be delivered to the obligor. (n)
Art. 2122. A thing under a pledge by operation of law may be sold only after demand of the amount for which the thing is 35.____________. The
public auction shall take place within one month after such demand. If, without just grounds, the creditor does not cause the public sale to be held
within such period, the debtor may require the return of the thing. (n)

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