Explanation of Article 514
The article clarified the third obligation of the depositor, which is to receive the deposit upon the termination of the deposit contract. The depositor cannot refuse to receive the deposit if the depositary offers it when the deposit contract ends.
If the depositor refuses to receive the deposit without a legitimate reason, the depositary may refer the matter to the court to order its sale or to deposit it with another entity if the deposit is at risk of perishing, damage, requires expenses for its preservation, or if its retention in the possession of the depositary causes harm. The depositary has the right to claim from the depositor all expenses incurred due to the depositor's failure to receive the deposit and to claim compensation for the damage suffered as a result.
For example, if the deposit consists of animals that require feed and expenses, and the depositor refuses to receive them, the depositary may refer the matter to the court to order their sale and deposit the proceeds in the court. The depositary can claim the expenses incurred for feed and care from the depositor.
If the depositary sells the deposit with the court's permission, they are obliged to return the proceeds to the depositor. If the deposit is not at risk of perishing or damage, does not require expenses for its preservation, and its retention in the possession of the depositary does not cause harm, the depositary is not entitled to sell it. Instead, they may deposit it in a place deemed appropriate by the court, at the depositor's expense.
If the depositary sells the deposit without the court's permission, the sale is not enforceable against the depositor, and the depositor may seek recourse against the depositary for indemnity, within the limits of what is guaranteed if the depositary is neither negligent nor at fault.
Related To
Article 514
The depositor shall, unless agreed otherwise, bear the expenses of returning and delivering the deposited property and shall compensate the depositary for any harm he sustains from safekeeping the deposited property, unless said harm results from the depositary’s transgression or negligence.