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Civil Law

Explanation of Article 515

Explanation of Article 515

The article clarifies the effect of the depositor's breach of the obligation to pay the agreed-upon fee or customary expenses. If the depositor refuses to pay the agreed-upon fee or customary expenses, the depository has the right to retain the deposit until their right is fulfilled. The depository is not allowed to retain the deposit if the expenses are unusual and no court permission has been obtained for them.

Furthermore, the depository may retain the deposit to the extent necessary to cover the fee or expenses, but they may not retain the entire deposit if the amount due is small, as the depositor's interest is given priority. The right to retain the deposit is subject to the provisions of Article (404) of the general rules, which stipulate that the right claimed by the depository must be due and there should be no legal impediment to this retention.

This article is an application of the principle of non-performance defense stipulated in Article (114), which states that the depositor is not obligated to pay the fee and expenses until after receiving the deposit. This is due to the interconnection between the depository's obligation to deliver the deposit to the depositor and the depositor's obligation to pay the fee and expenses; each is a reason for the other's obligation.

This article differs from other guarantees that apply to the deposit, such as a possessory pledge, because the right of retention is not a real right over the deposit but a guarantee for the execution of a personal obligation by the depositor. This right does not prevent the depositor from disposing of the deposit, and the parties may agree to terms contrary to this provision, such as agreeing that the depository does not have the right to retain the deposit even if the depositor refuses to pay the fee or expenses, or their equivalent, such as a gift contract.

Related To

Article 515

  1. If the deposit is gratuitous, the depositary may return the deposited property and the depositor may recover the same at any time, provided that the return and recovery of the deposited property is not carried out at an inappropriate time.

  2. If the deposit is for a fee, the depositor may not return the deposited property prior to the expiration of the term of the deposit. The depositor, however, may recover the deposited property at any time if he pays the agreed-upon fee in full and no condition preventing such recovery exists.