Explanation of Article 516
The article clarified the reasons for the termination of the deposit contract, which are:
First reason: The expiration of the agreed term in the deposit contract, whether the deposit is for a fee or without a fee.
Second reason: The request of the depositor, whether the deposit is for a fee or without a fee;
Since the deposit contract is based on the benefit derived from the depositor, the depositor has the right to terminate the contract whenever he wishes.
Third reason: The request of the depositary, and this scenario is detailed as follows:
First case: If the deposit is without a fee, the depositary has the right to request the termination of the deposit whenever he wishes; since a deposit contract without a fee is based on the donation from the depositary, he can terminate it whenever he wishes without the depositor obliging him to a specific period; this is contrary to when the deposit is for a fee, where the depositary can request the termination of the deposit if no period is specified in the deposit contract; this is if there are legitimate reasons justifying it, such as if keeping the deposit causes him harm, or if he wishes to occupy the place where the deposit is kept. If there are no legitimate reasons for requesting the termination of the deposit, the deposit contract remains in effect until it ends with the completion of the work. This ruling differs from the ruling of Article (405) of the general rules, which states "the lender can reclaim the loan whenever he wishes"; in that article, the lender is not required to state the reason for terminating the loan; unlike this article, which requires stating the reason if the depositary deposits the deposit for a fee.
Fourth reason: The death of the depositor or the depositary; because the deposit contract is based on personal consideration; if the depositor or the depositary dies, the deposit contract ends accordingly; therefore, if the depositary dies, the deposit contract ends with his death, and his heirs are obliged to return the deposit to the depositor. If the depositor dies, the deposit contract ends with his death, and the depositary is obliged to return the deposit to the depositor's heirs. In the event of the depositor's death, the depositary must exercise the required care in preserving the deposit until the depositor's heirs can receive it; this is contrary to when it is a deposit for a fee, where if the term is not specified, the deposit does not end at the request of the depositary except with the completion of the work.
Related To
Article 516
A deposit contract shall, unless the parties agree otherwise, terminate upon the expiration of the agreed-upon term, the return of the deposited property, whether by mutual consent or pursuant to a court decision, or upon the depository’s death.