Explanation of Article 520
The article addresses an obligation on the depositary, which is to return the deposit to the depositor upon the termination of the deposit contract;
The depositary is obliged to return the deposit to the depositor in the condition in which it was received; he is not liable for any diminution that occurs to the deposit due to its normal use, or due to its destruction or damage, unless this is due to his negligence or fault, or due to his violation of the instructions issued by the depositor; and he shall deliver the deposit to the depositor or to the person authorized by the depositor to receive it;
For example: if the deposit is a car, the depositary is not liable for any diminution that occurs to it due to its normal use, or due to its destruction, unless this is due to his negligence or fault, or due to his violation of the instructions issued by the depositor;
If the depositary violates the instructions issued by the depositor regarding the safekeeping of the deposit, he is liable for any diminution that occurs to it, even if he was not negligent or at fault;
For instance: if a person deposits a car with him and requests that it not be parked in a certain place, and he parks it in that place and the car is damaged, he is liable for it even if he was not negligent or at fault.
The second paragraph clarifies that the depositary is obliged to return the deposit and its benefits to the depositor; if the deposit is something that yields benefits, such as an animal or a tree, he is obliged to return it with its benefits. This includes cases where the deposit is a sum of money and the depositary invests it; he is obliged to return the principal with the profits earned from its investment. If he does not invest it, he is not obliged to return the profits unless otherwise agreed, or if there is a custom that obliges the depositary to return the profits without investing them, as custom is considered here, and custom.
Related To
Article 520
A receivership contract or a receivership judgment shall determine the receiver’s rights and obligations; in the absence of such determination, the provisions stipulated in this Section and the provisions governing deposit and power of attorney contracts, as the case may be, shall be applied in a manner not inconsistent with the nature of the receivership.