Explanation of Article 521
The article clarifies the effect of the depositary's breach of the obligation to return the deposit; the first paragraph states that if the depositary refuses to return the deposit to the depositor without a legitimate reason, he is liable for any loss or damage to the deposit, even if it is due to an external cause.
For example: if the depositor requests the deposit from the depositary and he refuses to return it, and then the deposit is stolen, the depositary is liable for it because the loss of the deposit was due to his refusal to return it. If the depositary retains the deposit rightfully, such as in the case of the depositor's refusal to pay the fee or expenses, he is not liable for what is lost without any transgression or negligence on his part, because his retention was rightful.
The second paragraph clarifies that if the depositary is requested to return the deposit by more than one depositor, he is not obliged to return the deposit to any of them until the original depositor is identified, or he is authorized to return the deposit.
In this case, the depositary may refer the matter to the court to decide on the deposit as it sees fit.
For example: if a person deposits a sum of money with another, and then another person comes and claims to be the owner of the money and requests its return, the depositary is not obliged to return the money to any of them until the original depositor is identified, or he is authorized to return the money. In this case, the depositary may refer the matter to the court to decide on the deposit as it sees fit.
What is stated in this article is not part of the public order; it is permissible to agree on what contradicts it. It is permissible to agree to exempt the depositary from liability for the loss or damage of the deposit, even if it is due to his refusal to return it without a legitimate reason, or to increase his liability. It is also permissible to agree that the depositary is liable for what is lost without any transgression or negligence on his part, or if it is due to the depositary's violation of the instructions issued by the depositor; and the deposit is delivered to the depositor or to whom the depositor authorized to receive it, unless otherwise agreed or a custom requires the depositary to return the profits without investing them, as custom is considered here, as contained in the article.
Related To
Article 521
A receiver shall exercise reasonable care in safekeeping and managing the property under his receivership.