Explanation of Article 678
The article refers to the consequences of the destruction or damage of the possessed item, whether the possessor is in good faith or bad faith. The first paragraph clarifies that a possessor in good faith is not responsible for any reduction in the possessed item due to his use, as long as his use is like that of an owner, which is the usual use by an owner in his property. The possessor in good faith is not required to compensate the owner for the destruction or damage to the item except in one case, which is if the possessor gains a benefit from that destruction, such as compensation; in that case, the compensation is for the owner of the item and not the possessor. If the possessor receives it, he is responsible to the owner for the amount of this compensation.
The second paragraph clarifies that a possessor in bad faith is responsible for bearing the consequences of the destruction or damage of the item, whether the destruction or damage is due to the possessor's fault or due to a cause beyond his control. Possession in bad faith is a fault in itself that necessitates bearing the consequences, except for one case; which is if the possessor in bad faith proves that the item would have been destroyed or damaged even if it were under the owner's control, such as if someone seized the owner's car and then an irresistible force like a hailstorm destroyed the village's cars, including the possessor's and the owner's cars. However, if the car in the possessor's control is destroyed due to an irresistible force occurring in his area but not in the owner's area, the possessor in bad faith is responsible and must compensate the owner, even though the destruction is due to an external cause, because mere possession of the item in bad faith is considered a fault that caused damage, thus requiring compensation.
Related To
Article 678
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A bona fide possessor shall not be liable for compensation due to any damage resulting from his utilization of the thing as an owner, and he shall not be liable for any destruction or damage except to the extent of the benefit that caused such destruction or damage.
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A mala fide possessor shall be liable for the destruction or damage of the thing, even if it is due to a cause not attributable to him, unless he proves that the thing would have been destroyed or damaged even if it was in the possession of its owner.