Wednesday, March 13, 2013

Safety Deposit Boxes


The  contract  for  rent  of  safety  deposit  boxes  is  Not  an Ordinary  contract  of  Lease  of  things  because  the  Full  and Absolute Possession and Control of the safety deposit box is Not Given to the party renting. It is actually a special kind of deposit. It is a contractual relation  between  the  parties. The  liability  rules  are governed  by  the Civil Code provisions on  Obligations and Contracts, and not on donations.  
A stipulation which Exempts the bank from Liability is Void. Even if as a rule, the Bank may limit its liability to   some extent by agreement or stipulation, the agreement or stipulation must not be contrary to law and public policy.  
The law on deposit provides that the depositary is liable for loss due to fraud, negligence, delay, or  contravention of the tenor of the agreement. Hence, any contrary stipulation would be void.

No comments:

Post a Comment