Thailand Law Library

by Thailand Lawyer

Chapter 1: General Provisions

A deposit is a contract whereby a person, called the depositor, delivers a property to another person, called the depositary, and the depositary agrees to keep it in his custody and return it.

Remuneration for the deposit is deemed to have been impliedly agreed upon. If under the circumstances the undertaking of the deposit is to be expected only for the remuneration.

If the deposit is undertaken gratuitously, the depositary is bound to exercise as much care of the property deposited as he is accustomed to exercising in his own affairs.

If the deposit is undertaken with remuneration the depositary is bound to exercise such care and skill as a person of ordinary prudence would exercise in the circumstances. This includes the exercise of special skill where such skill is required.

If the depositary professes a particular trade, business or calling, he is bound to exercise the degree of care and skill usual and requisite in such trade, business or calling.

If without the permission of the depositor the depositary uses the property deposited or lets a third person have the use or custody of it, he is liable for any loss or damage to the property, even caused by force majeure, unless he proves that the loss or damage would have happened in any case.

If a third person claims rights over the property deposited and enters an action against the depositary, or attaches the property, the depositary must forthwith give notice thereof to the depositor.

If a time for return of the property deposited has been fixed, the depositary has no right to return the property before such time, except in case of unavoidable necessity.

Although the parties have fixed a time for the return of the property deposited, the depositary must return it at any time on demand made by the depositor.

If the parties have fixed no time for the return of the property deposited, the depositary can return it at any time.

The depositary is bound to return the property deposited to the depositor, or to the person in whose name it was deposited, or to the person to whom he has been duly directed to return it.

Provided that if the depositor dies the property deposited shall be returned to his heir. Section 666 The depositary is bound to deliver with the property any fruits which may have accrued from it.

Costs of returning the property deposited shall be borne by the depositor. Section 668 The depositor is bound to reimburse the depositary for any expenses which were necessary for the preservation or maintenance of the property deposited, unless such expenses were incumbent upon the depositary under the contract of deposit.

If no time for payment of remuneration is fixed by the contract or by custom, the remuneration is payable when the property deposited is returned. If fixed by periods the remuneration is payable at the end of each period.

The depositary is entitled to retain the property deposited until he has been paid all that is due to him on account of the deposit.

No action for remuneration, reimbursement of expenses or compensation in connection with a deposit can be entered later than six months after the extinction of the contract.