Deposit and pledge

Chapter XII Deposit and pledge The person who accepts a deposit must be fair and honest in character because it is common practice to make a deposit without signing any public agreement. He must safeguard it and return it on time, with no delay and without giving rise to suspicion as soon as this is requested. Y ou must enquire as to this man’s reputation and virtue, for material greed can have such a powerful grip on human will that it can easily corrupt it and perverse it. With one hundred or five hundred gold coins many have maintained their integrity, but I am uncertain whether that would be so in the case of one or two thousand gold coins. Remember that a deposit must be returned without imposing any repressive measures even if you previously had some other arrangement with the person who made the deposit. Return the deposit that is rightfully his and afterwards demand what is yours. This is the only fair way to proceed in such circumstances. It is a matter of honor and trust because when he trusted you with his possession, he had absolute faith that you would safeguard his asset and return it under the agreed terms. Neither in part nor in full can deposits be paid on the account. However, if ready money is in question, discounting is permitted. Examples of this are provided in the chapter Good faith. Remember also that he who is in charge of safekeeping the deposits has the obligation to replace the deposited asset should any harm be done to it by his fault. For example, if somebody ordered a slave to be tied up, but

nevertheless, you untied him out of your own merciful nature and naturally he escaped, you must provide compensation. If deposited items are lost and yours are still safe, the presumption is that it is you who committed the crime, examples of which can again be found in the chapter Good faith. Moreover, if you are entrusted with a deposit under the condition the item is unused, you are as good as a thief if you breach such an agreement (look at the note on this in The Digest, chapter Circumstances surrounding a theft). On the other hand, if you merely assume that the owner would be less than pleased, you are not obligated. In conclusion, it is highly discreditable for a trader if he does not manage to obstinate from tampering with or using the deposit. The same rule is valid in the case of a pledge given for the sake of the creditor’s security, as stated in the Institute, in the chapter Theft.