LAW OF OBLIGATION ACT, PART 8, CHAPTER 45, DIVISION 2

Division 2

Storage contract 

  • 897. Storage contract

A storage contract is a deposit contract by which the depositary undertakes to store and preserve a movable upon deposit of the movable in the course of the economic or professional activities of the depositary, and the depositor undertakes to pay a fee therefor.

  • 898. Obligations of depositor

(1) Upon storage of a dangerous thing, the depositor shall inform the depositary in good time of the exact nature of the danger and the necessary precautions to be taken in a format which can be reproduced in writing. The depositor shall pack and mark the things to the necessary extent and transfer documents and information to the depositary which the depositary requires to perform the obligations thereof.

(2) If the depositor is a consumer, the depositor need only inform the depositary of the danger arising from the things in a general manner, even orally.

(3) The depositary shall inform a depositor who is a consumer of the obligation specified in subsection (2) of this section and request information from the depositor which the depositary may require in order to carry out formalities related to the thing.

(4) If the depositor is a consumer, the depositary shall pack and mark the things to the necessary extent.

[RT I 2002, 53, 336 – entry into force 01.07.2002]

  • 899. Compensation for damage and reimbursement of expenses

(1) The depositor shall compensate the depositary for any damage and reimburse any expenses arising from:

1) the insufficient packing or marking of the thing by the depositor;

2) failure on the part of the depositor to inform of the danger related to the thing;

3) the absence, incompleteness or incorrectness of the documents or information necessary for carrying out formalities related to the thing.

(2) The depositor shall be liable in the cases specified in subsection (1) of this section regardless of whether any violation of the obligations of the depositor is justifiable. If the depositor is a consumer, the depositor shall be liable for any violation of the obligations specified in subsection (1) of this section only if the depositor is culpable of the violation.

  • 900. Mixing of stored things

(1) A depositary has the right to mix fungible things with things of the same kind and quality only if the depositors of these things have expressly agreed thereto.

(2) As of the stored things being mixed, the mixed things shall be in the common ownership of the owners of the mixed things. The depositary may deliver a share of the mixed things to each depositor which corresponds to the legal share belonging to the depositor, regardless of the consent of the other co-owners.

  • 901. Taking delivery of sent thing

If, upon acceptance of things sent to the depositary, the damage to or deficiency of the thing is apparent upon external inspection, the depositary shall promptly notify the depositor thereof and take all reasonable steps to enable the depositor to submit a claim for compensation for damage.

  • 902. Preservation of thing

(1) The depositary shall allow the depositor to examine the thing, take samples and perform acts necessary to preserve the thing. The depositary has the right to perform acts necessary to preserve the thing independently. If the stored things are mixed, the depositary is required to perform acts necessary for preservation.

(2) If, after deposit of the thing, the thing has changed or there is reason to believe that changes may occur which may cause the destruction of or damage to the thing or damage to the depositary, the depositary shall promptly notify the depositor thereof and request instructions from the depositor regarding operations with the thing. If a warehouse receipt has been issued, the depositary shall submit the notice regarding changes to the thing to the last legal possessor of the warehouse receipt who is known to the depositary.

(3) If the depositary does not receive any instructions in the case specified in subsection (2) of this section within a reasonable period of time, the depositary shall take reasonable measures independently. In particular, the depositary may sell the thing pursuant to subsections 125 (3) to (6) of this Act. If a warehouse receipt has been issued, the depositary shall notify the last legal possessor of the warehouse receipt who is known to the depositary of the sale.

  • 903. Insurance and storage of thing with third party

(1) At the request of the depositor, the depositary shall insure the thing. If the depositor is a consumer, the depositary shall inform the depositor of the possibility of requesting that the depositary insure the thing.

(2) The depositary may store the thing with a third party only if expressly permitted to do so by the depositor.

  • 904. Cancellation of storage contract and duration of storage

(1) If the storage contract is entered into for an unspecified term, either the depositor or depositary may cancel the contract by giving one month’s advance notice. If the depositor or depositary has good reason to cancel the contract, the contract may be cancelled without adhering to the term for advance notice.

(2) The depositor may reclaim the thing at any time.

(3) The depositary may claim withdrawal of the thing after expiry of the agreed storage period or after expiry of the storage contract. If the depositary has good reason, the depositary may demand that the depositor withdraw the thing before expiry of the storage period.

(4) If a warehouse receipt has been issued, the depositary shall notify the last legal possessor of the warehouse receipt who is known to the depositary of cancellation of the contract and of a claim for withdrawal of the thing.

  • 905. Liability for loss of or damage to thing

The depositary shall compensate for any damage caused by loss of or damage to the thing if the damage is caused in the time between acceptance of the thing for storage and delivery of the thing. The depositary shall also be liable if the depositary stores the thing with a third party.

  • 906. Expiry of claims

(1) The limitation period for claims arising from a storage contract shall be one year. The limitation period for claims for compensation for damage caused intentionally or due to gross negligence shall be three years.

(2) The limitation period for claims specified in subsection (1) of this section shall commence as of the date of expiry of the contract. If the thing is lost, the limitation period shall commence as of the date on which the depositary notifies the depositor of the loss or, if a warehouse receipt has been issued, as of delivery of the warehouse receipt to the last legal possessor who is known to the depositary.

(3) If the depositor is a consumer, any agreement which derogates from the provisions of subsections (1) and (2) of this section to the detriment of the depositor is void.

[RT I 2003, 78, 523 – entry into force 27.12.2003]

  • 907. Right of security of depositary

(1) The depositary has the right of security regarding the stored thing in order to secure all claims arising from the storage contract and claims arising from earlier contracts of carriage, forwarding contracts and storage contracts entered into with depositors. The right of security also extends to claims arising from insurance contracts entered into regarding the stored thing and the accompanying documents of the thing.

(2) If a warehouse receipt has been issued regarding the thing, only those claims of the depositary which arise from the warehouse receipt or of which the possessor of the warehouse receipt knew or should have known are secured by the right of security specified in subsection (1) of this section. The provisions of this subsection do not apply if the warehouse receipt is in the possession of the depositary.

(3) The right of security continues until the thing is in the possession of the depositary, in particular until the depositary can dispose of the thing on the basis of a bill of lading or a warehouse receipt.

  • 908. Warehouse receipt

(1) After acceptance of the thing for storage, the depositary may issue a warehouse receipt concerning the obligation to deliver, which shall contain the following information:

1) the place and date of issue of the warehouse receipt;

2) the name and address of the depositor;

3) the name and address of the depositary;

4) the place and date of storage;

5) a general description of the nature of the thing and the type of packaging, and, in the case of a dangerous thing, markings pursuant to the requirements established for such thing or, in the absence of such requirements, their generally recognised description;

6) the number of packages and their special marks and numbers;

7) the gross weight of the thing or the quantity expressed in other units of measurement;

8) if the stored things are mixed, a notation thereon.

(2) The warehouse receipt may contain other information which the depositary deems necessary.

(3) The depositary shall sign the warehouse receipt. The signature may be replaced by a clip-mark.

  • 909. Legal effect of warehouse receipt

(1) A warehouse receipt is a document of title which grants the legal possessor of the warehouse receipt the right to demand delivery of a stored thing from the depositary.

(2) The rights and obligations of the depositary and the legal possessor of the warehouse receipt shall be determined pursuant to the warehouse receipt. The storage contract shall prevail in the relationship between the depositary and depositor even if a warehouse receipt has been issued.

(3) If a warehouse receipt has been issued, it is presumed that the thing and the packaging thereof will be accepted by the depositary as described in the warehouse receipt if the description concerns the external condition of the thing, the number of stored packages and their special marks and numbers.

(4) If the depositary has checked the weight of the stored things or other information concerning the quantity of the stored items or if the content of the stored packages and the results of the checks are entered in a warehouse receipt, it is presumed that the weight, quantity and content conform to the information in the warehouse receipt upon acceptance of the thing.

(5) Upon delivery of a warehouse receipt to a third party, the depositary shall not rely on the fact that the information set out in the warehouse receipt and specified in subsections (3) and (4) of this section is incorrect unless, upon receipt of the warehouse receipt, the third party knew or should have known that the information set out in the warehouse receipt was incorrect.

(6) If the depositary has accepted the thing for storage, the delivery of a warehouse receipt to the person who is entitled to reclaim the thing pursuant to the warehouse receipt has the same meaning as transfer of the possession of the thing.

  • 910. Delivery of thing in exchange for returning warehouse receipt

(1) If a warehouse receipt has been issued, the depositary is required to deliver the thing only if the warehouse receipt is returned to the depositary. A notation concerning receipt of the thing shall be made on the warehouse receipt. If the stored thing is partially delivered, the depositary is required to deliver the part only if the depositary is permitted to make a corresponding signed notation on the warehouse receipt.

(2) The depositary shall compensate the legal possessor of the warehouse receipt for any damage caused by delivery of the thing by the depositary without demanding the return of the warehouse receipt or making a notation on the warehouse receipt.