Legal Definitions - naked deposit

A naked deposit occurs when an individual entrusts their personal property to another person for safekeeping, without any payment, formal contract, or mutual benefit exchanged for this service. The person holding the property (known as the "depositee") receives no compensation and often no specific instructions beyond simply holding the item. This arrangement is typically based on trust or convenience, rather than a commercial agreement.

• Example 1: Imagine a situation where Alex is going on a short business trip and asks his friend, Ben, to keep his valuable antique watch safe at Ben's house for a few days. Ben agrees to do so as a favor, without asking for any payment or expecting anything in return for his trouble.

  Explanation: This scenario illustrates a naked deposit because Alex benefits from Ben safeguarding his watch, but Ben receives no compensation or specific advantage for providing this service. Ben is simply holding the property out of goodwill, without any formal agreement or payment.

• Example 2: Consider a customer at a busy restaurant who needs to use the restroom and briefly asks the host to hold their laptop bag behind the counter, stating, "Could you just keep an eye on this for a moment?" The host accepts the bag without any formal procedure, receipt, or charge.

  Explanation: In this instance, the customer benefits from the temporary safekeeping of their laptop bag. The restaurant and its host are not compensated for this brief custody, nor do they gain any specific benefit from holding the item. It's an informal arrangement for the convenience of the customer, fitting the definition of a naked deposit.