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Is the deposit refundable

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Is the deposit refundable


        

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  • 2024-06-16 16:01:39

    The validity of the deposit depends on the agreement of both parties. If there is no agreement between the parties, the nature of the deposit is mainly advance payment, and the seller should unconditionally refund in case of breach of contract; When the buyer breaches the contract, it can negotiate with the seller to solve the problem and ask the other party for a refund. In general, the deposit paid is regarded as the advance payment. When the transaction is successful, the deposit serves as the payment for goods. When the transaction is failed, the deposit shall be returned in full. The party receiving the deposit shall still bear the obligation to return the deposit even if it breaches the contract. If the parties agree otherwise, the agreement shall prevail. If you do not return, you can file a lawsuit with the local court. Require to bear the liability for breach of contract.

    Legal basis

    Article 586 of the Civil Code of the People's Republic of China [Deposit Guarantee] The parties may agree that one party shall pay a deposit to the other party as a guarantee for the creditor's rights. The deposit contract is established when the deposit is actually paid.
    The amount of the deposit shall be agreed upon by the parties; However, it shall not exceed 20% of the amount of the subject matter of the main contract, and the excess shall not have the effect of a deposit. If the amount of deposit actually paid is more or less than the agreed amount, it shall be deemed that the agreed amount of deposit has been changed.

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