Legal analysis: The deposit is certain and is a certain amount of money or substitutes paid as a guarantee before the conclusion of the contract or before performance; it is a guarantee in which the parties can agree that one party will pay a deposit to the other party. , the amount shall not exceed 20% of the subject amount of the main contract.
Deposit is only an intention deposit; the legal concept of deposit is only "advance payment". "Deposit" means that the parties agree that one party will pay a certain amount of money to the other party as an expression of intention to enter into the contract, which can be offset after the contract is performed. Payment; the validity of the "deposit" depends on the agreement between the two parties. If there is no agreement between the parties, the nature of the "deposit" is mainly an advance payment; it does not have the guarantee nature of a deposit and can be regarded as an "advance payment". When the contract When performance cannot be performed, except for force majeure, both parties shall bear liability for breach of contract based on the fault of both parties. If the party that paid the deposit breaches the contract, it can request the refund of the deposit. If the party that received the deposit breaches the contract, it only needs to return the original amount of the deposit, and does not need to return double the amount.
Advance payment is a means of payment, its purpose is to solve the shortfall of working capital of one party to the contract. Advance payment does not have the effect of two-way or one-way guarantee of the performance of the debt, nor can it prove the establishment of the contract. When a party fails to perform the contract and the contract is terminated, the advance payment shall be returned; the liability for breach of contract by each party is determined by other clauses agreed in the contract. If there is no agreement on liability for breach of contract, the party generally will not be liable for breach of contract. If the party receiving the advance payment breaches the contract, it only needs to return the advance payment. The money received does not need to be returned twice.
Legal basis: Article 586 of the "People's Republic of China and Civil Code" The parties may agree that one party will 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 delivered.
The amount of the deposit shall be agreed upon by the parties; however, it shall not exceed 20% of the subject matter of the main contract, and the excess shall not be effective as a deposit. If the amount of the deposit actually delivered is more or less than the agreed amount, the agreed amount of deposit will be deemed to have been changed.