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Can the deposit for car booking be refunded?

1 Answers

MarleyLee

07/29/25 1:34pm

Deposit can be refunded, but earnest money cannot. Here are the relevant introductions: Deposit: Deposit does not have the nature of earnest money. It is only a unilateral act and does not have obvious guarantee characteristics. If the party paying the deposit claims the right of earnest money, the People's Court will not support it. Generally, the payment of a deposit is regarded as the payment of an advance payment. When one party to the contract who pays or receives the deposit fails to perform the contractual obligations, there will be no consequence of losing or double refunding the advance payment. The deposit can only be used as compensation for damages. Earnest Money: Earnest money refers to a certain amount of money agreed by the parties to be paid by one party to the other as a guarantee for the creditor's rights. It is a legal guarantee method aimed at urging the debtor to perform the debt and ensuring the realization of the creditor's rights. When signing the contract, the earnest money must be agreed in writing, and the amount and delivery period of the earnest money must also be agreed. If the party paying the earnest money fails to perform the debt, it has no right to require the other party to refund the earnest money; if the party receiving the earnest money fails to perform the debt, it must double refund the debt to the other party. After the debtor performs the debt, the earnest money shall be deducted from the price or returned according to the agreement.

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