Is the Car Deposit Refundable?
1 Answers
Car deposits are non-refundable. Below is relevant information about car deposits: Definition: According to the relevant provisions of China's current laws, a deposit does not possess the nature of earnest money. It is merely a unilateral act without obvious guarantee characteristics. If the party paying the deposit claims earnest money rights, the People's Court will not support it. Generally, payment of a deposit is regarded as payment of an advance. When either party delivering or receiving the deposit fails to fulfill contractual obligations, there are no consequences of forfeiture or double refund of the advance payment. The deposit can only be treated as compensation for damages. Difference from earnest money: Earnest money is a standardized legal concept, representing a voluntary guarantee form agreed upon by contracting parties to ensure contract performance. As a form of contract performance guarantee, the Guarantee Law stipulates that guarantee contracts (i.e., earnest money clauses) are ancillary contracts to the main contract. If the main contract is invalid, the earnest money clause becomes void.