Deposit

Deposit, or more familiar in everyday life "deposit" as proof that I have entered the desired contract and as collateral, if the counterparty fails to meet its part of the deal. As a deposit I can give / receive property, money or other valuables, as he is not necessarily coincide with the subject of the principal obligation of the contract, ie to keep a refrigerator, for example, as a deposit I can offer clock or kilo of apples .

 

When given a deposit and what documents do I need?

 

 

In everyday life often give a deposit to reserve a table favorite with me and my company facility. In this and in other cases where what handsel does not require the conclusion of a written contract should always want a receipt / note for the sum delivered or property! This is essential, because the transfer of the deposit serves as proof that the contract is concluded.

 

In some cases, the law explicitly requires the provision of a deposit. For example, to participate in the bidding at a public sale of property, on account of the bailiff to submit a deposit of 10% of the original amount.

 

In practice, the deposit is used mostly in real estate transactions. Then it is agreed as a clause in the preliminary contract for sale of the property or in a separate agreement for deposit.

 

What are my rights if the other party fails?

 

In the event that the contract is executed by both parties, the deposit:

 

deducted from the total amount to be paid by pay only the difference between already paid (deposit) and sales amount;

returns, if a deposit is an asset. Deposit is returned even where the contract is terminated by mutual agreement or can not be implemented due to objective impossibility (in case of fire, theft, etc.).

When I gave a deposit, but not receive performance, have the right to:

 

terminate the contract immediately, without having to refer the dispute to the court and I deposit double the amount;

I want to perform the contract and compensation for damages, which should prove.

When I received a deposit as a regular party to the contract, the protective function protects my interest and gives me two options:

 

to withdraw from the contract and to retain the deposit.

I want to perform the contract and compensation for damages, which should prove.

This article aims to outline some basic Your rights, with no claims to be legal adviser. If you have difficulty with the exercise of these fundamental rights or the case is more complex - we encourage you to consult a legal expert.