Legal analysis: Deposit is a type of security right and a special form of pledge guarantee, that is, in order to guarantee the performance of the debt, the debtor or a third party transfers a certain amount of money or equivalent to the creditor for possession. , when the debtor fails to perform the contractual obligations, the creditor can receive priority from the deposit. Deposits are a customary method used in private transactions. Our country's laws neither explicitly recognize nor prohibit deposits as a guarantee method.
Deposit refers to the money that one or both parties to a contract retains with the other party or deposits with a third party to ensure the performance of the contract. This concept is widely used, such as contract deposit, performance deposit when bidding, margin in futures trading, and even margin pending trial, etc.
There are two main forms of deposits popular in real economic life: one is the deposit required by the contract party to ensure the realization of its claims from the other party. Another form of deposit is the deposit deposited by both parties to a third party approved by the contract to ensure the performance of their respective obligations when the contract is established.
Legal basis: Article 587 of the "People's Republic of China and Civil Code" If the debtor performs its debt, the deposit shall be used as the price or be recovered. If the party who paid the deposit fails to perform its debts or performs the debt inconsistently with the agreement, resulting in the failure to achieve the purpose of the contract, and has no right to request the return of the deposit, if the party receiving the deposit fails to perform its debts or performs the debt inconsistently with the agreement, resulting in the failure to achieve the purpose of the contract, double the amount of the deposit shall be returned .