We make the right deposit agreement correctly

In everyday life, we are used to calling a deposit a preliminary payment. But if you look from the point of view of the Civil Code, the term "deposit" has a wider meaning. In this regard, many people find it difficult to distinguish it from bail or, for example, compensation. In what cases is the agreement on the deposit and how to make it correctly, we will tell further.

What is a deposit?

According to the law, the deposit is a preliminary partial payment for the service and the goods. In addition, it is still a way of securing an obligation. The deposit is used when making major transactions: buying real estate, cars, concluding a lease, contract, supply, holding competitions and auctions, etc. Granting such a payment indicates that the parties are serious and thus guarantee their solvency.

Rules of Procedure

The law does not contain any restrictions on the size of the deposit. Its amount is determined only at the discretion of the parties. It should be remembered that such a payment can only be made by money. The transfer of a debt or a bill can not be considered a deposit.

Naturally, to witness the fact of the transfer of a certain amount necessarily constitute an agreement on the deposit in writing. This is done by issuing a separate document, which contains the relevant provisions. If the parties fulfill the contract, the deposit will become one of the payments for the transaction. But if the contract can not be executed, the deposit is returned.

Conclusion of an agreement

The document on receipt of the deposit is a bilateral transaction that generates certain legal relationships. The subject of the agreement and the most important condition is the amount of payment. In general, the rights and obligations are unilateral, but nevertheless, in order to conclude the main contract in the future, the deposit agreement must contain such obligations for the payee:

• To take a certain amount in a particular place;
• Issue a receipt for the receipt of money;
• Depending on the subject of the transaction, it may be subject to other requirements.

In addition, the recipient of the deposit must subsequently conclude a contract only with a specific person (that is, with the one who provided the deposit). In addition, before concluding such an agreement, the parties must already formalize the contract, which is secured by the deposit.

Termination of the deposit agreement

It is not necessary to confuse such concepts at first sight as "deposit" and "advance". The first has a significant difference from the second and it consists in the fact that in default of its obligations the party that provided the deposit is deprived of it. That is, such a payment will remain with the recipient. If the contract is refused by the recipient of this amount, then not only the termination of the deposit agreement is canceled, but also the double payment.

As for the advance, it does not bear any "punitive" function. In the event of non-compliance, the culprit is not deprived of this amount. Consequently, the advance and the deposit have different consequences.

At the same time, there may be cases when the termination of the deposit agreement is accompanied by the return of the payment made. So, if the transaction is terminated by agreement of the parties or if it is impossible to execute at all, the payment must be returned. These rules generally mean that if there are any circumstances in connection with which the contract can not be executed, the deposit is returned.

Content of the document

This document must contain some required details. We have already pointed out that only an agreement on the deposit is written in writing. The sample of this document does not have any uniform strict form, but nevertheless it should contain such information:

1. The title of the document (agreement on the transfer of the deposit on the preliminary contract), its date and place of compilation.
2. Name and passport details of the parties.
3. It is also indicated the basis for giving a deposit (for example, on account of a concluded preliminary lease or sale contract).
4. Next, a specific object is indicated, that is, for which a deposit (a dwelling, a vehicle, etc.) is given.
5. Penalties if one of the parties refuses the transaction (a refund of the amount in double size for the payee or non-return of money for the one who transferred the deposit).
6. Other conditions that do not contradict the law.
7. Signatures of the parties to the agreement.

Errors when signing an agreement

Very often, the parties can make various legal mistakes when registering a deposit agreement. Let us dwell on the most common.

Sometimes the persons who make out such a document indicate that the money is transferred not as a deposit, but as a deposit. This is fundamentally wrong, such a payment can not be considered a pledge, since this contradicts the concept of collateral. At the same time, such an agreement can not testify to the transfer of a pledge, because there is no direct instruction.

The second mistake is that the parties enter into a deposit agreement, but the transferred payment is called an advance. As a result of such a miss, the provisions on the deposit will not be applied. If such mistakes are made, money can be returned, however, often it takes a lot of effort and time to achieve this.

Rules for concluding a deposit agreement for certain types of transactions

In general, the rules for compiling a document on transfer of deposit for different categories of transactions are almost not different. However, for contracts where real estate is involved, it is more risky not to enter into a payment transfer agreement as a deposit for the buyer. In addition, an incorrectly drafted document can lead to unpleasant consequences. To transfer payment and make an agreement on the deposit of a land plot, residential or non-residential premises or other real estate is best with a notary. It is also important to require, in addition to the agreement, a receipt for payment. This document is kept by the buyer until the transaction is completed.

Subtleties with rental deals

To certify the fact of transfer of the guarantee payment is important not only at the conclusion of the contract of sale. Such a paper can be made in principle for almost any type of transaction. Unfortunately, many believe that if they intend to take an object for rent, then you can not conclude an agreement on the deposit. Renting is also a serious procedure. Especially if it comes, for example, about some non-residential premises. Imagine, you agreed with the landlord that you will rent a pavilion from him. This is very beneficial for you, because it is in a favorable place, or the rent will be low. But the owner of the premises took it and changed his mind, and the entrepreneur has to look for a new place, losing his income. Therefore, in this case it is necessary to insist on concluding an agreement on a deposit, the future employer has every right to do so.

In conclusion

To draw up an agreement on a deposit, you must adhere to a number of simple rules. From the correctness of this document, in fact, depends on the fate of the transaction. Also, before transferring the payment, you should agree on all the nuances and get a receipt from the seller about receiving the money. The deposit is your reliable guarantor that the contract will be realized, therefore do not neglect your legal right.