What are the precautions for signing a deposit agreement?
Publish Time：
2025-05-14
When signing a deposit agreement, to reduce disputes and avoid unnecessary economic losses, the following aspects should be noted:
(1) Strictly examine the validity of the main contract.
A deposit agreement is a subsidiary contract of the main contract. If the main contract is invalid, the deposit agreement is also invalid. A deposit agreement is a type of guarantee contract. Article 5 of the Guarantee Law stipulates that a guarantee contract is a subsidiary contract of the main contract; if the main contract is invalid, the guarantee contract is also invalid. Therefore, when signing a deposit agreement, it is important to examine the validity of the main contract to ensure the validity of the signed deposit subsidiary contract.
(2) The deposit agreement should be in writing.
If a deposit agreement is not made in writing but orally, and there is no corresponding evidence to prove it, the establishment of the deposit agreement cannot be determined. To avoid this, both parties should make a special written agreement when paying the deposit, especially on how to handle the deposit in case of breach of the main contract or supplementary contract. The main purpose of signing a written deposit agreement is to avoid disputes over deposit agreements and to provide a basis for distinguishing responsibilities in case of disputes, effectively protecting the legitimate rights and interests of both parties.
(3) The amount of the deposit must be agreed within 20% of the subject matter of the contract.
The specific amount of the deposit in the contract is determined through consultation between the parties. The agreed amount of the deposit should be appropriate. If the agreed amount is too high, the compensation received by the party fulfilling the contract may be excessively higher than its actual losses. If the agreed amount is too low, it will not guarantee the performance of the contract. Article 20 of the Guarantee Law stipulates that the amount of the deposit is agreed upon by the parties, but it shall not exceed 20% of the total amount of the main contract. The law clearly stipulates the upper limit of the deposit amount. The specific amount determined within the upper limit is determined through consultation between the parties. If the agreed amount of the deposit exceeds 20% of the subject matter of the main contract, the excess part shall be deemed invalid.
Related Knowledge
Contact Number：0755-88606107，18899775185
Company Email：qishenlvshi@163.com
Company Address：Building A, 1605、1304, Xintianshiji Business Center, Futian District, Shenzhen
More Online Inquiry Methods
