The difference between used car knowledge "deposit" and "deposit"

When buying a used car, we can pay a one-off car payment, or we can pay some “deposits”. Many people often do not understand the meaning of “down payment” and “deposit deposit” when signing a contract. They have essential differences. In this article, we will explain the two words in detail and hope to help your car purchase.

The difference between deposit and deposit

Concept difference

The deposit refers to the realization of the creditor’s right to guarantee the contract. The parties agree in writing that one party pays a certain amount of money in advance to the other party as a guarantee. It is a standard legal concept and is a statutory guarantee. Its purpose is to Encourage debtors to actively perform their debts and ensure creditors’ claims are realized.

The deposit is not a legal legal concept, but it is a idiom. In fact, it has the nature of advance payment. It is a means of payment for the party and does not have the nature of the security of the debt. The purpose of the deposit is to settle the other party to the deposit. There is a shortage of cash flow, which enhances its compliance capacity. If the party accepting the deposit is in default, only the deposit received can be returned without double payment.

Differences in legal attributes

The basic legal relationship between the deposit and the deposit is different: the deposit contract is the contract from the main contract, unless the parties have special agreement, the main contract is invalid, the deposit contract is also invalid; and the parties on the deposit agreement is the main part of the contract Copies.

The function of deposit and deposit is different

The deposit has the function of guarantee of debt, and the deposit does not have the function of guarantee of debt. Its function is to provide certain support for a party to perform its debt. The payment of the deposit itself belongs to the performance of the debt by the party that paid the deposit.

The role of the two is different

Once the deposit is paid, the breaching party will be used to compensate the observing party. After the deposit payment is made, if one party breaches the contract and terminates the contract, the party accepting the deposit must refund the deposit in full.

The scope of application of the two is different

The deposit guarantee method can be applied to various contracts, and the deposit is only applicable to the payment of money. In the contract where one party performs the debt, it is mostly found in the well-known contracts such as sales contracts, lease contracts, and contract contracts.

Summary of the article: When buying a car, use "deposit"

When we understand the difference between "deposit" and "deposit", when buying second-hand cars, we should use "deposit" to sign contracts to avoid unnecessary disputes. In addition, it is worth mentioning that the "deposit" guarantee method can be applied to various contracts, and the "deposit deposit" is relatively more limited, used for sale contracts, lease contracts, contract contracts and other famous contracts.

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