Advance - this deposit?

Even professional lawyers sometimes have issues that concern and advance deposit.What is their difference from each other?What to choose - a deposit or advance in a particular situation?On these issues is sometimes seriously ponder.

advance.Meaning of words in the dictionary


Advance represents wealth or money, which are issued in respect of wages or payments owed to anyone.


Advance - are financial or tangible assets, which are issued against future payments.

Collegiate Dictionary:

advance - the amount of money or some property values.Issued in respect of wages owed, upcoming payments, transfer of property for future expenses.

What is the deposit?

Article 380 of the Civil Code contains the following definition.Deposit - amount of money that is given by one party to the other party to the contract.The procedure is carried out to prove the conclusion of contractual obligations and ensure their implementation.

Amount used as a sanction in case of non-agreement.Of the Civil Code establishes sanctions in article 381:

  • If the party which gave the deposit, does not fulfill the conditions of the contract, the amount of its non-refundable.
  • If the contract is not executed due to the fault party that received the deposit, its amount should be returned to the double rate.The Civil Code does not give a complete definition of the advance.But the law is the definition of the relationship of the advance payment.Advance - a partial or full payment of goods or services, which is carried out beforehand.

What is different from an advance deposit?

Unlike advance deposit does not impose obligations on the parties to fulfill the agreement.Each party has the right to cancel the contract, in which case the amount of the advance payment is returned in full.This is the main difference between them.Also, a contract in which advance payment is made, it may be orally, and the deposit shall be in writing required.

Thus, the deposit - it is completely independent agreement.And contains three features:

  • payment;
  • an interim:
  • testifying.

And the deposit - it is the action that carries only payment option.

What to choose?

in Russia and the CIS in general agreement on the deposit is rarely used.Often accompanied only transactions relating to real estate, as well as large financial transactions.In cases where losses can arise when non-performance of preliminary commitments reasonable to conclude the contract of deposit.

In today's time distributed a simplified form of transactions.She is receiving the advance payment, the agreement which specifies an individual item has a list of penalties.

Given all the above, we can recommend the use of an advance agreement.But first must obtain guarantees, writing in the contract penalties for refusal to perform or enter into the main document.And at its own discretion to set penalties and types of their size (a certain amount of cash or a comfortable percentage).