Verified reference points
Advance or deposit: remedies when the transaction does not proceed
Why the label on a payment receipt may not determine its legal nature and what governs repayment.
Classifying the payment
- the agreement, payment purpose and security function are examined
- a payment is normally an advance where a deposit was not properly established
- communications and payment wording may prove the agreed terms
Possible remedies
- return of an advance
- deposit consequences under articles 570–571 of the Civil Code
- termination, loss or a contractual penalty where legally available
- unjust enrichment only where the legal basis was absent or later ceased
Documents to prepare
- agreement, order, offer or transaction draft
- receipt, statement and exact payment description
- communications about timing and why the transaction failed
- proof of sending a demand and the reply
Official sources
Double repayment does not apply to every prepayment, and unjust enrichment is not a universal substitute for a contractual claim.