The parties to the deposit contract have rights and obligations
Posted: Wed Dec 18, 2024 7:02 am
You have probably heard of the deposit contract. It is a document that contains the commitment to carry out the sale. With the deposit, the buyer reserves the right to purchase an asset and the seller agrees to sell that asset to the buyer as agreed.
This is what is known as a "deposit", it is a pre-agreement so that both parties are sure shareholder database that the sale will be carried out. Whether you are an individual or a company and you are going to buy or sell a good, it is advisable that you sign the deposit contract . There are contract templates for companies where you can find models of this contract and thus, be able to draft it yourself.
The buyer has the right to reserve the purchase and also the obligation to acquire that asset.
The seller agrees to sell that good to the buyer and has the right to have the buyer pay the price under the agreed conditions.
That is to say, it represents a commitment for both parties.
Classes of deposit
As we have indicated above, the deposit is configured as an agreement in the contract of sale, in which case the buyer delivers an amount of money to the seller as a deposit and as indicated in article 1454 of the Civil Code : "If there has been a deposit or a deposit in the contract of sale, the contract may be rescinded, the buyer agreeing to lose it, or the seller to return it doubled."
That is, both parties can withdraw from the contract. The buyer would lose the amount or the seller would have to return the doubled amount. However, depending on the type of deposit established in the contract, they will have different functions:
Confirmatory deposit : its function is to confirm the existence of the contract. It is an advance payment of the total price that the parties agree in the sales contract.
Penalty deposits : their function is to ensure or guarantee the fulfilment of the contract. If the contract is breached, they are lost or they are returned doubled. In other words, it is compensation for breach.
Penitential deposit : allows the buyer to withdraw from the contract by losing it or by returning it doubled by the seller. These are the deposits regulated in art. 1454 of the Civil Code.
These are the different deposits that exist, but to determine their function, first of all, it is necessary to rely on the will of the parties, that is, what they agree on. Penitential deposits have a supplementary character. In the absence of an agreement, the deposits are considered confirmatory. And in case of doubt between penal or penitential deposits, they will be understood to be penal in all cases. They will only and exclusively be penitential if this function clearly appears in the contract.
From Contratopedia.com you can find the deposit contract with the three types so that you can choose those that best suit your case and always sign the contracts with complete legal security.
This is what is known as a "deposit", it is a pre-agreement so that both parties are sure shareholder database that the sale will be carried out. Whether you are an individual or a company and you are going to buy or sell a good, it is advisable that you sign the deposit contract . There are contract templates for companies where you can find models of this contract and thus, be able to draft it yourself.
The buyer has the right to reserve the purchase and also the obligation to acquire that asset.
The seller agrees to sell that good to the buyer and has the right to have the buyer pay the price under the agreed conditions.
That is to say, it represents a commitment for both parties.
Classes of deposit
As we have indicated above, the deposit is configured as an agreement in the contract of sale, in which case the buyer delivers an amount of money to the seller as a deposit and as indicated in article 1454 of the Civil Code : "If there has been a deposit or a deposit in the contract of sale, the contract may be rescinded, the buyer agreeing to lose it, or the seller to return it doubled."
That is, both parties can withdraw from the contract. The buyer would lose the amount or the seller would have to return the doubled amount. However, depending on the type of deposit established in the contract, they will have different functions:
Confirmatory deposit : its function is to confirm the existence of the contract. It is an advance payment of the total price that the parties agree in the sales contract.
Penalty deposits : their function is to ensure or guarantee the fulfilment of the contract. If the contract is breached, they are lost or they are returned doubled. In other words, it is compensation for breach.
Penitential deposit : allows the buyer to withdraw from the contract by losing it or by returning it doubled by the seller. These are the deposits regulated in art. 1454 of the Civil Code.
These are the different deposits that exist, but to determine their function, first of all, it is necessary to rely on the will of the parties, that is, what they agree on. Penitential deposits have a supplementary character. In the absence of an agreement, the deposits are considered confirmatory. And in case of doubt between penal or penitential deposits, they will be understood to be penal in all cases. They will only and exclusively be penitential if this function clearly appears in the contract.
From Contratopedia.com you can find the deposit contract with the three types so that you can choose those that best suit your case and always sign the contracts with complete legal security.