12-015 · EVIDENCE A · SOURCE-SENSITIVE
Writing “deposit” instead of “advance payment” in contracts, specifying penalty amounts, and treating credit terms as loans
收钱写「定金」不写「订金」，违约金写明数，账期当放贷来审
No cost at all. Simply include the term “deposit” in the contract; the amount must not exceed 20% of the total contract value. Collect the payment before delivering goods. Before agreeing to any credit terms that let the buyer receive goods first and pay later, run a background check on them first.
Only when the word “deposit” is used does the double‑return rule apply: if you break the contract, you lose that money; if the other party breaks it, they must pay you twice the amount. Anything above 20% of the contract value does not qualify as a deposit. If you write “advance payment” instead, the law offers no such protection. Offering credit terms is essentially lending your own money to the buyer interest‑free; if they go bankrupt, it becomes a bad debt.
A
Move “Writing “deposit” instead of “advance payment” in contracts, specifying penalty amounts, and treating credit terms as loans” to Future Me's calendar
The excuse
One more exception feels free because the bill arrives outside the current scene.
What feels good now
Today I keep a few minutes and avoid interrupting my default routine.
What the source says
The source summarizes the return this way: “Only when the word “deposit” is used does the double‑return rule apply: if you break the contract, you lose that money; if the other party breaks it, they must pay you twice the amount. Anything above 20% of the contract value does not qualify as a deposit. If you write “advance payment” instead, the law offers no such protection. Offering credit terms is essentially lending your own money to the buyer interest‑free; if they go bankrupt, it becomes a bad debt.” Evidence grade A. The original states the population, caveats, and sources; this is not a personal forecast.
Use the original facts and limits. For an urgent medical, safety, financial, or legal issue, contact a qualified local professional or service.
THE ENGLISH EDITION
Original recommendation and evidence
15. Writing “deposit” instead of “advance payment” in contracts, specifying penalty amounts, and treating credit terms as loans
Cost: No cost at all. Simply include the term “deposit” in the contract; the amount must not exceed 20% of the total contract value. Collect the payment before delivering goods. Before agreeing to any credit terms that let the buyer receive goods first and pay later, run a background check on them first.
In plain terms: Only when the word “deposit” is used does the double‑return rule apply: if you break the contract, you lose that money; if the other party breaks it, they must pay you twice the amount. Anything above 20% of the contract value does not qualify as a deposit. If you write “advance payment” instead, the law offers no such protection. Offering credit terms is essentially lending your own money to the buyer interest‑free; if they go bankrupt, it becomes a bad debt.
Benefit: A deposit only becomes valid once the money is actually received by the seller (the effective date is when delivery occurs). If the buyer breaks the contract, they forfeit the deposit. If the seller breaks it, they must return the full amount plus an equal sum as compensation (i.e., double the original amount). Portions exceeding 20% of the total contract value are not treated as deposits. Should the agreed penalty amount be far higher or lower than the actual loss, a court may adjust it at the request of either party. When both a deposit and a penalty clause are included in the same contract, the injured party may claim only one of them, not both (nationwide, effective since 2021).
Evidence grade: A
Sources: National People's Congress (2020). Civil Code (Articles 585, 586, 587, 588). <https://www.spp.gov.cn/spp/fl/202006/t20200602_463888.shtml>
Notes: Under the Civil Code, “advance payment” does not enjoy the same protections as a deposit; it is generally regarded as a simple prepayment. This is the prevailing practice in legal practice, though no specific court rulings were verified for this section. Providing credit terms is equivalent to lending your own funds to the buyer without interest; any default results in a bad debt. Before granting such terms, check the buyer’s records on the National Enterprise Credit Information Publicity System to see if there are any pending lawsuits against them.
Read the complete Chinese source and notes
15. 收钱写「定金」不写「订金」，违约金写明数，账期当放贷来审
成本: 不花钱。合同里写「定金」这两个字，金额不超过合同总金额的 20%。先收钱再发货。答应对方先拿货、后付款（给账期）之前，先把对方查一遍。
说人话: 写「定金」这两个字才有双倍规则：你毁约，这笔钱要不回来；对方毁约，要退你双倍。超过合同金额 20% 的那部分不算。写成「订金」，法律上没有这套规则。给账期等于把自己的钱白借给对方，对方倒了就是坏账。
收益: 定金要等钱真交到对方手上才算数（自实际交付时成立）。付定金的一方毁约，这笔钱要不回来。收定金的一方毁约，要原数退回，再赔上同样一份（双倍返还）。超过合同总金额（主合同标的额）20% 的那部分，不按定金算。约定的违约金比实际损失高得离谱或者低得离谱的，法院可以按一方的请求往下调或者往上调。违约金和定金都写进了合同的，真出了违约只能挑一样要，不能两样都拿（全国，2021 年起）
证据等级: A
来源: 全国人大 (2020). 民法典（第五百八十五、五百八十六、五百八十七、五百八十八条）. <https://www.spp.gov.cn/spp/fl/202006/t20200602_463888.shtml>
备注: 「订金」在民法典里没有定金那套规则，一般只当预付款看待。这是实务里的通行说法，本节没有核实判例。账期就是把自己的钱无息借给对方，对方倒了就是坏账。给账期之前，先去国家企业信用信息公示系统查对方的记录，看它有没有被起诉过。
YOUR PRIVATE LIST