According to the provisions of Article 328 of the 2015 Civil Code on depositing, the following provisions are made:
1. A deposit is the act of one party (hereinafter referred to as the depositor) handing over to the other party (hereinafter referred to as the deposit recipient) an amount of money or other precious metals, gemstones or valuable objects (hereinafter referred to as the deposit property) for a period of time to ensure the signing or performance of the contract.
2. In case the contract is concluded and implemented, the deposit assets shall be returned to the deposit party or deducted to fulfill the payment obligation; If the deposit party refuses to conclude and perform the contract, the deposit property belongs to the deposit party; If the receiver refuses to conclude and perform the contract, the deposit must be paid to the deposit deposit and an amount equivalent to the value of the deposit property, unless otherwise agreed.
Whether or not to refuse a transaction after promising to buy and sell land will be subject to a deposit or not depends on the content of the agreement between the two parties.
If both parties only promise to buy or sell without clearly stating that this is a deposit contract, according to the law, the violator will not be subject to a deposit penalty.
In this case, even if the promise is not fulfilled, it can only be handled according to the regulations on penalties for breach of contract if the agreement stipulates this.
On the contrary, if the contract clearly states that this is a deposit contract, this is considered a measure to ensure the performance of civil obligations according to Article 328 of the 2015 Civil Code.
At that time, if one party refuses to sign or does not fulfill the contract, it will be handled in the form of a deposit penalty: the depositor will lose the deposit, and the deposit recipient will have to return the deposit and double compensation, unless the two parties have another agreement.
Thus, only when there is a clear "deposit" in the contract, there is a basis to handle the fine when one party does not make a transaction after promising to buy and sell land.
