Unilateral refusal of the contract with the condition of the deposit

The customer has entered into an agreement with the Contractor for organizing the event. In the performance of its obligations under the contract, paid the money.

But due to the disappearance of the need for its implementation, the Customer decided to withdraw from the contract and sent a corresponding notice to the Contractor with an indication of the need to return the paid money. Contractor did not return the money. The customer went to court.
The case was complicated by the fact that the contract provided a deposit, not an advance. The deposit as a means of ensuring the execution of the contract is a monetary motivation of the parties. According to the provisions of Part 2 of Article 380 of the Civil Code of the Russian Federation, if a party is responsible for non-performance of a contract, it has given a deposit (that is, the party that transferred funds - in the case under consideration - the Customer), it remains with the other party. And these funds were transferred by the Customer to the Contractor.

But after analyzing the legislative regulation and the delimitation of the prepayment and deposit, having studied the judicial practice, the lawyers of Yurkon LLC qualified this payment as a prepayment and prepared the corresponding arguments. When transferring the deposit, the Customer did not indicate in the purpose of the payment - “deposit under the contract”, which the courts recognize is a significant condition for accepting the payment as a deposit and applying the consequences of non-performance of the contract. When negotiating a contract, the parties did not negotiate the application of the advance, moreover, the draft contracts in the electronic correspondence of the parties did not indicate the need to pay the deposit.
But the Contractor did not use the condition of the deposit agreement in case of refusal to return the funds and as a justification of his objections to the claims of the Customer. The Contractor cited other arguments that were refuted by the representatives of the Customer in all judicial instances.

"Yurkon" LLC has successfully completed the consideration of the dispute in favor of the customer.
 

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