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What law did the merchant's deposit not be refunded violate?
Legal analysis: it is a basic principle of contract performance to fully perform contractual obligations as agreed. Therefore, unless otherwise agreed in the contract or there are legal circumstances that can unilaterally terminate the contract, both parties should be ordered to continue to perform if the other party insists on continuing to perform, whether it is the expected breach after the contract is signed or the actual breach after the expiration of the contract performance period. If the other party has other losses when performing its obligations, it shall compensate for the losses.

Legal basis: Article 580 of the Civil Code of People's Republic of China (PRC). If one party fails to perform non-monetary debts or the performance of non-monetary debts does not conform to the agreement, the other party may request performance, except in any of the following circumstances:

(a) It is legally or practically impossible to perform;

(2) The subject matter of the debt is not suitable for compulsory performance or the cost of performance is too high;

(3) The creditor fails to request performance within a reasonable time limit.

In case of one of the exceptional circumstances specified in the preceding paragraph, the purpose of the contract cannot be achieved, the people's court or arbitration institution may, at the request of the parties, terminate the rights and obligations of the contract, but it does not affect the liability for breach of contract.