1. What are the conditions for using liquidated damages?

1. The actual deposit is required. Although there was an agreement between the parties to pay the deposit, it was not actually delivered. One party cannot use the deposit penalty when it fails to perform the contract, because the effectiveness of the deposit contract cannot be confirmed at this time.

2. The main contract is valid. Only when the main contract is valid will the down payment penalty be applied. If the main contract is invalid or cancelled, even if the parties have paid and accepted the deposit, the penalty of deposit cannot be applied, and the party accepting the deposit shall return the deposit to the delivery party. Both parties shall deal with the legal consequences of invalid contracts.

3. There must be the fact that one party fails to perform the contract. Failure to perform a contract means that the parties do not perform their contractual obligations at all and do not perform the contract.

4. There is a causal relationship between breach of contract and failure of contract purpose.

2. What's the difference between liquidated damages and deposit?

First, the deposit is to ensure the realization of the creditor's rights, and it exists as an independent form of guarantee, while the liquidated damages are just a breach of contract compensation agreement.

Second, the deposit is generally delivered before the performance of the contract and takes effect after delivery; The liquidated damages are based on the contractual agreement between the two parties after the breach of contract, not paid in advance. There are compensatory liquidated damages and punitive liquidated damages.

3. What is the litigation process of default deposit dispute?

1, the plaintiff sued.

2. The court will serve a copy of the indictment on the defendant after accepting it.

3. The defendant submits the defense within fifteen days, and the court will serve a copy of the defense to the plaintiff within five days. If the defendant fails to submit the defense, it will not affect the trial.

4. The court shall notify the parties three days before deciding to hold a hearing.

5. The court investigation stage includes: statements by the parties; Inform witnesses of their rights and obligations, witness to testify in court, and read out the testimony of witnesses who did not appear in court; Produce documentary evidence, physical evidence and audio-visual materials; Read the appraisal conclusion; Read the interrogation record.

6. The court debate includes: the plaintiff and his agent ad litem speak; Defendant and his agent ad litem reply; The third person and his agent ad litem speak or reply; Debate with each other. At the end of the court debate, the presiding judge shall consult the final opinions of all parties in the order of plaintiff, defendant and third party.

7. At the end of the court debate, a judgment shall be made according to law. Mediation can be conducted before the judgment, and mediation can also be conducted. If mediation fails, a judgment shall be made in time.

8. Announcement of judgment.

The entry into force of the deposit contract is based on the entry into force of the main contract. If the main contract is invalid, so is the deposit contract. At this time, the party receiving the deposit shall refund the deposit in full. In the process of contract performance, in principle, the deposit and liquidated damages cannot be applied at the same time, unless it can be proved that the loss caused by breach of contract is higher than the deposit delivered.