Deposit Clause In Real Estate Intermediation & Trade Agreement

Deposit system, as the method to furnish security for the fulfillment of the debt, is laid down in Roman law at first. In China, a lot of people used to make deposit clause for security in the real estate intermediation & trade agreement in practice. But there is no specific regulation of deposit in the intermediary contract, which leads to plenty of legal disputes. So it has theory value and utility value to discuss the nature of the deposit, advance performance and how to handle disputes in the real estate intermediation & trade agreement. The author would like to make a brief analysis on the deposit system by researching on the multiplex nature of the real estate intermediation & trade agreement.The article can be divided into four parts.The first part introduces cases and the court situation and brings forward the topic: Deposit Clause in Real Estate Intermediation & Trade Agreement. Firstly, the law case improves perceptual knowledge about deposit disputes. Secondly, the statistical data shows the number of cases and difficulty of handling. Finally, the author sums up in several questions that reflect from cases in order to improve rational knowledge.The second part continued from the preceding paragraph and tried to analyze the causes of disputes. On one hand, one reason is the insufficiency or drawback of relevant laws and regulations. This includes: the intermediary violated rules and credibility. On the other hand, buyers and sellers are easily influenced by the driving force of economic benefits. Also, it is easy to escape the liability for breach of contract.The third part tries to solve deposit disputes through the basic theory of the deposit system, but there are some deficiencies. Deficiencies are not only the definition of the deposit but also the legal requirement and the legal effect of deposit.The fourth part is the core of this paper. This part comes up a solution for deposit disputes by analyzing the multiplex nature of the real estate intermediation & trade agreement and the author consider to set up a preventative mechanism. At first, the author thinks that the real estate intermediation & trade agreement is the mix of the mediacy and the precontract. It provides a sound theory foundation for handling disputes. Secondly, the author points out that the deposit is to ensure the precontract. Thirdly, the author analyzes the focus of problems: the operation of advance performance. She thinks it is the result of a meeting of minds. But the intermediary without the right to dispose the deposit is not the party of the precontract. Then, the author talks about the liability in the disputes, distinguishes the liability of breaching the precontract from the liability of keeping the precontract, meanwhile, she points out the treatment when the precontract is invalid. At last, the author makes a further consideration. A preventative mechanism should be established to prevent disputes, including setting deadlines, establishing the concept of integrity, standardizing the market and improving in relative laws and rules.