Legal Application On Deposit In Paymegnt By Installment

The deposit system is one of the oldest systems in contract law,which plays the role of ensuring the conclusion and performance of contracts between the parties.In China's judicial practice,the deposit clause is widely used in housing intermediary sales contract.However,specific provisions are scattered in China's Security Law and its judicial interpretation of the provisions rather than expressly stipulated in existing laws regarding deposit in intermediary contract,which leads to conflict and dispute in its application.Especially in payment by installment method,no existing legal provisions to be referred to tend to cause great disputes in judicial practice.Argument is still to be heard in theory even though some disputes are resolved in alternative ways.In order to balance the interest of both parties,this paper adheres to the basic principles of the earnest contract under the current legal framework,and puts forward a new solution based on the theory of pre-contract effectiveness.In the meanwhile,this paper proposes specific legislative suggestion on the long run.