An advance payment is a refundable amount, while a deposit is an amount that must be returned double in case of breach of obligation.
A common mistake is calling an advance payment made for a not-yet-concluded contract a deposit.
In such cases, this payment is actually just an advance payment.
The Supreme Court has once again emphasized that a deposit is a type of obligation security that only arises from an active agreement.
Since no purchase and sale agreement that would meet legal requirements in form and content was concluded between the parties, and they only agreed to conclude such an agreement in the future, the money transferred by the plaintiff in the total amount of $49,150 is an advance payment that was subject to return, not a deposit.
https://reyestr.court.gov.ua/Review/97771767
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