Deposit, advance, deposit and credit: what differences?

Verified 05 February 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Deposits and deposits depend on the choice of the trader in his general conditions of sale (GTC),. The trader is free to determine whether the contract includes deposits or advance payments. It is strongly recommended that you carefully read the contract you are about to sign, whether it is concluded face to face or remote.

FYI  

The rules concerning deposits and advance payments shall apply to contracts of sale or the provision of services concluded in a store or remote. However, they shall not apply to real estate sales and to products that you had made tailor-made.

Deposit

The deposit is a 1er payment on the purchase of goods or services.

You and the professional are each obliged to keep your commitments. A contract, purchase order or payment of a deposit is considered a commitment.

Thus, the trader must provide you with the goods or services and you must purchase the goods or services provided for in the contract (unless otherwise agreed between you 2).

If one of the two parties to the contract reneges on his commitment, the party who has withdrawn may be ordered to pay damages.

The amount of the deposit to be paid is freely determined by the seller. You can negotiate this before the contract is concluded.

Example :

If you buy a car for €5,000 and have made a down payment €500 when signing the contract, you will have to pay the €4,500 in case you don't want the car anymore.

If the trader withdraws, he must refund the €500. You can ask enforcement of the sale and payment of damages for wrongful breach of contract.

Deposit

Deposits are a part of the sum that you pay in advance for the purchase of a good or service. You or the professional can renege on your commitment, that is, you are not obliged to go through with the sale.

Deposits don't require you to buy. On the other hand, they are lost if you cancel your purchase (unless the contract provides for the possibility of recovering the deposit in case of cancelation).

The trader who does not provide the goods or services must refund twice the deposit paid.

FYI  

If you do not specify the invoice, the amounts you pay in advance to a professional when selling a movable property (e.g. table) are referred to as deposits.

Advance

The advance is an amount paid before the sale of a property or the provision of services is made. An advance payment shall be considered legally as a deposit. You or the professional can renege on your commitment.

You lose the advanced money if you cancel your purchase or order.

On the other hand, the trader who does not provide the goods or services must reimburse you twice the amount paid.

On the expiry of a period of three months after payment, whatever the name given to the amount paid in advance (advance or deposit), they shall pay interest. These are due until the sale is completed (for example, on delivery) or the service is performed or, if they are not completed, until the amounts paid in advance are refunded.

Example :

You buy a car for €5,000, you pay €500 when the contract is signed.

If you don't want the car anymore, you lose the €500 paid. You don't have to go through with the sale.

If the trader does not deliver the car to you because it is no longer available, he owes you double the deposit or advance you paid, either €1,000 (€500 X 2).

Have

Assets are equal to value of a good that you return to the seller. It is issued by the professional to allow you to make another purchase in the future.

Example :

You bought a piece of clothing from €35Yeah, but it's too small. You want to exchange it, but it's not your size. The professional doesn't reimburse you. It gives you the possibility to use the €35 to buy another piece of clothing.

If the seller is at fault (delivery out of time, item returned following a default), you are not obliged to accept this arrangement. The seller must refund the price.

Who can help me?

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