The Application of the Penalty Rule for Deposit
Both parties agreed in the purchase contract that if the seller delays the delivery for more than 15 days, the deposit amount to RMB100,000 shall be refunded, and the seller shall also undertake the default fine amount to 20% of the total price. Later then, the seller failed to deliver on time, the buyer filed a lawsuit to the court, and required the seller to refund doubled amount of the deposit, in addition with the default fine. Whether the court would support the buyer’s claim? This question brings out 2 sub-questions. Whether both parties could agree to rule out the…