Deposit, advance, deposit and credit: what differences?
Verified 29 October 2020 - Directorate for Legal and Administrative Information (Prime Minister), Directorate-General for Competition, Consumption and Fraud Prevention (DGCCRF)
The deposit is 1to payment on the purchase of goods or services. The trader and the consumer are each obliged to keep their commitment. A contract, purchase order, or deposit is considered an undertaking.
The trader must supply the goods or services and the consumer must purchase the goods or services provided for in the contract (unless otherwise agreed between the 2 parties). If either party retracts, if he changes his mind, he may be ordered to pay damages.
The trader may require the supply of the good or service for which the consumer has made a deposit.
Deposit are an amount paid in advance for the purchase of a good or service. The trader or the consumer may renege on his commitment.
Deposit does not force the consumer to buy. However, they are lost if the consumer cancels his purchase (unless the contract provides for the possibility of recovering the deposit in case of cancelation). The trader who does not supply the goods or the provision of services must refund twice the deposit paid to the consumer.
Advance is an amount paid before the sale of a property or the provision of services is made. An advance is considered as a deposit. The trader or the consumer may renege on his commitment. Advanced money is lost to the consumer if he cancels his purchase or his order. On the other hand, the trader who does not supply the goods or services must refund twice the amount paid to the consumer.
Have it is equal to the value of a good that the consumer returns to the seller. It is issued by the trader to allow the consumer to make another purchase in the future. If the seller is wrong (e.g. delivery out of time, item returned due to defect), the consumer is not obliged to accept this arrangement.