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How to solve the problem if the decoration deposit is not refunded?
1. What is the function of the deposit?
1. The liquidated damages shall be determined by both parties through negotiation, and the amount is not limited. Liquidated damages are generally determined according to the expected losses caused by one party's breach of contract.
2. If the liquidated damages agreed by one party after breach of contract are "lower" than the actual losses, and the observant party requires the defaulting party to bear the liability for breach of contract, the observant party may bring a lawsuit to the court to request an increase in liquidated damages; If the agreed liquidated damages are "excessively" higher than the actual losses, the defaulting party may bring a lawsuit to the court to reduce the liquidated damages.
4. It is generally believed that the liquidated damages system established in the current contract law is not punitive, but compensatory. Even if the agreed amount of liquidated damages is higher than the actual loss, this basic attribute cannot be changed. Whether the parties can agree on simple punitive liquidated damages is not clearly stipulated in the contract law. Generally speaking, this agreement is not invalid, but its nature is still liquidated damages.
Second, what should I do if the rental deposit is not refunded?
1. If the lease contract does not specify the nature or rules of the deposit, the deposit will be regarded as the lease advance payment and will be refunded anyway.
2. If the parties have delivered the retention money, guarantee money, deposit, contract money, deposit or deposit, but the nature of the deposit is not stipulated, and the parties claim the right of deposit, the people's court will not support it.
3. Unless otherwise agreed in the contract, the lessor shall return the rental deposit in full to the lessee without interest on the day after the lease relationship is dissolved and the lessee has moved out, cleaned up and paid all the fees payable.
Legal basis: Article 585 of the Civil Code of People's Republic of China (PRC), the parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the breach of contract, or agree on the calculation method of the amount of damages for breach of contract.
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