In HK contract law, is any policy regarding to the deposit validity/timing? for an example, a customer paid amount of deposit in a contract but he was disappeared after the payment done, and he show up 5 years after suddenly, is the contract still valid? Or the contract void and we are available to keep the deposit?

3 個解答

  • 6 年前

    It depends on the terms of the deposit (the contract).

    If there is a term in the contract to renew or extend the deposit automatically after the expiry of the fixed term, the deposit will be renewed or extended.

    Even if there is no such term, you have to hold the deposit for the benefit of the customer. There is no way that you could claim the contract void nor forfeit the deposit.

    The deposit is a private property. It belongs to your customer and you should never try to appropriate it.

    2014-08-22 01:28:09 補充:

    HA~~ I thought it's a deposit like fixed deposit or bank deposit.

    2014-08-22 01:28:40 補充:

    So, if it's a deposit for part payment, it still depends on the contract terms. You need an expressed term to forfeit the deposit as it is an absolute measure to appropriate the property of others. Without a written contract and a right to forfeit the deposit, you cannot simply forfeit the deposit.

    2014-08-22 01:35:41 補充:

    Is 5-years a reasonable time that a forfeiture right arise? I doubt it.

    Some contracts may need time to perform and 5 years is not that long.

    You may try to argue that the customer has breached the contract but forfeiture is not a right that you can derive from a breach of contract by the customer.

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  • 6 年前


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  • Gary
    Lv 7
    6 年前

    1. Yes and no.

    This policy is not written in black and white. Instead, it is derived from an implied clause - good faith.

    2. No - unless the contract has explicitly allowed this.

    3. The contract is not voided, but breached. Given all considerations, 5-year of time is convincing enough for deposit forfeiture.

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