The situation: A buyer pays a 20,000-yuan deposit to reserve an apartment, then the owner sells it to someone else at a higher price and refuses to proceed.
Applicable law: The Civil Code's 'deposit penalty rule': if the payer breaches, he forfeits the deposit; if the receiver breaches, he returns it doubled. It requires a written agreement, the sum expressly named a 'deposit' (定金), and no more than 20% of the contract value. Distinguish it from a mere 'prepayment' (订金), simply refunded without doubling.
Outcome: Because the receipt expressly said '定金,' the owner was ordered to return 40,000 (double) to the buyer.
📄 Contracts · Awareness case
A Deposit Cuts Both Ways — The Double Rule · Yalla China
🤝 Governing law: 民法典（定金罚则）/ Civil Code (Deposit Penalty Rule)
If you pay a deposit and the seller backs out, do you get double back?
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: One word changes everything — '定金' means double, '订金' means a plain refund. Read the receipt carefully.
🕒 Updated: 16 March 2026