WHAT 定金 MEANS
What 定金 means
定金 is not just any advance payment. When the statutory deposit regime applies, breach by the payer may lead to loss of the deposit, while breach by the recipient may trigger return at twice the amount, subject to legal limits and the contract.
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Why the role matters
Translation mistakes are common because English “deposit” can also describe ordinary prepayment. The Chinese label and contractual function should be checked before assuming the statutory double-return mechanism applies.
CONTEXT
Where you see the term
ContextWhat it means there
Real-estate / sale contractsUsed to secure signing or performance.
Distribution agreementsMay secure a purchase commitment.
DisputesCourts distinguish 定金 from 订金 and ordinary advance payments.
TRANSLATION NOTE
文/A
Translation note
Use “earnest money (定金)” or “statutory deposit” when precision matters. “Deposit” alone is ambiguous.
AUTHORITY
Primary legal basis
ILLUSTRATIVE EXAMPLE
Example
A buyer pays RMB 100,000 labelled 定金 and then wrongfully refuses to close. Whether the seller may retain it depends on the statutory deposit rules and the amount cap.
SOURCES AND REVIEW
Primary authorities.
18 Sep 2026
OFFICIAL SOURCESUPPORTSCHECKED
PRC Civil Code
PRC Civil Code
MAINTAINED BYChina Legal Portal Editorial
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