If the contract was terminated due to the other party's fault, can I get the contract deposit back through a contract deposit refund lawsuit?

Hello. I am a civil law specialist attorney at Daeryun Law Firm.

Even if the contract was not performed due to the other party's fault, it cannot necessarily be concluded that the contract deposit can be refunded through a contract deposit refund lawsuit.

Even if the other party's grounds for liability exist, whether the legal requirements for contract deposit refund are met is judged separately.

For contract deposit refund to be recognized, the assertion that "the contract was terminated due to the other party's circumstances" alone is insufficient.

(*Note: Contract rescission retroactively extinguishes the contract, while termination only ends the effect after the time of termination, so they are distinguished.)

What the other party's obligations stipulated in the contract are, whether those obligations were not actually performed within the performance period, and whether the contract was in a state where it could be terminated as a result are reviewed together.

For example, if the balance payment date has not yet arrived, or if the performance delay is merely temporary, it is difficult to consider the other party's responsibility as clear, so the contract deposit refund may be denied.

Additionally, the manner and timing of contract termination are also important judgment factors.

Even if there are grounds for the other party's liability, if the contract was terminated without meeting the termination requirements, in the contract deposit refund lawsuit, whether the termination was lawful may first become an issue.

If termination is not recognized, contract deposit refund is also difficult to be accepted.

Ultimately, even if you feel that the other party has responsibility, it is important to first check how that responsibility can be evaluated according to the contract content and termination requirements.

Since the possibility of monetary refund through a contract deposit refund lawsuit varies greatly case by case, please organize the contract content and termination circumstances together with a civil law specialist attorney.