What is deposit, how would you describe it?

Hello, could you maybe provide me with some information about deposit? How would you describe the meaning of deposit?


Good day, thanks for the question. Deposit is a particular sum of money, which is paid by one party of the contract, to the other. Deposit could be named as a certain contract fortification, like a guarantee, that the terms of the contract will be respected to. Deposit performs three functions: payment (in situation like this, it is a sum of money, used to pay for some services or pay off a debt); proof (to put it simple, deposit is put as a proof, that the contract is successfully concluded); assurance (when the deposit is paid to ensure a smooth contract execution).

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