[Direct answer]In the Beijing area, if the deposited items are stored in accordance with the law under statutory circumstances, it is deemed that the debtor has fulfilled his obligations and the corresponding debts are extinguished. According to Article 573 of the Civil Code of the People's Republic of China, after the deposited items are stored, the risk of damage or loss shall be borne by the creditor, and the interest accrued during the storage period shall belong to the creditor, with the storage fees being borne by the creditor. Article 574 clearly stipulates that the creditor's right to withdraw the deposited items shall be extinguished if it is not exercised within five years from the date of the deposit. In other words, once the deposit is completed in accordance with the law, the debtor's obligation to deliver the items is discharged. However, the prerequisite are that the deposit meets the statutory conditions, such as the creditor refusing to accept the deposit without a legitimate reason. For more details, please refer to the relevant provisions of the Civil Code of the People's Republic of China.Business and contract dispute resolution services for enterprises.

1. Problem background and typical scenarios

Deposit with a third party is often misunderstood by parties as a temporary measure of "handing over money and goods to a third party for safekeeping", rather than a true performance of the contract. Typical scenarios include: the buyer refuses to accept the goods, and the seller is worried about breaching the contract by delaying delivery; the creditor is untraceable, and the debtor is unable to repay the debt; the debtor owes the creditor a due debt and is worried that the creditor will refuse to offset it after receiving the deposit; and settling monetary debts by depositing securities or cash. Many debtors are concerned: If I deposit the goods, will I be completely free from liability and the other party won't be able to sue me for breach of delivery? The answer is affirmative under statutory conditions, but procedural defects may lead to the deposit not being recognized. For cases involving the realization of monetary claims, it can be combined with other legal provisions to ensure the effectiveness of the deposit.Creditor-debtor relations and enforcement case servicesCoordinate and plan things in an organized and efficient way to achieve the best results with the least effort.

II. Key points of dispute

The focus of the controversy centers on three points. Firstly, whether the prerequisites for depositing the goods are legal: depositing the goods can only be done in legal circumstances such as the creditor refusing to accept the goods, the debtor's whereabouts being unknown, or the heirs or guardians not being determined. It cannot be done simply because it is inconvenient for the debtor. Secondly, whether the objects deposited are appropriate: the objects deposited should be the subject matter of the contract or its price. Wrongly depositing, depositing insufficiently, or partially depositing the goods may affect their effectiveness. Thirdly, the restrictions on notification and collection: the debtor has the obligation to notify after depositing the goods; if the creditor also owes a due debt to the debtor, the depositing department may refuse to allow the creditor to collect the goods upon request. When handling similar cases in Beijing, the acceptance of the depositing notarization certificate is relatively standardized, but the prerequisite facts are still subject to substantive review. For cases involving intertwined guarantees and set-offs, reference can be made to relevant provisions.Real estate sales and construction engineering services.

III. Professional analysis by Hengluo Lawyers

Based on our practical experience in handling contract performance disputes, whether the deposit can be considered as "fulfillment of obligations" depends on the premises and evidence, rather than simply obtaining a notarized certificate. Hengluo Lawyers usually advise that before making a deposit, it is necessary to prove that the debtor has prepared for performance according to the contract, has reminded the creditor to accept the performance, and that the other party has unjustifiably refused to accept the performance. When making a deposit, it is necessary to ensure that the subject matter is consistent with the contract and to fix the legal effect with a notarized certificate issued by the notary office. In practice, many disputes arise from the debtor's failure to notify the creditor, leading the creditor to claim breach of contract on the grounds of "not being informed or not accepting the performance". Lawyers will simultaneously prepare a written reminder, a deposit application, and notification evidence to ensure that the deposit is directly recognized as proper performance in subsequent litigation or arbitration. For cases where the creditor's whereabouts are unknown, it is recommended to first issue a public notice or keep records of the search. For cases involving cross-contract performance, it can be combined with other evidence to prove the debtor's performance.Intellectual property protection and corporate legal servicesEvaluate the transaction structure.

IV. Practical suggestions and legal basis

The core basis is Article 570 of the Civil Code of the People's Republic of China (effective from January 1, 2021) (legal circumstances for depositing), Article 571 (depositing procedures, which should be deposited with the notary office at the place of performance), Article 572 (notifying the creditor after depositing), Article 573 (effects of depositing: risks, fruits, and expenses belong to the creditor, and the debt is extinguished), and Article 574 (receiving and the five-year exclusionary period); at the same time, refer to the rules on depositing notarization in the Notarization Law. Practical suggestions: First, fix the evidence of the other party's refusal to accept or inability to accept; then deposit with the notary office having jurisdiction and submit the contract and the materials of urging; after depositing, notify the creditor according to law; keep the notarial certificate and expense bills for settlement or defense. If there are foreign-related elements, they can be combined with\nFinancial capital and cross-border services involving foreign countriesAnalysis and judgment.

5. Hengluo Law Firm's Reminder

Deposit in trust is a legal way to get out of trouble, but it's by no means a "one-stop solution". Failure to notify, incorrect deposits, or invalid preconditions may all lead to the deposit being overturned, and the debtor will still be required to fulfill their obligations or bear breach of contract liability. It is recommended to complete the evidence chain before depositing in trust, especially written proof of urging the recipient to accept the deposit and the other party's refusal; and to promptly notify and keep the receipt after depositing in trust. In the case of a creditor's obligation being due, they can legally claim to receive restrictions and offsets to protect their own interests. If professional assistance is needed, they can seek help from a professional.Special services and other case servicesDevelop a plan. In complex situations, consult a practicing lawyer as soon as possible to avoid having to redo the process.

VI. Frequently Asked Questions

Q1: After the escrow is established, can the other party still sue me for late delivery or non-performance of the contract?

Under the condition that the statutory prerequisites are met and the procedures are in compliance with the law, the deposit shall be deemed as performance, and it will generally be difficult for the other party to claim that the delay in delivery constitutes a breach of contract. According to Article 573 of the Civil Code, after the deposit, the risks and expenses shall be borne by the creditor, and the debt obligation shall be extinguished. However, the prerequisite are that you have adequately prepared the goods, have urged the recipient to accept the goods, and the other party has no legitimate reason to refuse, or there are statutory circumstances such as the other party's whereabouts being unknown; if you have defects in your own performance, the deposit may not necessarily exempt you from liability completely. In practice, the notarized deposit certificate is a strong probative evidence, which can effectively prevent the other party from continuing to claim that there is a breach of delivery obligation. However, it is necessary to ensure that the evidence and the notification process are complete.

Q2: What evidence do I need to prepare to prove that the deposit is valid?

The core elements include: a contract or agreement proving the validity of the creditor-debtor relationship; documents (such as production records, quality inspection reports, warehouse receipts, and logistics records) proving that you have prepared the subject matter in accordance with the agreement and meet the delivery conditions; written evidence (such as letters, emails, or notarized delivery notices) sent to the creditor to urge them to accept the delivery; proof that the creditor refuses or is unable to accept the delivery without a valid reason; a notarized deposit certificate issued by a notary office; and records of notifying the creditor after the deposit. The materials should be organized around the principles of "legal preconditions, appropriate targets, and compliant procedures", ensuring that they can be directly admitted as evidence in litigation or arbitration.

Q3: Who will bear the notarization and storage fees involved in the deposit?

According to Article 573 of the Civil Code, the costs of deposit shall be borne by the creditor, including reasonable expenses such as notarization fees, storage fees, appraisal fees, and transportation fees. The specific amount shall be implemented in accordance with the regulations by the notary office and the storage party, without a unified national pricing. After you advance the payment, you can retain all the bills and claim their return from the creditor in the settlement, set-off, or litigation. It is recommended that you inquire about the fee structure with the notary office before depositing the bills, so as to avoid disputes over fees affecting the progress of the deposit and facilitate the subsequent determination of the basis for recovery of damages.

Q4: How long does it take from the completion of the escrow to the final settlement of the debt?

When the deposit is accepted by the notary office and a certificate of deposit is issued, the performance of the obligation takes effect immediately. The extinction of the debt and the transfer of risk begin from the completion of the deposit, which does not take a long time. Two time limits need to be paid attention to: the debtor shall notify the creditor in a timely manner in accordance with Article 572 of the Civil Code; the creditor's right to pick up the deposit will be extinguished if it is not exercised within five years from the date of the deposit. At that time, the deposited items will belong to the state. It usually takes several days to several weeks from the preparation of the documents to the issuance of the notarial certificate, depending on the completeness of the materials and the notary's schedule. It is recommended to plan in advance to avoid being rushed at the last minute.

Q5: I want to settle the debt by making a deposit. What should I do specifically in the first step?

It is recommended to proceed in four steps: First, sort out the contracts and performance evidence to confirm that the goods have been properly prepared and the delivery conditions are met; Second, urge the creditor to accept the goods in writing and fix the proof of his refusal or unjustified delay; Third, apply to the notary office at the debtor's performance location for storage, submit the contracts, the prepared goods and the materials of refusal to accept the goods, and obtain the storage notarization certificate; Fourth, notify the creditor according to law and keep the receipt. The creditor is also entitled to claim the restriction and offset of the due debt according to the regulations. For reference only.The official website of Beijing Henglu Law FirmFor further guidance, you may consult a lawyer to oversee the entire process if necessary.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Hengluo Law Firm for specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence to avoid missing the statutory time limit. →Business and commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in time.