The two cases recently handled by the author both involve the issue of whether a landlord shall refund the rental deposit. Such issues usually arise from contracts that are not duly performed in full, that is, residential lease contracts terminated before the completion of performance, including termination by agreement (subletting) or termination for breach of contract. Under such circumstances, almost all landlords confiscate the deposit in a one-size-fits-all manner, and may also claim high liquidated damages from the tenant at the same time. Then, should the rental deposit be refunded after all? Even if the tenant has settled all relevant fees and charges when surrendering the leased premises, is the tenant bound to leave the deposit at the arbitrary disposal of the landlord?
Authors of this Article: Shen Qing, Huang Jiaping
Source: Wu Tao, Lawyer
I. High-profile Cases:
