What is the difference between a deposit (acompte) and earnest money (arrhes) in the event of withdrawal?

A deposit (acompte) is an initial payment that binds both parties definitively: the buyer cannot withdraw without risking damages, and the seller cannot refuse to deliver. Earnest money (arrhes) is an option to back out: the buyer can pull out by forfeiting the earnest money paid, and the seller can pull out by returning double the amount. For distance sales, the 14-day right of withdrawal (harmonised across the EU by the Consumer Rights Directive 2011/83/EU, art. 9) applies on top of this and requires a full refund (art. 13), whatever the classification.

If I withdraw within 14 days, must the merchant refund my deposit?

Yes, in full. The Consumer Rights Directive 2011/83/EU (art. 13) requires the refund of all sums paid under the contract, including the deposit. The legal nature (deposit or earnest money) has no impact on distance withdrawal: everything is refunded. The deposit/earnest money distinction becomes relevant again ONLY outside the statutory withdrawal period, or for contracts outside the scope of the distance-selling withdrawal right (in-store purchases in particular).

How do I know whether I paid a deposit or earnest money?

The contract or order form must state the classification. If the document mentions 'acompte' (deposit), 'avance' (advance) or 'paiement partiel' (part payment), it is in principle a deposit (a firm commitment). If the document mentions 'arrhes' (earnest money), a 'security deposit refundable at double', or says nothing at all, it is generally treated as earnest money (an option to back out) under national contract law. In case of doubt, courts tend to adopt the classification most favourable to the consumer (earnest money).

Deposit or earnest money: what do you get back if you withdraw?

You have paid an upfront sum for a purchase and you want to cancel? What you get back depends above all on where you bought. For a distance sale, the classification makes no difference: the withdrawal right (harmonised across the EU by the Consumer Rights Directive 2011/83/EU, art. 9; in Ireland, reg. 14 of S.I. No. 484/2013, enforced by the CCPC) requires a full refund of the sums paid within 14 days, deposit and earnest money alike. The distinction becomes crucial again outside the withdrawal period or for in-store purchases. Deposit (acompte) = firm commitment. Earnest money (arrhes) = option to back out (a distinction drawn by national contract law).

Comparison table

Criterion

Deposit (acompte)

Earnest money (arrhes)

Legal nature

Firm commitment

Option to back out

Applicable rules

No specific rule

National contract law

If the buyer backs out (outside the withdrawal period)

Damages owed to the seller

Forfeits the earnest money

If the seller backs out

Refund + damages

Returns double the earnest money

If withdrawal (distance sale, Directive 2011/83/EU)

Full refund

Presumption in case of doubt

Not applicable

Applies by default (favourable to the consumer)

The withdrawal right prevails for 14 days

For a sale concluded at a distance (e-commerce, telephone, mobile app), the right of withdrawal under the Consumer Rights Directive 2011/83/EU (art. 9) applies automatically within the 14 days following the conclusion of the contract (or the receipt of the goods, depending on the case). During this period, the merchant must refund all sums paid, with no deposit/earnest money distinction, without being able to retain anything whatsoever. The legal classification of the first payment has no impact.

Beyond 14 days, the distinction regains its full meaning

Once the withdrawal period has expired (or for sales not subject to the distance-selling withdrawal right: physical shop, pure B2B), the deposit/earnest money classification becomes decisive:

Deposit paid: if the buyer backs out, the seller can keep the deposit AND claim damages for the loss suffered (the failed sale). If the seller backs out, they return the deposit AND owe damages.
Earnest money paid: if the buyer backs out, they forfeit the earnest money (no damages on top). If the seller backs out, they return double the earnest money. A reciprocal option to back out.

Worked example: ordering a bespoke kitchen

Purchase of a bespoke kitchen on the Schmidt website, 8 000 €, deposit of 30 % paid (2 400 €).

Case 1: withdrawal within 14 days of signing the distance contract. Full refund of 2 400 € (Directive 2011/83/EU, art. 13). Careful: the bespoke kitchen falls within the made-to-measure exception (Directive 2011/83/EU, art. 16(c)) as soon as manufacturing has begun. If production has started, withdrawal is no longer possible.

Case 2: backing out 3 months later. If the contract classifies the payment as a deposit: Schmidt keeps 2 400 € AND can claim damages for the kitchen manufactured or ordered from its suppliers.

To go further

The 13 exceptions

Bespoke items, services performed, etc.