Do you know the difference in France between arrhes and acompte?

When buying goods or services in France, you may be asked to pay une avance (a deposit or down payment) before an item has been delivered, or before a service has been provided. 

It is important to check whether the deposit is called arrhes or acompte, as their legal framework varies.

Sellers and service providers can choose which type of deposit to offer and this is specified in the conditions générales de vente (general terms and conditions) or on the order form.

The difference can determine whether you are tied in to the purchase or whether it can be cancelled at a later date.

What does arrhes mean?

A deposit paid as arrhes still gives the buyer the opportunity to cancel their purchase. 

If a buyer cancels a contract, the deposit would not be refunded - unless the contract specifically outlines the possibility of recovering the deposit in the event of cancellation. 

If a seller or service provider cancels or fails to follow through with a contract, they must refund double the amount of the deposit paid. 

In the absence of any specific instructions in any trader–consumer sale or service contract, deposits are presumed to be arrhes.

What does acompte mean?

An acompte means that both parties have entered into an agreement. If either of the two parties pulls out of their commitment, the party that has withdrawn may be ordered to pay additional costs and damages.

If the buyer changes their mind, the seller may demand that the remaining balance be paid off, or they could take legal action to enforce the sale.

If the seller withdraws, they must refund the deposit and the buyer can also seek enforcement of the sale as well as damages for wrongful breach of contract.

This can be done by first trying to settle with the seller, then seeking mediation via the consumer ombudsman, or if all else fails, by sending a formal notice ideally by lettre recommandée avec avis de réception (registered post). If the buyer does not receive a reply, they will then the affair can be taken to court.

Note that arrhes and acompte deposits generally do not apply to property sales (see below) or to products that the buyer has had made to measure.

More ‘deposit’ vocabulary 

Dépôt de garantie

This term is most commonly used in the context of rental properties and refers to a security deposit. 

It is optional but very commonly required in practice. If a landlord asks for one, it must be clearly stated in the rental contract.

The maximum amount depends on whether the property is furnished (meublé) in which case the deposit cannot exceed two months’ rent (excluding charges) - or unfurnished rentals (loué vide/non meublé) in which case the deposit is capped at one month’s rent (excluding charges).

Indemnité d’immobilisation

This could be roughly translated as a reservation deposit. The buyer pays it upon signing a promesse unilatérale de vente, but it is usually held in escrow by the notaire. 

It is owed if the buyer does not go through with the purchase even though all suspensive conditions are met. It is refunded if a condition fails or if the buyer withdraws within the 10-day cooling-off period. If the sale goes ahead, it generally counts towards the price.

It has a distinct legal framework that applies only in the context of buying property.

Avoir

Avoir is best known as the verb: to have. In the context of buying goods and services, an avoir is what English speakers would refer to as a credit note. 

A credit note represents the value of a purchased item that has been returned to the seller, and typically allows the buyer to make an alternative purchase at a later date. Remember to check if/when this credit note expires.

It is issued only if the seller agrees to it as a contractual obligation or goodwill gesture.

Apport

An apport is like an investment. This can include a financial contribution made by a partner or shareholder to a business which enables the company to carry out its corporate purpose.

In return, the partner is entitled to a share of the profits and the right to take part in collective decisions. 

If you would like us to explain a particular word or expression, or if you have any other Learning French suggestions, let us know at: feedback@connexionfrance.com