9911796707
TMI BlogDistinction between a "Earnest Or Deposit and An advance part payment of price"X X X X Extracts X X X X X X X X Extracts X X X X ..... perty", 1950, 8th Edition at page 946: - "A deposit is not recoverable by the buyer, for a deposit is a guarantee that the buyer shall perform his contract and is forfeited on his failure to do so. As regards the recovery of part payments, the question must depend upon the terms of the particular contract. If the contract distinguishes between the deposit and instalments of price and the buyer i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s unable or unwilling to deliver the goods, or to pass a good title thereto, or the contract is voidable by the buyer for any reason, the buyer may repudiate the contract and recover the deposit. The buyer may also recover it where, without the default of either party, the contract is rescinded by either party pursuant to an express power in the contract in that behalf." In G. C. Cheshire and C.H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposited as earnest or as a guarantee for the due performance of the payer's obligation, the rule at common law is that if the contract is rescinded by reason of his default the deposit is forfeited to the payer and cannot be recovered. In the latter case, however, and also where it has been expressly agreed that a part payment shall be forfeited in the event of the payer's default, equi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the buyer would only entitle the seller to sue for damages but not to forfeit the advance. A specific forfeiture clause might operate to defeat the buyer's right of recovery of even an advance payment. But equity might step in to relieve the buyer from forfeiture. If the amount forfeited cannot stand the test of a genuine pre-estimate of damages, it would be unconscionable for the seller t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
