Sal Needs an Apartment Desperately Because He Wants to Leave

Multiple Choice

Sal needs an apartment desperately because he wants to leave his wife. There is a severe shortage of apartments. Sal finds one for $1,000 a month. The landlord insists Sal give a $5,000 deposit and Sal pays it. The next day Sal and his wife reconcile, so Sal wants to get out of the lease. Which of the following is true?

A) The $5,000 payment is called a deposit in law.
B) This deposit is forfeited automatically.
C) Sal can attack this requirement to pay $5,000 as a penalty clause in order to get the money back.
D) This $5,000 payment is called a down payment in law.
E) Both A and B