Multiple Choice
Craig ordered a new car and was required to pay a $500 deposit.Which of the following is correct with respect to that deposit?
A) If no deposit had been paid, there could be no contract.
B) The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach.
C) If the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference.
D) The deposit must be a fair reflection of the loss actually suffered.
E) A down-payment is an amount of money to be forfeited if either party is in breach of contract.
Correct Answer:
Verified
Correct Answer:
Verified
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