Solved

Jones Ordered a New Car and Was Required to Pay

Question 122

Multiple Choice

Jones 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 the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference.
B) A down-payment is an amount of money to be forfeited if either party is in breach of contract.
C) The deposit must be a fair reflection of the loss actually suffered.
D) The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach.
E) If no deposit had been paid, there could be no contract.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions