Deposit: Money offered by a prospective buyer as an indication of good faith in entering into a contract to purchase, earnest money, security for the buyers performance of a contract. An earnest money deposit is not necessary to create a valid purchase contract because the mutual promises of the parties to buy and to sell are sufficient consideration to enforce the contract. If the buyer completes the purchase, the deposit money is applied toward the purchase price.

 

Related Words

Deposit: A partial payment of the cruise fare required at the time of your booking to secure the cabin being reserved. Deposits vary by cruise line and by length or cost of the cruise.

Hydrothermal Deposits: Mineral deposits that are formed by the actions of hot water or gases associated with a magmatic source.

American Depositary Share (ADS): When a company based overseas wants to sell its shares in the US markets, it can offer them through a US bank, which is known as the depositary. The depositary bank holds the issuing company . . . View Full Definition

Global Depositary Receipt (GDR): To raise money in more than one market, some corporations use global depositary receipts (GDRs) to sell their stock on markets in countries other than the one where they have their headquart . . . View Full Definition