Earnest Money
Legal definition for Indian law research
Definition
Earnest money, The earnest money is a part of the purchase price when the transaction gets through and the same is forfeited when the transaction falls through by reason of the default or failure on the part of the vendee, H.U.D.A. v. Kewal Krishan Goel, (1996) 4 SCC 249: AIR 1996 SC 1981.
The earnest money is part of the purchase price when the transaction goes forward and it is forfeited when the transaction falls through, by reason of the fault or failure of the purchase. Earnest money or deposit serves two purposes of being part-payment of the purchase money and security for the performances of the contract by the party concerned, who paid it. (AIR 1926 PC 1), Videocon Properties Ltd. v. Bhalchandra Laboratories, (2004) 3 SCC 711: AIR 2004 SC 1787 (1793). [Transfer of Property Act, 1882, s. 55(6)(b)]
A deposit paid (usu in escrow) by a prospective buyer (esp. of real estate) to show a good faith intention to complete the transactions and ordinarily forfeited if the buyer default, Black's Law Dictionary, 7th Edn.
The earnest money is part of the purchase price when the transaction goes forward and it is forfeited when the transaction falls through, by reason of the fault or failure of the purchase. Earnest money or deposit serves two purposes of being part-payment of the purchase money and security for the performances of the contract by the party concerned, who paid it. (AIR 1926 PC 1), Videocon Properties Ltd. v. Bhalchandra Laboratories, (2004) 3 SCC 711: AIR 2004 SC 1787 (1793). [Transfer of Property Act, 1882, s. 55(6)(b)]
A deposit paid (usu in escrow) by a prospective buyer (esp. of real estate) to show a good faith intention to complete the transactions and ordinarily forfeited if the buyer default, Black's Law Dictionary, 7th Edn.
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