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

Question

Quizplus · Accepted Answer

The Answer of 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

Sal Needs an Apartment Desperately Because He Wants to Leave