Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?
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.

Question

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The Answer of Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?
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.

Craig Ordered a New Car and Was Required to Pay