Baker agreed to purchase a set of books on display in Black's Book Store.The price for the set was $300,and Baker gave Black $150 to "bind the bargain." Black delivered the books to Baker's home the next day,but Baker refused delivery,as he had found a similar set in another shop at a slightly lower price.
-Black is entitled to keep Baker's $150,as it was a deposit.

Question

Quizplus · Accepted Answer

A deposit is a sum of money paid in advance as a guarantee of good faith in making a contract. In this case, Baker gave Black $150 as a deposit to bind the bargain for the purchase of the set of books. However, Baker later refused delivery of the books, which means that he breached the contract. As a result, Black is entitled to keep the deposit as compensation for Baker's breach of contract.

Baker Agreed to Purchase a Set of Books on Display