What is the nature of an earnest money?
A)Same as option money.
B)It is proof of an intention to buy.
C)It is actually a partial payment of the purchase price and considered as proof of the perfection of the contract. (Topacio v. CA, 211 SCRA 219. Laforteza v. Machuca, 333 SCRA 642)
D)It forms part of the consideration even if the sale is not perfected or consummated. (Chua v. CA, 401 SCRA 54)

Question

Quizplus · Accepted Answer

Earnest money is considered a partial payment of the purchase price and serves as proof of the perfection of the contract, as established in the cited legal cases.

What Is the Nature of an Earnest Money