Earnest Payment Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Earnest Payment, written in plain English, along with examples of how it is used.
What is Earnest Payment?
n. a deposit paid to demonstrate commitment and to bind a contract, with the remainder due at a particular time. If the contract is breached by failure to pay, then the earnest payment is kept by the recipient as pre-determined (liquidated) or committed damages.