Agreement for Refundable Deposit

Download this template in the file version you want to work with using the links or buttons on this page. Note that the deposit receipt can be developed as a “PDF”, “Word” or “ODT” file. In September 2015, the company entered into a three-year lease with a base monthly rent of $11 to move its headquarters to Los Altos, California. At the end of the lease, the company paid a refundable deposit of $50. Due to the company`s strategic transformation, the company plans to prematurely terminate its lease for offices in Los Altos, California. Under the terms of the lease, the Company will repay six months of lease obligations in advance and forfeit its repayable down payment of $50. The company assumes that this rental obligation will amount to a total of approximately. $118, including the refundable deposit to be paid in the year ended June 30, 2017. The amount of the deposit is a matter of negotiations between the parties. That is, the amount of the deposit must be reasonable, taking into account all the circumstances of the transaction as a whole. A deposit is usually associated with a purchase contract with the payer, who is required to meet its conditions or lose the amount of the deposit. If the payer fulfills the end of his contract or agrees to purchase, the deposit will either be credited to the total amount of the purchase, and for owner-tenant situations, the deposit will be refunded to the tenant at the end of the rental.

4. Effects of landlord bankruptcy. In the event of bankruptcy of the landlord, a tenant`s “deposit” may be lost. In many cases, commercial leases provide that the deposit must be paid to the owner of the building, and the owner of the building has the option of mixing the money with other funds used to operate the building. If the money is mixed and the landlord files for bankruptcy, you, as the tenant of the building, can become an unsecured creditor of the owner, and if there is no way to pay the unsecured creditors, you risk losing that deposit. “Commercial lease security deposit at risk of bankruptcy In the authority of Howe v Smith (1884) 27 Ch D 89, a deposit is characterized as follows: Deposit. On the effective date, [PART B] [PART A] will make a deposit of $[DEPOSIT AMOUNT] (the “Deposit”). The deposit clause requires the payment of a deposit in order to protect the landlord against non-payment of rent by the tenant in the case of real estate and against damage to the property or, in the case of personal property, against non-payment or damage to the property by the tenant. If a payment is a deposit, the general rule is that the deposit will not be refunded in case of breach of contract.

Therefore, if the Buyer does not perform the contract or withdraws from the purchase, the Buyer is not entitled to a refund of the deposit if the Seller terminates due to the negative behavior of the Buyer. This is because the deposit was made as collateral for the service. In consideration for the acquisition of Black Dragon, we issued a total of 20,000,000 common shares to the two sellers on the closing date and paid $100,000 as a non-refundable deposit prior to closing. In addition, we have assumed a commitment for certain cash payments totalling $2.7 million prior to September 1, 2018 (or $2.4 million if all payments are made by September 1, 2017) for active participation in the Black Dragon property. The buyer and seller or landlord and tenant negotiate the terms of an agreement and the amount required as a deposit. Depending on the terms of the contract, the deposit can be refunded upon performance of the contract by the payer or at the end of the tenant`s lease. What is a deposit and how is it different from partial payment? The law does not require a buyer to pay or a seller to require a down payment. The contract must contain a specific provision. The starting point is therefore the examination of the contract.

What did the parties really agree on what this payment would represent? A deposit receipt is issued to a payer after receipt of the funds, with payment of the balance to be made at a later date. The deposit represents the good faith of the payer with the intention of paying the full amount due for the goods or services at a later date. The deposit, also known as a “deposit”, can be refunded depending on the conditions. 4.1 Refundable Deposit. The Company and the Consultant acknowledge and agree that (i) a refundable deposit of $25,000 must be made by the Company and held by the Consultant until the termination or expiration of this Management Consulting Agreement; (ii) the short-term consulting contract requires a similar refundable deposit of $25,000 paid by the Corporation and now held by the advisor (the “existing deposit”); and (iii) the existing deposit will be deemed to be the execution of the refundable deposit request under this Agreement, will be held by the Advisor in accordance with this Section 4 and will be refunded to the Company as provided herein. The Consultant will refund the deposit to the Company immediately after the termination or expiration of this Agreement. To be a deposit, it is important that both elements are present. A simple partial payment of the purchase price does not constitute a guarantee of the seller`s performance and is therefore treated differently from a deposit. On April 19, 2017, the Company entered into a share exchange agreement with Arista Capital Ltd.

(“Arista Capital”) and the shareholders of Arista Capital (the “Share Exchange Agreement”), pursuant to which, subject to the terms of the Share Exchange Agreement, the Company agreed to exchange newly issued shares of the Company for shares of Arista Capital held by the shareholders of Arista Capital. arista Capital will become a wholly-owned subsidiary of the Company (the “Transaction”). The closing of the Transaction (the “Closing”) should take place sixty days after the conclusion of this Agreement. On July 18, 2017, the parties completed the first addendum to the share exchange agreement, which set the closing date of the transaction at September 15, 2017. As part of this first addendum, Arista Capital paid the Company a non-refundable deposit of $15,000 and was entitled to extend the closing date at intervals of thirty days after payment of an additional non-refundable deposit of $10,000 for each renewal interval requested. In November 2017, Arista Capital paid the company an additional non-refundable deposit of $10,000. The closing took place on December 14, 2017. At closing, Arista Capital paid the Company $72,500, which was used to settle all outstanding liabilities of Praco.

4. We acknowledge your disclosure that some of your developer customers require you to make an upfront payment and a refundable deposit. Please revise to describe these deposits in more detail, when you will be entitled to a refund of these deposits and how these deposits will affect your transaction. In summary, a deposit is a guarantee of the execution of the contract by the buyer, while a partial payment is only that: a partial payment of the price. No other liability. If [PART A] transfers the deposit in accordance with this paragraph [TRANSFER OF PREMISES], it depends on what the parties had planned when contacting us, whether an advance payment is a deposit or a simple partial payment. The distinction is especially important when it comes to whether it is refundable or not if the contract is not concluded for some reason. .

This entry was posted in Uncategorized. Bookmark the permalink.


Click one of our representatives below to chat on WhatsApp or send us an email to

× How can I help you?