earnest payment

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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.

See: pledge, security
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If all closing conditions have been satisfied or waived and Quest fails to close the Acquisition, Devon will be entitled to retain Quest's $5 million earnest money deposit, but will not have any other recourse against Quest.
Pursuant to the termination agreement, Star Scientific will retain a $2 million earnest money deposit that had been placed into escrow by North Atlantic and the parties executed releases of any liability arising out of the Asset Purchase Agreement.
CogenAmerica executed and delivered a Stock Purchase Agreement for the MCPC power facility and tendered an earnest money deposit of $2.
Pursuant to the agreement of sale, the purchaser has made an earnest money deposit of $400,000.
On August 11, 1995, Crystallume executed a definitive purchase agreement and made a non- refundable earnest money deposit of $750,000 towards the purchase price, using funds provided to the Company by certain institutional shareholders.