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earnest payment
(redirected from Earnest money deposit)

   Also found in: Acronyms, Wikipedia 0.09 sec.

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.



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The consequence to buyers when they find a company like that, the opportunity will belong to the buyer that brings the most to the table the quickest, whether that means that they have to abbreviate their diligence period or pay an earnest money deposit up front to go exclusive.
In connection with the extension, HandHeld and eBaum's World agreed to release from escrow the earnest money deposit consisting of 261,438 shares of HandHeld common stock and $350,000 cash to eBaum's World and to credit an aggregate of $750,000 against the purchase price of the proposed acquisition.
The company paid an earnest money deposit of $1 million towards the acquisition.
 
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