Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Earnest
n. 1. A nominal payment or token act that serves as a pledge or a sign of good faith, esp. as the partial purchase price of property. Though not legally necessary, an earnest may help the parties come to an agreement. 2. EARNEST MONEY.
earnest money
A deposit paid (usu. in escrow) by a prospective buyer (esp. of real estate) to show a good-faith intention to complete the transaction, and ordinarily forfeited if the buyer defaults. ( Although earnest money has traditionally been a nominal sum (such as a nickel or a dollar) used in the sale of goods, it is not a mere token in the real-estate context: it may amount to many thousands of dollars. - Also termed earnest; bargain money; caution money; hand money. Cf. BINDER (2); down payment under PAYMENT. "The amount of earnest money deposited rarely exceeds 10 percent of the purchase price, and its primary purpose is to serve as a source of payment of damages should the buyer default. Earnest money is not essential to make a purchase agreement binding if