53.2 Deposit and part payment distinguishedA deposit serves the dual purpose of:(a) going against the purchase money or service fee if the transaction is completed; and(b) acting as a guarantee that the buyer means business1.Deposits can be distinguished from part-payments as a deposit, in the absence of agreement to the contrary, cannot be recovered2.If the advance payment is a ‘part payment’ rather than a deposit, the customer may be able to recover some or all of it, even if the contract was terminated because of his default. The tradesman would, however,
A deposit serves the dual purpose of:
going against the purchase money or service fee if the transaction is completed; and
acting as a guarantee that the buyer means business1.
Deposits can be distinguished from part-payments as a deposit, in the absence of agreement to the contrary, cannot be recovered2.
If the advance payment is a ‘part payment’ rather than a deposit, the customer may be able to recover some or all of it, even if the contract was terminated because of his default. The tradesman would, however,
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