| Commentary

53.3 Case law on deposits

| Commentary

53.3 Case law on deposits

The nature of deposits and whether they can be retained has been determined by case law:

  1. (a)

        A court may order the return of a deposit under its equitable jurisdiction, that is, if it is inequitable for the seller to retain the deposit1.

  2. (b)

        If a deposit is to be paid in stages, and not all of the stage payments have been made, it may be possible to sue for the balance of the deposit that is due2.

  3. (c)

        A forfeited deposit can exceed the amount lost by the party who is in receipt of

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