Refundable deposit

A refundable deposit clause requires a party to provide an upfront payment that is held as security for the duration of the contract. Upon fulfillment of the contract terms or conditions specified, this deposit is returned to the depositor, ensuring protection against non-compliance or potential damages.

11 Refundable deposit examples

  • Description
    Pursuant to the Tai He Agreements, Tai He agreed to invest a minimum of $35 million in the IPO subject to the Company making a $7.0 million refundable deposit (the “Refundable Deposit”) and advancing a $3.0 million service fee for investor relations and other services (together, the “Services”) payable to Tai He. The Company, its affiliates and individual shareholders paid the $7.0 million Refundable Deposit and $3.0 million service fee to Tai He in several installments from January 27, 2022 to March 11, 2022. After March 11, 2022, the Company has made no other payments to, nor had any direct interaction with, Tai He, and, in actuality, the Company never directly communicated with Tai He, only communicating about Tai He and the Tai He Agreements through Shengang.
    Document
    Meihua International Medical Technologies Co., Ltd. (MHUA)
  • Description
    (a)REFUNDABLE DEPOSIT: As a portion of the Purchase Price and within two (2) business days of acceptance of this Offer, the sum of Twenty Five Thousand Dollars ($25,000) (the “Refundable Deposit”), by way of a cheque or bank draft shall be paid to Colliers Macaulay Nicolls Inc., in trust, to be held as contemplated in this Offer;
    Document
    Skye Bioscience, Inc. (SKYE)
  • Description
    By September 28th, 2023, Purchaser shall make an additional non-refundable deposit payment to in the amount of USD $50,000.00, to bring total non-refundable deposit prior to closing and delivery to $300,000.00. Payment shall be made in United States Dollars and shall be made by wire transfer, certified check or bank cashier’s check and held in escrow by AIC Title Company.
    Document
    Flewber Global Inc. (FLAI)
  • Description
    2.3.1. First Order. Within two (2) business days of the Initial Order becoming a Binding Commitment, the Purchaser will make a non-refundable deposit for the purchase of five (5) Units to Taronis in an amount equal to twenty-five percent (25%) of the Unit Purchase Price per Unit, which amount is $3,515,625 (“First Order”).
    Document
    Taronis Fuels, Inc.
  • Description
    2.3.2. Second Order. Within ninety (90) days of the delivery of the Units comprising the First Order into the Territory, the Purchaser will make a second non-refundable deposit for the purchase of five (5) additional Units to Taronis in an amount equal to twenty-five percent (25%) of the Unit Purchase Price per Unit, which amount is $3,515,625 (“Second Order”).
    Document
    Taronis Fuels, Inc.
  • Description
    (i)    Not later than five (5) Business Days after the Effective Date, Buyer shall deposit with Westcor Land Title Insurance Company, Inc., 600 West Germantown Pike, Ste. 450, Plymouth Meeting, PA 19462, Attn: Anthony Spangler, 321-214-6860, [email protected] (the “Escrow Holder”) by wire transfer in immediately available good funds in United States dollars (“Cash”) the amount of ELEVEN MILLION FOUR HUNDRED TWENTY-SEVEN THOUSAND FOUR HUNDRED EIGHTY AND NO/DOLLARS ($11,427,480.00) (the “Deposit”), of which, TWO MILLION EIGHT HUNDRED SIXTEEN THOUSAND SIX HUNDRED FORTY-THREE AND 53/100 DOLLARS ($2,816,643.53) (the “Non-Refundable Deposit”) shall be non-refundable to Buyer other than in the event of (i) a Seller Default which has not been timely cured pursuant to and in accordance with Section 14(b) or (ii) the failure of the Loan Assumption Conditions to be satisfied as a result of any reason other than a Buyer’s default under this Agreement which has not been timely cured in accordance with Section 14(a), in either of which events, the Deposit (including the Non-Refundable Deposit) shall be fully refundable to Buyer. In the event Buyer fails to deliver the Deposit in accordance with the terms herein, then this Agreement shall automatically be deemed null and void and of no further effect without the necessity of confirmation by either party, except Buyer and Sellers shall have such rights and obligations as are set forth herein to survive termination hereof.
    Document
    VINEBROOK HOMES TRUST, INC.
  • Description
    2.1. Non-Refundable Deposit. Buyer shall make a SEVENTY FIVE JHOUSAND DOLLAR AND 00/100 ($75,000.00) non-refundable deposit by wire and/or certified funds no later than October 30th, 2018.   The Deposit shall be entirely non-refundable.   Buyer shall wire funds or bring certified check as follows: Chase Bank 1955 156th Avenue NE Bellevue, Washington 98007   Dot Corn LLC Routing:325070760 Account: 676313880   This will leave a balance of THREE HUNDRED FIVE THOUSAND DOLLARS AND 00/100 ($305,000.00).
    Document
    Pelican Delivers, Inc.
  • Description
    On June 10, 2021, A9 Technologies made a $45,000 non-refundable deposit towards the stock purchase, and on July 9, 2021, A9 Technologies made an additional non-refundable deposit of $13,850 towards amounts paid by the former President on behalf of the Company subsequent to the date of the agreement.
    Document
    ALEXANDER TECH CORP
  • Description
    The Purchase Price shall be paid and satisfied as follows:   (a) as to $1,206,418.31 (the "Deposit Amount"), by payment of the Deposit Amount in one or more installments by the Purchaser to the Vendor, such Deposit Amount to be a non-refundable deposit against the Purchase Price;         (b) unless the transaction contemplated by this Agreement shall be completed before payment of such amount, by payment of $700,000 (the "Extension Amount") by the Purchaser to the Vendor on or before October 10, 2019, such Extension Amount to be a non-refundable deposit against the Purchase Price;
    Document
    CANNAPHARMARX, INC. (CPMD)
  • Description
    (b)             Non-Refundable Good Faith Deposit. Upon the execution of this Agreement, Buyer agrees to deposit by wire transfer of immediately available funds into the trust account of The Corporate Law Firm (the "Escrow Agent") an amount equal to One Million Five Hundred Thousand Dollars and 00/100 (US $1,500,000.00)(the "Non-Refundable Deposit") to evidence Buyer’s good faith intention to purchase the Shares in accordance with the provisions hereof. Buyer acknowledges and agrees that (i) the Non-Refundable Deposit is non-refundable, and (ii) if (A) the Closing does not occur on or before April 30, 2024, or (B) Seller terminates this Agreement pursuant to Section 9(a)(iii) hereof, the Non-Refundable Deposit shall immediately be disbursed by the Escrow Agent to Seller without any Liability on the part of Seller therefor. At the Closing, the Non-Refundable Deposit shall be credited against the Purchase Price. Buyer further acknowledges and agrees that the Escrow Agent represents Seller in this transaction and waives any and all conflicts of interest.
    Document
    iQSTEL Inc (IQST)
  • Description
    Upon receipt of the non-refundable deposit by the Seller from the Buyer, for 30 days from the date of signing this Term Sheet, none of the Company, its shareholders, its directors, or its officers will conduct or solicit any discussions or negotiations with any third party regarding any sale of a material number of shares in the Company or any sale of a material part of the business and assets of the Company, unless approved in advance by the Buyer in writing.
    Document
    FDCTECH, INC. (FDCT)

What is a Refundable Deposit?

A refundable deposit is a sum of money paid in advance as part of a contract or agreement, which is intended to serve as security for the fulfillment of an obligation. This deposit is refundable to the payer upon the completion of specified conditions or terms outlined in the agreement, assuming no breaches or damage occur. Refundable deposits are commonly used to protect the interests of a service provider or property owner and encourage the proper upkeep of rented or borrowed items and spaces.

When should I use a Refundable Deposit?

A refundable deposit should be used in situations where you want to ensure commitment and responsibility from the other party in a transaction or agreement. Here are some typical scenarios where a refundable deposit may be appropriate:

  • Renting Property: To cover potential damages beyond normal wear and tear or unpaid rent.
  • Equipment or Vehicle Rentals: To ensure the return of items in good condition.
  • Event Reservations: To secure a booking and protect against last-minute cancellations.
  • Memberships or Subscriptions: To safeguard initial commitments from clients or users.

Using a refundable deposit reduces the risk involved in contractual relationships and provides a financial incentive for parties to comply with the terms of an agreement.

How do I write a Refundable Deposit clause?

When writing a refundable deposit clause, it should be clear and detailed, outlining the purpose, amount, conditions for refund, and any deductions that might apply. Here is a basic example of such a clause:

Refundable Deposit Clause

The Tenant agrees to pay a refundable deposit of [$Amount] to the Landlord. This deposit is intended to cover any damages or breach of the lease agreement beyond normal wear and tear. Upon termination of this lease, the Landlord will return the deposit to the Tenant, less any deductions for damages or unpaid rent, within [Number of Days] days, provided all conditions are met as per this agreement.

Ensure to include specifics regarding the timeframe for refund, acceptable conditions for refunds, and any process for disputing deductions.

Which contracts typically contain a Refundable Deposit?

Refundable deposits are commonly included in several types of contracts and agreements where there is a need to mitigate risk and ensure commitment. Typical contracts that might contain a refundable deposit clause include:

  • Lease Agreements: Often used in real estate for residential or commercial property leases.
  • Rental Agreements: Used for renting equipment, vehicles, or event spaces.
  • Sales Contracts: Applied in certain high-value transactions to secure a sale (e.g., real estate transactions).
  • Service Contracts: Sometimes included in contracts for services that require advance reservation or booking.
  • Membership Agreements: Used in clubs, gyms, or other organizations where long-term membership is involved.

Including a refundable deposit in these agreements serves as a financial safeguard while promoting adherence to the terms set forth in the contract.

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