ContractsEarnest_money_and_escrowMEDIUM
Along with the signed offer, Victor Diaz delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
Correct Answer
A) Earnest money deposit
Earnest money deposit is correct because the facts match a deposit showing the buyer's good-faith intent to perform the contract, to be handled as the contract and law require. That is the best description of the relationship, right, or legal concept tested here.
Answer Options
A
Earnest money depositB
InterpleaderC
Escrow holderD
Mutual releaseWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Background Knowledge for Contracts
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Related Topics & Key Terms
Key Terms:
earnest_money_and_escrowcontractsearnest_moneyescrow
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