Definition of EARNEST


EARNEST

contracts. The payment of a part of the price of goods
sold, or
the delivery of part of such goods, for the purpose of binding the
contract.

2. The effect of earnest is to bind the goods sold, and upon their being
paid for without default, the buyer is entitled to them. But
notwithstanding the earnest, the money must be paid upon taking away the
goods, because no other time for payment is appointed, earnest only binds
the bargain, and gives the buyer a right to demand, but a demand without
payment of the money is void, after earnest given the vendor cannot sell
the goods to another, without a default in the vendee, and therefore if the
latter does not come and pay, and take the goods, the vendor ought to go
and request him, and then if he does not come, pay for the goods and take
them away in convenient time, the agreement is dissolved, and he is at
liberty to sell them to any other person. 1 Salk. 113: 2 Bl. Com. 447, 2
Kent, Com. 389, Ayl. Pand. 450, 3 Campb. R. 426.


Source: Bouviers Law Dictionary 1856 Edition

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