Deposits, Instalments and Recovery of 'Over Payment'
Law Quarterly Review, 129 4: 489-491, 2013
Posted: 10 Jun 2015
Date Written: 2013
Payment of a deposit shows that the obligor means business — in the event of default in performance, the deposit is forfeited. "Instalments" paid and, payable, under a contract are amphibolous; they may either be amounts recoverable by the obligor when the contract goes off for some reason, or they may be irrecoverable, since paid "unconditionally". Whether an instalment is recoverable raises issues of relief against forfeiture, penalties, failure of consideration and restitution since retention of the instalments already paid may overcompensate the counterparty for any loss.
JEL Classification: k00
Suggested Citation: Suggested Citation