Deposit held Clause Samples

The 'Deposit held' clause defines the terms under which a deposit is collected and retained by one party, typically as security for the performance of contractual obligations. In practice, this clause specifies the amount of the deposit, the conditions under which it is held, and the circumstances that allow for its return or forfeiture, such as completion of services or breach of contract. Its core function is to provide financial assurance to the party receiving the deposit, mitigating the risk of non-performance or damages by the other party.