- Joined
- May 1, 2022
- Messages
- 5,833
- Reaction score
- 8,792
- Location
- San Francisco, CA
- Cars
- Air Touring
- Referral Code
- MX1KDTYY
It‘s a deposit or a down payment. Either has to be 5 percent of the price.What Is a Written Binding Contract?
In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions.
is it just me, or doesn't it Cleary state "if a customer has made a non-refundable deposit" someone please help me understand the confusion the thread seems to be having.
I have a touring that should be coming in 2023 that was confirmed before August 16th with a non-refundable deposit