Deposit clause: Copy, customize, and use instantly
Introduction
A deposit clause outlines the terms and conditions under which a deposit is paid, held, and refunded or forfeited. It is commonly included in contracts for rentals, purchases, or service agreements to secure the commitment of the paying party. This clause ensures clarity on how deposits are handled under various circumstances.
Below are deposit clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard deposit clause
This clause sets basic terms for deposit payment and handling.
The [paying party] agrees to pay a deposit of [insert amount] to the [receiving party] upon execution of this agreement. The deposit will be applied to the total amount due or refunded upon fulfillment of all obligations under this agreement.
Refundable deposit clause
This clause specifies refundable deposit conditions.
The deposit of [insert amount] paid by the [paying party] will be refunded in full upon satisfactory completion of all obligations under this agreement. Refunds will be issued within [insert timeframe] after the agreement's termination or completion.
Non-refundable deposit clause
This clause establishes non-refundable deposits.
The deposit of [insert amount] paid by the [paying party] is non-refundable and will be retained by the [receiving party] as consideration for securing the terms of this agreement, regardless of whether the agreement is fulfilled.
Conditional deposit refund clause
This clause ties refunds to specific conditions.
The deposit of [insert amount] will be refunded to the [paying party] only if [specific condition, e.g., "written cancellation notice is provided at least 30 days before the scheduled service date"]. Refunds will not be issued if conditions are not met.
Interest-bearing deposit clause
This clause provides for interest on deposits.
The deposit of [insert amount] will be held in an interest-bearing account. Any accrued interest will be refunded to the [paying party] along with the principal deposit, provided all obligations under this agreement are met.
Security deposit clause
This clause applies to security deposits for potential damages.
The [paying party] agrees to pay a security deposit of [insert amount] to cover potential damages or losses. The [receiving party] may deduct amounts for repairs or replacement from the deposit, with an itemized statement provided within [insert timeframe].
Deposit with forfeiture clause
This clause specifies conditions for deposit forfeiture.
If the [paying party] fails to fulfill their obligations under this agreement, the deposit of [insert amount] will be forfeited to the [receiving party] as liquidated damages.
Deposit with milestone release clause
This clause releases deposits based on milestones.
The deposit of [insert amount] will be released in installments tied to project milestones. Upon completion of each milestone, [insert percentage or amount] will be refunded or applied toward the total amount due.
Deposit with third-party holding clause
This clause involves a third party holding the deposit.
The deposit of [insert amount] will be held by [insert third party, e.g., "an escrow agent"] until the completion of this agreement. The deposit will be released to the appropriate party upon mutual agreement or as directed by a court order.
Deposit adjustment clause
This clause allows deposit adjustments under specific conditions.
The deposit amount of [insert amount] may be adjusted if [specific condition, e.g., "the project scope changes significantly"]. Any adjustments must be agreed upon in writing by both parties.
Deposit for reservation clause
This clause secures reservations with a deposit.
The deposit of [insert amount] secures the reservation for [specified item or service]. The deposit is [refundable/non-refundable], and cancellation policies outlined in [insert section] will apply.
Time-limited deposit clause
This clause sets an expiration period for deposits.
The deposit of [insert amount] must be utilized within [insert time period, e.g., "12 months"]. If not utilized, the deposit will be forfeited unless an extension is agreed upon in writing by both parties.
Deposit with rollover clause
This clause allows unused deposits to roll over.
Any unused portion of the deposit may be rolled over to future agreements between the [paying party] and the [receiving party], provided the rollover is requested within [insert timeframe].
Deposit with cancellation fee clause
This clause ties deposits to cancellation penalties.
If the [paying party] cancels this agreement, a cancellation fee of [insert amount or percentage] will be deducted from the deposit. The remaining balance, if any, will be refunded within [insert timeframe].
Deposit with dispute resolution clause
This clause addresses disputes over deposit use.
Any disputes regarding the deposit of [insert amount] will be resolved through [insert method, e.g., "mediation or arbitration"]. The deposit will remain in the [receiving party]'s possession until the dispute is resolved.
Deposit with performance guarantee clause
This clause ties the deposit to a performance guarantee.
The deposit of [insert amount] will serve as a guarantee of performance. If the [paying party] fulfills all obligations as specified, the deposit will be refunded or applied to the final payment.
Multi-party deposit clause
This clause governs deposits involving multiple parties.
The deposit of [insert amount] will be contributed equally by [list parties]. Refunds or applications of the deposit will be distributed proportionally among the contributing parties upon agreement fulfillment.
Deposit with early termination clause
This clause addresses deposits in early termination cases.
If this agreement is terminated early by the [paying party], the deposit of [insert amount] will be refunded in proportion to the services not rendered, minus any applicable cancellation fees.
Deposit with special purpose clause
This clause ties the deposit to a specific purpose.
The deposit of [insert amount] will be used exclusively for [specific purpose, e.g., "procurement of materials"]. Any unused portion will be refunded to the [paying party] upon completion of the purpose.
Deposit with phased usage clause
This clause allocates deposits for different project phases.
The deposit of [insert amount] will be allocated for specific project phases as outlined in [insert section]. Funds for each phase will be released upon written approval by the [paying party].
Non-refundable deposit with alternative credit clause
This clause provides credit for non-refundable deposits.
The deposit of [insert amount] is non-refundable but may be applied as a credit toward future services or purchases, provided they are utilized within [insert timeframe].
Deposit with conditional escalation clause
This clause allows deposit increases under certain conditions.
The [receiving party] reserves the right to request an additional deposit if [specific condition, e.g., "unforeseen project changes or delays"] arise. Any increases must be agreed upon in writing.
Deposit with shared accountability clause
This clause ties deposit responsibility to both parties.
The deposit of [insert amount] will be held jointly, with responsibilities for its management shared equally between the [paying party] and the [receiving party]. Usage must be mutually approved in writing.
Deposit with inspection prerequisite clause
This clause ties deposits to inspection results.
The deposit of [insert amount] will be refunded or adjusted based on the outcome of a final inspection of [specified goods or services]. Any deficiencies will be rectified at the expense of the [receiving party] before refund.
Deposit for high-value transactions clause
This clause applies deposits to significant financial commitments.
For high-value transactions exceeding [insert amount], a deposit of [insert percentage] is required upon execution of this agreement. This deposit will secure the terms and conditions and be applied toward the final payment.
Deposit with warranty holdback clause
This clause retains part of the deposit as a warranty guarantee.
A portion of the deposit, amounting to [insert percentage], will be held as a warranty holdback for [insert duration]. This amount will be refunded upon confirmation of no warranty claims.
Deposit with automatic renewal clause
This clause renews deposits for recurring agreements.
The deposit of [insert amount] will automatically renew for each successive term of this agreement unless canceled in writing by either party at least [insert timeframe] before the renewal date.
Deposit with offset provision clause
This clause allows deposits to offset outstanding obligations.
The [receiving party] reserves the right to offset the deposit of [insert amount] against any unpaid amounts owed by the [paying party] under this agreement. Any remaining balance will be refunded.
Refundable deposit with penalty waiver clause
This clause waives penalties under specific conditions.
The deposit of [insert amount] will be refunded in full, including any applicable penalties, if the [paying party] meets [specific conditions, e.g., "early completion of obligations"].
Deposit for customizable services clause
This clause ties deposits to custom work.
The deposit of [insert amount] will cover the initial costs of customization for [specified goods or services]. The deposit is [refundable/non-refundable] based on the terms outlined in [insert section].
Deposit with fixed retention clause
This clause retains a fixed portion of the deposit.
The [receiving party] will retain [insert percentage] of the deposit as a retention fee until all obligations under this agreement are confirmed to be fulfilled. The retained amount will be refunded upon final review.
Deposit with performance milestones clause
This clause ties deposit refunds to performance benchmarks.
The deposit of [insert amount] will be refunded incrementally as performance milestones outlined in [insert section] are achieved and verified by both parties.
Deposit for delayed delivery clause
This clause addresses deposits in case of delays.
If the [receiving party] fails to deliver the goods or services by [insert deadline], the deposit of [insert amount] will be refunded in full to the [paying party] unless an extension is mutually agreed upon.
Deposit with legal dispute clause
This clause outlines deposit handling in disputes.
In the event of a legal dispute over this agreement, the deposit of [insert amount] will be held in escrow until the dispute is resolved through [insert method, e.g., "mediation or arbitration"].
Deposit with proportional refund clause
This clause provides proportional refunds based on usage.
The deposit of [insert amount] will be refunded proportionally based on the extent of goods or services rendered under this agreement. A detailed calculation will accompany any partial refunds.
Multi-tier deposit clause
This clause allows staggered deposit payments.
The deposit of [insert total amount] will be paid in installments as outlined in [insert section]. Each installment must be received by the [receiving party] before proceeding to the next phase of the agreement.
Deposit with alternative resolution clause
This clause allows alternate deposit uses in disputes.
If the agreement is terminated due to mutual disagreement, the deposit of [insert amount] may be used to cover resolution costs or allocated toward future transactions as agreed in writing by both parties.
Deposit with return-on-investment clause
This clause ties deposit refunds to financial returns.
The deposit of [insert amount] will be refunded upon completion of the project, with an additional [insert percentage] applied as a return on investment for successful outcomes as defined in [insert section].
Deposit with inflation adjustment clause
This clause adjusts deposit amounts for inflation.
The deposit of [insert amount] will be adjusted annually to account for inflation, based on [insert index, e.g., "Consumer Price Index"]. Any additional deposit required due to inflation will be agreed upon in writing.
Deposit for subscription services clause
This clause applies deposits to subscription-based models.
The deposit of [insert amount] will be held for the duration of the subscription term and applied toward the final billing cycle. Refunds for early termination will be subject to [insert terms].
Deposit for contract termination clause
This clause addresses deposits upon contract cancellation.
If this agreement is terminated by the [paying party], the deposit of [insert amount] will be refunded minus a cancellation fee of [insert amount]. If terminated by the [receiving party], the full deposit will be refunded.
Deposit with rolling renewal clause
This clause rolls over deposits for continuous agreements.
The deposit of [insert amount] will automatically roll over into successive terms of this agreement unless a termination notice is provided at least [insert timeframe] before renewal.
Deposit for phased deliverables clause
This clause ties deposits to the completion of deliverables.
The deposit of [insert amount] will be disbursed in portions tied to the completion of deliverables as outlined in [insert section]. Each portion will be retained or refunded based on compliance with deliverable requirements.
Deposit with penalty for misuse clause
This clause imposes penalties for deposit misuse.
If the [paying party] violates the terms of this agreement, a penalty of [insert amount or percentage] will be deducted from the deposit. Any remaining balance will be refunded.
Deposit with escrow release clause
This clause involves escrow-held deposits.
The deposit of [insert amount] will be held in escrow by [insert escrow agent] and released to the appropriate party upon meeting the conditions specified in this agreement.
Deposit for event-specific agreements clause
This clause applies to deposits for events.
The deposit of [insert amount] secures the reservation for the event on [insert date]. Refunds or forfeitures will depend on the cancellation terms outlined in [insert section].
Deposit with detailed refund schedule clause
This clause provides a schedule for refunds.
Refunds of the deposit of [insert amount] will follow a schedule based on the timeline of cancellation or fulfillment, as outlined in [insert section]. Refund percentages will decrease as the event date approaches.
Deposit with exclusivity guarantee clause
This clause ties deposits to exclusive commitments.
The deposit of [insert amount] secures the exclusivity of the [goods/services] for the [paying party]. If exclusivity is breached by the [receiving party], the deposit will be refunded in full with an additional penalty of [insert amount].
Deposit with project contingency clause
This clause allocates deposits for contingencies.
A portion of the deposit, amounting to [insert percentage], will be reserved as a contingency fund to address unexpected project needs. Unused contingency funds will be refunded upon project completion.
Deposit with rolling milestone clause
This clause connects deposits to dynamic milestones.
The deposit of [insert amount] will be linked to rolling milestones defined during the course of the project. Each milestone achieved will trigger a refund or application of part of the deposit.
Deposit for customized solutions clause
This clause ties deposits to unique project needs.
The deposit of [insert amount] will fund the initial development of customized solutions for the [paying party]. The deposit is [refundable/non-refundable] based on the customization’s progress at the time of termination.
Deposit for delayed acceptance clause
This clause covers deposits for delayed project acceptance.
If the [paying party] delays the acceptance of [goods/services] beyond [insert timeframe], the deposit of [insert amount] may be retained to cover holding costs. Refunds will be provided upon final acceptance.
Deposit with expedited service clause
This clause allows deposits for prioritized service.
The deposit of [insert amount] will prioritize the [paying party]’s order for expedited service. If expedited service is not provided as promised, the deposit will be refunded with an additional credit of [insert amount].
Deposit with stakeholder approval clause
This clause ties deposits to stakeholder decisions.
The deposit of [insert amount] will be managed based on approval from key stakeholders identified in [insert section]. Refunds or forfeitures must be jointly agreed upon by all stakeholders.
Deposit for recurring projects clause
This clause applies deposits to ongoing work.
The deposit of [insert amount] will be applied to recurring projects under this agreement. Deposits will be refunded or rolled over based on the completion and continuation of these projects.
Deposit with shared liability clause
This clause distributes liability for deposit management.
The deposit of [insert amount] will be jointly managed, with both the [paying party] and the [receiving party] sharing liability for its use. Any disputes will be resolved through [insert method].
Deposit with multi-phase refund clause
This clause provides refunds in multiple phases.
Refunds of the deposit of [insert amount] will be issued in phases based on project progress. Each phase will return [insert percentage] of the deposit upon successful completion of outlined milestones.
Deposit with dispute escrow clause
This clause requires deposit placement in escrow during disputes.
If a dispute arises between the [paying party] and the [receiving party], the deposit of [insert amount] will be transferred to an escrow account managed by [insert escrow agent]. The deposit will be released according to the dispute resolution outcome.
Deposit with deferred application clause
This clause defers the application of deposits to later stages.
The deposit of [insert amount] will not be applied until [specific milestone or date]. Until then, the deposit will remain untouched and managed according to the terms outlined in [insert section].
Deposit for vendor-exclusive agreements clause
This clause secures vendor exclusivity.
The deposit of [insert amount] secures the exclusivity of the [vendor’s goods/services] for the [paying party]. Breach of exclusivity by the vendor will result in a full refund of the deposit and a penalty of [insert amount].
Deposit with transparent usage clause
This clause mandates detailed tracking of deposit usage.
The [receiving party] agrees to provide a transparent record of all expenses or allocations made from the deposit of [insert amount]. Detailed statements will be shared with the [paying party] upon request.
Deposit with seasonal adjustment clause
This clause ties deposits to seasonal requirements.
The deposit of [insert amount] will be adjusted for seasonal demand fluctuations. Any changes to the deposit amount will be communicated and agreed upon at least [insert timeframe] in advance.
Deposit for early completion incentive clause
This clause incentivizes early project completion.
If the [receiving party] completes the project ahead of the agreed deadline, the deposit of [insert amount] will be refunded in full with an additional incentive of [insert amount or percentage].
Deposit with shared risk clause
This clause allocates risk between parties.
The deposit of [insert amount] will serve as a shared risk fund. Any unforeseen costs will be covered proportionally by both the [paying party] and the [receiving party], with terms outlined in [insert section].
Deposit for third-party services clause
This clause ties deposits to external service providers.
The deposit of [insert amount] will be used exclusively to secure third-party services required for this agreement. Any unused portion related to these services will be refunded upon completion.
Deposit with rolling credit clause
This clause offers a credit system for unused deposits.
Any unused portion of the deposit of [insert amount] may be rolled over as credit toward future agreements with the [receiving party], provided it is utilized within [insert timeframe].
Deposit with penalty for non-performance clause
This clause penalizes failure to perform obligations.
If the [receiving party] fails to perform obligations under this agreement, the deposit of [insert amount] will be refunded in full to the [paying party], along with a penalty of [insert amount or percentage].
Deposit for force majeure events clause
This clause addresses deposits during force majeure events.
In the event of a force majeure occurrence, the deposit of [insert amount] will remain on hold and will not be refunded or forfeited until the force majeure is resolved and both parties agree on next steps.
Deposit with staggered release clause
This clause allows deposits to be released incrementally.
The deposit of [insert amount] will be released in staggered amounts tied to specific project milestones. Each release will require mutual confirmation from both parties before disbursement.
Deposit for digital services clause
This clause ties deposits to intangible goods.
The deposit of [insert amount] will secure access to digital services provided under this agreement. The deposit is [refundable/non-refundable] based on terms outlined in [insert section].
Deposit with future project allocation clause
This clause applies deposits to subsequent projects.
The deposit of [insert amount] may be applied toward future projects undertaken between the [paying party] and the [receiving party], provided it is used within [insert timeframe] and mutually agreed upon.
Deposit with automatic penalty waiver clause
This clause waives penalties under defined conditions.
Penalties for late performance or minor breaches will be waived if the [receiving party] delivers the agreed-upon goods or services within [insert grace period]. The deposit of [insert amount] will remain intact.
Deposit with interim review clause
This clause mandates periodic deposit reviews.
The deposit of [insert amount] will be reviewed periodically, at intervals of [insert timeframe], to ensure it aligns with ongoing project needs. Adjustments may be made based on mutual agreement.
Deposit for regulatory compliance clause
This clause ties deposits to regulatory requirements.
The deposit of [insert amount] will be retained to ensure compliance with applicable regulations. Any unused portion related to compliance will be refunded upon satisfactory completion of regulatory obligations.
Deposit with early refund bonus clause
This clause rewards early fulfillment with bonuses.
If the [paying party] fulfills all obligations before the agreed deadline, the deposit of [insert amount] will be refunded in full, along with a bonus of [insert amount or percentage] for early compliance.
Deposit with joint oversight clause
This clause mandates collaborative management of deposits.
The deposit of [insert amount] will be jointly managed by the [paying party] and the [receiving party], with all decisions regarding its use requiring mutual written approval. Records of deposit usage must be maintained and shared.
Deposit with progressive adjustment clause
This clause allows incremental changes to the deposit.
The deposit of [insert amount] may be progressively adjusted during the project based on changes to scope, timeline, or costs. Adjustments will require mutual agreement and documentation in [insert section].
Deposit for risk-sharing escrow clause
This clause involves escrow for risk management.
The deposit of [insert amount] will be placed in an escrow account to mitigate risks associated with the agreement. The escrow agent will release funds based on pre-agreed conditions or upon mutual consent of both parties.
Deposit with penalty-free extension clause
This clause grants extensions without penalty.
If the [paying party] requests an extension of the agreement terms, the deposit of [insert amount] will remain intact and unaffected, provided the extension is requested at least [insert timeframe] before the initial deadline.
Deposit for cross-border transactions clause
This clause secures deposits for international agreements.
For cross-border agreements, the deposit of [insert amount] will be held in a currency mutually agreed upon by both parties. Exchange rate fluctuations will not affect the agreed deposit amount.
Deposit with rolling security clause
This clause allocates deposits for ongoing security.
The deposit of [insert amount] will be rolled over to secure ongoing services under this agreement. Any unused portion at the end of the term will be refunded or applied to the next term.
Deposit with early termination reimbursement clause
This clause ensures partial reimbursement upon early termination.
If the agreement is terminated early by either party, the deposit of [insert amount] will be reimbursed proportionally based on the services or goods delivered up to the date of termination.
Deposit for multiple party contributions clause
This clause governs deposits from multiple contributors.
The deposit of [insert amount] will be contributed by [list contributing parties]. Refunds or applications of the deposit will be distributed proportionally among the contributors upon agreement completion.
Deposit with phased release schedule clause
This clause establishes a timeline for incremental deposit release.
The deposit of [insert amount] will be released in phases, with each phase tied to the completion of specific milestones. The release schedule will be outlined in [insert section].
Deposit with collateral allocation clause
This clause ties deposits to collateral security.
The deposit of [insert amount] will serve as collateral for obligations under this agreement. If obligations are not met, the deposit may be forfeited or applied to outstanding liabilities.
Deposit with no-fault refund clause
This clause permits refunds without fault attribution.
The deposit of [insert amount] will be refunded in full if the agreement is terminated for reasons beyond the control of either party. Both parties must agree in writing to the termination.
Deposit with multi-jurisdictional compliance clause
This clause secures compliance in multiple regions.
The deposit of [insert amount] will ensure adherence to regulatory requirements across [insert jurisdictions]. Any unused portion after compliance obligations are met will be refunded.
Deposit for customized milestones clause
This clause ties deposits to tailored project benchmarks.
The deposit of [insert amount] will be applied to customized milestones as outlined in [insert section]. Each milestone’s completion will trigger the release or refund of a corresponding portion of the deposit.
Deposit with reallocation option clause
This clause allows reallocation for new purposes.
The deposit of [insert amount] may be reallocated for alternative purposes under this agreement, provided both parties agree in writing. Reallocation terms must be documented in [insert section].
Deposit with operational oversight clause
This clause mandates oversight of deposit use.
The deposit of [insert amount] will be managed under the operational oversight of both parties. Regular audits of deposit usage must be conducted and reported in writing every [insert timeframe].
Deposit with delayed refund penalty clause
This clause imposes penalties for late refunds.
If the [receiving party] delays the refund of the deposit of [insert amount] beyond [insert timeframe], a penalty of [insert amount or percentage] will be added to the refunded amount.
Deposit with project-specific fund clause
This clause secures funds for project-specific expenses.
The deposit of [insert amount] will be allocated solely for expenses related to [specific project]. Any unused funds after project completion will be refunded within [insert timeframe].
Deposit with flexible refund conditions clause
This clause adjusts refund terms based on circumstances.
The refund of the deposit of [insert amount] will depend on the circumstances of termination or completion, with flexible terms outlined in [insert section]. Both parties must mutually agree on adjustments.
Deposit with annual review clause
This clause mandates yearly deposit reviews.
The deposit of [insert amount] will be reviewed annually to ensure it aligns with project scope and obligations. Any changes will require mutual agreement and documentation.
Deposit with contingency fund rollover clause
This clause ties deposits to future contingencies.
Unused portions of the deposit of [insert amount] may be rolled over into a contingency fund for future projects between the [paying party] and the [receiving party]. Rollover terms must be agreed upon within [insert timeframe].
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.