Deposit clause: Copy, customize, and use instantly
Introduction
A deposit clause outlines the terms under which a deposit is required as part of an agreement, including the amount, payment terms, and conditions for the deposit's return or forfeiture. This clause ensures that both parties are clear about the purpose of the deposit and the circumstances under which it may be retained or refunded.
Below are templates for deposit clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard deposit clause
This version includes basic provisions for a deposit.
The [Buyer/Customer] agrees to pay a deposit of [Amount] upon signing this Agreement. The deposit will be credited toward the total amount due. If the [Buyer/Customer] fails to fulfill their obligations under this Agreement, the deposit may be retained by the [Seller/Service Provider] as liquidated damages, subject to the terms outlined in this Agreement.
Deposit clause with provision for non-refundable deposit
This version applies to a non-refundable deposit.
A non-refundable deposit of [Amount] is required upon signing this Agreement. The deposit will not be refunded, regardless of whether the transaction is completed, except in the case of a breach by the [Seller/Service Provider]. The deposit will be applied to the final payment for the goods/services, unless the Agreement is terminated due to a breach.
Deposit clause with provision for refundable deposit
This version applies to a refundable deposit.
The [Buyer/Customer] agrees to pay a deposit of [Amount] upon signing this Agreement. This deposit is refundable upon successful completion of the [project/transaction] and provided that no outstanding balances or damages are owed. The deposit will be returned within [X] days after the final payment has been made and all obligations have been met.
Deposit clause with provision for deposit adjustment
This version applies to deposit adjustments.
The deposit amount of [Amount] paid by the [Buyer/Customer] will be subject to adjustment based on [specific conditions, e.g., changes in order size, scope of work, etc.]. Any adjustments to the deposit will be communicated in writing, and the [Buyer/Customer] will be required to pay any additional amounts or receive a refund based on the final adjusted amount.
Deposit clause with provision for deposit as security
This version applies to deposit as security.
The [Buyer/Customer] shall pay a deposit of [Amount] as security for the performance of this Agreement. The deposit will be held in trust by the [Seller/Service Provider] and may be used to cover any unpaid amounts or damages resulting from a breach of this Agreement. The remaining balance of the deposit, if any, will be refunded upon the completion of all obligations under this Agreement.
Deposit clause with provision for interest on deposit
This version applies to interest on deposit.
The deposit of [Amount] shall be held in an interest-bearing account by the [Seller/Service Provider]. Any interest accrued on the deposit will be paid to the [Buyer/Customer] upon the return of the deposit, unless otherwise specified in this Agreement.
Deposit clause with provision for deposit payment schedule
This version applies to a deposit payment schedule.
The [Buyer/Customer] agrees to pay a deposit of [Amount] upon signing this Agreement. The remaining balance of [Total Amount] will be due on [specific date or milestone]. The deposit is non-refundable unless the Agreement is terminated by the [Seller/Service Provider] due to their failure to perform.
Deposit clause with provision for forfeiture of deposit
This version applies to forfeiture of deposit.
In the event that the [Buyer/Customer] fails to fulfill their obligations under this Agreement, the [Seller/Service Provider] reserves the right to retain the deposit as compensation for any damages or losses incurred. The deposit will be forfeited if the [Buyer/Customer] cancels the Agreement without cause or fails to complete the transaction.
Deposit clause with provision for payment of deposit in installments
This version applies to installment payments of the deposit.
The [Buyer/Customer] agrees to pay a deposit of [Amount] in installments. The first installment of [Amount] will be due upon signing this Agreement, and the remaining balance of [Amount] will be due by [Date]. Failure to pay the deposit installments on time may result in the termination of this Agreement.
Deposit clause with provision for deposit for custom orders
This version applies to custom orders.
For custom orders, a deposit of [Amount or Percentage] is required upon signing this Agreement to cover initial costs. The deposit will be credited to the final balance due. If the [Buyer/Customer] cancels the order after the deposit has been made, the deposit will be non-refundable, except under specific conditions outlined in this Agreement.
Deposit clause with provision for deposit in escrow
This version applies to an escrow account.
The deposit of [Amount] will be held in an escrow account by [Escrow Agent] until the completion of the transaction. The deposit will be released to the [Seller/Service Provider] upon satisfactory performance, or refunded to the [Buyer/Customer] if the transaction is not completed due to [specific conditions].
Deposit clause with provision for deposit used for damage coverage
This version applies to deposit for damage coverage.
The [Buyer/Customer] agrees to provide a deposit of [Amount] to cover potential damage to property or goods. If damage occurs during the term of this Agreement, the [Seller/Service Provider] may use the deposit to repair or replace the damaged items. Any unused portion of the deposit will be refunded upon completion of the Agreement.
Deposit clause with provision for use of deposit for payment of costs
This version applies to use of deposit for costs.
The deposit of [Amount] will be applied towards the payment of costs incurred during the performance of this Agreement, including but not limited to [specific costs or expenses]. If the costs exceed the deposit amount, the [Buyer/Customer] will be responsible for the additional amounts.
Deposit clause with provision for refund of deposit after termination
This version applies to refund after termination.
If this Agreement is terminated before the completion of the transaction, the deposit of [Amount] will be refunded to the [Buyer/Customer] within [X] days, less any applicable cancellation fees or outstanding obligations incurred prior to termination.
Deposit clause with provision for deposit to secure delivery
This version applies to securing delivery.
The [Buyer/Customer] agrees to pay a deposit of [Amount] to secure the delivery of [specific goods or services]. The deposit will be credited towards the final payment and may be forfeited if the [Buyer/Customer] fails to accept delivery or refuses to complete the transaction.
Deposit clause with provision for non-refundable deposit for services
This version applies to non-refundable deposit for services.
For services rendered, the [Buyer/Customer] agrees to pay a non-refundable deposit of [Amount] to secure the service booking. The deposit will be applied to the total service cost, and no refund will be issued if the service is canceled or the [Buyer/Customer] fails to attend the appointment.
Deposit clause with provision for additional deposit for large transactions
This version applies to additional deposit for large transactions.
For transactions involving large or custom orders, the [Buyer/Customer] agrees to pay an additional deposit of [Amount or Percentage] to cover the increased costs. This additional deposit is refundable only under the terms outlined in this Agreement.
Deposit clause with provision for deposit refund in case of non-performance
This version applies to refund in case of non-performance.
If the [Seller/Service Provider] fails to perform their obligations under this Agreement, the [Buyer/Customer] shall be entitled to a full refund of the deposit, including any applicable interest or compensation, within [X] days of termination or breach of contract.
Deposit clause with provision for deposit as part of overall payment
This version applies to deposit as part of overall payment.
The deposit of [Amount] is part of the overall payment under this Agreement and will be deducted from the final amount due. The deposit is refundable in the event that the Agreement is terminated by mutual consent or due to the failure of either party to fulfill their obligations.
Deposit clause with provision for deposit payment confirmation
This version applies to deposit payment confirmation.
The [Buyer/Customer] agrees to pay a deposit of [Amount], and such payment must be confirmed in writing by the [Seller/Service Provider]. Upon confirmation, the deposit will be applied toward the total payment. If the deposit is not received or confirmed, the Agreement will not be considered binding.
Deposit clause with provision for proportionate refund based on progress
This version applies to a proportionate refund.
In the event of early termination by the [Buyer/Customer], the deposit may be refunded proportionally based on the work completed up to the date of termination. The refund will be calculated based on the percentage of work performed and any costs incurred at the time of termination.
Deposit clause with provision for deposit required for custom products
This version applies to custom products.
For any custom products or services ordered under this Agreement, the [Buyer/Customer] agrees to pay a deposit of [Amount] to cover the costs of customization. The deposit is non-refundable if the [Buyer/Customer] cancels the order after customization work has begun.
Deposit clause with provision for deposit to secure performance
This version applies to securing performance.
The [Buyer/Customer] shall provide a deposit of [Amount] to secure the [Seller/Service Provider]’s performance under this Agreement. If the [Seller/Service Provider] fails to fulfill their obligations, the deposit will be refunded in full to the [Buyer/Customer].
Deposit clause with provision for installment-based deposit
This version applies to installment-based deposit.
The [Buyer/Customer] agrees to pay a deposit of [Amount] in installments. The first installment of [Amount] is due upon signing this Agreement, with subsequent payments due on [specific dates]. The final installment will be credited to the total amount due for the goods/services.
Deposit clause with provision for specific deposit percentage
This version applies to a specific deposit percentage.
The [Buyer/Customer] agrees to pay a deposit of [X]% of the total cost of the goods/services upon signing this Agreement. The remaining balance will be due upon completion or delivery, as specified in this Agreement.
Deposit clause with provision for forfeiture due to failure to perform
This version applies to forfeiture due to failure to perform.
If the [Buyer/Customer] fails to perform their obligations under this Agreement, the [Seller/Service Provider] may retain the deposit as liquidated damages. This amount is not refundable unless the [Seller/Service Provider] is found to be at fault for non-performance.
Deposit clause with provision for deposit return if not applied
This version applies to deposit return if not applied.
In the event that the deposit is not applied toward the final payment, and the Agreement is not completed due to no fault of the [Buyer/Customer], the full deposit will be returned within [X] days after termination of this Agreement.
Deposit clause with provision for holdback of deposit for contingencies
This version applies to holdback for contingencies.
The [Seller/Service Provider] agrees to hold back [X]% of the deposit amount until all services are delivered and any contingencies specified in this Agreement are met. The remaining amount will be refunded if the services are completed in full and no further obligations exist.
Deposit clause with provision for deposit to cover damages
This version applies to covering damages.
The [Buyer/Customer] agrees to pay a deposit of [Amount], which will be used to cover any damages incurred during the performance of this Agreement. If no damages occur, the deposit will be refunded within [X] days following completion of the Agreement.
Deposit clause with provision for partial release of deposit
This version applies to partial release of deposit.
Upon partial completion of the services outlined in this Agreement, a portion of the deposit, not exceeding [X]% of the total deposit amount, may be refunded. The remaining deposit will be retained until the completion of the full scope of work.
Deposit clause with provision for payment to be made in full
This version applies to full payment of deposit.
The [Buyer/Customer] agrees to pay the full deposit of [Amount] upon signing this Agreement. No work will begin until the deposit is paid in full. Failure to pay the full deposit will result in a delay in commencement of services or delivery.
Deposit clause with provision for deposit for reserve of product
This version applies to product reservation.
The [Buyer/Customer] agrees to pay a deposit of [Amount] to reserve the [product/service]. The deposit is refundable only if the [Seller/Service Provider] is unable to deliver the reserved product/service within the agreed timeframe. If the [Buyer/Customer] cancels the reservation, the deposit is non-refundable.
Deposit clause with provision for adjustment based on actual costs
This version applies to adjustments based on actual costs.
The deposit of [Amount] will be adjusted based on the actual costs incurred for the provision of goods/services. If the actual costs are lower than the deposit, the [Buyer/Customer] will receive a refund of the difference. If the costs are higher, the [Buyer/Customer] will be required to pay the difference upon completion.
Deposit clause with provision for partial refund for terminated services
This version applies to partial refund for termination.
If the [Buyer/Customer] terminates this Agreement prior to completion of services, the deposit will be refunded on a prorated basis, taking into account the portion of services already rendered at the time of termination. The prorated refund will be provided within [X] days.
Deposit clause with provision for holding deposit for service guarantees
This version applies to holding deposit for guarantees.
The [Seller/Service Provider] shall hold the deposit of [Amount] as a guarantee for the performance of services. If the services are completed satisfactorily as per this Agreement, the deposit will be applied toward the final payment. If the services are not performed satisfactorily, the deposit will be retained by the [Seller/Service Provider].
Deposit clause with provision for adjusting deposit based on market changes
This version applies to market change adjustment.
The deposit amount of [Amount] may be adjusted based on significant market changes, such as increases in the cost of goods or services. Any changes to the deposit will be communicated to the [Buyer/Customer] in writing and agreed upon prior to the payment being processed.
Deposit clause with provision for handling third-party deposits
This version applies to third-party deposits.
In the case of third-party financing, the [Buyer/Customer] agrees to have the deposit paid directly by the third party to the [Seller/Service Provider]. The third party will be subject to the same terms and conditions regarding the deposit, including refund and forfeiture provisions.
Deposit clause with provision for installment of large deposits
This version applies to installment payments of large deposits.
For large orders, the [Buyer/Customer] agrees to pay the deposit of [Amount] in [X] installments. Each installment will be due on [specific dates or milestones]. The final installment will be due upon completion of the services or delivery of the goods.
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.