Does 20% deposit consider a good consideration? Let say i saw an advertisement on the shop...

Does 20% deposit consider a good consideration?

Let say i saw an advertisement on the shop outside, and there is no pice list.

I would like to buy a pair of glass in the advertisement from shop, and the owner told me that the glass is worth 1000, but the shop dose now have it right now, and the shop ask me for 20% as a deposit and he said the glass will be available next week.

is the 20% deposit count as a good consideration? and is there a contract between me and the shop?

Solutions

Expert Solution

20% is like 200 for a 1000 worth product. If the product you ordering is very rare or not having many buyers it is a very risky business for the shop owner that's why he is charging you 200, For you it's like you want to buy that product but that's very rare to get, then u have to pay that advance amount for getting that product.

And later if you don't want to buy there is no obligation for you to buy but for the shopkeer he has the obligation to deliver that product as he has already took advance from you.

This concept can be explained well in connection with Call/Put option, let me know is that what you are looking for, happy to help

jeff jeffy answered 2 years ago

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