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Earnest

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EARNEST, the payment of a sum of money by the buyer of goods to the seller on the conclusion of a bargain as a pledge for its due performance. It is almost similar to the arrha of the Roman law. Apart from its survival as a custom, its chief im portance in English law is its recognition by the Statute of Frauds as giving validity to contracts for the sale of goods of a value exceeding £ i o. (See SALE OF GOODS.) It is in that statute clearly distinguished from part payment, consequently any sum, however small, would be sufficient as earnest, being given as a token that the contract is binding and should be expressly stated so by the giver. (See DEPOSIT.)

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