Legal Question in Business Law in Louisiana

terms of deposit

I inquiring about the refund of a deposit on the purchase of a restuarant. The purchaser placed a 20,000 deposit on the purchase of my resturant, with the balance of 6000 due today at signing. Tomorrow was scheduled to our last day open with new ownership to take place ASAP. Well at the signing they decided to change their mind about the purchase and are demanding a full refund of deposit. Are we obligated to return the full deposit and if so how long do we have to return it.


Asked on 11/12/04, 12:33 am

1 Answer from Attorneys
Steve LeBlanc Steve LeBlanc, Ltd., (APLC)

Re: terms of deposit

The situation you describe sounds like what we call "earnest money." If the prospective purchaser put up "earnest money" and fails to go through with the purchase, he then loses his "earnest money." On the other hand, if the purchaser want to complete the deal, and the seller backs out, he owes the prospective purchaser twice the "earnest money" back for him not selling. I suggest you consult an attorney for advice. Yours, Steve

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Answered on 11/12/04, 5:20 pm


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