A deposit is only clear if you wrote down what it is for.
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A deposit holds a date, an item or a service. Arguments start when plans change and the two sides discover they had different ideas about whether the deposit comes back. Agreeing on a few points when the deposit is paid avoids that.
What to agree on
- The amount of the deposit, and the total price it is part of.
- Whether it is deducted from the final price.
- Whether it is refundable, and in which cases.
- What happens if the buyer or client cancels, and what happens if the seller or provider cancels.
- How much notice a cancellation needs.
Why the details matter
In many countries the law treats a deposit differently depending on what the parties agreed: some deposits only confirm the agreement and are deducted from the price, others can be kept if one side walks away. If you did not agree on it, the default rules of your country apply, and they may not be what either of you expected.
Typical cases
- Booking a photographer, venue or band for a date.
- Holding a car or a phone until the buyer collects it.
- A tradesperson asking for a deposit to buy materials.
Doing it with SEAL
With SEAL’s Appointment/Service or Sale template you record the date, the price, the deposit and the cancellation terms as items. Both of you approve the same text, so there is no question later about what the deposit was for.
See how this works in SEAL
This guide is general information, not legal advice. Rules differ between countries; for a specific situation, talk to a lawyer.