Document background
The Non-Refundable Deposit Agreement is a crucial document used in Indian business and property transactions to secure commitments and mitigate risks. This agreement is typically employed when one party needs to demonstrate serious intent in a transaction by providing a non-returnable deposit, such as in property purchases, business acquisitions, or significant service contracts. It must comply with Indian contract law, particularly the Indian Contract Act, 1872, and may require registration under specific circumstances. The document includes essential details such as deposit amount, payment schedule, explicit non-refundability clauses, and the conditions under which the deposit is forfeited. It's particularly important in high-value transactions where parties need to establish firm commitments and allocate risk effectively.
