How have courts interpreted the interpretation of a "deposit clause" in standard form contracts?

British Columbia, Canada


The following excerpt is from Hao Ran Investments Ltd. v. He, 2016 BCSC 61 (CanLII):

In Tang v. Zhang, 2013 BCCA 52, Newbury J.A. resolved the apparent conflict between two earlier decisions dealing with the interpretation of “deposit clauses” in standard form contracts. She noted that where a buyer fails to complete the purchase as required (thus effectively repudiating the contract), and has paid a “deposit” that the contract states is to be forfeited to the seller “on account of damages”, the unsettled question was whether damages must be proven in order for the seller to retain the deposit.

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