oboloo Glossary

Ernest Money Contract

oboloo Glossary

Ernest Money Contract

An Ernest Money Contract is a legally binding agreement between two or more parties that sets out the terms of payment for a specific service or good. By committing to an Ernest Money Contract, all parties agree to honour their commitment and abide by any terms set out in the contract. It is essential that everyone involved in an Ernest Money Contract reads it carefully and understands their rights and responsibilities under the agreement. By placing their signature on the contract, they are verifying that they are aware of these clauses and any conditions set out in the contract. An Ernest Money Contract offers peace of mind that all parties will be held accountable for meeting their obligations and follows a professional standard of conduct.