Question:
A nominal sum given as a token for striking a sale is called
A nominal sum given as a token for striking a sale is called
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Earnest money = Token amount showing intent to buy; differs from advance which is partial payment.
Updated On: Aug 12, 2025
- Earnest money
- Advance
- Interest
- Solatium
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The Correct Option is A
Solution and Explanation
Earnest money is a small amount of money given by a buyer to the seller as a token of intention to complete the sale. It acts as a guarantee that the buyer will fulfill the contract and is forfeited if the buyer defaults.
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