DOWN PAYMENT

A percentage of the total purchase price of an item
that is proffered when the item is bought on credit.
In an installment sales agreement, a buyer is
required to pay part of the total price, usually in
cash, and later pays the balance through a num-
ber of regularly scheduled payments.
A down payment is sometimes known as
earnest money, or a sum of money that a buyer
pays upon entering a contract to indicate a
GOOD FAITH intention as well as an ability to