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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>In CA, the courts hated the concept of a “forfeiture” with a non-refundable deposit, even for commercial transactions. The courts felt that a large forfeited “nonrefundable” deposit was punitive in nature and imposed all kinds of “reasonableness” tests. Sooooo, representing sellers, many times I drafted purchase and sale documents as an option thereby re-characterizing the non-refundable deposit as an option price. It survived judicial scrutiny because there was no “forfeiture” of a deposit because the buyer got what he paid for, the right to exercise the option for a set period.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>So, do WA courts hate the non-refundable deposit as much as CA, even in commercial situations? I’m don’t care about locking the buyer in because there is a generous feasibility period anyway. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a name="Paul_Neumiller"><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><img width=375 height=225 id="_x0000_i1025" src="cid:image001.jpg@01D1793C.A6447D00"></span></a><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p></div></body></html>