A special condition in a land sale contract requiring payment of up to 10% of the purchase price upon any default, where the actual deposit is substantially less than 10%, is not a deposit and does not benefit from the exemption of deposits from the law of penalties. Such a provision is void as a penalty where it has no connection with damages and is triggered by defaults of varying seriousness. The exemption from penalties law applies only to payments that truly have the character of earnest money paid on or in relation to entering into the contract; parties cannot avoid penalties law by designating a payment as a deposit if it does not otherwise have that character.
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