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Simple English definitions for legal terms
arrha
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A quick definition of arrha:
ARRHA: Arrha is a Latin word that means "earnest money" or a deposit given as proof that a deal has been made. It is used in Roman and civil law. It is also known as arra and can be spelled as such. It is similar to God's penny and denarius dei.
A more thorough explanation:
Definition: Arrha (pronounced ar-uh) is a Latin term used in Roman and civil law to refer to earnest money. It is the money given as proof that a bargain has been completed.
Example: When buying a house, the buyer may give the seller a sum of money as arrha to show that they are serious about the purchase. This money is usually held in escrow until the sale is finalized.
Explanation: The example illustrates how arrha is used in a real estate transaction. The buyer gives the seller a deposit as arrha to show that they are committed to buying the property. This deposit is a sign of good faith and is usually held in a separate account until the sale is completed. If the sale falls through, the arrha may be forfeited to the seller as compensation for their time and effort.