Section 522 of the Restatement (Second) of Contracts

Section 522 of the Restatement (Second) of Contracts addresses when a buyer, who has paid a deposit or part of the purchase price, can withdraw from a contract before the sale is finalized. It outlines the conditions under which the buyer can cancel and what happens to their deposit, including whether they are entitled to a refund or if the seller can keep it as compensation. Essentially, it sets rules for the buyer’s right to cancel early in the contract process and how deposits are handled in such situations.