Legal Definitions - earles-penny

Earles-penny refers to a historical term for a small sum of money paid as an initial installment to confirm a contract or agreement. It served as a token of commitment, signifying that both parties intended to proceed with the full transaction. Essentially, it was a form of earnest money used to "seal" a deal, making a verbal agreement more binding.

Here are some examples illustrating the concept of an earles-penny:

• Example 1: Securing a Future Purchase

  Imagine a merchant in a bustling medieval market who wishes to purchase a large quantity of grain from a farmer. After negotiating the price, the merchant hands the farmer a single silver coin, an earles-penny, even though the bulk of the payment will be made upon the grain's delivery next week. This small initial payment confirms their agreement.

  Explanation: The silver coin acts as the earles-penny, a tangible sign of the merchant's commitment to the purchase. It assures the farmer that the deal is firm and that the merchant will return with the full payment, preventing the farmer from selling the grain to another buyer in the interim.

• Example 2: Commissioning Custom Work

  A wealthy lord desires a unique, custom-made piece of armor from a renowned blacksmith. After discussing the design and cost, the lord gives the blacksmith a small gold coin as an earles-penny. This payment is a fraction of the total cost but signifies the lord's serious intent to commission the work and the blacksmith's acceptance of the job.

  Explanation: The gold coin serves as the earles-penny, solidifying the agreement between the lord and the blacksmith. It commits the blacksmith to begin the specialized work and assures the lord that the order is placed and will be fulfilled, with the remaining payment due upon completion.

• Example 3: Holding a Property Agreement

  In a historical context, two individuals might agree on the sale of a small cottage. To ensure the seller does not offer the cottage to anyone else while the buyer arranges the full funds, the buyer might give the seller a nominal sum, an earles-penny. This small payment confirms their mutual intent to complete the property transaction.

  Explanation: The earles-penny in this scenario acts as a preliminary commitment, demonstrating the buyer's serious intention to purchase the cottage and binding the seller to the agreement. It prevents either party from easily backing out of the deal before the main transaction is finalized.