QUESTION
based on security clause below is deposit refundable if all costs have been paid. contract was for 6 months. show closed after 2 weeks..
Asked on May 05th, 2012 on Breach of Contract - Nevada
More details to this question:
Security deposit amount: $3000.00_______
Producer shall make this security deposit to RWP due on signing of this agreement. Deposit shall at no point be used to cover Producer¿s rent or fee obligations, final rent payment, or Live Entertainment Tax (LET) obligations. Deposit shall be on hold to ensure Producer has fulfilled all of its financial obligations including but not limited to Live Entertainment Tax (LET), any other unpaid bills, and damages of any type to RWP, hotel or its facilities. Deposit shall be refunded, less deductions, following termination of this agreement and proof of LET payment to RWP for submission to United Coin Co. and Producer¿s other financial obligations including but not limited to any contracted advertising, association or obligation that may offer negative publicity for the hotel should bills not be paid. Should Producer attempt to use Deposit for rental fees due, the show will be immediately locked out until proper payments are received.
1 ANSWER
R. Christopher Reade
This clause is arguably contradictory insofar as it states that the Security Deposit shall be held for LET and other financial obligations which may be owed by Producer to RWP. However it previously states that the Security Deposit shall not be used for LET or rent. There is an argument that the second sentence was intended to mean that Producer shall not apply or seek a credit from the security deposit towards its ongoing obligations; however the sentence as drafted creates an ambiguity. Therefore the parties will likely need court intervention to determine the intent of the parties insofar as this provision appears to be contradictory.
Answered on May 07th, 2012 at 3:00 PM