Legal Definitions - arra

ARRA

ARRA (pronounced ar-uh) is a Latin term used in Roman and civil law. It refers to the money given as a deposit or evidence of a completed bargain. It is also known as earnest money. The plural form of ARRA is arrae.

1. When buying a house, the buyer may give the seller ARRA as a deposit to show that they are serious about the purchase.

2. In ancient Rome, ARRA was used as a form of security in business transactions.

The examples illustrate how ARRA is used as a deposit or security in different contexts. In the first example, the buyer gives ARRA to the seller to show that they are committed to buying the house. In the second example, ARRA was used in ancient Rome to ensure that both parties fulfilled their obligations in a business transaction.