Let's say a business provides some service/activity to a customer and charges them a $100 deposit on top of the service costs.
This deposit is to cover damages or other actions that negatively affect the business.
In the contract between the business and the customer, can the business set out that the deposit is paid back at their own discretion?
Or is the business required to set out specific criteria in the contract for paying back the deposit, which could be legally challenged?
Obviously withholding a deposit incorrectly could result in negative PR, but this question is purely about the legal aspect.
Answers for any jurisdiction would be interesting, but specifically trying to find out for Ireland / the EU.
Additional question: If damages exceed the deposit, can the business request more money from the customer?