Do I have to return the deposit?

Questioner

We had a lounge set for sale. A man and woman wanted to buy it but could not come to pick it up until later in the week. So they made a down payment. When they arrived they cancelled the purchase. Now they are asking for their deposit back. Do I have to pay this back?

Lawyer

Yes, because the purchase is apparently dissolved/cancelled. This is different if, for example, you have agreed that the purchase cannot be cancelled or dissolved and the deposit will never be refunded, or that cancellation costs are due. But I do not assume that you have made such an agreement. Please ensure that you have proof of the refund, so that it is not subsequently stated that you have not yet paid back (while you have).