Hi.we decided to buy a car.And today had looked one in the morning.Paid 200 AUD deposid to secure a car.And asked owner that we will do the PRE PURCHASE TEST with RAA.He agreed.And we sad if test won't be good we won't buy a car.Got the letter from him saying that he recived 200AUD for the car.As a deposid.
Few hours later we did look another car.which is much much better than the first one.So we called that guy to say sorry,for not to buy his car and he agreed to give the deposid back,tomorrow.
Then 40 min later he text me that he will keep the deposit as:an oral contract has been formed in purchasing the car.
In my understanding no CONTRACT were made,as we were not shure car is in good condition or not!
Please help.is he allowed to keep the deposid.