Concept of Deposit

What about in the west or elsewhere we have concept of deposit, where, for example, John wants to buy a car from David. They agree price of £1600, John gives David £100 deposit with remainder £1500 to be paid on collection the following week. The way it works is if John decides now he doesn’t want the car anymore he breaks the deal but David keeps the £100 John paid to him. Is this allowed?

Everything you mentioned is permissible except the part where the seller (David) keeps the 100 bucks. There is no legal reason that permits him to keep what he has not legally earned.

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