Quoted from egyptrus:I've actually had this happen. I sent a deposit via paypal to a seller at his request, you know, to show I was "serious". When I showed up at his house to pick up the game and pay the rest in cash, it was gone. According to him, someone had offered more ($100) and came right away and paid cash. "You did see that I refunded your deposit, right" On top of it, the deal wasn't a screaming deal either, it was a fairly priced game and apparently, someone wanted it more and was willing to pay more. So, even though we had a "deal" with money exchanging hands, it didn't stop the seller from backing out of the deal.
I think once cash trades hands (even if a deposit) then in most states that is legal contract. I can say that if a seller ever pulled that with me and I wasted my time going to their place then I would be getting more than my $100 back.