If I paid somebody a little bit for something I was buying and I ended up not being able to pay the rest, could I get that back?

Legally, there are a couple of ways to look at this.  One way is that your agreement with your buddy was that you would pay him $800 to hold the computer for you and not sell it until you got your tax refund back, when you would then be able to buy it for a further $1300.  Your buddy performed his end of the contract, so he's entitled to the $800 you paid him. Another way is that you agreed to pay your buddy $2100 for the computer, and gave him an $800 deposit.  You breached, and your buddy is entitled to collect damages.  However, those damages may not be the whole $800 deposit.  For example, if your buddy was able to sell the computer for $1800, he's only out $300, plus a few months' interest because he had to hold on to it not sell, which delayed his getting paid. A third is if the two of you agreed that the deposit was nonrefundable.  If the two of you didn't discuss this at all, the question may depend on what is customary in these types of transactions. Factoring into all of this is that agreements for the sale of goods for over $500 generally have to be in writing to be enforceable.  Here, you admit the agreement, but you and your buddy may differ about the specific terms. I think your buddy has a claim to at least some, if not all, of the deposit, but my personal opinion is that keeping the deposit is a lousy way to treat a friend, especially if he was able to sell the computer to someone else for the same amount.