Joe Kunz Agrees to Buy a Computer from Alf Singer

Multiple Choice

Joe Kunz agrees to buy a computer from Alf Singer for $3,000, by paying six installments of $500 each. Joe gave Alf $500 as a down payment but then backs out of the deal. Alf's loss of profit will be $1,500. Which of the following statements is TRUE?

A) Joe is entitled to get the $500 back.
B) Alf is entitled to keep the $500and sue for the balance of the lost profit.
C) Alf is entitled to keep the $500, but cannot sue for the balance.
D) Under no circumstances can Joe ever get the down payment back.
E) Alf is entitled to keep the $500 and sue for all of his lost profit.