Consumer Law, Warranties Return puppy deposit?

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Tart

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I took a deposit on a puppy without contract. I did sign his atm receipt wih the amount of deposit and balance. I sent him half back after he decided he couldn't get the puppy. Buyer is now demanding the balance of the deposit or else small claims court. I'm in Alabama. Am I required by Alabama law to return his deposit?
 
Do you have any loss which justifies your keeping the deposit? If not, it may be easier for you to return it. Otherwise, be prepared to show receipts or otherwise justify your reason for holding the money.
 
Do you have any loss which justifies your keeping the deposit? If not, it may be easier for you to return it. Otherwise, be prepared to show receipts or otherwise justify your reason for holding the money.

My only loss would be my time and trouble of talking to him(which was beyond stressful with his personality),taking his deposit and sending his refund which cost a few dollars. Other than that I lost potential buyers while I was holding this puppy on his word. I sent him $50 and held $50. Certainly refunding it all would have been the easiest route, but I felt that he was trying to take advantage of me and trying to use special military privileges as an excuse. He appeared to be experienced at running over people and demanding what he wants.
 
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