Do I have to give their money back?

So, a friend of mine recently wanted to buy my car for $1,200. He wanted to do it in payments because he couldn't afford it all at once. So, he did a quote unquote "down payment" or 10 percent of $1,200 for the first payment and ask for a spare key, just to have. I gave him that and not but a week... show more So, a friend of mine recently wanted to buy my car for $1,200. He wanted to do it in payments because he couldn't afford it all at once. So, he did a quote unquote "down payment" or 10 percent of $1,200 for the first payment and ask for a spare key, just to have. I gave him that and not but a week later (I spent the money he had given me for insurance on the car) he called and said he needed the money back and that I could have the key back. Am I entitled to give the money back even though I don't want to? He said he was going to buy it and now he want's to back out. Thanks!
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