|Quoting Stitch (Reply 8):|
though I believe one could reasonably expect that an outright cancellation on the part of the customer with no fault on the part of the manufacturer would result in the forfeit of the original deposit plus any progress payments made to date.
Legally, yes the customer would lose the original deposit. If you take a deposit on your car or your house, if the person backs out you don't blink and eye about keeping the money--you're never going to see them again.Since both B and AB
know they are most likely going to be trying to sell that customer airplanes in the future I'm not sure that they ever go that far. Back when USAir switched from 737's to A320's there was a sizeable order for more 737's that was cancelled but I don't think B kept the deposit--they hoped to do more business with USAir in the future--probablly should have kept the $$$.