A response from the US biz opinion. Not all countries may view this the same
way. Besides email advice is worth the cost of postage only.
In the US, if you are the author or creator of a work, and the work wasn't
done on a "work for hire" basis, then the work (source code) is yours, and
subject to your control.
A contract must include transfer of value. If they haven't paid, if you
haven't delivered what was "resonably" expected by the statements in the
contract, then it isn't a statisfied contract.
I'd suggest an "escrow" of the source code, if your intent is to surrender
the code to him. And that the terms of escrow include his paying you and the
escrow agent fee. I'd also be certain that he was licensed to the code and
not the owner. Otherwise you can't use it yourself. OOoops.. without his
permission.
yes you can do all this in a gentlemanly way, but it sounds as though you
have already entered the arena of accusation, so get to an attorney in your
country who handles intellectual property, etc. issues.
And do not send him anything more.
I fought these battles 20+ years ago. They weren't fun then. I'm glad in my
role now I no longer must.
<insert additional and appropriate disclaimers of liability as appropriate>
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