After deciding on a list of requirements with a client and agreeing on a price, the client sent me 50% of the total before work was started, and we agreed the remaining was to be paid at delivery.
I did what I believe to be about 80% of the work, when the client decided he did not like my services and asked to cancel the order. To leave in good terms, I decided to send him the work I've done anyways and not ask for any extra payment.
However the client is asking me to reimburse the first 50% and threatening to use lawyers.
Am I wrong to ask to keep the initial payment? I did a lot of work, paid for products and services. I did not break anything in our arrangement and was following the requirements.
What should I do? I can't really afford a lawyer.