I am a self employed web designer and accept the majority of my payments via PayPal and one of my clients is now threatening to file a dispute against me. I started work on a project for him and I made it clear that for this kind of work I charge by the hour. He paid me an initial deposit of $425 which would have covered around 25 hours work. I have since done at least 45 hours work on this project and my client is suddenly claiming that the $425 was full payment for completing the project. He did offer me more money, then rescinded his offer before quickly putting it back on the table so, as I'm sure you can undestand, I was hesitant to devote any more time to the project without knowing whether or not I would be paid at the end of it. Now he is threatening to take this to a PayPal dispute if I don't cough up $200 by the end of the day. Things are tight right now financially and I could really do without this going to a dispute. So my question is, withouth paying him $200 that in now way do i owe him, how can I avoid a dispiute? Does he even have a chance of winning as I can prove this was a per-hour project and that I've spent 45+ hours on it? Sorry if this doesn't make sense, I'm just anxious about getting this resolved.
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