I accepted an offer from a person in UK to make a prototype of an electronic circuit project. All conservation happened through email replies. No terms and conditions or contract were signed between us.
However I had to a sign an NDA which only mentioned that I needed to keep everything regarding this project a secret and also I should provide all the technical details to them if requested.
I signed this NDA.
After this the person told me to give an official invoice regarding the bill of materials and total cost of the project.
While preparing the invoice, I distinctly added a disclaimer message, that in case I failed to complete the job, I would not be liable of any refund except the labor charges.
On receiving the invoice, the person replied:
"Well Noted", and then he proceeded and gave me the money.
I bought all the materials with valid invoices and sent the invoices to him, and started the work.
However after completing 70% of the job I realized that it was not possible for me to complete it, and I informed this.
The person threatened to file a complaint, and demanded instant refund.
Initially I tried to defend but then decided to refund but my Bank said you can't refund a foreign company from a savings account, and advised me to get the person's personal bank details and send the money as a "personal gift" to him.
When I informed this, the person refused and says it is your problem, send the refund to my company address or I'll proceed with legal actions.
Please help, what should I do?