> You're also susceptible to the defense that the PayPal dispute was a negotiation and settlement of the purchase price. Sounds like (e.g.): 1) Contract is fo

> You're also susceptible to the defense that the PayPal dispute was a negotiation and settlement of the purchase price. Sounds like (e.g.): 1) Contract is for $10K. 2) Client pays $4K. 3) Client stops paying. 4) Client issues chargeback for $4K. 5) PayPal dispute resolution recovers $2K of the $4K chargeback. It's possible to claim that the PayPal dispute was a settlement of the purchase price, but it seems like it would be a stretch if that actually flies in court. I doubt that the PayPal dispute resolution covered the remaining $6K that was due, rather than just the dispute over the $4K that was already paid.