I've received a letter of demand from the lawyer of a woman who had quoted us $4500 to build us a new website last year who I eventually 'fired'. I accepted her quote by emailing something like "I'd like to proceed", but as the project progressed it became apparent that this woman wasn't delivering. In fact, it was ridiculous that she expected to be paid anything at all -she even asked me to go purchase the design template and stock photography images -- both of which costs were never explicitly stated or implied in the quote. I had already paid some 'instalments' to the full amount of the quote, and the quote said the full amount was only due upon completion (which never happened because it was never completed).I made it clear numerous times by email that I wasn't satisfied with what was being delivered, and then finally face-to-face we had an understanding that unless she could do X Y and Z. I wouldn't be able to continue, and thus I walked away with the understanding that she was effectively fired and the deal terminated. She even said something like "Well if I get to add you to my portfolio, great, but if not, that's a shame". Months later, I get an email saying the full amount is outstanding, which I obviously ignored. Now I get a lawyer's letter. Do you have any advice regarding contract law? Is it just a threat? Can I just ignore it and see if they really file court papers? What is the onus of proof here? Do I have to prove she never fulfilled her quote or does she have to prove that she did? Is mediation an option?