Originally Posted by Village Genius
I'm not a lawyer but it looks good, he is clearly bound. You actually have grounds to sue him over the difference (although that seems a little impractical). Let him take it to PayPal and show them the contract. PayPal is unpredictable with their claims service but if any real look is taken at it you will win.
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I am.
A verbal contract is as legally binding as a written one...
That being said, unless you have a witness or it in writing, you have no chance of winning as it will be based on hearsay and conjecture.
If he raises a Paypal complaint you have less than no hope as their complaints are 90% automated with "non-physical" items being directly excluded from their Terms Of Service.
Paypal very much works on a "first to complain wins" basis for non-physical items.