oddsod - 8:40 pm on Mar 11, 2010 (gmt 0)
If he says no then sure, he has the code but that will always be the case whatever option is used.
Not so. With a properly constructed contract, he gets the code only after he's made a non-refundable full payment to your lawyer.
He tells the lawyers to transfer the funds
If you are using a legal firm for escrow ...why the split transaction and release the code early?
And, as maximillianos says, once it's gone, it's gone.