Fortune_Hunter - 3:12 pm on Nov 16, 2008 (gmt 0)

Are you the actual owner of the domain? If not, then you would most likely be risking criminal fraud and theft charges.

I agree with this 100%, don't do it unless you own the domain and have a well written agreement that explains that you own it and they are simply "renting" it from you. If you don't have this and you end up selling it then you could open yourself up to a serious law suit that would be beyond your ability to fix. Remember a web site can be put back up as a settlement option to keep a law suit from getting too out of hand, but a sold domain is probably gone forever and there is little if anything you could offer as a settlement to fix this.

One argument that their attorney can make is that any payment they have made in the past covered your fees for the domain name, especially since presumably that was 1 1/2 years ago and therefore they own it and you owe them for damages if you sell it. Don't do it, you will seriously regret your decision. In this business if you get a reputation for holding domain names hostage you can ruin your business almost instantly.

Your client may be able to offer you non-cash value for part of the invoice, depending on the nature of his business; this could include professional services, equity or product stock.

This is a great idea, that I had never thought of, thanks for the suggestion.