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Assuming this is a real post, this is why you should always work under a contract. Sometimes, for any number of reasons, it just doesn't work out. The contract will have a payment structure laid out that accounts for all of these outcomes. x% at deliverable 1, y% and deliverable 2 etc... with an outlined "kill fee" should the project not work out.
Again, assuming this is a good will post, I believe the ethical thing to do is to pay the percentage based on where you are in the project, and always work from a contract going forward.