Just because she didn't physically sign a contract, doesn't mean that there is no contract. She paid you, and based on your usual and customary businesss practices, this would suffice as a verbal contract - basically coming down to a he-said-she-said type of thing.

She probably thinks she can intimidate you into refunding the deposit, which is why she made a big show of examining your license, etc.

I'd send the kiss-off e-mail as you've outlined above, contact your licensing agency to make them aware of a potential problem, and leave it at that. There's a better than average chance she won't do anything at all.

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