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I believe Evan is correct here, if there was no written explicit contract, then you are on a for-hire basis and have a feduciary relationship to the person who hired you to do the job. If you have a written license agreement that allows you to resell, then you're fine. What I do wonder however, is if you do not deliver the product (ie: cancel the work for the client), don't deliver it and go ahead and repackage this as an independent software package for sale, I think you can do that with minimal risk. Assuming of course you didn't sign an NDA... I think Evan would know more about the IP behind this, but the above sounds more feasible if you want to keep the IP to yourself. It makes you look bad to the client, that's true, but if the potential is there, it may be a better option in the long run.
WG
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I play with Google.
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