In other words: two wrongs don't make a right ;)
Seriously, these kinds of "Ask HN" make me angry with the kinds of comments people reply with. You cannot possibly know the legal situation the OP finds themselves in based on the (lack of) details they've written. What you are telling them could see them in court losing the case, and maybe even having to pay damages for cutting ties. You are giving advice that could potentially destroy their business, or even result in personal financial ruin.
Read that again: your comment could ruin a person's life. Think twice before you pretend to be in a position to help someone by spewing advice without having a clue what the situation calls for.
Frankly, I'm astounded that HN allows "Ask HN" posts seeking advice with legal ramifications. These should be moderated and removed. The ONLY valid answer to these posts is "consult a lawyer". Nothing else is helpful, whatsoever. Even real lawyers who might respond cannot determine the correct course of action without hours of research into the specific case at hand.
And if lack of payment is not breach of contract, it's a bizarre contract. That would mean he already agreed to work for free, and that seems very hard to believe. If it does, he's a much bigger idiot for that than for relying on anonymous internet legal advice.
Then again, some laws, jurisdictions and judges are absolutely surreal. And that's also why anonymous legal advice on an international forum is meaningless: what matters is your local jurisdiction. But that doesn't mean we can't have an opinion on it.
Now I don't give a damn how rude I am being: never give advice to someone regarding a legal matter other than "you should talk to your lawyer", unless you are offering your legal services - and surprise, legal discussions would never happen on a public forum. You could destroy a life if you offer ill-advised information, and the recipient believes you instead of seeking legal counsel. Unless you know every facet of their case, even if you're a lawyer, you cannot guarantee that your advice is not ill-advised for their situation.