| As a rule of thumb, always have a document that will protect you from being regarded as the bad guy. You are right in wanting to do the right thing.
Yes, I agree that you should send him a Notice. Include in that document the history (ie, the downpayment, the un-discussed deliverables, and that he was unreachable) of your transaction, and that if he does not respond within a reasonable amount of time (30 days is enough), he is effectively waiving his right to demand results from you and forfeits the downpayment in your favor. Or something to that effect. Be sure to word it professionally and in a neutral, matter-of-fact tone (neither defensive nor aggressive). I'm sure with everything on paper, you'll at least get a response from him (in writing, preferably).
Good luck!
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I'd explain it to you; but your head will explode.
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