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Could it even be theft now maybe. He has goods in possession that he knows belongs to someone else. maybe not theft originally as no intention at the time but now the intention is there. This would be a criminal offence - if not theft something similar (I am not a criminal lawyer).

That is exactly true! bailment - they could come and take the goods back.

Legally you owe them the money. You entered a ccontact to pay a certain amount for the tiles and then you took them only paying a lesser amount. You would be in breach of this contract.