Cancelling transaction and refund help.

[mygirllollipop]

Seller sent package recorded delivery which has been sent back to her undelivered. She agreed to refund buyer minus P&P costs. Seller has now opened cancellation request and said she'll refund after buyer has agreed to this.
Is this right? Will the buyer have any claim to a refund if the transaction in cancelled? Payment was by paypal if that helps.

no - the buyer is entitled to a full refund, not just a refund for the item.

Only after a full refund has been made should the seller start a cancellation to get their final fees back.

by the way - buyer can open not received claim for the item with paypal or eBay and will receive all their money back if the seller is being awkward.

Thanks, would the buyer win the case though as the seller could provide tracking number for recorded delivery?

the tracking number doesn't prove delivery though does it, it will show returned? With proof of delivery the seller would win the case.