This may be one battle that cannot be fought with confrontation or allegations or trying to enforce the contract. Do everything you can to make them aware you are available to help them and work with them and provide the fall-back plan of a place for the dog should their other ideas not work out. I agree with Liz that they are giving you a lot of B.S., but I also think your evalutation about just how far you would get in a standoff with them is correct. Unless they want to cooperate with you, they won't. The challenge is to make them want to. I know that might not be possible, but it is an option to consider.