Help please

I'm dating this guy name "Damon", but before we were on and off and two months ago we stopped talking and I tried to move on and this guy named "James" and I were friends and we were talking and he liked me and I liked him. We started dating but it ended the next day because I couldn't do it. I still wasn't over Damon and I just couldn't date him. I told James, i can't date I'm sorry. He understood and all. We talked but we drifted apart. And then a week later, Damon and I, we reconnected and we both decided to make it work. I feel bad because I told James i couldn't date and I feel shitty, I really really like Damon and I'm so happy with him but I led James on and I didn't mean to. Am I a bad person? What do I do?