Need help solving a dispute between friends.

[TheJoke[r]]

Hello guys, I am here addressing the masses with a dispute between two of my friends.
Honestly, I don't know who is right here, thus I hope you can guide me.

So the deal was such that one fo them wanted a certain program developed and he was supposed to pay 2500  usd in ETH for that.  now this happened in Mai or so when eth was around 750 usd. The other guy, the developer, demanded a 2 ETH prepayment which the other one paid - total 1500 usd paid upfront.
now both of them wasted time. the product is still not delivered, but there are some pieces of code.

now the programmer wants to refund the guy who paid him, but eth has dropped quite substantially. and the deal was pegged to USD (remember 2500 usd), but only 2 ETH were paid at that time. today these eth worth well.. much less.

So the question is, should the refund be 2 ETH or the ETH equivalent of 1500 usd?

Thanks.

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[eddie13]

If the deal was based in $ then the refund should be too..

If he wanted 2 ETH to knock down $1500 worth of the deal then he should refund $1500..
IF it was truly a $ based deal, but I'm not 100% sure, what you said is still too vague on that point for me to really say what it was..

Do you have any quotes of the conversation beforehand stating it was a $ deal?

[TheJoke[r]]

It was a $ deal that was paid in ETH when ETH was ca. 750$

[XCANA]

I think this discussion doesn't belong here if am not mistaken them will have to move it to the appropriate section. Meanwhile, if the deal was a $ deal then, the other person in question has to pay back dollars or ethereum equivalent worth of the said dollars.

[Bardman]

I think this discussion doesn't belong here if am not mistaken them will have to move it to the appropriate section. Meanwhile, if the deal was a $ deal then, the other person in question has to pay back dollars or ethereum equivalent worth of the said dollars.

It's fine here. Both parties knew what they were facing here. They knew the price of ethereum could go up or down significantly which would make one of them lose money ultimately. If it's pegged to $ then it should be paid in $. 1500$ or that amount worth of Ethereum. I think it's pretty clear.

[xtraelv]

Are both parties happy that the program is not going to be completed ? If there was a deal for a completed program then not delivering such program is breach of contract.

Simply refunding the amount provided as a deposit does not negate the breach of contract - unless both parties agree that it will terminate the obligations under the contract.

The buyer has completed their obligations under the contract - provided a deposit as agreed.

The seller has not completed their obligations under the contract - even though performance (payment) from the buyer was received.


I'm assuming that a time-frame for completion was agreed on (or at least discussed) as well.

[samcrypto]

This is quiet hard since the value of the ETH dropped so hard, but if the developer willing to return the amount he get through USD conversion then its fine coz for sure he already spend that money. Maybe its better to paid in $ directly to your friend since you guys know each other, pay in cash.

[mk4]

It was a $ deal that was paid in ETH when ETH was ca. 750$

If that's the case then $750 worth of ETH should be returned as it was a deal based in USD in the first place. Though I understand the frustration from your friend that has to refund a higher number of ETH. They should have talked about this potential issue in the first place.

[HabBear]

Interesting dilemma here.

Were the terms of the agreement written down? If so, what were they...word for word. If they weren't written down then both of them are right because either interpretation is correct.

If they are friends they should try to meet somewhere in the middle. But if this is truly a situation where the person contracted to do the work didn't deliver they should have to refund the money paid at the start, the USD equivalent.

[jossiel]

While reading the problem it made me think as well on what you must do. Anyway, did you signed any contract/agreement before making that deal? if that is more of verbal then this is even more complicated.

He should refund it with USD value though your friend only deposited 2 ETH but this is a problem between the circle of your friends and I think you can discuss it better and fix it to cause no more trouble.

[Kakmakr]

It should be common sense, because you said the contractual agreement <verbal or in writing> was for the payment to be paid, based on the $ value. The receiver want the dollar value, but they just agreed to pay with a specific coin. In this case it was Ethereum.

Even if the price dropped to $1 tomorrow, then the dollar value of the final payment will not have changed. The receiver still wants the $ value in his/her pocket. 

[fryzer]

 I think that it should be equivalent in usd because eth is still going down and it is obvious

[TheJoke[r]]

Thanks for your input guys. I will just refer them to this thread and make them see for themselves

[LeGaulois]

The price has been defined in USD, so the refund shall be based on USD. Paid in ETH or something else doesn't matter, the value was estimated in USD and paid in crypto. The excuse about the ETH value is invalid. I don't understand why your friends are arguing because it seems logic

[juli50]

wow, its a hard one, I would say if they accorded a price in usd, he should give him usd, but in the other hand, the guy who received 2 eth have to put a lot of money from him because of the actual price of eth. Oh, but the developer didnt deliver the code in time so its his fault, so he should bring the other one back the 2.5k usd.

[btcdevil]

It was a $ deal that was paid in ETH when ETH was ca. 750$

Their is no need of any dispute in this deal as you have stated that the deal was in usd which is paid in ETH form so if the other friend who was to develop the code has taken his payment upfront and now that he is not able to deliver then automatically he is liable to pay in usd value of ETH or can pay in USD itself.

So now their is no point of argument of paying in ETH as it is crystal clear that the deal  was in usd and that too the first friend has paid upfront so it is the fault of other friend who took the payment in advance and now that not able to complete the work has to pay back in USD as per the deal.

[halpi]

Why pals here say that deal was in USD? 
THE DEAL WAS NOT IN USD  SINCE IT WAS PAID IN ETH. If you have deal in USD - pay in USD via bank transfer, Skrill, etc.
As you pay in ETH - your currency becomes ETH.

So obviously refund should be made in ETH, as ETH was sent.

Also, all newbies should know that rates could go up and down and when they accept ETH as trading method - they accept possibly risks.

[r1s2g3]

Hello guys, I am here addressing the masses with a dispute between two of my friends.
Honestly, I don't know who is right here, thus I hope you can guide me.

So the deal was such that one fo them wanted a certain program developed and he was supposed to pay 2500  usd in ETH for that.  now this happened in Mai or so when eth was around 750 usd. The other guy, the developer, demanded a 2 ETH prepayment which the other one paid - total 1500 usd paid upfront.
now both of them wasted time. the product is still not delivered, but there are some pieces of code.

now the programmer wants to refund the guy who paid him, but eth has dropped quite substantially. and the deal was pegged to USD (remember 2500 usd), but only 2 ETH were paid at that time. today these eth worth well.. much less.

So the question is, should the refund be 2 ETH or the ETH equivalent of 1500 usd?

Thanks.

I do not understand why people are saying to pay back in USD (even you say it is $2500 USD). You will get back in refund that you paid in currency.
If They paid 2 ETH then refund is 2 ETH only. I never say in my practical life that goods I bought for credit card got refunded in Cash or vice versa.

Think other way round , If ETH become 1500 tomorrow, then what do you expect from developer ? just to return 1 ETH and pocket the other one?
Refund will be in the same currency in which payment is made.

I think dispute can occur if developer completed the code and to determine what should be the developer balance payment (2500-1500 (price of ETH then) ) vs (2500-400(price of 2 ETH now).

As far refund is concerned you will refunded for amount that you paid.

[mk4]

Why pals here say that deal was in USD? 
THE DEAL WAS NOT IN USD  SINCE IT WAS PAID IN ETH. If you have deal in USD - pay in USD via bank transfer, Skrill, etc.
As you pay in ETH - your currency becomes ETH.

So obviously refund should be made in ETH, as ETH was sent.

Also, all newbies should know that rates could go up and down and when they accept ETH as trading method - they accept possibly risks.

Re-read the main topic. The problem isn't if friend1 should pay friend2 with USD or ETH. The question is about the value difference of ETH(current price vs past price). You completely missed the point.