I wanted to get some processing work done so I hired a freelancer for the same
Before the contract started, I clearly mentioned 8 key things I want the code to do.
I deposited the contract amount in an escrow account.
For some reason, the freelancer rejected it. He wanted me to pay him via PayPal (perhaps to reduce service charges)
He managed to do 7 of the 8 points of the contract. The last point which he did not complete was extremely critical. If that point wasn’t fixed, the project was as good as useless.
He refused to work ahead and wanted me to increase the contract amount by a substantial amount outside my budget which was a clear disagreement to the initial terms.
How to deal with such issues. Its been a quite some time we have had a chat. He isn’t demanding a compensation for any work since he never delivered any code to me.I don’t want to continue the project.What should I do ? He isnt expecting any money for any work since there’s no mail regarding any such request from his side for the payment . Is it ethical to forget about this and go ahead in life ?
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It depends a lot on the sort of agreement you had.
You mentioned a contract; was it a simple agreement discussed via email, or a full-blown, legally-binding document? There’s a difference: with a real contract, you could take him to court and sue him for breach of contract. Without one, you’d be better off forgetting about it. Of course, if you’re representing a business that has the backings of a legal department, and the company was depending on this code to be done in the time allowed per a real contract, you probably should bother with the legal system and sue him for damages.
Your step of using an escrow account was probably a good call, especially if this freelancer has no reputation and you don’t/can’t trust them.
A someone who has actually done a few processing projects for money myself, I will tell you that the biggest concern I have is that I will do all the work for someone and then simply not get paid. The flip side of this problem is that they are concerned they will pay me money, and then not get anything in return. Another issue I have had working with people is serious feature creep. for these reasons, I now always require the full project requirements up front, give a fair time estimate, perhaps even show a video of the basics of it working, and then demand half of the expected payment up front. Also, personally, I only take payment via PayPal, and am clear to state this up front.
Anyway, if you’re not out any money, and you didn’t get any code, and you don’t have a legally-binding contract that they have signed, I would just let the matter drop. And don’t use that person to write code for you from now on.
Get in touch with me instead! 
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I don’t know anything about escrow accounts. With upwork, the mediation is done by upwork. The person subimitting the contract delivers the requirements, the programmer accepts the requirment and upwork withholds the money for the contract. At the end of the period, product is delivered and money is released. If the programmer does not deliver, he doesnt get paid. If the person that palces the contract decides to cancel the project, he will lose his/her money. This is the reason why upwork could work in these cases, mind you are paying extra for these services.
When you establish a level of trust with your coder, then you could relax initial stiff requiremensts, but not by much. As anything in life, good communication and well defined expectations is essential for all type of healthy business.
Sorry, I did not answer your question directly. Hopefull we can hear more about this from other members with experience either in freelancing or palcing contracts.
Kf
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