Lease Option Question

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I had a verbal agreement with a purchaser. He paid the non-refundable option fee. I sent him the contract and he did not sign and return it. He never paid a lease payment. Approximately 2 months later he contacted me stating that he wanted his money back or he wanted to sell the house to a cash buyer.

When I wrote the lease option I wrote it in 2 steps, a lease and an option. There were no rent credits to be given.

Basically my question is - Is it a fair settlement to offer him a 50%refund of his option fee?