Summary

The way how the workflow of an Escrow contract is done says that just an arbiter can resolve a dispute. In this case, it leads to some loss of funds for the seller as there is no option to cancel it if the dispute is solved before the Arbiter reaction.

Vulnerability Details

This is more or less a recommendation of functionality which should be added to the Escrow contract.
I am thinking about the situation when:

1. Seller initiate dispute as his work is done, but the buyer does not respond to messages for a few days.

2. The contract gets to state disputed. So just the Arbiter now controls the workflow.

3. Buyer responded to the seller's messages the next day, and he is sorry for not responding as he was on holiday or he had some other issues. He sees that work is done, and he wants to confirm receipt, but he cannot as the dispute was initiated.

4. Because of the missing functionality to cancel a dispute when it is solved without Arbiter, the seller will lose some of his funds because of the Arbiter fee.

Impact

Because of missing functionality, there is no option to cancel a dispute by the initiator when the problem is solved without an arbiter, which leads to some loss of funds for the seller.

Tools Used

Manual Review

Recommendations

Add described functionality.