Ali and the 8 loaves Puzzle

Ali and the 8 loaves Puzzle

There were two men having a meal. The first man brought 5 loaves of bread, and the second brought 3. A third man, Ali, came and joined them. They together ate the whole 8 loaves. As he left Ali gave the men 8 coins as a thank you. The first man said that he would take 5 of the coins and give his partner 3, but the second man refused and asked for the half of the sum (i.e. 4 coins) as an equal division. The first one refused.

They went to Ali and asked for the fair solution. Ali told the second man, “I think it is better for you to accept your partner’s offer.” But the man refused and asked for justice. So Ali said, “then I say that who offered 5 loaves takes 7 coins, and who offered 3 loaves takes 1 coin.”

Can you explain why this was actually fair?
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