Question
Adam, the owner of a hotel, decided to refurbish all the rooms in the hotel. On 1st February, he entered into a contract with High-spec
Adam, the owner of a hotel, decided to refurbish all the rooms in the hotel.
On 1st February, he entered into a contract with High-spec Ltd who agreed to complete the refurbishment by 1st December, for a total price of 500,000. It was important that the work was completed by 1st December as Adam wanted to take advantage of the lucrative Christmas period and to make sure all the rooms were fully occupied.
By mid-September, it became clear that High-spec Ltd would be unlikely to complete the work on time. Adam, who had already taken extra bookings for the Christmas period, did not want to have to cancel the bookings and issue refunds to guests. Adam was also keen to avoid the embarrassment and damage to the reputation of his business by having to cancel bookings. Adam therefore promised to pay High-spec Ltd an additional 50,000 so that High-spec Ltd could hire additional workers, work longer hours, and complete the work on time.
High-spec Ltd completed the work on time.
Adam had also planned a special Christmas banquet on 20th December in the hotels restaurant. On the morning of the banquet, the restaurant manager called in sick. Adam was worried about how guests were to be greeted as they arrived at the restaurant. Adam approached his friend, Ben, and asked if Ben could meet guests as they arrived and show them to their tables. Ben, who had often helped at the restaurant when Adam was short staffed, agreed and the banquet went ahead and was a great success. Adam was very grateful for Bens help and once all the guests had left, Adam promised to pay Ben 100 for his trouble.
Adam is now refusing to pay the additional amounts promised to High-spec Ltd and Ben. Advise the parties. Please provide an answer as soon as possible.
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