Question
Ahmed hired Zahra to build a house on Ahmed's property.The contract called for Zahra to be paid a $50,000 deposit and $150,000 on completion of
Ahmed hired Zahra to build a house on Ahmed's property.The contract called for Zahra to be paid a $50,000 deposit and $150,000 on completion of the house construction, for a total contract price of $200,000.
Ahmed paid the $50,000 at the time the contract was agreed, and Zahra completed the house construction after six months.Ahmed worked at a retail store, and unfortunately due to the Covid-19 pandemic, Ahmed lost his job and had no income.Ahmed therefore asked Zahra if Ahmed could pay Zahra just $100,000 instead of $150,000 of the amount still owing to settle the debt.Zahra agreed, and Ahmed drove over to Zahra's office immediately with the $100,000 payment.
Just before Ahmed arrived, Zahra called Ahmed on his (hands free) cell phone to tell Ahmed that Zahra changed her mind- Zahra now wanted full payment.
"But I lost my job" Ahmed said."I can only afford to pay you $100,000, not $150,000.But wait, I have free time right now because I am not working, what if I pay $100,000 and then also work helping you to build houses for a year, would you accept that"?
"Yes I would", replied Zahra.
The following Monday, Ahmed showed up to work at Zahra's house construction business to pay the $100,000 and start his one year of work for Zahra.Zahra again told Ahmed that Zahra had changed her mind- she just wanted the full $150,000 payment, and nothing else.
Is the first agreement Ahmed made with Zahra to pay $100,000 to settle the contract legally enforceable? What about the second agreement to pay $100,000 plus work in Zahra's house construction business?Or, does Ahmed still have to pay the full $150,000?
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