Charlotte is a successful entrepreneur who is always out to surprise her friends, high society and her important international contacts. In November 2014 she decided to stage a production of the modern rock musical 'Bare: A Pop Opera.' Controversial and innovative, it would be the highlight of the 2015 theatre season. She offered the challenging lead role of 'Jason' to her long-time best friend and highly regarded singer Jonah Pleatt from Los Angeles. The musical would be performed 4 nights a week for a season spanning 1 May 2015 to 13 June 2015. While there was an understudy for the role of 'Jason', Charlotte made it clear that Jonah must perform for the last 2 weeks (from 30 May 2015 to 13 June 2015), as it coincided with the highlight of the social season of Vivid Sydney - a time when all her important contacts and friends would be visiting. She needed to prove that she could stage amazing productions. A contract was negotiated and signed on 7 January 2015. The following are the key clauses for consideration in this scenario: 1. Jonah will be paid a fee of $60,000 to sing in the musical 'Bare: A Pop Opera' for the entire season. This payment will cover all rehearsals, agreed publicity appearances and performances. 2. Jonah is to be provided with 2 weeks of leave. The time of leave is to be agreed upon prior to 11 March 2015, on the understanding that Jonah must make himself available to perform. He cannot take leave on the dates between 30 May 2015 and 13 June 2015. All proceeded well. Rehearsals were successful and Jonah and Charlotte both agreed to his leave from 11 May 2015 to 24 May 2015. After the first week of performances, there was a celebratory first week after-party that continued late into the evening. Charlotte's happiness was overshadowed when she became victim of a devious cast member, who spiked her drink. She was soon affected and disoriented. It was then that Jonah approached her, indicating he wanted to change his leave dates to 30 May through to 13 June. He said his partner had booked a cruise over those dates and could not cancel the booking. Already talking gibberish, Charlotte became delirious and frantic. She begged Jonah not to go. She pleaded with him to honour the arrangement, finally writing on a napkin with her lipstick and handing him this offer: 'Plz don't go!!! U can have +$20,000 if u stay!!!.'

The next day Charlotte only had vague memories of the party. She met with Jonah for their usual afternoon coffee. During the conversation he showed her the napkin and her written offer of $20,000 if he performed over the period 30 May to 13 June 2015. 'Did I do that?' she sighed. "That doesn't look like something I'd usually do." The successful season ended. Jonah performed on those important dates and Charlotte paid the $60,000. But Jonah demanded payment of the extra $20,000, in accordance with the napkin arrangement. He was becoming hostile and threatening legal proceedings. Charlotte's son Peter was watching her slowly wilt under the pressure being applied by Jonah. She was struggling financially, due to a previous failed venture. Peter approached Jonah and offered to pay $10,000 to settle any debt Charlotte may have outstanding. He didn't know if the debt was due or even payable, but wanted to take pressure off his mother. Jonah accepted and he banked the $10,000. However, he still planned to recover the balance of $10,000 from Charlotte via legal proceedings. Task: 1. Was there ever a contractual obligation for Charlotte to pay the extra $20,000 to Jonah? 2. If there was, has Peter's actions discharged the debt? Do not discuss employment law. Limit your answer to contractual principles covered in this course. stances that may be present).