Contract law

Leonato lives alone now that his wife has died. His niece Beatrice offers to move in and look after him, but warns him that her husband Charles is worried that by doing so, they will later be unable to afford a house in the rising property market. Leonato reassures them that although his house is mortgaged, if she and Charles pay the mortgage instalments, they will own the house on his death. On this basis, Beatrice and Charles move in. Beatrice at her own expense redesigns the living room at a cost of ksh 30000. Leonato is delighted and tells her that he will pay for her excellent work. He also visits John to whom Charles owes ksh, 40000 and offers him half the amount to waive the debt. John agrees and Leonato pays ksh 20000 in cash. Leonato asks Charles who is a builder to construct a new garden wall for ksh 50000. Charles agrees but after a day tells Leonato that due to the cost of the special bricks he specified, Charles cannot continue unless Leonato pays him an extra ksh 10000 for the additional cost of materials. Leonato agrees. Leonato has recently visited his financial advisor Pedro who warns him that Beatrice and Charles are taking advantage of his generosity. Horrified, Leonato asks Beatrice and Charles to leave and tells them that they will not receive a penny of his money. To add to their woes, John is now demanding the remaining ksh 20000 from Charles. Advice all the parties. (50mks)