Fit-it Ltd required payment on 1 June 2015 in order for them to purchase materials and equipment to allow them to commence another refurbishment project they had entered into with Cost-Co Ltd. The contract with Cost-Co Ltd contained a penalty dause that would result in severe financial penalties if Fit-it Ltd did not commence the refurbishment as agreed. As a result, Fit-it Ltd agreed to accept 83million from Out-Let Ltd in full and final settlement for the refurbishment. E3million still represented a healthy profit for Fit-it Ltd under the contract and the payment received allowed Fit-it Ltd to commence the refurbishment contract with Cost-Co Ltd as agreed