Jacob has been commissioned by Stellaforic Ltd to landscape their rooftop garden, complete

with a fountain water feature for a total contract price of 16,000. The weather has been

particularly bad. Jacob's work van has frequent breakdowns, delaying him in transporting

materials and himself to and from the site. Stellaforic Ltd are aware of this and also know

that until Jacob is paid for this job he will not be able to replace the van. As a result Jacob

has fallen behind schedule with the work. Stellaforic Ltd intends to hold their business

launch party in the newly landscaped garden and promise Jacob an extra 4,000 if hecompletes the work by the originally agreed date. Jacob completes the work on time by

working very long hours and not accepting any new work.

Stellaforic Ltd say they are only willing to pay Jacob the 16,000 originally contracted for

and that they will only pay that in quarterly instalments. Jacob reluctantly agrees and takes

the first instalment of 4,000, as he needs to put down a deposit on a new work van that

evening. Jacob is now demanding the remaining balance of 16,000 in one lump sum

immediately. Stellaforic Ltd say they no longer have the budget to pay Jacob immediately as

they have stocked the water feature with 16 exotic carp which cost 1,000 each.

Advise Stellaforic Ltd as to whether they are obliged to pay Jacob the extra 4,000 they

promised and whether they can insist Jacob takes payment of any monies owed to him by

the agreed instalments.