James is the owner of a scallop boat.In 2015, James leased the boat to John for 10 years at an annual rental of $10,000.In 2018, the scallop numbers were declining and John realized that he would not be able to pay the annual rental of $10,000 unless the catch improved.He approached James to let him know of hisfinancial difficulties.James said he was prepared to halve the annual rental until the catch improved and accordingly from 2018 onwards, the rental was halved to $5,000 per year.

In 2020, the catch improved to such an extent that John was able to pay the original annual rental of $10,000.James informed John that henceforth, the rental would revert to the original amount of $10,000.In addition, James claimed an amount of $10,000 representing the halved rental for the years 2018 and 2019 which he had promised John he would forgo.

Advise John whether he is liable to pay the $10,000 claimed by James.

(4 marks)