Jill rents a shop in Footscray for a term of five years from David, paying a monthly

rental of $2,000.00 plus rates and other expenses. She establishes a business selling

carpets and rugs that are imported from overseas, and she is able to make a

reasonably good profit from the business.

However, after trading for about 6 months, Jill discovers that recent fluctuations in

currency values in Australia and overseas have resulted in an increase in the landed

cost of her stock by about 50%, and she can no longer sell her stock at a profit.

Jill approaches David, her landlord, and notifies him that she will have to vacate the

shop. David wants Jill to stay in the shop. He owns other adjacent shops, some of

which are vacant and another vacant shop will probably cause further loss of

confidence in the region. David accordingly promises to reduce the monthly rental

from $2,000.00 to $1,000.00 until things improve. Jill decides to stay.

After a further 6 months, Jill is again trading profitably and she notifies David that she

can resume rental payments at the originally agreed rate of $2,000 per month.

A week later, Jill receives a summons issued by David, claiming from Jill the sum of

$6,000.00. When Jill contacts David to question his decision to sue her for $6,000.00,

David states that he has changed his mind about reducing the rent, and that she can

now afford to pay him for the rental that he had previously waived.

Advise Jill whether she has to pay the sum of $6,000.00 now being claimed by David.