Johnny Contractor has secured a multi-million dollar contract with the Downtown County

Council for the building of block flats. He has sub-contracted the electrical work out to Jason

Voltage at a contract price of EC$800,000.00. When Jason Voltage has half-completed the

work, he (Jason Voltage) realizes that he has underestimated the time that it would take to

complete the work and that he will make a loss on the sub-contract. Having received

EC$400,000.00 in progress payments, he approaches Johnny Contractor and threatens to

abandon the work unless the sub-contract price is increased to EC$1 million. Johnny

Contractor reluctantly agrees to this, fearing he will have difficulty in finding another subcontractor

to complete the work. Jason Voltage then completes the work on time, but Johnny

Contractor refuses to pay him the additional EC$200,000 which he has promised. Jason

Voltage comes to you for advice.