Nick has a contract with Russell to rent his fishing boat to Russell at HK$100,000 per month for a fixed term of 24 months.After 6 months, due to problems of seawater around Hong Kong, fishermen find it difficult to catch fish and the rent for fishing boats drops a lot.Nick therefore tells Russell that he will be prepared to take HK$60,000 per month instead of the agreed HK$100,000 in satisfaction of their contract. Russell agrees and continues renting Nick's fishing boat at the reduced rent of HK$60,000 per month for the next 6 months. Now that the problems of Hong Kong seawater ends, Nick demands Russell: (a) to pay the shortfall of HK$240,000 of the past 6 months' rent; and (b) to pay him HK$100,000 per month for the rest of the contract.

Required

Advise Russell (word limit: 200).

(20 marks)