Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 20 In January 2019, Olivia took over an old factory with the intention of renovating it and operating it as a trampoline park. Olivia

image text in transcribed
Question 20 In January 2019, Olivia took over an old factory with the intention of renovating it and operating it as a trampoline park. Olivia entered into two contracts; One with William to do all of the plastering and one with Hamzah to complete the painting. Both William and Hamzah were promised payment from Olivia of 10,000 each. Olivia paid them both 1,500 when they started the work and agreed a completion 8 Please turn over date of 1 April 2019. Olivia had advertised a grand opening for the trampoline park for 15th April and had taken several party bookings. At the end of February, William advised Olivia that he would not be able to complete the plastering in time, unless the overall payment for the work was increased to 12,000. Olivia agreed to pay this to ensure the job was done in time as she had taken bookings on the assumption the trampoline park would be open. Olivia also increased Hamzah's overall payment by the same amount in the interests of fairness. William and Hamzah both completed the work on time. However, Olivia is now refusing to pay them the extra amount she promised. In the context of contract law, explain and advise William and Hamzah if they have any rights to enforce Olivia's promise for extra payment. Total (25 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing

Authors: O. Ray Whittington, Kurt Pany, Walter B. Meigs

12th Edition

0256167796, 978-0256167795

More Books

Students also viewed these Accounting questions

Question

25.0 m C B A 52.0 m 65.0 m

Answered: 1 week ago