Question
Regin Bluetone owns a business that sells confectionary. His business trades from a premises in the town of Wagga Wagga in New South Wales. Regin
Regin Bluetone owns a business that sells confectionary. His business trades from a premises in the town of Wagga Wagga in New South Wales. Regin entered a contract to engage the services of a builder to carry out some extension work to the premises so that he could display and sell more of his confectionary stock. The agreed price for the extension work was $67,000. On 20 June 2021, when the builder had approximately four (4) weeks left to complete the work, the builder approached Regin and explained that since beginning the extensions, the price of timber had increased substantially and that as a result, Regin will have to pay an additional $5000.00 to cover the increased timber cost. At the time, Regin told the builder that he was not going to pay the extra $5,000 as the original agreed amount for the work was $67,000, not $72,000. The builder then said to Regin that if he did not agree to pay the extra sum demanded, the builder would stop work until Regin agreed to pay.
Any further delay in completion of the building work was going to place Regin in a position where his business might not survive because he had already suffered a significant reduction in trade while the building work was being completed. Because of this, Regin agreed to pay the extra $5,000. He paid the extra $5,000 on 23 June 2021 and the builder completed the extensions on 24 July 2021.
Regin has been trading from the Wagga Wagga premises since completion of the building work and has been very busy running his confectionary business. Last Saturday, he was telling a friend about the builder and his friend told him that the builders insistence on Regin paying the extra $5,000 was very unfair and that Regin should take the matter to court to get his $5,000 back from the builder.
Regin has come to see you for advice on the prospect of the court ordering the return of the $5,000.
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