1. Smith & Hogan Company agrees with Mr. Furlough to construct a swimming pool for him. Furlough fixes 3000 as payment for the work to be done and Smith & Hogan Co. did not agree with it but it was told to them that if the work is good enough then they would receive a satisfactory amount. While constructing the pool, it was seen that a more advanced machine was needed to complete the work on time and Furlough said that he will pay 1000 extra if it can be done within the stipulated time. Smith & Hogan Co. completed the work on time but they were paid only 3000 whereas they are now asking for 5000 in total since they believe they have done a splendid job with the pool and also finished on time.

Advise the company with reference to appropriate case law.