Toms Furnishing (TF) owns a business which supplies cordless roller shades, spring blinds, and motorized roller shutters to shops and offices. SF agrees to supply and fit spring blinds in Lifes Good (LG's) office for an agreed price of $2,500 payable 30 days after fitting. TF fits the spring blinds on 1 January and hands LG an invoice requiring payment on 31 January. On 10 January, one of LG's biggest clients, Super Winery (SW) rescinds their contract and this threatens to cause LG significant financial problems. LG contacts TF on 12 January, explaining that they are suffering from financial difficulties.' As a result, TF accepts immediate payment from LG of $2,000 in full and final settlement of what LG may owe under the contract for the spring blinds. TF wants to sue LG for the balance.

Advise TF.