Law of Contract

Law of Contract

Alan owns a restaurant that specializes in Italian food. He has recently secured a lucrative booking for a large wedding. The bride, Donna, agrees to pay $30,000
for the event. This price covers the hire of the restaurant, the provision of staff and all the catering services. For the wedding, the restaurant is to be made
look like a Tuscan Villa; to complete the effect a fountain will be installed in the restaurant’s courtyard. Donna pays $20,000 in advance and agrees to pay the
rest on the wedding.Some time ago Charles, the chef, designed a beautiful Italian themed menu which will be used at the wedding. Alan is pleased that this will
save him some work so he tells Charles that he will give him $50 for his effort.

In order to recreate the atmosphere of a Tourism Villa, Alan decides to hire Charles Your Dream Builder (CYDB) to carry out some alterations to the restaurant
including installing a fountain in the courtyard. It is agreed that the work will be completed in two weeks. Alan sees that CYDB are making very slow progress
and he is worried that they will not complete the job on time. Alan approaches CYDB and offers them an additional $1,000 to ensure that the work is completed on time.
CYDB agree to this and the refurbishment is completed as agreed.
The bride, Donna, has a wonderful wedding day. However, she tells Alan that she can only afford to give him $5,000 rather than the $10,000 agreed. Donna says
that Alan can take it, as he will not be getting any more money. Alan reluctantly agrees to accept the $5,000. Some weeks later Alan discovers that Donna has
just won a large amount on the lottery.
Advise Alan with regards to the following:

A) 1. Alan’s promise to give Charles $50

B) 2. Alan’s promise to give Create Your Builders an additional $1,000

C) 3. Alan’s agreement with Dona to accept $5,000 instead of $10,000

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