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Tom, an architect, entered into a contract with Jerry to construct a double Storey house for 200,000 on a piece of land that Jerry had inherited from his grandmother. They agreed that the house should be built by the 31st September. Tom engaged Rachel to carry out all the plastering work by the 21st September. Rachel had completed about half the work when she informed Tom that she had underestimated the time the job would take and that she would in all likelihood finish the plastering on the 2nd October. Tom offers to pay Rachel an extra 30% of the agreed price and suggests that she employs a plasterer to help her with the work. Rachel asks Beatrice to help her and as a result the plastering is completed on the 21st September. Jerry has informed Tom that his investments are doing badly and that he will not be able to pay Tom the price they agreed. Tom takes the 190,000 that Jerry offers him, nodding when Jerry says that that this is in full settlement of the price. Jerry has in fact been investing in more shares and Tom has asked Jerry to pay the remainder of the price. Meanwhile Tom has refused to pay Rachel the extra 30% of the agreed price for the plastering.
Benedict, a fine arts student, obtained Jerry’s permission to carve a piece of rock in one corner of Jerry’s property while the building work was going on. On seeing the finished carving, Jerry promised to reward Benedict with 700 to help him out with his tuition fees. Benedict is still awaiting payment from Jerry.
Advise Jerry, Rachel and Benedict.
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