Tutorial 5- Consideration

Required reading:
• Study Manual
Chapter 5

• Reading Materials
Textbook: Ewan McKendrick - Page 66-111

Problem Question
Coco owns a circus and has decided to do a bit of minor repair work. He
agrees with Rusty, a local locksmith, to fit new locks on all the lion cages. On
his way to start the job, Rusty bumps into Larry, one of the lion tamers, Larry
has been concerned that the cages have not been safe for a long time and
has feared for his safety. He is delighted that Rusty has been employed. He
tells Rusty that if he completes the job, he will give him an extra £100, Rusty
completes the job as agreed. The forthcoming weekend is a bank holiday and
the weather forecast predicts high summer temperatures. Coco always has a
lot of visitors to the circus in such clement weather and can make a lot of
money. He therefore decides to get the Big Top painted before the weekend.
He asks Pete to undertake the painting for £2,500. Halfway through the job
Pete realises that it is going to take far longer than he thought. If he is to
finish before the weekend he will need the assistance of another painter. He
tells Coco that he will need a further £800 to cover the cost. Coco starts to
get annoyed but notices Pete packing away his paint brushes and getting into
his van. He agrees to the extra £800. Zara has worked as a trapeze artist at
Coco’s circus for some years. One evening, one of the fire eaters is sick. Zara
immediately covers for the act, thrilled that she has saved the performance.
Coco promises her a salary increase. He later regrets this decision and
refuses to increase her salary.

Advise the parties.