ABC Ltd. is owed $10 000 from Mr. Smith for home repair. Mr. Abbott, a senior officer with ABC Ltd., went to the Smith’s home to secure payment and spoke with Smith. Abbott explained that without payment, ABC faced bankruptcy. In response, Smith began complaining about the poor quality of the work done (even though he knew the work was perfectly fine) and that he would only pay $4000. “Take it or leave, buster,” he said. Abbott took his cheque and cashed it, feeling that he had no choice in the matter. He would now like to go after Mr. Smith for the balance. Can he do so?
This problem is based on D & C Builders v. Rees, [1966] 2 Q.B. 617.