Question: Abel, a skilled builder, had contracted to construct a bungalow for Cain, a wealthy religiousleader and adviser. It was agreed that the project would complete

Abel, a skilled builder, had contracted to construct a bungalow for Cain, a wealthy religiousleader and adviser. It was agreed that the project would complete on 1 July 2024. The agreedconstruction price was HK$3 million, to be paid in two instalments. The first instalment, totalingHK$1 million, was paid when the contract was signed. The second instalment was payable uponcompletion.Six months into the project, Abel told Cain that he had underestimated the construction cost andhad difficulty in finishing the project on time. Since Cain had already scheduled to host areligious conference in the bungalow after the agreed completion date, Cain promised to giveAbel an extra HK$500,000 if Abel could complete the project on time. Abel agreed. Abelmanaged to finish the bungalow on time but the flooring, in Cains opinion, was not up to therequired standard. As a result, Cain refused to settle the outstanding amount. Eventually, Cainspent an extra HK$100,000 in repairing the flooring before the bungalow could be used.As a religious leader of a cult, Cain emphasized unquestioned loyalty to his teaching andopinions; he always instructed his followers not to seek advice from other non-believers. Oneunique feature of his cult was its emphasis on material wealth. Cain linked earthly wealth tospiritual salvation, often sharing investment insights with his followers. During a face-to-facemeeting with Baethan, an elderly man estranged from his wife and children, Cain discussed hisrecently built bungalow. Cain pitched the bungalow as a lucrative investment opportunity forBaethan. Initially hesitant, Baethan feared being left behind if he did not purchase the bungalow.Baethan also feared his hesitance would be regarded as disloyalty to the sect. Consequently,Baethan paid a total of HK$25 million for the bungalow. The bungalow was worth HK$ 5million on the open market.
Advise Abel and Baethan.

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