Pippa owns a children's play area called Playzone. She decided to extend her outdoor play area by

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Question:

Pippa owns a children's play area called "Playzone". She decided to extend her outdoor play area by building a pirate ship in the garden. A local carpenter called Amir agreed to do the work to build the wooden pirate ship for a price of £7,500 including labour and materials. He agreed to finish the work by 19th May a week before the school half term (a busy time for Playzone).

Pippa's sister Paula, a sole trader who makes and sells soft furnishings, told Pippa that she had some great ideas for the pirate ship and that she could make a sail decorated with a skull & crossbones and that she could make some weather-proof cushions and bean bags to go on board the pirate ship.

Amir built most of the pirate ship but then he told Pippa that he had underestimated the cost of the materials and that in order to finish the project he was going to need more money. Pippa was worried she would struggle to find someone else to come in at this stage and finish the work and she was keen to get the job finished by the next school half term which was only two weeks away. She reluctantly offered to pay Amir an extra £750 on completion of the work. Amir said that would be a huge help and that he would be able to pay for the materials he needed and finish the work. Amir finished the work a week later by 19th May as agreed.

When the pirate ship was finished Paula arrived to deliver the sail, the cushions and bean bags. Pippa was delighted. She was so pleased with them that she promised to give Paula £200 for her trouble.

Unfortunately, Playzone was not as busy as anticipated during the school half term and the business is struggling financially. Pippa does not want to pay Amir the extra £750 and nor does she want to give Paula the £200 that she promised her.

Advise Pippa:

Whether she is obliged to pay Amir the extra £750; andWhether she is obliged to pay Paula the £200 she promised

To do this you must:

Explain what is needed for a binding contract and contractual variation;

Define consideration;

In relation to Amir set out and apply the rules relating to upward variations including consideration and duress;

In relation to Paula set out and apply the rules relating to past consideration.