Question 2 Consideration, Capacity, Form Total: 20 marks Word limit for Question 2 - 600 words maximum 2.1 Dolly agrees with Kevin that Kevin will paint her living room, kitchen and bedroom for $4,000 completing the painting by 12 November. Kevin completes the work by the agreed date, and he is paid the sum of $4000.00. 1. Dolly is so pleased with Kevin's work that she offers to pay him an extra $100. Is she required to make the payment? Identify the relevant legal rules that apply here. 3 marks ii. Dolly is upset at the smell of the paint fumes, and she offers Eric an extra $100 (in addition to the $4000 if he will finish the work three days early). He agrees to do this. Is she legally required to make the payment? Identify the relevant legal rules that apply here. 3 marks 2.2 Billie is 17 and has a part-time job in the local supermarket for two days a week after school. Billie buys a motorcycle from Big Bikes Limited. Billie pays 15% more than the market price for the motorcycle. She was happy to do this as this shop was the only one which would sell to her on hire purchase. The hire purchase contract is for $12,000. This contract has no deposit but has interest of 25%. One week after signing the contract, Billie changes her mind and wants to cancel the contract Required i. Advise the seller, Big Bikes Limited, of the legal position under the rules governing minors' contracts in the Contracts and Commercial Law Act 2017. Refer to all the relevant legislative sections. 7 marks ii. Assume that Big Bikes Ltd has required Billie to give the name of a guarantor who is to enter into a contract of guarantee. Billie asks her 22-year-old cousin who agrees to be her guarantor. Outline the legal rules that apply to a contract of guarantee, and the liability of the cousin if Billie decides to not complete the contract