Biz Law Assignment Essay

2312 Words Nov 9th, 2014 10 Pages
1) Advice Jason Miao whether he can go back on his promise of paying the extra $5,000.
Jason Miao and Damien has concluded a contract to construct a swimming pool at the cost of $30,000 payable on completion of the work, which was not in dispute by either parties. After the construction work has commenced, Damien has asked Jason Miao for an extra $5,000 to cover the cost of materials and additional effort. The legal issue is whether Jason Miao is bound by thehis promise to pay Damien the such extra $5,000 to Damien to cover the cost of the materials and the additional effort.
The extra $5,000 constitutes a new of term in the original contract. According to Preston Corporation Sdn Bhd V Edward Leong & Ors (1982) 2 MLJ 22, Damien’s
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This case established that what is known as the equitable principle of promissory estoppel according to this principle when the promisor who, with the intention to be legally bound, makes a promise to the promisee to whom he knows will who relyies on it to his or her detriment, will be enforced provided the promisor has acted on it. This principle is intended to stop the promisor from denying that the statements, word or conduct did not happen. It is important to note that no consideration is necessary, but Ffor this principle to work there must already be a pre-existing contractual relationship and both parties must rely on the promise. With this principle and authority and applying it to In the current situation, Damien found that the work is more difficult than expected and the cost of materials for construction of the swimming pool have gone higher. Damien asked for an extra $5,000 which Jason Miao agreed to pay. Damien, relying on Jason Miao’s promise, has completed the work by September and as a result incurred extra cost and put in additional effort. Therefore Jason Miao is estopped from going back on his promise of paying the extra $5,000.Jason and Damien, it can be argued Damien needs that $5000 extra for the materials and the additional effort in order to complete the construction on time and because of this, Jason made the promise so that he will have the pool by then.
However as a counter argument, in the case Stilk V Myrick (1809)

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