David, the owner of a boutique bakery, supplies high quality, specialised pastries, both savoury and sweet, and exquisite gateaux to Janine, who owns the prime catering operation at Barbary Stadium, a prestigious venue that hosts a number of international sports events. Janine's business provides the catering for executive lunches at the stadium, mainly when there are no sports events taking place. For one executive event, involving a guest visit from the Deputy Prime Minister, Janine orders pastries from David to the value of $6,000. David and his team spend all night preparing the order and then deliver it to Janine at 8.00am on the day of the lunch. The contract allows for settlement of the invoice within 15 days of its being presented to Janine. However, Janine fails to pay within the timeframe. Janine tells David that she had set up for the 12.00 lunch at 10.00am, but at 10.30am the State Premier announced a full lockdown to start at 12.00. Fully occupied with cancelling casual staff and liaising with the event's organisers, Janine was unable to clear up until mid-afternoon, by which time most of the pastries had dried up, the cream on the gateaux had melted, and most were wasted. She received no money from the event organisers and she was already experiencing financial difficulties due to Covid uncertainties. David, aware that he was unlikely to recover the $6,000 and may end up with nothing at all, suggested that Janine pay him $3,000 and make a recommendation to her full list of contacts in catering at the city's other major sports stadiums. David felt that, if even just one of the recommendations led to some orders, it could make up for the $3,000 shortfall within a matter of months. Is the new agreement between David and Janine to accept half of the invoice amount legally binding?
David, the owner of a boutique bakery, supplies high quality, specialised pastries, both savoury and sweet, and exquisite gateaux to Janine, who owns the prime catering operation at Barbary Stadium, a prestigious venue that hosts a number of international sports events. Janine's business provides the catering for executive lunches at the stadium, mainly when there are no sports events taking place. For one executive event, involving a guest visit from the Deputy Prime Minister, Janine orders pastries from David to the value of $6,000. David and his team spend all night preparing the order and then deliver it to Janine at 8.00am on the day of the lunch.
The contract allows for settlement of the invoice within 15 days of its being presented to Janine. However, Janine fails to pay within the timeframe. Janine tells David that she had set up for the 12.00 lunch at 10.00am, but at 10.30am the State Premier announced a full lockdown to start at 12.00. Fully occupied with cancelling casual staff and liaising with the event's organisers, Janine was unable to clear up until mid-afternoon, by which time most of the pastries had dried up, the cream on the gateaux had melted, and most were wasted. She received no money from the event organisers and she was already experiencing financial difficulties due to Covid
uncertainties.
David, aware that he was unlikely to recover the $6,000 and may end up with nothing at all, suggested that Janine pay him $3,000 and make a recommendation to her full list of contacts in catering at the city's other major sports stadiums. David felt that, if even just one of the recommendations led to some orders, it could make up for the $3,000 shortfall within a matter
of months.
Is the new agreement between David and Janine to accept half of the invoice amount legally binding?
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