Peter runs a launderette. His friend Jane is the manager of a local sports team, Carlow Utd. Peter and Jane enter into an agreement for Peter to wash all of Carlow Utd’s kit for a period of six calendar months. He is to be paid £500 per week, including collection and delivery of the kit. Due to increased energy costs, Peter is no longer making a profit on the contract, and can no longer afford to pay his delivery driver. He tells Jane that he will no longer be able to collect and deliver the
kit. Jane suggests that she would be willing to pay an extra £100 per week if it would allow Peter to continue making deliveries. In fact, Jane is already paying above the market rate for laundry services, but she is happy to pay more out of loyalty to her friend. Peter agrees to this.
Peter has also fallen into arrears of £1000 with his electricity company, Leccy Ltd. He telephones Leccy Ltd and tells them that he can only afford to pay £500 of this. Leccy Ltd tell him that, if he pays £500 and continues to keep up to date with his subsequent payments, they will not pursue him for the remaining £500. He agrees to this and pays £500 immediately.
Peter and Jane subsequently fall out, and Jane refuses to pay him the extra £100 per week. As a result of this, Peter is unable to afford his electricity bill of £100 the next month. Leccy Ltd is now seeking repayment of £600.
Man on Clapham omnibus says, get a decent lawyer and an accountant as you (Peter) clearly aren't very good at running your business. It isn't your former friend's to bale out your business, though Jane has been a bit naughty in breaking her promise.