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Seen question for Law

I have a first year contract law exam in two days, and as part of the exam, we must answer a seen question regarding consideration, which is below. However I'm unsure or whether or not I should be advising Dave of whether or not paying £30 or £50 an hour is the correct option? I need to take into account performance of an existing contract, whether or not there is fresh consideration for a promise, whether or not there is any economics duress involved... any help would be great!

Dave contracts with Ian a carpenter to work on one of his construction projects. Ian is renowned for his fast, yet precise carpentry skills and so Dave agrees to pay Ian £30 per hour. Ian has been hit hard by the ongoing recession owing to the general drop in wages for construction workers. Indeed he is fearful that he may be unable to keep up the re-payments on his various bank loans.

However a few days later Ian starts work for Dave, he is approached by a rival company to work for them at a rate of £50 per hour. Ian informs Dave of this offer and says that if he doesn’t match the price he will unfortunately have to resign. Since Dave is running behind schedule on this project and fears incurring a penalty, he agrees to the wage increase and, thanks to Ian’s fast carpentry skills, the work is finished on schedule. However, Dave regrets agreeing to increase Ian’s hourly rate and refuses to pay more than the £30 originally agreed.
Advise Dave.
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Avatar for Mimir
Mimir
20
I'm fairly certain that it's against TSR Forum rules to help you with an exam question.

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