Contract law helpWatch
Jane, the owner of a car dealership, entered into a loan agreement with
Fast Cash Ltd. The loan was for £24,000 and payment was to be made by
twelve equal instalments of £2,000 each, commencing 1
st May 2019.
Jane paid six of the first instalments as they fell due. However, in October
2019, Jane found herself in financial difficulties due to fall in demand for
luxury cars. As a result, Jane approached Fast Cash Ltd and told them that
she would be unable to pay the November instalment nor make any
further payments. Fast Cash Ltd promised Jane that she need not pay the
remaining instalments until her financial position had improved.
In mid-January 2020, Jane obtained a profitable contract with a luxury
transport supplier. On hearing this news, Fast Cash Ltd approached Jane
and demanded that she repay the remaining instalments under the
agreement. Fast Cash Ltd also demanded that she pay the arrears
between November 2019 and January 2020