Bruce, a builder, agreed to

renovate a house for Lula for $200,000. The works were meant to be finished

by March 2024. Lula was very keen for the work to be completed on time as

she had already agreed to sell the house to Popeye, who would move in on

1 April 2024. Indeed, Lula would need to pay heavy penalties to

Popeye for each day’s delay from 2 April onwards.

Bruce commenced work and

not long after realised that due to unexpected disruptions in the supply chain

for raw materials, he would not be able to complete the renovation works on

time. Bruce approached Lula and asked for some additional time.

Lula refused. Instead, Lula

offered to pay an extra $50,000 if Bruce finished the work by the due date.

Bruce accepted and the work was then completed by the due date.

Which of the following

statements is