It sounds to me like there is a relationship there and that neither of you would like to hurt it. I would say that it is not a legal question but a friendship question. I would not "flip" him $100. I would tell him that you heard about the damage and say that you want to HELP him with it. That way he has the opportunity to turn the money down and you can both go forward as friends. Just like when someone does a job for you when NOT expecting payment you still give them the opportunity to say that they don't want the money instead of looking like they should expect to work for you for nothing. Friendship is worth more than one or two hundred bucks.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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