Albert has a contract to buy 100 tables from Bartholomew at a price of $50 a table.Five days before Bartholomew is to deliver the tables, he calls Albert to say that he is sorry but $50 won't cover his costs; he will need at least $75 a table.Albert agrees, because he needs the tables for his special sale.The modified contract is enforceable even though Albert isn't getting any new consideration, as long as Bartholomew is acting in good faith and the agreement to the new price is put in writing.

Question

Quizplus · Accepted Answer

The statement is true. A modification to a contract can be enforceable even if one party is not receiving new consideration if both parties agree to the change in good faith and the modification is put in writing. In this case, Bartholomew is acting in good faith by informing Albert of his increased costs, and both parties agree to the new price of $75 per table in writing. Therefore, the modified contract is enforceable.

Albert Has a Contract to Buy 100 Tables from Bartholomew