Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

Exercise 1

Koedding hired West Roofers to put a roof on her house. She later claimed that the roofing job was defective, and she threatened to sue West. Both parties discussed the matter in good faith. Finally, West guaranteed that the roof would be free from leaks for 20 years in return for the guarantee by Koedding not to sue West for damages. The roof leaked the next year, and Koedding sued West on the guarantee. West claimed that the guarantee was not binding because there was no consideration for it. According to West, Koedding's promise not to sue had no value because Koedding did not have any valid claim against West; therefore, she was not entitled to sue. Was this defense valid?