Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 8

Willamette Management Associates Inc. contracted to perform extensive accounting services involving Kimberly Palczynski's husband's business interests in connection with a martial case between the couple. The contract required Palczynski to pay any outstanding fees to Willamette before its principal, Alan Schachter, would be asked to testify in court. Right before trial, Palczynski owed Willamette $67,000. Schachter urged Palczynski to make a payment arrangement because he thought his testimony would be very helpful to her. The parties signed a second agreement requiring Willamette to continue to perform the same work for $57,000, to be paid in monthly installments by Palczynski. She made no payments, so Willamette sued her. Willamette argued that she second agreement was unsupported by consideration and thus the court should enforce the first agreement. Should it?