Use this fact situation to answer the related questions that follow. On January 1,A and B enter into a contract under which B agrees to renovate A's house by September 1 for $60 000.00.By June 2,B has not yet started the renovations and A is getting worried,so A tells B that he will pay him an extra $5000.00 if B completes the renovations on time.B completes the renovations by September 1st and now asks A for $65 000.00.
In this situation,
A)A's promise to pay B an extra $5000.00 is not supported by fresh consideration.
B)A's promise to pay B an extra $5000.00 is made before the contract is over.
C)the consideration for the contract on January 1 is $60 000.00.
D)there was a contract on January 1 that must be performed by September 1.
E)all of the above

Question

Quizplus · Accepted Answer

A's promise to pay an extra $5000.00 lacks fresh consideration because B was already obligated to complete the renovations by September 1 under the original contract. The promise was made before the contract was completed, and the original consideration was $60,000.00. There was indeed a contract on January 1 with a performance deadline of September 1.

Use This Fact Situation to Answer the Related Questions That