National Trucking Company begins transporting crude for Oil Inc. under a contract for a stated amount per load. After six months, National demands an increase in the stated amount because ordinary business expenses have increased. Oil's agreement to pay the increased amount is

Question

Quizplus · Accepted Answer

The agreement to pay the increased amount is unenforceable due to the preexisting duty rule, which states that a promise to do something that one is already legally obligated to do is not considered valid consideration for a new promise. In this case, National Trucking Company was already under contract to transport crude for Oil Inc. for a stated amount per load, so their demand for more money does not constitute new consideration.

National Trucking Company Begins Transporting Crude for Oil Inc