Fact Pattern 13-4
Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay.
-Refer to Fact Pattern 13-4. If Teatro offers no reason for the extra $250,000, but says only that it will stop work if it is not paid, the agreement is

Question

​Fact Pattern 13-4
Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay.
-Refer to Fact Pattern 13-4. If Teatro offers no reason for the extra $250,000, but says only that it will stop work if it is not paid, the agreement is

Quizplus · Accepted Answer

This scenario falls under the preexisting duty rule, which states that a promise to perform a preexisting legal obligation (in this case, completing the renovations as agreed upon) is not valid consideration for a new promise. Teatro is legally obligated to finish the renovations as per the original agreement, therefore, demanding an extra payment without providing a valid reason would be unenforceable.

​Fact Pattern 13-4 Teatro Restoration, Inc., Begins Renovating an Old Theater for Urban

Fact Pattern 13-4 Teatro Restoration, Inc., Begins Renovating an Old Theater for Urban