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 says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, 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 says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is

Quizplus · Accepted Answer

If Teatro encountered unforeseen difficulties that will add considerable cost to the project, their request for additional payment is justified and enforceable. This falls under the doctrine of impracticability or frustration of purpose, which allows for modifications to a contract when unforeseen events make performance significantly more difficult or expensive. It is not an illusory promise as Teatro is making a specific demand for additional payment. However, it is not a case of past consideration as the additional payment is being made for work that is yet to be completed. The preexisting duty rule may not apply if the unforeseen difficulties were truly unpredictable and made performance significantly more burdensome.

​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