"A promise to perform a pre-existing contractual obligation cannot provide consideration for a new contract.That rule is based on the fact that it would be undesirable if party A could threaten to break an existing contract in order to get party B to enter into a second agreement at a higher price." Is that statement true: (i)if the existing contract was created between A and B,or (ii)if the existing contract was created between A and C? In each instance,provide two reasons for your answer.

Question

Quizplus · Accepted Answer

The Answer of "A promise to perform a pre-existing contractual obligation cannot provide consideration for a new contract.That rule is based on the fact that it would be undesirable if party A could threaten to break an existing contract in order to get party B to enter into a second agreement at a higher price." Is that statement true: (i)if the existing contract was created between A and B,or (ii)if the existing contract was created between A and C? In each instance,provide two reasons for your answer.

"A Promise to Perform a Pre-Existing Contractual Obligation Cannot Provide