Fact Pattern 12-1
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 12-1. 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 12-1
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 12-1. 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

Teatro Restoration, Inc. has a preexisting duty to complete the renovation work as agreed upon in the contract with Urban Edge Productions. Therefore, demanding additional payment without providing a reason for it is not valid consideration, and the agreement is unenforceable under the preexisting duty rule.

​Fact Pattern 12-1 Teatro Restoration, Inc., Begins Renovating an Old Theater for Urban

Fact Pattern 12-1 Teatro Restoration, Inc., Begins Renovating an Old Theater for Urban