X and Y have a contract,which obligated X to sell Y 100 boxes of screws for $100.The parties orally modify the contract so that X will sell Y the same 100 boxes of screws for $125.The second agreement is:
A)binding because it is due to unforeseeable situation.
B)binding by virtue of being mutually agreed on.
C)not binding because it is an outputs contract.
D)not binding due to the promise of performing a preexisting legal obligation.

Question

Quizplus · Accepted Answer

Courts can enforce fair modification agreements by holding that the parties mutually agreed to terminate their original contract and then entered a new one.

X and Y Have a Contract,which Obligated X to Sell