Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.
-Refer to Fact Pattern 11-3.If CCC offers,as a reason for the extra $100,000,that ordinary business expenses have increased,the agreement is

Question

Quizplus · Accepted Answer

This is an example of the preexisting duty rule, which states that a promise to do something that one is already obligated to do under law or contract is not consideration. CCC was already contractually obligated to complete the construction for the agreed-upon price, so their demand for an extra $100,000 is not enforceable.

Cut-Rate Construction Company (CCC) Begins Building a Restaurant for Diners