National Business Company and One-State Sales, Inc., agree to si?multa?neously rescind their contract and enter into a new agreement under which their duties are the same. National later sues One-State to enforce the new agreement. The court

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When parties rescind a contract and enter into a new agreement with the same terms, the preexisting duty rule may apply. However, courts have the discretion to allow the rescission and enforce the new agreement if there is evidence of new consideration or other valid reasons for the change. Therefore, the court may apply the preexisting duty rule or allow the rescission depending on the circumstances of the case.