Fact Pattern 10-2
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 10-2. 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 10-2 
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 10-2. 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

This situation falls under the preexisting duty rule, which is a common law doctrine that says a party to a contract cannot demand additional compensation for doing something they were already obligated to do under the contract. Since Teatro was already under obligation to renovate the old theater for Urban Edge Productions, they cannot demand extra compensation without providing any specific reason. Therefore, the agreement is unenforceable due to the preexisting duty rule.