James had a contract with Frasier to fix a plumbing issue at Frasier's home. The contract was made for $3,000. After the work was completed, Frasier then refused to pay anything unless James agreed to accept $2,500. James's attempt to make a new contract is void because it lacks consideration under the ________ concept.
A) illegal consideration
B) gift promise
C) past consideration
D) preexisting duty

Question

Quizplus · Accepted Answer

The concept being referred to is preexisting duty. James already had a preexisting duty to fulfill the terms of the original contract, and Frasier's attempt to renegotiate for a lower price without any additional consideration offered makes the new contract void. Illegal consideration refers to actions that are illegal or against public policy, gift promises are not contracts because they lack consideration altogether, and past consideration refers to something that has already been done and cannot be used as the basis for a new contract.

James Had a Contract with Frasier to Fix a Plumbing