Fact Pattern 12-A2 (Questions A8-A10 apply)
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 12-A2.If CCC offers,as a reason for the extra $100,000,that ordinary business expenses have increased,the agree?ment is
A)enforceable as an accord and satisfaction.
B)enforceable because of unforeseen difficulties.
C)unenforceable as an illusory promise.
D)unenforceable due to the preexisting duty rule.

Question

Quizplus · Accepted Answer

The preexisting duty rule states that a promise to do something that one is already legally obligated to do cannot be consideration for a new contract. In this case, CCC was already obligated to complete the restaurant construction for the original agreed-upon price. Therefore, their demand for an extra $100,000 cannot be enforceable under the preexisting duty rule.

Fact Pattern 12-A2 (Questions A8-A10 Apply)