Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is
A)enforceable as the consideration is past.
B)enforceable because of unforeseen difficulties.
C)unenforceable as an illusory promise.
D)unenforceable due to the preexisting duty rule.

Question

​Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is
A)enforceable as the consideration is past.
B)enforceable because of unforeseen difficulties.
C)unenforceable as an illusory promise.
D)unenforceable due to the preexisting duty rule.

Quizplus · Accepted Answer

The agreement is unenforceable due to the preexisting duty rule, which states that a promise to do something that one is already legally obligated to do is not valid consideration for a new contract.

​Refer to Fact Pattern 8-1

Refer to Fact Pattern 8-1