Nina, an experienced pool contractor, and Charlie agree on a price for Nina to build a pool in Charlie's backyard. Nina discovers that she did not initially include a sufficient charge for labor in her original price. She informs Charlie that unless she receives an extra $5,000 with which to hire workers, she cannot complete the job. Charlie agrees, thinking to himself that he has a way out. When Nina finishes the pool, Charlie refuses to pay the additional $5,000. Which of the following is the most likely result of their dispute?
A) Charlie will be required to pay because a typical, unilateral contract is involved, and he got the benefit of his bargain.
B) Charlie will be required to pay because a typical, bilateral contract is involved, and he got the benefit of his bargain.
C) Charlie will be required to pay because unforeseen circumstances are an exception to the preexisting duty rule.
D) Charlie will not be required to pay because Nina provided no additional consideration, and the preexisting duty rule applies.
E) Charlie will only be required to pay ½ of the agreed upon amounts because of the calculations involved under the preexisting duty rule.

Question

Quizplus · Accepted Answer

Nina had a preexisting duty to complete the pool for the originally agreed price. Asking for more money without providing additional consideration (something of value in return) does not create a new, enforceable contract under the preexisting duty rule. Charlie's agreement to pay more does not change this, as Nina did not offer anything new in exchange for the extra $5,000.

Nina, an Experienced Pool Contractor, and Charlie Agree on a Price