Quiz 12: Agreement in Traditional and E-Contracts

Business

Preexisting Duty: • A preexisting duty occurs when consideration is not legally sufficient if one is either by law or contract under a preexisting duty to perform the action being offered as consideration for a new contract. • Here Marteen tells Tabor that due to economic reasons he will not fulfill his end of the contract unless Tabor pays more than the contracted amount. • Marteen's unforeseen difficulty does not present a defense to preexisting duty because the type of risk that Marteen assumed when he made the contract was typical for his business. • Unforeseen difficulties that are the types of risks ordinarily assumed in business do not qualify for an exemption to preexisting duty.

The basic element of consideration is that firstly, something of legally sufficient value must be given in exchange for the promise and secondly, there must be a bargained for exchange. In considering these elements, the basic elements of consideration are present in the neighbor's promise to help J reassemble the garage. As J's neighbor promised him to reassemble it only if J help him to dismantle the garage which is of something legally sufficient value and is bargained for the exchange of dismantling the garage.

Preexisting Duty: • A preexisting duty occurs when consideration is not legally sufficient if one is either by law or contract under a preexisting duty to perform the action being offered as consideration for a new contract. • Here Shad tells Bernstain that due to economic reasons he will not fulfill his end of the contract unless Bernstain pays more than the contracted amount. • Shad's unforeseen difficulty does not present a defense to preexisting duty because the type of risk that Shad assumed when he made the contract was typical for his business. • Unforeseen difficulties that are the types of risks ordinarily assumed in business do not qualify for an exemption to preexisting duty.

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