Fact Pattern 10-1
Sally contracts with Tasty Pizza Company to deliver its products.Both parties change their minds,however,and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 10-1.The next day,Sally changes her mind and again offers to deliver Tasty's products.Tasty is willing to deal,but for a new price.Sally and Tasty
A)may agree to a new contract,but it cannot include a new price.
B)may agree to a new contract that includes the new price.
C)must perform their original contract.
D)must perform the part of their original contract that is executory.

Question

Fact Pattern 10-1 
Sally contracts with Tasty Pizza Company to deliver its products.Both parties change their minds,however,and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 10-1.The next day,Sally changes her mind and again offers to deliver Tasty's products.Tasty is willing to deal,but for a new price.Sally and Tasty
A)may agree to a new contract,but it cannot include a new price.
B)may agree to a new contract that includes the new price.
C)must perform their original contract.
D)must perform the part of their original contract that is executory.

Quizplus · Accepted Answer

Since both parties have already cancelled the original contract, they are free to enter into a new contract with a new price if they both agree to it. There is no obligation to perform the original contract since both parties have agreed to cancel it. So, Sally and Tasty may agree to a new contract that includes a new price.