If a home builder promises to build a house for $100,000 but a mudslide destroys the foundation during construction and he must rebuild it,does the preexisting duty rule prevent him from enforcing a contract in which he charges additional money to the homeowner?
A)Yes because he has a pre-existing duty to build the house.
B)Yes,because there are no exceptions to the pre-existing duty rule.
C)No,because there are unforeseen circumstances the mudslide)which necessitate additional work rebuilding the foundation).
D)No,because of UCC Article 2.
E)No,because he had no duty to rebuild the house after the mudslide.

Question

Quizplus · Accepted Answer

A)There are exceptions to the preexisting duty rule: unforeseen circumstances,
additional work,and UCC Article 2 sale of goods).If unforeseen circumstances cause a party to make a promise regarding an unfinished project,that promise is valid consideration.

If a Home Builder Promises to Build a House for $100,000