Fact Pattern 12-A3
Cut-Rate Construction Company begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.
-Refer to Fact Pattern 12-A3. If CCC offers no reason for the extra $100,000, but says only that it will otherwise stop construction, the agreement is
A) enforceable as an accord and satisfaction.
B) enforceable because of unforeseen difficulties.
C) unenforceable as an illusory promise.
D) unenforceable due to the preexisting duty rule.

Question

Fact Pattern 12-A3 
Cut-Rate Construction Company begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.
-Refer to Fact Pattern 12-A3. If CCC offers no reason for the extra $100,000, but says only that it will otherwise stop construction, the agreement is
A) enforceable as an accord and satisfaction.
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 party cannot demand additional compensation for performing a duty they are already contractually obligated to perform.