Asked by Nathan Labonté on Apr 26, 2024

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If a party is already bound by contract to perform a certain duty, that duty can serve as consideration for a second contract.

Preexisting Duty

Preexisting Duty is a legal principle stating that an action or service required by an existing contract cannot serve as consideration for a new contract.

  • Identify the distinction between executable and inexecutable promises through the evaluation of consideration presence.
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ZK
Zybrea KnightMay 03, 2024
Final Answer :
False
Explanation :
Consideration requires that each party offer something new of value in exchange for the other's promise or performance. If a party is already legally obligated to perform a duty under a previous contract, performing that same duty cannot serve as valid consideration for a new contract because it does not constitute a new or additional benefit to the other party.