Asked by Cassie Trucchio on May 08, 2024
Verified
Marilyn contracted with Bravo Builders to build an addition to her house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Marilyn agrees, which of the following is correct?
A) Marilyn will have to pay $20,000.
B) This is a contract under seal which is enforceable.
C) This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders.
D) This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders.
Preexisting Contract
A legal agreement that was created and became effective before the current discussion or issue.
Additional Consideration
Extra benefits or compensation provided to one party in a contract to modify or amend the original terms.
- Explain the conditions under which modifications to contracts require additional consideration under common law versus the UCC.
Verified Answer
RP
Randy ParedesMay 10, 2024
Final Answer :
C
Explanation :
This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders. In order for a modification to a contract to be enforceable, both parties must agree to the modification and receive some form of consideration (something of value) in exchange for the modification. In this case, Marilyn would be agreeing to pay an additional $5,000, but Bravo Builders would need to offer some form of additional consideration, such as additional work or materials, in order for the modification to be enforceable.
Learning Objectives
- Explain the conditions under which modifications to contracts require additional consideration under common law versus the UCC.