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Fact Pattern 12-2A
Cut-Rate Construction Company (CCC) 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 12-2A. If CCC offers, as a reason for the extra $100,000, that ordinary business expenses have increased, the agreement is:_________
a. unenforceable due to the preexisting duty rule.
b. unenforceable as an illusory promise.
c. enforceable because of unforeseen difficulties.
d. enforceable as an accord and satisfaction.

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osondumartins

Answer:A. unenforceable due to the preexisting duty rule.

Explanation: Preexisting rule is a common rule in law that is concerned with contractual agreement or obligations.

The pre-existing rule tends to state that when two parties in a contract have already agreed to the contract terms and conditions through signatures etc, any other request by any party to the modification of the contract can not be binding on either of the parties involved in the contract.

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