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Unformatted text preview: agreement but on completion of the work refused to pay. When Rock Services filed a suit against Empire, Empire claimed that the modification lacked consideration and thus was not valid and enforceable. Parties may effectively modify a contract by rescinding a contract, and as a result set up a new contract. Sometimes rescission and the making of new contract remain the same duty for both parties as in their original contracts. In those situations, the courts frequently are giving a choice of applying the preexisting duty rule or allowing rescission and letting the new contract stand. In this case there was an unforeseen difficulty such as heavy concentration of water. Because the unforeseen difficulty did occur the court may retrain from applying preexisting duty rule, even though the courts usually assert the preexisting duty rule....
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This note was uploaded on 03/11/2011 for the course ACC 101 taught by Professor Corolinsky during the Spring '11 term at SUNY Albany.
- Spring '11