0538452803_269390 - BLTC-9e Sample Answers for...

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BLTC-9e Sample Answers for End-of-Chapter Hypothetical Questions with Sample Answer Chapter 11: Consideration 11.2 Hypothetical Question with Sample Answer Bernstein owns a lot and wants to build a house according to a particular set of plans and specifications. She solicits bids from building contractors and receives three bids: one from Carlton for $60,000, one from Friend for $58,000, and one from Shade for $53,000. She accepts Shade’s bid. One month after construction of the house has begun, Shade contacts Bernstein and informs her that because of inflation and a recent price hike in materials, he will not finish the house unless Bernstein agrees to pay an extra $3,000. Bernstein reluctantly agrees to pay the additional sum. After the house is finished, however, Bernstein refuses to pay the extra $3,000. Discuss whether Bernstein is legally required to pay this additional amount. Sample Answer: The legal issue deals with the preexisting duty rule, which basically states that a promise to do what one already has a legal or contractual duty to do does not
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This note was uploaded on 11/21/2011 for the course MGMT 4324 taught by Professor Tim during the Spring '11 term at Andhra University.

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0538452803_269390 - BLTC-9e Sample Answers for...

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