When undertook original deal welldriller hits rock

  • Fordham University
  • CNGL 0104
  • Test Prep
  • agarcia102
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The Legal Environment of Business: Text and Cases
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Chapter 13 / Exercise 1
The Legal Environment of Business: Text and Cases
Cross/Miller
Expert Verified
when undertook original deal (welldriller hits rock and asks for higher price to finish job), most moderncourts will find modification binding). UCC:pre-existing duty rule doesn’t apply to contract modification. Needs no consideration to be binding. UCC 2-209 belowFoakes v. Beer (House of Lords, 1884)F: Beer (P) agreed to forego interest on a debt if Foakes (D) would pay her part of the debt immediately and the remainder in installments. R: There is no consideration present where the debtor makes a new agreement to do that which he is already obligated to do. P obtained no advantage. Court’s shouldn’t judge adequacy, but not consideration whatsoever present.Restatement §73 comment c (p290):Slight variations of circumstance are commonly held to take a case out of the rule, particular where parties have made an equitable adjustment in the course of performance of a continuing contract, or where an impecunious debtor has pai part of his debt in satisfaction of the whole – some state the rule has simply been repudiated.
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The Legal Environment of Business: Text and Cases
The document you are viewing contains questions related to this textbook.
Chapter 13 / Exercise 1
The Legal Environment of Business: Text and Cases
Cross/Miller
Expert Verified
Angel v. Murray (RI 1974) (p137)F: Maher asked for 10K more per year to collect refuse even though his K with the city to providethis service had not yet expired.R: Where unanticipated circumstances or conditions have occurred, parties to a K may voluntarily increase the amount of compensation due even if no additional consideration is given.Restatement §89 (p299): Modification of Executory Contract: A promise modifying a duty under a K not fully performed on either side is binding(a)if the modification is fair and equitable in view of circumstances not anticipated by the parties when the K was made; or(b)to the extend provided by statute; or(c)to the extent that justice requires enforcement in view of material change of position in reliance on thepromise.Austin Instrument, Inc. v. Loral Corp. (NY 1971)F: Austin (P) threatened to withhold delivery of precision parts unless Loral (D) would raise the K price. K contained a liquidated damage clause for late delivery and cancellation clause in case of default by D. D awarded P subcontract to supply parts. P threatened to cease delivery of parts unless D increased subcontract price. D consented after not finding anyone able to meet needs.R: K modification is voidable on ground of duress when party claiming duress establishes its agreement to modification was obtained by means of wrongful threat from other party which precluded first party’s exercise of free will. UCC §2-209: Modification, Rescission and waiver.(1)An agreement modifying a K within this Article needs no consideration to be bindingMUST MEET GOOD FAITH TEST – observance of reasonable commercial standards of fair dealing in the trade (§2-103), and may require objectively demonstrable reason for seeking modification. Market shift which makes performance come to involve a loss may provide a reason even though no such unforeseen difficult as would make out a legal excuse from performance under Sections 2-615 and 2-616(2)

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