Contracts & ExecutionQuestion 800 of 1605
A contractor already under contract to frame a house for $40,000 demands an extra $5,000 midway through, claiming the job is 'harder than expected,' but the scope has not changed. If the owner reluctantly agrees, the promise to pay the extra $5,000 is generally:
a.Unenforceable under the pre-existing duty rule because the contractor gave no new consideration
b.Automatically a valid change order
c.Enforceable only if the extra is under 20% of the price
d.Fully enforceable because the owner agreed
Explanation
The pre-existing duty rule holds that a promise to do something a party is already contractually bound to do is not valid consideration. Because the framer was already obligated to complete the framing for $40,000 and the scope did not change, the owner's promise to pay an additional $5,000 lacks new consideration and is generally unenforceable. A genuine change order requires a real change in scope or a new bargained-for exchange.
Practice all 1605 questions free — no signup required.
Related questions on this topic
- A supplier offers to sell a contractor 500 sheets of drywall at a stated price, promising in a signed writing to hold the offer open for 10 days. Before accepting, what is the general rule about an ordinary (non-option) offer?
- A contractor mails a written acceptance of a subcontractor's offer. Under the traditional 'mailbox rule,' acceptance by an authorized means is generally effective when:
- A promise to make a gift, with nothing given in return, is generally:
- Under the Statute of Frauds, which type of agreement generally must be in writing to be enforceable?
- Which of the following contracts is LEAST likely to be required in writing under the Statute of Frauds?
- A landowner orally promises to sell a vacant lot to a contractor, and both shake hands. When the landowner backs out, the contractor sues to enforce the oral sale. The strongest defense the landowner has is:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)