Modifications

Question 1

What is pre-existing duty rule?

Answer 1

Under common law, increasing compensation for duties already owed is unenforceable modification because there’s no consideration given that party already owed the performance

Question 2

When are mutual modifications of an existing contract enforceable under common law?

Answer 2

1. both parties agree to different performance from that originally required
2. difference in performances are not merely a pretense for a newly formed bargain

Question 3

What is common law rule regarding modification in light of unforeseen circumstances?

Answer 3

Preexisting duty rule is not applicable if increased compensation is given in exchange for the same performance that has now become substantially more burdensome than reasonable anticipated when contract was formed

Question 4

When are modifications enforceable under UCC

Answer 4

Agreements modifying an existing contract are enforceable even without consideration as long as they’re made in good faith