Asked by Nathan Labonté on Apr 26, 2024
Verified
If a party is already bound by contract to perform a certain duty, that duty can serve as consideration for a second contract.
Preexisting Duty
Preexisting Duty is a legal principle stating that an action or service required by an existing contract cannot serve as consideration for a new contract.
- Identify the distinction between executable and inexecutable promises through the evaluation of consideration presence.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
False
Explanation :
Consideration requires that each party offer something new of value in exchange for the other's promise or performance. If a party is already legally obligated to perform a duty under a previous contract, performing that same duty cannot serve as valid consideration for a new contract because it does not constitute a new or additional benefit to the other party.
Learning Objectives
- Identify the distinction between executable and inexecutable promises through the evaluation of consideration presence.