Which of the following is true regarding the preexisting duty rule?

A) Unforeseen circumstances are an exception, but additional work and past consideration are not exceptions.
B) Additional work is an exception, but unforeseen circumstances and past consideration are not exceptions.
C) Past consideration is an exception, but unforeseen circumstances and additional work are not exceptions.
D) Unforeseen circumstances and additional work are exceptions, but past consideration is not an exception.
E) Unforeseen circumstances and past consideration are exceptions, but additional work is not an exception.

Question

Cameron Adams · Accepted Answer

Final Answer : D, Explanation :  The preexisting duty rule states that a promise to do something that one is already legally obligated to do is not considered sufficient consideration for a new contract. However, exceptions to this rule include unforeseen circumstances that significantly change the nature of the original contract and additional work or modifications that go beyond the scope of the original agreement. Past consideration, which refers to actions or benefits provided before the making of a promise, is not considered valid consideration for a new contract.

Definitions

Learning Objectives

Learning Objectives

Related questions