Question: Morrison and Jake enter into a contract, but as they are performing their obligations under the contract, Jake encounters issues that make it extremely difficult
Morrison and Jake enter into a contract, but as they are performing their obligations under the contract, Jake encounters issues that make it extremely difficult for him to fulfill the obligations. Neither Jake nor Morrison saw these potential issues at the time they entered into the contract. Will a court allow Jakes preexisting duty under this contract to be consideration for a revised contract with Morrison?
Yes, because the rule regarding preexisting duty is meant to prevent extortion. Therefore if during performance of a contract, extraordinary difficulties arise that were totally unforeseen at the time the contract was formed, a court may allow an exception to the rule.
No the rule regarding preexisting duty is meant to prevent one party from having an excuse not to perform. Therefore, even if during performance of a contract, extraordinary difficulties arise that were totally unforeseen at the time the contract was formed, a court will not allow an exception to the rule, because that would be rewarding the party in breach.
No because the rule regarding preexisting duty is meant to prevent extortion. Therefore, even if during performance of a contract, extraordinary difficulties arise that were totally unforeseen at the time the contract was formed, a court will not allow an exception to the rule.
Yes, because the rule regarding preexisting duty is meant to avoid having to negotiate a new contract and helps to speed up the process of contract negotiations. Therefore if during performance of a contract, extraordinary difficulties arise that were totally unforeseen at the time the contract was formed, a court will automatically allow an exception to the rule.
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